Your clients have been renting a unit in a condominium high rise building and have a Tenants Comprehensive policy through your office. They have just purchased a similar condominium unit and will soon move in. What should you do to change their insurance coverage? Get full details of the security arrangements and alarm systems in the building. You will then be able to recommend how much fire and theft insurance they should carry. Transfer the entire policy to their new address as they do not need any other coverage. Cancel the entire policy. They no longer have any need for insurance as the Condominium Corporation is required by law to insure all insurable exposures for the owners of every unit. Cancel their Tenants policy and replace it with a Condominium Unit Owners policy.

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Your clients have been renting a unit in a condominium high rise building
and have a Tenants Comprehensive policy through your office. They have
just purchased a similar condominium unit and will soon move in. What
should you do to change their insurance coverage?
Get full details of the security arrangements and alarm systems in the
building. You will then be able to recommend how much fire and theft
insurance they should carry.
Transfer the entire policy to their new address as they do not need any other
coverage.
Cancel the entire policy. They no longer have any need for insurance as the
Condominium Corporation is required by law to insure all insurable
exposures for the owners of every unit.
Cancel their Tenants policy and replace it with a Condominium Unit Owners
policy.
Transcribed Image Text:Your clients have been renting a unit in a condominium high rise building and have a Tenants Comprehensive policy through your office. They have just purchased a similar condominium unit and will soon move in. What should you do to change their insurance coverage? Get full details of the security arrangements and alarm systems in the building. You will then be able to recommend how much fire and theft insurance they should carry. Transfer the entire policy to their new address as they do not need any other coverage. Cancel the entire policy. They no longer have any need for insurance as the Condominium Corporation is required by law to insure all insurable exposures for the owners of every unit. Cancel their Tenants policy and replace it with a Condominium Unit Owners policy.
Your insured and his wife hire a babysitter on a regular basis. Part of the
compensation to the babysitter is an arrangement that he/she will be
picked up and returned to their home by the insured. Since this can be
construed as receiving compensation, how would you ensure your client is
protected against claims made by the passenger for injuries?
Add the change form "Permission to Carry Paying Passengers".
Add "Passenger Hazard" change form.
No endorsement is necessary, coverage is included in the O.A.P. 1 Owner's
Policy.
Reclassify the risk for business use.
Transcribed Image Text:Your insured and his wife hire a babysitter on a regular basis. Part of the compensation to the babysitter is an arrangement that he/she will be picked up and returned to their home by the insured. Since this can be construed as receiving compensation, how would you ensure your client is protected against claims made by the passenger for injuries? Add the change form "Permission to Carry Paying Passengers". Add "Passenger Hazard" change form. No endorsement is necessary, coverage is included in the O.A.P. 1 Owner's Policy. Reclassify the risk for business use.
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Step 1: Introducing Insurance Coverage:

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  • Insurance coverage serves as a significant financial security net for both people and businesses, offering a sense of security and protection.
  • Its primary purpose is to provide or supply help amid unforeseen occasions or events, such as mishaps or accidents, natural calamities or disasters, or health-related issues, by alleviating the budgetary or financial burdens related with these occurrences or incidents.
  • Different or various insurance types or sorts, such as health, auto, home, and life insurance, are custom-made to address particular or specific aspects of life.
  • Through the payment of customary or regular premiums, policyholders gain access to this coverage, which becomes invaluable or important when they confront unexpected challenges.
  • Insurance plays a significant part in risk management or administration, offering a buffer that empowers individuals and organizations to regain their financial footing amid trying times, ultimately or eventually fostering stability and flexibility within the confront or face of life's uncertainties.
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