Basic Documents Flashcards
A request for insurance
Application
An application contains
- Characteristics of risk
- Amount of insurance required
- Personal information
- Essential details necessary to take on the risk
Term used for insurance protection
Coverage
Implies a standard of honesty greater than that usually required in most ordinary contracts
Utmost good faith
Something affected a contract of insurance that is important enough to change the agreement between the company and the policy holder
Material Fact
3 material facts
- The acceptability of the risk
- The amount of premium charged
- The type of coverage offered
Misleading the insurer by lying or not disclosing information
Misrepresentation
Two types of temporary insurance
- Binder
2. Cover note
The amount of the loss that the insured is responsible for
Deductible
Common law provinces
conditions required by law
Apply even if they are not mentioned in the policy or documents
Statutory Condition
Statutory in nature in the provincial legislation and sets out the subject matter that must be covered by these conditions
General Conditions (Quebec)
How long does temporary insurance cover for?
30 days
How to cancel temporary insurance
Issue a document for a fixed period of time (30 days)
Agreement made between the insured and the insurer
Insurance policy
Policy Components (in order)
- Introduction or preamble
- Insuring agreements
- Statutory conditions/ Quebec General Conditions
- Policy conditions
- Signature clause
If there was a dispute in the wordings of the policy, which way would the court rule?
In favor of the insured
Who signs the policy?
Insurer signs the policy with a stamp
Insures large risks. One or more insurers participate in covering the risk. Coverage is evenly divided.
Subscription Policy
A policy designed for a specific risk
Manuscript policy
A change to a policy
Endorsement
Endorsement coverage
Modify
Add
Reduce
Take away
