C6 Flashcards
659
ICA VI: Corporate Governance
ICA Division II (D and O):(165.2): duties of directors (1,2,3,4)/7
establish procedures & committees
659
ICA VI: Corporate Governance
ICA Division II (D and O):(165.2): duties of directors (1,2,3,4)/7
establish procedures & committees
- ESTABLISH PROCEDURE to resolve conflicts of interest
- ESTABLISH COMMITTEES: Audit committee, Conduct Review committee, committee to Monitor conflict resolution procedures
660
E (2013.Fall 9b.i) 0.750 pts
ICA VI: Corporate Governance
Qz-1 ICA Division II (D and O):(203.3): (E): duties of audit committee (REVIEWS) (1,2,3)/7
REVIEW: (A/S).(other returns).(investments)
660
E (2013.Fall 9b.i) 0.750 pts
ICA VI: Corporate Governance
Qz-1 ICA Division II (D and O):(203.3): (E): duties of audit committee (REVIEWS) (1,2,3)/7
REVIEW: (A/S).(other returns).(investments)
- REVIEW A/S before Board of Director approval
- REVIEW such company returns as super may specify
- REVIEW (investments, transactions) with material adverse events brought to audit committee
661
E (2013.Fall 9b.ii) 0.000 pts
ICA VI: Corporate Governance
Qz-1 ICA Division II (D and O):(203.3): (E): duties of audit committee (REQUIRE) (4)/7
..internal controls
661
E (2013.Fall 9b.ii) 0.000 pts
ICA VI: Corporate Governance
Qz-1 ICA Division II (D and O):(203.3): (E): duties of audit committee (REQUIRE) (4)/7
..internal controls
- REQUIRE mgmt to (implement, maintain) internal controls
662
E (2013.Fall 9b.iii) 0.000 pts
ICA VI: Corporate Governance
Qz-1 ICA Division II (D and O):(203.3): (E): duties of audit committee (MEETINGS) (5,6,7)/7
MEET: (auditor).(actuary).(chief internal auditor)
662
E (2013.Fall 9b.iii) 0.000 pts
ICA VI: Corporate Governance
Qz-1 ICA Division II (D and O):(203.3): (E): duties of audit committee (MEETINGS) (5,6,7)/7
MEET: (auditor).(actuary).(chief internal auditor)
- MEET with AUDITOR: discuss Annual Report
- MEET with ACTUARY: discuss parts of Annual Report prepared by actuary
- MEET w/ CHIEF INTERNAL AUDITOR: discuss effectiveness of internal controls
663
ICA VI: Corporate Governance
Qz-1 ICA Division XII (F/S):(333.1): items Board of Dirctors must present to (shareholders, policyholders) @ AGM (5)
F/S (2 years), items related to auditor & actuary, by-laws
663
ICA VI: Corporate Governance
Qz-1 ICA Division XII (F/S):(333.1): items Board of Dirctors must present to (shareholders, policyholders) @ AGM (5)
F/S (2 years), items related to auditor & actuary, by-laws
- F/S (Financial Statements) for most recent 2 yrs
- Auditor’s report
- Actuary’s report
- Description of roles for auditor & actuary
- Anything else required by the by-laws of company
664
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.1): CEO, COO can’t be AA unless..
time limit
664
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.1): CEO, COO can’t be AA unless..
time limit
- See legal requirements of AA #4
- Authorized by OSFI
- Time limit of appointment is 6 months
665
E (2017.Fall 29b.) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.2): can CFO also be AA?
665
E (2017.Fall 29b.) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.2): can CFO also be AA?
- Yes, if: audit comm provides written statement to OSFI that requirements of both (CFO,AA) can be (adequately, independently) performed | OSFI authorizes appt
666
E (2015.Spring 32a.) 1.000 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.2): CFO can’t be AA unless..
666
E (2015.Spring 32a.) 1.000 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.2): CFO can’t be AA unless..
dit comm provides written statement to OSFI that reqs of both (CFO,AA) can be (adequately ,independently) performed | OSFI authorizes appt | AND list the LEGAL REQUIREMENTS to be an AA and/or OSFI’S EXPECTATIONS for the AA (not just the EXTRA stuff a CFO must satisfy)
667
E (2013.Fall 34c.) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.2): CFO can’t be AA unless..
667
E (2013.Fall 34c.) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(359.2): CFO can’t be AA unless..
- Audit comm provides written stmt to OSFI that reqs of both (CFO,AA) can be (adequately ,independently) performed | OSFI authorizes appt
668
E (2017.Fall 29a.) 0.750 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(361): ways an actuary may cease to be the AA (4)
668
E (2017.Fall 29a.) 0.750 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(361): ways an actuary may cease to be the AA (4)
- Appt revoked by Board of Directors | resignation | death | the person ceases to be an actuary (Ex: FCIA designation revoked due to disc. action)
669
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(362): what must Board of Directors do upon AA vacancy
669
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(362): what must Board of Directors do upon AA vacancy
- Notify OSFI & fill vacancy
670
E (2018.Fall 30c.i) 0.250 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(363): what must AA do upon revocation/resignment
670
E (2018.Fall 30c.i) 0.250 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(363): what must AA do upon revocation/resignment
- See legal requirements of AA #7
- Write report outlining circumstances & reasons
- Send to (Board of Directors, OSFI)
671
E (2018.Fall 30c.ii) 0.250 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(364): what must prospective replacement AA do
671
E (2018.Fall 30c.ii) 0.250 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(364): what must prospective replacement AA do
- REQUEST written report on circumstances & reasons for prior AA leaving | if not RECEIVED in 15 days, new AA appointment may simply be accepted
672
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(366): AA’s right to info & protection from liab
AA can request..w/o..
672
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(366): AA’s right to info & protection from liab
AA can request..w/o..
- AA may request (records,explanations) from (Board of Directors,officers,empl,reps) | AA can’t be held liable for such good faith requests
673
E (2018.Fall 30b.i) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(368): reporting reqs of AA to BoD
673
E (2018.Fall 30b.i) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(368): reporting reqs of AA to BoD
- AA roles & duties 3&4:
- Provide report on Financial Position (annually)
- Provide report on Financial Condition, usually DCAT (when directed by super)
674
E (2018.Fall 30b.ii) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(369.1): reporting reqs of AA to CEO
674
E (2018.Fall 30b.ii) 0.500 pts
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(369.1): reporting reqs of AA to CEO
- AA roles & duties 5:
- Report on MAE (Material Adverse Events) that require recitification –> (CEO,CFO,cc:BoD)
675
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(369.3) if no suitable action on MAE then?
675
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(369.3) if no suitable action on MAE then?
- Send original report on MAE to OSFI | cc:BoD
676
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(370): what is qualified privilege
676
ICA VI: Corporate Governance
Qz-2 ICA Division XIV (Actuaries):(370): what is qualified privilege
- IF AA makes good faith report under (363,369) THEN AA won’t be liable in civil action seeking indemnification | (363, 396) = (report from outgoing AA, report MAE)
677
ICA X: Adequacy of Capital, Liquid & Assets
ICA X (Adequacy of Cap, Liq, Assets):(516.4): (E): power of superintendent regarding assets
677
ICA X: Adequacy of Capital, Liquid & Assets
ICA X (Adequacy of Cap, Liq, Assets):(516.4): (E): power of superintendent regarding assets
- Superintendent may direct comoany to increase assets even if they are otherwise complying with regulations
678
E (2016.Spring 1c.) 0.500 pts
ICA XIII: Foreign Companies
Qz-3 ICA XIII (Foreign Companies):(581): (E): requirements for foreign companies (before issuing insurance): (5)
5m.appoint.establish.MCT.other
678
E (2016.Spring 1c.) 0.500 pts
ICA XIII: Foreign Companies
Qz-3 ICA XIII (Foreign Companies):(581): (E): requirements for foreign companies (before issuing insurance): (5)
5m. appoint.establish.MCT.other
1. Must have ASSETS > 5m vested in trust (or as per super) | must APPOINT (actuary, auditor) | must ESTABLISH chief agency | must have min MCT / BAAT ratio | any other conditions super deems appropriate
679
HARRIS.TORT: ALL
Qz-1 Cdn reform:Would Canadian tort reform be provincial OR federal
679
HARRIS.TORT: ALL
Qz-1 Cdn reform:Would Canadian tort reform be provincial OR federal
- Provincial: (needs to be coordinated with the various Attorneys General)
680
HARRIS.TORT: ALL
Qz-1 Cdn tort reforms:Position of insurance industry (& why)
680
HARRIS.TORT: ALL
Qz-1 Cdn tort reforms:Position of insurance industry (& why)
- Insurance industry WANTS REFORM:
- Lowers COSTS
- Increases STABILITY & PREDICTABILITY of awards
681
HARRIS.TORT: ALL
Qz-1 Cdn tort reforms:Position of Supreme Court
681
HARRIS.TORT: ALL
Qz-1 Cdn tort reforms:Position of Supreme Court
- SupCrt will continue to be plaintiff-friendly UNLESS insurance industry gets reform enacted
682
HARRIS.TORT: ALL
Qz-1 Cdn tort reforms:Position of trial lawyers (& why)
682
HARRIS.TORT: ALL
Qz-1 Cdn tort reforms:Position of trial lawyers (& why)
- Don’t want reform (compensation for both plaintiffs and lawyers could be lower)
683
E (2015.Fall 5b.) 0.750 pts
HARRIS.TORT: ALL
Qz-2 Cdn tort reforms:Identify potential reforms to Canada’s plaintiff-friendly tort system (4)
JCCV
683
E (2015.Fall 5b.) 0.750 pts
HARRIS.TORT: ALL
Qz-2 Cdn tort reforms:Identify potential reforms to Canada’s plaintiff-friendly tort system (4)
JCCV
- J&S liability
- Eliminate
- Replace with proportionate liability
- Created fund for guilty parties who can’t pay
- Collateral source rule
- Eliminate
- Compensatory basis
- Change from gross to net basis
- Vicarious liability
- Eliminate
684
E (2019.Spring 7a.i) 0.500 pts
HARRIS.TORT: ALL
Qz-2 J&S liability:Define J&S (Joint & Several) liability
plaintiff may recover..
684
E (2019.Spring 7a.i) 0.500 pts
HARRIS.TORT: ALL
Qz-2 J&S liability:Define J&S (Joint & Several) liability
plaintiff may recover..
- Plaintiff may recover (ANY or ALL damages) from (ANY or ALL defendants) regardless of share of liability
685
E (2019.Spring 7b.i) 0.250 pts
HARRIS.TORT: ALL
Qz-2 J&S liability:Describe the proposed REFORM for J&S liability (3)
ERF (eliminate, replace, fund)
685
E (2019.Spring 7b.i) 0.250 pts
HARRIS.TORT: ALL
Qz-2 J&S liability:Describe the proposed REFORM for J&S liability (3)
ERF (eliminate, replace, fund)
- ELIMINATE J&S: for non-pecuniary damages
- REPLACE J&S: with rule of proportional liability
- FUND creation: for guilty parties that can’t pay
686
E (2017.Spring 6d.) 0.250 pts
HARRIS.TORT: ALL
Qz-2 J&S liability:Describe proportionate liability
686
E (2017.Spring 6d.) 0.250 pts
HARRIS.TORT: ALL
Qz-2 J&S liability:Describe proportionate liability
- Each defendant bears a cost proportionate to their degree of fault or liability
687
E (2019.Spring 7a.iii) 0.500 pts
HARRIS.TORT: ALL
Qz-2 collateral source rule:Define the ‘collateral source rule’ & provide an example of a collateral source
687
E (2019.Spring 7a.iii) 0.500 pts
HARRIS.TORT: ALL
Qz-2 collateral source rule:Define the ‘collateral source rule’ & provide an example of a collateral source
- Evidence of plaintiff’s collateral source need not be entered AT TRIAL
- (examples include sick pay & disability)
- So there is potential for over-compensation
688
E (2019.Spring 7b.iii) 0.250 pts
HARRIS.TORT: ALL
Qz-2 collateral source rule:Describe the proposed REFORM for the ‘collateral source rule’
688
E (2019.Spring 7b.iii) 0.250 pts
HARRIS.TORT: ALL
Qz-2 collateral source rule:Describe the proposed REFORM for the ‘collateral source rule’
- Eliminate (& allow collateral sources to be taken into account when determining award)
689
E (2019.Spring 7a.ii) 0.500 pts
HARRIS.TORT: ALL
Qz-2 compensatory basis:Define ‘compensatory basis’ in the context of income replacement
basis for loss of income
689
E (2019.Spring 7a.ii) 0.500 pts
HARRIS.TORT: ALL
Qz-2 compensatory basis:Define ‘compensatory basis’ in the context of income replacement
basis for loss of income
- Compensatory basis:
- Refers to basis for compensating loss of income
- The basis can be either prior net income OR prior gross income
- Income replacement is a percentage of this basis
- current practice uses a percentage of gross income
- Comment:
- Gross basis ignores taxes & work-related expenses that aren’t incurred when not working
- So there is potential for over-compensation
690
E (2019.Spring 7b.ii) 0.250 pts
HARRIS.TORT: ALL
Qz-2 compensatory basis:Describe the proposed REFORM to ‘compensatory basis’ in the context of income replacement
690
E (2019.Spring 7b.ii) 0.250 pts
HARRIS.TORT: ALL
Qz-2 compensatory basis:Describe the proposed REFORM to ‘compensatory basis’ in the context of income replacement
- Switch from gross to net basis
691
E (2014.Fall 8a.v) 0.000 pts
HARRIS.TORT: ALL
Qz-2 vicarious liability:Define ‘vicarious liability’ and provide an example
where 1 party is..
691
E (2014.Fall 8a.v) 0.000 pts
HARRIS.TORT: ALL
Qz-2 vicarious liability:Define ‘vicarious liability’ and provide an example
where 1 party is..
- Where one party is held responsible for actions of another
- EXAMPLES: employee, subordinate, sublease, car rental, sexual abuse
692
E (2014.Fall 8a.v) 0.000 pts
HARRIS.TORT: ALL
Qz-2 vicarious liability:Describe the proposed reform to ‘vicarious liability’
692
E (2014.Fall 8a.v) 0.000 pts
HARRIS.TORT: ALL
Qz-2 vicarious liability:Describe the proposed reform to ‘vicarious liability’
- Eliminate
693
E (2017.Fall 6b.) 0.500 pts
HARRIS.TORT: ALL
Qz-3 ads/disads: identify an advantage & disadvantage of ‘joint & several liability’ reform
deep pockets
693
E (2017.Fall 6b.) 0.500 pts
HARRIS.TORT: ALL
Qz-3 ads/disads: identify an advantage & disadvantage of ‘joint & several liability’ reform
deep pockets
- Advantage:
- Discourages search for deep pockets & decreases costs
- Disadvantage:
- There is a cost to determining proportionate liability
- Parties would tend to argue for a lower percentage
694
E (2014.Fall 8a.) 0.250 pts
HARRIS.TORT: ALL
Qz-3 ads/disads:Identify an advantage & disadvantage of ‘collateral source rule’ reform
over-compensation
694
E (2014.Fall 8a.) 0.250 pts
HARRIS.TORT: ALL
Qz-3 ads/disads:Identify an advantage & disadvantage of ‘collateral source rule’ reform
over-compensation
- Advantage:
- Reduces possibility of over-compensation
- Disadvantage:
- Guilty party may not provide full compensation (but they should)
695
E (2016.Fall 7d.iii) 0.000 pts
HARRIS.TORT: ALL
Qz-3 ads/disads:Identify an advantage & disadvantage of ‘compensation basis’ reform
over-compensation
695
E (2016.Fall 7d.iii) 0.000 pts
HARRIS.TORT: ALL
Qz-3 ads/disads:Identify an advantage & disadvantage of ‘compensation basis’ reform
over-compensation
- Advantage:
- Reduces possibility of over-compensation
- Disadvantage:
- Interferes with INTENTIONAL government tax break for injured party
696
E (2014.Fall 8a.) 0.250 pts
HARRIS.TORT: ALL
Qz-3 ads/disads:Identify an advantage & disadvantage of ‘vicarious liability’ reform
deep pockets
696
E (2014.Fall 8a.) 0.250 pts
HARRIS.TORT: ALL
Qz-3 ads/disads:Identify an advantage & disadvantage of ‘vicarious liability’ reform
deep pockets
- Advantage:
- Discourages search for deep pockets
- Disadvantage:
- ALL involved parties should be held responsible REGARDLESS of level of liability
697
E (2012.Fall 12b.) 0.500 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:How does ‘joint & serveral liability’ increase efficiency
697
E (2012.Fall 12b.) 0.500 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:How does ‘joint & serveral liability’ increase efficiency
- Reduces time & costs: promotes pre-trial settlement since damages don’t have to be apportioned
698
E (2015.Spring 10b.i) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to defendant (1-1)
698
E (2015.Spring 10b.i) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to defendant (1-1)
- Advantage: can share burden
- Disadvantage: may have to pay a greater proportion THAN the degree of liability
699
E (2015.Spring 10b.ii) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to plaintiff (1-0)
699
E (2015.Spring 10b.ii) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to plaintiff (1-0)
- Advantage: increases probability of full compensation WITH access to assets of all defendants
- Disadvantage: none
700
E (2015.Spring 10b.iii) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to insurers (1-1+)
700
E (2015.Spring 10b.iii) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to insurers (1-1+)
- Advantage: can share burden
- Disadvantage: may have to pay a greater proportion THAN the degree of liability –> (cost,unpredictability) UP
701
E (2015.Spring 10b.iv) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to lawyer (1-1)
701
E (2015.Spring 10b.iv) 0.250 pts
HARRIS.TORT: ALL
Qz-4 J&S liability supp:(advantage OR disadvantage) with respect to lawyer (1-1)
- Advantage: increases efficiency in legal system since it promotes settlement without trial
- Disadvantage: fewer cases go to court (lawyers get less $$$s)
702
HARRIS.TORT: ALL
other:What are other issues in Cdn tort reform, aside from JCCV (5)
class action, sanctions, structured settlements, prejudgment interest (pecuniary & non-pecuniary damages)
702
HARRIS.TORT: ALL
other:What are other issues in Cdn tort reform, aside from JCCV (5)
class action, sanctions, structured settlements, prejudgment interest (pecuniary & non-pecuniary damages)
- Class action lawsuits (need to reform laws)
- Sanctions (should be imposed for frivolous lawsuits)
- Requirement of structured settlement if future care necessary (so victim doesn’t blow it on lottery tickets!)
- Pre-judgement interest on NON-PECUNIARY damages: do not allow
- Pre-judgement interest on PECUNIARY damages: yes, but measured from date claimant notifies defendant
707
E (2016.Spring 7a.) 0.500 pts
HARRIS.TORT: ALL
Qz-4 other:Give an example of a defendant group negatively impacted by J&S liability & state the impact
707
E (2016.Spring 7a.) 0.500 pts
HARRIS.TORT: ALL
Qz-4 other:Give an example of a defendant group negatively impacted by J&S liability & state the impact
- GROUP: defendants in asbestos injury suits
- IMPACT: many defendants are bankrupt, others may pay more than their fair share under J&S
708
E (2017.Spring 6c.) 0.250 pts
HARRIS.TORT: ALL
Qz-4 other:Disadvantage of simple elimination J&S liability
708
E (2017.Spring 6c.) 0.250 pts
HARRIS.TORT: ALL
Qz-4 other:Disadvantage of simple elimination J&S liability
- If a defendant goes bankrupt then there is no recourse to assets of other defendants
- Plaintiff may not be fully compensated
709
E (2016.Spring 7d.) 0.250 pts
HARRIS.TORT: ALL
Qz-4 other:Remedy to disadvantage of simple elimination of J&S
709
E (2016.Spring 7d.) 0.250 pts
HARRIS.TORT: ALL
Qz-4 other:Remedy to disadvantage of simple elimination of J&S
- Creation of a fund for guilty parties that can’t pay their share
710
Dav.NonPec: ALL
Qz-1 Trilogy:Define ‘non-pecuniary damages’
710
Dav.NonPec: ALL
Qz-1 Trilogy:Define ‘non-pecuniary damages’
- Damages that are not readily quantified
- Pain and suffering beyond compensation for medical care and loss of income
711
E (2017.Spring 5a.) 0.500 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Describe the Trilogy ruling
711
E (2017.Spring 5a.) 0.500 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Describe the Trilogy ruling
- Supreme Court of Canada established a 100K cap on non-pecuniary damages
- (later given an inflation adjustment, and subject to certain exceptions)
712
E (2018.Spring 6a.) 0.750 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Describe reasons for caps on general (non-pecuniary) damages (4)
limitless claims, social burden, full compensation, predictability
712
E (2018.Spring 6a.) 0.750 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Describe reasons for caps on general (non-pecuniary) damages (4)
limitless claims, social burden, full compensation, predictability
- LIMITLESS claims by the severely injured lead to extravagant awards
- Extravagant awards lead SOCIAL BURDEN (AA issues)
- (where AA = Availability/Affordability)
- Plaintiff would already be FULLY COMPENSATED for loss of income & future care
- Ensures PREDICTABILITY of awards
- (creates good environment for insurers → more insurers & more consumer choice)
713
E (2018.Spring 6b.) 0.750 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Identify exceptions to Trilogy decision (caps removed) (3)
sexual abuse, defamation, negligence
713
E (2018.Spring 6b.) 0.750 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Identify exceptions to Trilogy decision (caps removed) (3)
sexual abuse, defamation, negligence
- Sexual abuse (S.Y. v F.G.C.)
- Defamation (Hill v Church of Scientology, Young v Bella)
- Negligence causing financial loss
714
E (2014.Fall 5c.) 0.500 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Dscribe the resaon for the Supreme Court’s exceptions to Trilogy cap
714
E (2014.Fall 5c.) 0.500 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Dscribe the resaon for the Supreme Court’s exceptions to Trilogy cap
- No evidence that these exceptional cases would increase cost of insurance or social burden
715
E (2012.Fall 7b.) 0.500 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Effect of cap on equity between (minor, severe) injuries
715
E (2012.Fall 7b.) 0.500 pts
Dav.NonPec: ALL
Qz-1 Trilogy:Effect of cap on equity between (minor, severe) injuries
- Minor injuries are OVER-compensated
- Major injuries are UNDER-compensated
- (because past a certain severity, there is no longer a distinction based on severity)
716
Dav.NonPec: ALL
Qz-2 after Trilogy:3 relevant cases (with factoid for each)
716
Dav.NonPec: ALL
Qz-2 after Trilogy:3 relevant cases (with factoid for each)
- Fenn v City of Peterborough (only award > cap)
- Lindal v Lindal (commented on inflation-adjustment)
- Ter Neuzen v Korn (JPD-> ROL)
717
Dav.NonPec: ALL
Qz-2 after Trilogy:(1979) Fenn v Peterborough: Facts
only award OVER 100K
717
Dav.NonPec: ALL
Qz-2 after Trilogy:(1979) Fenn v Peterborough: Facts
only award OVER 100K
- Plaintiff was very severely injured
718
Dav.NonPec: ALL
Qz-2 after Trilogy:Fenn v Peterborough: Issues
718
Dav.NonPec: ALL
Qz-2 after Trilogy:Fenn v Peterborough: Issues
- When can general damages EXCEED the 100K cap? (Recall that TRILOGY already has exceptions for sexual abuse & defamation.)
- CONSIDERATIONS:
- Inflation adjustment since Trilogy?
- Should severity of plaintiff’s injuries be taken into account?
719
Dav.NonPec: ALL
Qz-2 after Trilogy:Fenn v Peterborough: Ruling 1,2
719
Dav.NonPec: ALL
Qz-2 after Trilogy:Fenn v Peterborough: Ruling 1,2
- Original Trial: not discussed in reading | APPEAL: plaintiff awarded 125K (higher than 100K cap) | no further appeal so SUPREME COURT didn’t comment
720
E (2017.Spring 5b.i) 0.100 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:(1981) Lindal v Lindal: Facts / Ruling 1,2
720
E (2017.Spring 5b.i) 0.100 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:(1981) Lindal v Lindal: Facts / Ruling 1,2
- JURY AWARD: 135K
- InsR APPEAL: award reduced to 100K by BCCA (BC Court of Appeals)
- plaintiff appealed to Supreme Court
721
E (2017.Spring 5b.ii) 0.150 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:Lindal v Lindal: Issues
721
E (2017.Spring 5b.ii) 0.150 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:Lindal v Lindal: Issues
- When should general damages EXCEED 100K cap? (TRILOGY: exceptional cases ok)
- CONSIDERATIONS: [1] inflation adjustment since Trilogy? [2] should severity of plaintiff’s injuries be taken into account?
722
E (2017.Spring 5b.iii) 0.250 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:Lindal v Lindal: Ruling 3 (Supreme Court)
722
E (2017.Spring 5b.iii) 0.250 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:Lindal v Lindal: Ruling 3 (Supreme Court)
- Supreme Court supported BCCA decision BUT STATED |1] 100K s/b indexed for inflation to a specific point in time (1978)
- severity of injuries SHOULD NOT be considered since general damages are not meant to be compensatory
723
E (2017.Spring 5b.iii) 0.250 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:Lindal v Lindal: Implication of a Supreme Court appeal for Fenn v Peterborough
723
E (2017.Spring 5b.iii) 0.250 pts
Dav.NonPec: ALL
Qz-2 after Trilogy:Lindal v Lindal: Implication of a Supreme Court appeal for Fenn v Peterborough
- LIKELY OUTCOME: award lowered to an inflation-adjusted 100K (only 1-2 years had passed since Fenn v Peterborough, so inflation adjustment would result in award lower than 125K)
- severity of plaintiff’s injury should not be considered
724
Dav.NonPec: ALL
Qz-2 after Trilogy:(1995) ter Neuzen v Korn: Facts
JPD became RoL
724
Dav.NonPec: ALL
Qz-2 after Trilogy:(1995) ter Neuzen v Korn: Facts
JPD became RoL
- Plaintiff infected w/ HIV in medical procedure
725
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Issues
725
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Issues
- When should GenDmgs > 100K cap?
- jury award > Trilogy cap (even with inflation) so should court just subsitute its own award
726
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Ruling 1
726
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Ruling 1
- award: 460K (GenDmgs)
- Appeals Court ordered new trial because 460K > 100K (Trilogy’s rough upper limit)
727
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Ruling 2 (appeal)
727
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Ruling 2 (appeal)
- Ruling: over-turned (for insurer) - no award, so cap is moot (although court would have substituted a capped award anyway)
728
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Ruling 3 (Supr Crt)
728
Dav.NonPec: ALL
Qz-2 after Trilogy:Ter Neuzen v Korn: Ruling 3 (Supr Crt)
- Supreme Court comment: reinforced Trilogy -> cap status: (judicial policy directive) became (rule of law)
729
Dav.NonPec: ALL
Qz-3 Lee v Dawson:(2006) Facts + Ruling 1
729
Dav.NonPec: ALL
Qz-3 Lee v Dawson:(2006) Facts + Ruling 1
- Lee severely injured
- Jury at 1st trial awarded 2m, but judge reduced the award to 294K (i.e. inflation-adjusted 100K)
- Lee appealed to BCCA (British Columbia Court of Appeals)
730
E (2015.Spring 5c.) 0.750 pts
Dav.NonPec: ALL
Qz-3 Lee v Dawson:Issues / Arguments (regarding cap)
VII
730
E (2015.Spring 5c.) 0.750 pts
Dav.NonPec: ALL
Qz-3 Lee v Dawson:Issues / Arguments (regarding cap)
VII
- VIOLATES charter of rights
- Cap discriminates against the seriously injured
- IGNORES the importance of juries (because judge overturned jurty award)
- INCONSISTENT
- Cap is onconstistent with current community values
- Communities are now more accepting of disabilities
731
E (2017.Spring 5c.) 0.250 pts
Dav.NonPec: ALL
Qz-3 Lee v Dawson:Ruling 2 (appeal) + reasons (2), Ruling 3 (Supreme Court)
731
E (2017.Spring 5c.) 0.250 pts
Dav.NonPec: ALL
Qz-3 Lee v Dawson:Ruling 2 (appeal) + reasons (2), Ruling 3 (Supreme Court)
- BCCA judges decision:
- BCCA was sympathetic but couldn’t overturn the original Supreme Court ruling on Trilogy
- Also, non-pecuniary damages not meant to be compensatory
- Note:
- Supreme Court DECLINED to hear a further appeal
- Cap remains in effect well into the future & the original rationale still considered valid
732
E (2019.Spring 4c.) 0.000 pts
Sections (A,B): Intro & Defns
Qz-1 A:Prohibited risk classification elements (6)
C-CONES
732
E (2019.Spring 4c.) 0.000 pts
Sections (A,B): Intro & Defns
Qz-1 A:Prohibited risk classification elements (6)
C-CONES
- Claims where fault less than 25%
- Credit history
- Occupation (some exceptions)
- Net worth
- Employment history
- Salary
733
E (2019.Spring 4c.i) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Complies with Ontario regulations (yes/no)? → retiree discount on all coverages
733
E (2019.Spring 4c.i) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Complies with Ontario regulations (yes/no)? → retiree discount on all coverages
- Yes (this discount is actually REQUIRED by Ontario regulations)
734
E (2019.Spring 4c.ii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Complies with Ontario regulations (yes/no)? → multi-line discount varying by property product
734
E (2019.Spring 4c.ii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Complies with Ontario regulations (yes/no)? → multi-line discount varying by property product
- No (this is a trick question):
- Multi-line discounts ARE permitted
- But they CANNOT vary by property product
- (cannot have a 10% for houses but a 5% discount for condos)
735
E (2019.Spring 4c.iii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Complies with Ontario regulations (yes/no)? → good credit discount
735
E (2019.Spring 4c.iii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Complies with Ontario regulations (yes/no)? → good credit discount
- No (use of credit in Ontario personal auto is not permitted)
736
E (2018.Fall 6a.) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer cancel your policy if you become unemployed?
736
E (2018.Fall 6a.) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer cancel your policy if you become unemployed?
- NO: employment is prohibited risk classification element
737
E (2018.Fall 6d.) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer non-renew because of a drunk-driving conviction
737
E (2018.Fall 6d.) 0.250 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer non-renew because of a drunk-driving conviction
- YES: it’s ok to use convictions for underwriting
738
E (2016.Fall 2a.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer lower your rates because your salary increased?
738
E (2016.Fall 2a.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer lower your rates because your salary increased?
- NO: salary is a prohibited risk classification element
739
E (2016.Fall 2b.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer change your rates because you moved?
739
E (2016.Fall 2b.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer change your rates because you moved?
- YES: territory is a valid rating variable
740
E (2016.Fall 2c.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer raise your rates if you become an Uber driver?
740
E (2016.Fall 2c.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer raise your rates if you become an Uber driver?
- YES: use is a valid rating variable
741
E (2016.Fall 2d.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer lower your rates because you own a certain credit card?
741
E (2016.Fall 2d.) 0.500 pts
Sections (A,B): Intro & Defns
Qz-1 A:Can an insurer lower your rates because you own a certain credit card?
- NO: credit history as well as number or type of credit cards is a prohibited risk classification element
742
E (2014.Fall 3a.i) 0.500 pts
Sections (A,B): Intro & Defns
Qz-2 A:List the types/subtypes of approval processes - types (2) + subtypes (2)
742
E (2014.Fall 3a.i) 0.500 pts
Sections (A,B): Intro & Defns
Qz-2 A:List the types/subtypes of approval processes - types (2) + subtypes (2)
- Prior approval (major requirements, simplified guidelines)
- File & use (major requirements, minor requirements)
743
E (2019.Spring 4b.i) 0.500 pts
Sections (A,B): Intro & Defns
Qz-2 A:List the requrements to use simplified guidelines - i - numerical (3)
all coverages, territories, individual changes
743
E (2019.Spring 4b.i) 0.500 pts
Sections (A,B): Intro & Defns
Qz-2 A:List the requrements to use simplified guidelines - i - numerical (3)
all coverages, territories, individual changes
- Changes to all coverages combined <= 0%
- Changes to territorial base rate & relativities between (-15%, 5%)
- All individual chgs < 15%
744
E (2019.Spring 4b.ii) 0.000 pts
Sections (A,B): Intro & Defns
Qz-2 A:List the requirements to use simplified guidelines - ii - descriptive (2)
discounts, rating algorithm
744
E (2019.Spring 4b.ii) 0.000 pts
Sections (A,B): Intro & Defns
Qz-2 A:List the requirements to use simplified guidelines - ii - descriptive (2)
discounts, rating algorithm
- New discounts ok (except UBIP) IF identical to another insurer
- Can’t change rating algorithm EXCEPT for new discounts
746
Sections (A,B): Intro & Defns
Qz-2 A:Describe the UDAP (Unfair or Deceptive Acts or Practices) requirement regarding rate levels among affiliates
746
Sections (A,B): Intro & Defns
Qz-2 A:Describe the UDAP (Unfair or Deceptive Acts or Practices) requirement regarding rate levels among affiliates
- Basically, it is unfair or deceptive if the insurer fails to provide the lowest rate among all affiliates
747
E (2014.Fall 3a.ii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-2 B:Describe FSCO (prior approval) & give examples of vehicle classes to which it applies
747
E (2014.Fall 3a.ii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-2 B:Describe FSCO (prior approval) & give examples of vehicle classes to which it applies
- FSCO approves (rates, rate changes, risk classification) before use
- Examples: (PPA on OAP1, FA)
748
Sections (A,B): Intro & Defns
Qz-2 B:Describe FSCO (expedited approval) & give examples of vehicle classes to which it applies
748
Sections (A,B): Intro & Defns
Qz-2 B:Describe FSCO (expedited approval) & give examples of vehicle classes to which it applies
- It is a type of prior approval with approval in 30 days
- Example: (PPA on OAP1, excludes FA)
749
E (2014.Fall 3a.iii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-2 B:Describe FSCO (file & use) & give examples of vehicle classes to which it applies
749
E (2014.Fall 3a.iii) 0.250 pts
Sections (A,B): Intro & Defns
Qz-2 B:Describe FSCO (file & use) & give examples of vehicle classes to which it applies
- Insurer files (rates, rate changes, risk classification) THEN regulators have 30 days to approve otherwise rates can be used
- Examples: (other than PPA, commercial, endorsements, excludes FA)
750
Sections (A,B): Intro & Defns
Qz-2 B:What is OCPF-44R
750
Sections (A,B): Intro & Defns
Qz-2 B:What is OCPF-44R
- Coverage for ‘underinsured MOTORIST’ (as opposed to ‘uninsured AUTO’)
- It is the difference between (your TPL limit) & (at-fault driver’s TPL limit)
751
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:Officer certifications in major filings (timing & officer qualifications)
751
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:Officer certifications in major filings (timing & officer qualifications)
- Qualifications: CEO, COO, CFO, Chief Agent in Canada
- When required: always
752
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:What filing items must an OFFICER certify (4)
Officer: eGIRts
752
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:What filing items must an OFFICER certify (4)
Officer: eGIRts
- Effective Dates: for new & renewal business
- Guidelines: must certify compliance
- Info/data: certify accuracy & completeness
- Rates: reasonable, not unfairly discriminatory, don’t impair solvency
753
E (2018.Spring 2d.) 0.500 pts
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:Actuarial certifications in major filings - (timing & required actuarial designation)
753
E (2018.Spring 2d.) 0.500 pts
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:Actuarial certifications in major filings - (timing & required actuarial designation)
- Qualifications: actuary must be FCIA
- When required: when rates change or there is a new LOB (Line of Business)
754
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:What filing items must an ACTUARY certify (6)
ActCert: Eva Dar(ling)
754
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:What filing items must an ACTUARY certify (6)
ActCert: Eva Dar(ling)
- Effective Dates: for new & renewal business
- Vehicle classification system
- That Actuary has been authorized by insurer
- That Data is RelSuf (reliable & sufficient)
- That AAP (Accepted Actuarial Practice) was used
- That Risk classification system is reasonable
755
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:Is actuary’s certification needed for fleets?
755
FSCO.PPA (C): Major Filings
Qz-3 [3] certs:Is actuary’s certification needed for fleets?
- No, but it IS needed for (endorsements, commercial, vehicles insured by FA or Facility Association)
756
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:What information is generally required in a rate filing (3)
DAM: Data, Assumptions, Methods
756
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:What information is generally required in a rate filing (3)
DAM: Data, Assumptions, Methods
- (data, narrative): all steps for rate changes
- (assumptions, methods): regulator should be able to trace steps from raw data TO final rates
- NOT REQUIRED: a specific methodology mandated by FSCO
757
E (2015.Fall 1a.i) 0.250 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[b] describe the treatment of loss data in filings regarding REINSURANCE
757
E (2015.Fall 1a.i) 0.250 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[b] describe the treatment of loss data in filings regarding REINSURANCE
- EXCLUDE: reinsurance should not impact price charged to insured
759
E (2017.Spring 7b.iv) 0.250 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[b] describe the treatment of loss data in filings regarding CESSION to RSP
759
E (2017.Spring 7b.iv) 0.250 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[b] describe the treatment of loss data in filings regarding CESSION to RSP
- INCLUDE: as if never ceded
760
E (2017.Spring 7b.iv) 0.250 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[b] describe the treatment of loss data in filings regarding FARM LOSSES
760
E (2017.Spring 7b.iv) 0.250 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[b] describe the treatment of loss data in filings regarding FARM LOSSES
- EXCLUDE: FA (Facility Association) sets their own prices using FARM loss data
761
E (2018.Spring 2a.) 0.750 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[e] identify factors affecting the LENGTH of the loss trend period
TEC
761
E (2018.Spring 2a.) 0.750 pts
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[e] identify factors affecting the LENGTH of the loss trend period
TEC
- Term (policy term)
- Effective date (proposed effective date of rate change)
- Calculation date (valuation date of loss data)
- Other answers possible (just your general knowledge)
762
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[e] describe the general properties of coverages where premium trends are required
inflation sensitivity, mix, CLEAR
762
FSCO.PPA (C): Major Filings
Qz-4 [4] ActSpprt:[e] describe the general properties of coverages where premium trends are required
inflation sensitivity, mix, CLEAR
- Coverages with inflation-sensitive exposure bases
- Where mix is changing (Ex: physical damage make/model)
- For CLEAR filings: but note that premium trend is already accounted for in development of rate groups
- CLEAR = Canadian Loss Experience Automobile Rating
763
FSCO.PPA (C): Major Filings
Qz-2 [4] ActSpprt:[k] identify regulatory requirements when changing territory factors in a major filing (DIFFERENT than a simplified filing)
rebase, calculate, check
763
FSCO.PPA (C): Major Filings
Qz-2 [4] ActSpprt:[k] identify regulatory requirements when changing territory factors in a major filing (DIFFERENT than a simplified filing)
rebase, calculate, check
- REBASE (current, indicated, proposed) territorial relativities
- TE (indicated change, proposed change)
- Br> - (indicated, proposed) changes have the same sign
- Magnitude (proposed change) < magnitude (indicated change)
- Magnitude (propsed change) < 10% }
765
E (2014.Fall 3c.) 0.500 pts
FSCO.PPA (C): Major Filings
Qz-5 supp:Why might FSCO not approve an auto filing (2)
prohibited rating variable, unreasonable risk classification system
765
E (2014.Fall 3c.) 0.500 pts
FSCO.PPA (C): Major Filings
Qz-5 supp:Why might FSCO not approve an auto filing (2)
prohibited rating variable, unreasonable risk classification system
- Insurer used a prohibited rating variable
- Insurer’s risk classification system is not reasonable (or not sufficiently predictive of loss)
