Chapter 3 Flashcards
What is solvency?
a.
Business entity’s ability to meet its long-term financial commitments
b.
Tax charged on insurance premiums
• c. Insurer’s availability to provide coverage for a range of risks
d. Bonus premium paid to brokers
A - business entity’s ability to meet its long term financials commitments
What is the office role of the office of the superintendent of financial institutions?
Regulates the financial stability of federally licensed insurance companies.
What three areas does the insurance companies act regulate?
Establishing of an insurance company
Prerequisite to operation
Supervision during operation
What does order of commencement mean?
A document issued by the superintendent of financial institutions giving a company approval to comment and carry on the business of insurance.
“Stamp of approval”
Provincial and territorial regulates four areas. List them:
Provincial/territorial licensed insurers
Operation of brokers/agents
Operation of adjusters
Contracts.
Supervision during operation: 12 steps
Register of licensed insurers Operation- OSFI in Ottawa
Maintenance of assets
Investments
Annual return
Valuation of assets
Determination of liabilities
Actuary
Auditor
Additional information
Inspections
Contravention of provisions
Failure to comply
What are the Laws impacting Insurance
The insurance companies act
Provincial and territorial act
Provincial and HWy traffic act
Regulations made pursuant to various acts
Statutory conditions:
Rules, rights and responsibilities of the insured and insurer.
Conditions that the provincial and territorial insurance acts require to be included in insurance policies.
What is PIPEDA
A federal statue that governs the collection and use of personal information.
What is there is a breach?
Identify the breach
Contain the breach
Evaluate the risks
Who should be notified
How do we prevent future breaches
Which statement correctly desk the Quebec general conditions?
They are statutory in nature
Statutory conditions:
Insurers can omit all the statutory conditions if the contract has an extremely short duration (like a travel contract) or if the contract is a non-renewable accident insurance policy of under 6 months.
What is an automobile statutory condition?
Material change in risk
Examples of Privacy Breaches
Accidental
Deliberate
Public
Personal
Social engineering
Company equipment
Office
What is cyber liability
An insurance that covers a breach of fiduciary duty to protect privacy of client information.
Social engineering
In technological context, manipulating someone into divulging information or taking action.
Digital Privacy Act
Was passed to strengthen privacy rights and protections for Canadians in their dealings with private sector companies.
