Sample Case Study Examination Question

General information is provided about the risk which is to be studied.

Question:

Describe briefly three (3) property coverage features you would recommend for this risk. (6 marks)

Analyze the Question:

• Three (3) property coverage features must be stated.
• A brief description of each one is required – it is not sufficient just to list them.
• The mark value is 6 so each feature is worth 2 marks.

An appropriate Answer:

• Replacement Cost Endorsement – to eliminate depreciation from the settlement of an insured loss, provided the insured repairs or replaces the damaged property.
• Blanket Coverage on Buildings, Equipment and Stock – instead of a specific sum insured on each item separately, it provides for a single combined total sum insured. This allows for fluctuations in value to be fully covered up to the total sum insured.
• Stated Amount Co-Insurance – the policy Co-Insurance condition is met by insuring to a stated amount rather than to a percentage of value. This is easier to comply with, particularly if insurable value change.