Chapter 5 Flashcards
Regulation of Insurance Contracts
In this province, automobile insurance is sold by private insurers.
Ontario
this Act regulates automobile insurance through policy wordings for owned private passengers vehicles, garages, and drivers.
Ontarios’ Compulsory Automobile Insurance Act
it contains the legal rules governing the operation of the insurance industry as well as rules applying specifically to insurance contracts.
Ontario’s Insurance Act
The Insurance Act requires that certain mandatory details be stated, or declared, within every contract of insurance.
Contents of an Insurance Contract
also know as the “coverage summary”, is the portion of an insurance policy containing a summary of the compulsory information
Declaration
the other six items of an insurance contract inlcude
Parties to the contract
Policy period
Insurable interest of others(if any)
Type of insurance and amount of coverage
Rate and premium charged
Subject matter of insurance
It’s part of the contract where both the name of the insurer and insured must be shown. The insured is the first party to the contract, while the insurer is the second party.
Parties to the contract
part of the contract where both start date and expiry date of an insurance MUST stated on the policy declarations page.
Policy Period
The two time zones in Ontario
Eastern Standard Time and Central Standard Time.
The Insurance Act makes the effective default start at ____ local time
12:01 am
The person or entity named in an insurance policy who will receive the payout if a loss occurs. It’s typically someone who has a financial interest in the insured property, such as a lender or mortgage holder.
Loss Payee
The amount of money specified in an insurance policy that will be paid out to cover losses. It’s the sum of money designated to compensate for damages or losses incurred.
Loss Payable
The financial stake or potential loss someone has in a property or person being insured. It ensures that the person or entity purchasing insurance will suffer financially if the insured item is damaged or lost.
Insurable Interest
part of the contract that must include is the specific insurance coverages and the sum of insurance applying to each item to be insured.
Type of Insurance and Amount of Coverage
is the cost of insurance per unit of exposure.
for example, the rate charged to insure a building will depend on many factors, including, construction, and fire protection.
Insurance rate