CH1 - The Influence of Legislation Flashcards
A contract is deemed to have been made in the province if it is
- signed, countersigned, or delivered in the province
- or committed to the post office
- or to any carrier, messenger, or agent
- to be delivered or handed over to the insured or insured’s agent in the province
Every policy shall contain
- name of the insurer
- name of the insured
- name of person(s) to whom the insurance money is payable
- the amount, or method of determining the amount, of premium
- subject matter of insurance
- indemnity for which the insurer may become liable
- the event on the happening of which liability is to accrue
- effective date
- expiry date
When may a judge or court appoint an appraiser or umpire?
- a party fails to appoint an appraiser within 7 days of being served written notice to do
- the appraisers fail to agree on an umpire within 15 days of their appointment
- an appraiser or umpire refuses to act or is incapable of acting or dies
What is relief from forfeiture?
When an insured has failed to do what is required by statutory condition concerning a loss, the insurance could be forfeited or avoided, the court may relieve against that on terms it considers just.
When can a contract be waived by the insurer?
The waiver will need to be stated in writing and signed by a person authorized by the insurer for that purpose.
The cause of fire is not material unless it is excluded in the act, What does the act exclude?
The act excludes goods undergoing any process involving the application of heat. It also excludes: riot, civil commotion, war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, military power.
What else does the basic fire insurance policy cover?
Lightning, but not to electrical devices or appliances. Explosion of natural, coal, manufactured gas in a building not forming part of a gas works. These coverages do not apply when loss is due to an excluded cause.
Subject to the insurer’s licence, what other perils can be included?
- falling aircraft
- earthquake
- windstorm
- tornado
- hail
- sprinkler leakage
- riot
- malicious damage
- weather
- water
- smoke
- civil commotion
- vehicle impact
What is distribution?
The splitting of a single amount of insurance to apply to property in more than one location.
What are the two conditions on which the distribution provision is based?
- The contract must be one in which the insurer agrees to pay a claim in certain described circumstances. The amount of insurance left for property removed is the difference between the original amount of insurance and the amount of loss already suffered.
- If the amount of loss is equal to or greater than the amount of insurance for the insured property, the full amount of insurance is payable.
If the policy differs from the original application, the insurer must advise the insured accordingly. Does the insured have to accept the new terms?
The insured has two weeks to reject the policy, making it ab initio - from the beginning. If the insured fails to do this then it is deemed to have accepted and can only cancel according to Statutory Condition 5.
What is rateable contribution?
When more than one policy covers the same interest at the time of loss, each insurer is liable for its rateable proportion unless the insurers agree otherwise, in writing.
What is the application of rateable contribution?
Insurance amount divided by total amount of insurance times the amount of the loss - insurer’s contribution. If there is a deductible then it is applied after. And more than one deductible exists the highest deductible will be pro-rated amongst the insurers.
