Chapter 1 Flashcards
What are the three legal requirements that apply to insurance contracts?
Principle of indemnity.
Insurable interest.
Utmost good faith.
What are the two systems that Civil law concerning the private rights of individuals unfolds in?
Common law system in all provinces and territories except Quebec.
Civil Code of Quebec in Quebec.
The duty of independent adjusters is to:
investigate and report on the incidents to which they have been assigned.
A void contract is:
one that will be judged never to have existed and to have had no effect from the beginning.
What legal requirements applies to insurance contracts?
Utmost good faith
Misrepresentation is best demonstrated by?
a policyholder falsely describing the risk when purchasing the policy
A black proof of loss form must be provided to a policyholder within ______ of the notice of loss as set out in the insurance acts of the common law provinces and territories.
60 days
The right passes to the insurer from the insured when a loss is paid.
Subrogation
What is an example of an affirmation warranty?
The insured has never had a loss.
In evaluating whether an insured has an insurable interest in an object, a loss adjuster must determine:
whether the object was a gift and the contractual element of consideration was met.
What best describes the legal concept of privity of contract?
Limiting the scope of influence of a contract to the parties to the contract.
