C81 Chapter 10 Flashcards
solvency
a business entity’s ability to meet its long-term financial commitments
order of commencement
gives companies approval to carry out the business of insurance, given by the superintendent of financial institutions.
statement of stipulation or promise, the breach of which may nullify the contract
warranty
federal legislation
concerned only with such supervision and control as will affect the administration of the companies funds and ensure public protection against mismanagement
3 areas the act supervising Canadian insurance companies cover
establishment of an insurance company, prerequisites to operation, supervision during operation
provincial regulators and federal regulators control whom in insurance
licensed insurers, brokers and agents, adjusters, and contracts.
statutory conditions must be identified and printed in every….
accident and sickness, automobile and fire insurance policy
variation or omission of or addition to any statutory condition is…
not binding on the the insured
variation or omission of or addition to any statutory condition is…
not binding on the the insured
What types of changes of interest are automatically accepted
authorized assignment under bankruptcy act, a change of title by succession, a change of title by operation of law, a change of title by death.
When material change happens the insurer can do two things
- cancel the contact and return any unearned premiums. 2. continue, insured has 15 days to pay any addition to the premium, if not paid the coverage is void
Termination of Insurance by insurer
must give insured 15day notice by mail or 5 days personally delivery
Termination by Insured
may happen any time by request
What are 3 steps insured must do after Loss
Give notice immediately, deliver to the insurer proof of loss, may need to give inventory of undamaged
Who may give notice and proof if insured is unable to do so
an agent
