Casualty Insurance

Question 1

CASUALTY/ACCIDENT INSURANCE

Answer 1

an insurance covering LOSS or LIABILITY arising from ACCIDENT or MISHAP, EXCLUDING those falling under OTHER TYPES OF INSURANCE such as fire or marine

Question 2

COVERAGE

Answer 2

(TM-POP²E)

1. THEFT, Robbery and Burglary Insurance

insurance against loss of property by the depreciation of burglars and thieves

xp: persons in the insured’s service and employment

Purpose: to guard against liability should theft be COMMITTED by one HAVING UNRESTRICTED ACCESS to the property

2. Compulsory MOTOR Vehicle Liability Insurance

contract of insurance against passenger and third-person liability for DEATH or BODILY INJURIES and DAMAGE TO PROPERTY arising from MOTOR VEHICLE ACCIDENTS

3. PLATE GLASS Insurance

isurance against loss from accidental breaking of plate-glass windows, doors, schowcases, etc.

4. OTHER Substantially similar kinds

includes

pollution liability insurance

garage insurance

medical malpractice insurance

pharmacist liability insurance

5. PERSONAL ACCIDENT Insurance and Health Insurance

Insurance which undertakes to indemnify the assured against EXPENSE, LOSS OF TIME, and SUFFERING resulting from accidents causing him physical injury, usually by payment at a FIXED RATE per week, while the consequent disability lasts and sometimes including the payment of a FIXED SUM to his heirs in case of his death by accident within the term of the policy

6. PUBLIC UTILITY Insurance

indemnifies against liability on account of INJURUIES to the person or property of another. Extends to automobiles, elevator’s, flywheels, libel, theaters, and vessels

7. EMPLOYER’S LIABILITY and Workmen’s Insurance

insurance on the liability of the assured TO MAKE COMPENSATION or PAY DAMAGES for an accident, injury or death, occuring to a servant or other employee in the course of his employment UNDER STATUTES imposing such liability on employers

Question 3

GENERAL DIVISIONS OF CASUALTY INSURANCE

Answer 3

1. ACCIDENTAL OR HEALTH INSURANCE

insurance against specified perils which may affect the PERSON AND PROPERTY OF THE INSURED such as personal accident, robbery or theft, damage to or loss of motor vehicle, insolvency of debtors, defalcation of employees, etc.

2. THIRD PARTY LIABILITY INSURANCE

insurance against specified perils which may gIve rise to liability on the part of the insured for CLAIMS OR INJURIES TO OTHERS or for DAMAGE TO THEIR PROPERTY, such as workmen’s compensation, motor vehicle liability, professional liability, products liability, etc.

Question 4

LIABILITY INSURANCE

Answer 4

a contract of indemnity for the BENEFIT OF THE

INSURED and

those IN PRIVITY WITH HIM, or

those TO WHOM THE LAW, upon the grounds of public policy, EXTENDS the indemnity against liablity

Question 5

INSURABLE INTEREST in LIABILITY INSURANCE

Answer 5

INTEREST which the insured has in the SAFETY OF PERSONS, and THEIR PROPERTY, who MAY MAINTAIN AN ACTION AGAINST HIM in case of their injury or destruction respectively

Question 6

TEST; Right of the Injured party to sue Insurer of Party at Fault

Answer 6

1. Indemnity against third party liability

injured 3rd party CAN SUE the insurer

Purpose: to PROTECT the injured person AGAINST THE INSOLVENCY of the insured who caused such injury

2. Indemnity against actual loss or payment

3rd party has NO CAUSE OF ACTION against the insurer. The former’s recourse is against the insured alone.

Question 7

BASIS and EXTENT of Insurer’s Liability

Answer 7

BASIS:

IR’s liability is based on contract;

ID’s liability is based on tort

EXTENT:

IR is NOT solidarily liable with the ID;

IR’s liability is limited by the AMOUNT of the insurance coverage

Question 8

INTENTIONAL vs ACCIDENTAL

Answer 8

INTENTIONAL:

implies the exercise of the REASONING FACULTIES, CONSCIOUSNESS and VOLITION

NOTE:

provision of the policy excludes intentional injury:

INTENTION of the PERSON INFLICTING is the controlling factor

injuries suffered by the insured clearly resulted from the intentional act of the 3rd person:

INSURER is RELEIVED FROM LIABILITY as stipulated

ACCIDENTAL:

that which happens by CHANCE, or FORTUITOUSLY, WITHOUT INTENTION or DESIGN, which is UNEXPECTED, UNUSUAL, and UNFORSEEN (Sun Life Insurance vs CA)

Question 9

NO ACTION CLAUSE

Answer 9

a REQUIREMENT in a policy f liability insurance which provides that SUIT and FINAL JUDGMENT be FIRST OBTAINED AGAINST the INSURED; that only thereafter can the person injured recover on the policy