Chapter 1

Question 1

Define precedent

Answer 1

A precedent is legally enforceable decision made by a judge. It will guide judges in making subsequent decisions in similar cases

Question 2

Define criminal code

Answer 2

Section 220 deals with negligent operation of a motor vehicle. Section 253, 254, 255 cover impaired driving, driving with more then 0.08 mg of alcohol in the blood and refusing to give a breath test. In saying, insurance companies policies contains exclusions that allows the insurance company to deny benefits to the insured driver, if courts apply punishment or if tried in court

Question 3

Distribution of automobile insurance

Answer 3

1. Sold by private companies - through brokers or agents, directly to the public through telephones or the internet or a combination of both
2. Sold by crown corporations - though brokers or agents, through their own direct sales department or through any other government agency

Quebec has a dual system. Bodily injury claims are covered by government compensation and PD is covered by private insurance companies

Question 4

What is the fair practice amendment regulation?

Answer 4

New consumer protection provisions that will require insurance companies, agents, and brokers and adjusters to provide and clear disclosure of dispute resolution process and limitation periods to clients who have initiated insurance claims

Question 5

What is the traffic safety act?

Answer 5

Registration, licensing of motor vehicles, licensing of drivers, and traffic controls on highways

Question 6

Limitation act

Answer 6

Time limits for filing legal actions. The time within a plaintiff must commence legal action against defendant it also provides for the extension of time limits by the confirmation of a cause of action such as an inadvertently poorly worded letter from an adjuster to a claimant

Question 7

What is transitional regulation ?

Answer 7

They provide guidance to the insurance industry and legal community as to how claims under existing and new automobile insurance contracts are to be handled

Question 8

Alberta’s hospital act

Answer 8

Includes provision to recover crowns cost of health services provided from the third party liability insurers

Question 9

Regulations

Answer 9

skeleton documents setting out the conceptual framework of statutory objective and delegating to the lieutenant governor and Council the power to make regulations that will prescribe the detail that gives shape and life

Question 10

Insurance companies act

Answer 10

Federal licensing and supervision of insurance companies and solid c standards for insurers. These are enforced to the office of the superintendent of financial institutions

Question 11

The insurance act

Answer 11

the insurance act is administered by the superintendent of insurance. Similar legislation exists in every other province. All insurance companies operating within Alberta brokers and agents are licensed by the superintendent, however in practice the federal license is accepted by federal authority

Question 12

What are four legal concepts that regulate the settlement of automobile accident claims?

Answer 12

Negligence
Onus of proof
Subrogation
Absolute liability

Question 13

Define negligence

Answer 13

Failure to use the degree of care expected from a reasonable and person.

Question 14

Define ownership proof

Answer 14

onus of proof is related to the concept of negligence. Onus of proof means the burden or responsibility of proof and is sometimes referred to onus probandi

Question 15

Define subrogation

Answer 15

the transfer of legal rights of someone whose debts or expenses have been paid to pursue recovery from an at-fault party. Segregation is a key legal concept when it comes to settling auto insurance claims. And insurer that pays to repair and ensures vehicle damage by third party has the rights to pursue recovery from the at fault third party

Question 16

Define absolute liability

Answer 16

under absolute liability the insurer is responsible to pay third party claims even though the insured has breached a policy condition. Under the terms of the contract the insurer does not have to pay, and the insured would have to compensate the innocent third party from his or her own pocket. This leaves the third party in a difficult position, a lawsuit by the third party will take time and money, there is no guarantee the insured has enough assets to fully pay the damages if found liable. to mitigate this the law extends some rights to a third party where there is automobile liability insurance. Third parties are given a direct right of action against the insurer to have the insurance money pay directly to them.

in Alberta the insurance act states that are judgment must be obtained first before money is awarded, but in practice insurers are less rigid