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our insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will be taking the ar by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss the automobile if the ferry sank in a storm. What do you tell him/her? OA) The Comprehensive coverage would pay. OB) That there would be no coverage as the ferry was not operating solely between Canadian ports. OC) Stranding or sinking while the automobile is being transported on water is only covered for Specified Perils, not Comprehensive. OD) There would be no coverage unless a special Ferry Rider was added.

our insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will be taking the ar by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss the automobile if the ferry sank in a storm. What do you tell him/her? OA) The Comprehensive coverage would pay. OB) That there would be no coverage as the ferry was not operating solely between Canadian ports. OC) Stranding or sinking while the automobile is being transported on water is only covered for Specified Perils, not Comprehensive. OD) There would be no coverage unless a special Ferry Rider was added.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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A client calls their Broker to follow up on a renewal for their personal home insurance policy. During this conversation the client mentions that their home is heated by a wood stove, however the information on the policy mentions the home is heated by an electrical furnace. Updating this information with the insurance company can lead to a large increase in premium for the client. What should the Broker advise the client? OA) The renewal needs to be cancelled as this is a material change in risk. OB) The information on the file is incorrect and updating the information will increase their premium, and recommend to keep this information hidden from the insurance company. OC) The information on file is incorrect and as this is a material change in risk it must be communicated with the insurance company as soon as possible. OD) Wood stoves increase the risk of fire hazard. Suggest that they have it replaced with a central heating system before the policy can be renewed.
Transcribed Image Text:A client calls their Broker to follow up on a renewal for their personal home insurance policy. During this conversation the client mentions that their home is heated by a wood stove, however the information on the policy mentions the home is heated by an electrical furnace. Updating this information with the insurance company can lead to a large increase in premium for the client. What should the Broker advise the client? OA) The renewal needs to be cancelled as this is a material change in risk. OB) The information on the file is incorrect and updating the information will increase their premium, and recommend to keep this information hidden from the insurance company. OC) The information on file is incorrect and as this is a material change in risk it must be communicated with the insurance company as soon as possible. OD) Wood stoves increase the risk of fire hazard. Suggest that they have it replaced with a central heating system before the policy can be renewed.
Your insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will be taking the car by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss of the automobile if the ferry sank in a storm. What do you tell him/her? OA) The Comprehensive coverage would pay. OB) That there would be no coverage as the ferry was not operating solely between Canadian ports. OC) Stranding or sinking while the automobile is being transported on water is only covered for Specified Perils, not Comprehensive. OD) There would be no coverage unless a special Ferry Rider was added.
Transcribed Image Text:Your insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will be taking the car by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss of the automobile if the ferry sank in a storm. What do you tell him/her? OA) The Comprehensive coverage would pay. OB) That there would be no coverage as the ferry was not operating solely between Canadian ports. OC) Stranding or sinking while the automobile is being transported on water is only covered for Specified Perils, not Comprehensive. OD) There would be no coverage unless a special Ferry Rider was added.
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