1 Explain how insurance can allow an owner to accept a lower rate of return on an investment property.

2 What is the rationale behind the "duty of good faith"?

3 What is meant by "indemnity" and how is the concept important in valuation practice?

4 What is the meant by insurable interest and why does the insurance industry require every policyholder to have one?

5 How can insurance premiums be used in an investment valuation? If it is used, will a lower or higher capitalization rate result?

6 What is meant by a primary fire zone and how will this affect fire insurance premiums? (You will need to look up the local fire control and prevention regulations).

7 What sort and type of insurance policies should a property manager have over a neighbourhood shopping centre?

8 Why is fire insurance part of "risk management"?

9 Why is "extra cost reinstatement insurance" necessary for the adequate insurance of a pre war block of flats in the inner suburbs?

10 Determine the payout figure for the following insurance claim using the “subject to average" clause:

11 What would be the answer to 10. if the building had been insured for $300 000?

12 Why are replacement cost valuations indexed? Which index should be used for the cost of building? Discuss.

13 How can lease guarantee insurance be used in the valuation of an investment

14 Compare farm insurance with a typical Hand H insurance policy

15 In what manner is insurance over rural lands different to that over urban land?

16 Why is the expected cost of replacement value increased by an index? What are the dangers in doing or not doing this?