Chapter 4

Question 1

laws fall into two categories

Answer 1

• criminal

- civil

Question 2

courts of law

Answer 2

• small claims court
• country or district courts
• supreme court

Question 3

two branches of civil law

Answer 3

• contract law

- tort law

Question 4

three elements required for every tort action

Answer 4

• duty owed
• duty breached
• damages suffered

Question 5

two types of torts

Answer 5

• intentional torts

- unintentional torts

Question 6

strict liability

Answer 6

situations in which harm to others would result should a mishap occur. (guilty until proven innocent)

Question 7

7 activities that impose strict liability include:

Answer 7

• performing a reasonable act in an unreasonable setting
• hazardous activities which are dangerous regardless of the care taken
• allowing spread of intentionally started fire
• keeping potentially dangerous things on the premises
• keeping animals known to be dangerous
• exposing one’s employee to injury/disease
• damaging persons/property on ground while operating aircraft

Question 8

3 features common to liability policies

Answer 8

• insure bodily injury, property damage, and/or other direct financial loss
• coverage provided for third party claims only
• payment of damages limited to those required to compensate third parties for their loss

Question 9

special damages

Answer 9

reimburse plaintiff for out of pocket expenses.

Question 10

general damages

Answer 10

pain and suffering, loss of limbs, loss of future earnings capacity, damage to reputation, mental anguish, etc.

Question 11

legal duty owed by occupier to trespasser

Answer 11

• no legal duty for occupier of premises except:
• cannot set traps
• cannot intentionally cause harm to trespassers

Question 12

legal duty owed by occupier to licensee

Answer 12

• no legal duty for occupier to make premises safe
• occupier has duty to warn licensee of any hazard introduced to the premises which is known to be dangerous and would not be expected to be found on the premises.

Question 13

parents are not required to pay for the torts of their children unless it can be shown that: (4)

Answer 13

• parents failed to properly supervise/control children’s activities
• injury/damage caused by a dangerous thing/animal released by parents to control of the child
• injury/damage caused by child acting on authority of parents
• injury/damage arose out of duties of employment in the parent’s business

Question 14

generally, landlords are not responsible to ensure building/land rented to others is fit, except:

Answer 14

• when rental is furnished, it is presumed the premises is fit for the purpose it was leased.
• if landlord has contracted to maintain premises and fails, after reasonable notice, any injury/damage caused is responsibility of landlord

Question 15

owners are liable for damage caused by independent contractors when: (5)

Answer 15

• work conducted is inherently dangerous
• work creates public nuisance
• breach of statutory obligation
• injury/damage arose out of the use of defective equipment supplied by owner
• owner controls manner in which work is done

Question 16

what is a licensee?

Answer 16

one who comes onto the premises for his own purpose but with the occupiers consent (postal workers, meter readers, hunters, snowmobilers)

Question 17

limits generally provided under Section II of homeowners policies

Answer 17

• personal liability - $1 million
• voluntary medical payments - $5000
• voluntary property damage - $1000
• voluntary compensation for residence employees- as scheduled

Question 18

3 additional persons insured under Section II that are NOT insured by Section I

Answer 18

• a residence employee performing duties with use of motor vehicle for which coverage is provided in this form
• if you die while insured, a legal rep of yours with temp custody of insured premises for legal liability arising out of premises.
• if you die while insured, any named insured on this policy still residing on the premises.

Question 19

Additional premises insured under Section II (5)

Answer 19

• unowned premises you are using/residing in for less than 90 days
• newly acquired premises (<30 days, policy expiry, or inception of new policy - whichever is soonest)
• cemetery plots/burial vaults
• vacant land in canada you own/rent other than farmland
• land in canada where a contractor is building a premises to be occupied by you.

Question 20

the insurer agrees to pay these additional costs arising out of civil action against the insured: (6)

Answer 20

• all expenses incurred
• costs charged against you in any insured suit
• any interest accruing after judgement
• premiums for appeal bonds
• emergency medical expenses for third parties following insured occurrence.
• reasonable expenses up to $100 per day which you incur at our request (including actual loss of income)

Question 21

5 types of payments insured under Voluntary Compensation for Residential Employees

Answer 21

• loss of life, including funeral expenses
• temporary total disability
• permanent total disability
• injury benefits (weekly indemnity)
• medical expenses

Question 22

types of payment insured under Voluntary Medical Payments

Answer 22

• surgical
• dental
• hospital
• nursing
• ambulance services
• funeral expenses

Question 23

two situations when coverage applies under Voluntary Property Damage

Answer 23

• unintentionally caused, and for which the insured is not legally liable
• intentionally caused by an insured 12 years and under

Question 24

when does an umbrella liability policy respond?

Answer 24

• not enough insurance under primary policy

- no coverage under primary policy