Chapter 5 Flashcards
Insurance Policy
A written contract of insurance that provides evidence that a contract exists. Legally binding contract
Standard forms
Any insurance form worded identically by all insurance companies - meeting local legislation
Manuscript wording
Policy wording that does not conform to the standard wording in general use within the insurance industry and that is unique to the policy involved.
Certificate of insurance
Written document stating that insurance is in effect. May be a modified form of a policy.
Renewal certificate
A short form of insurance. Sent out at renewal time.
Enforcement
An amendment added to the policy. A change to the policy
Endorsements
Can be prepared by the intermediary or by the insurer and then countersigned by the intermediary.
Must be signed by the insurance company. Additional premiums may be charged for the endorsement.
Binder and cover notes.
Think temporary insurance.
Temp insurance
Legally binding
Has an end date
Policy will be issued later.
A binder may also be called an interim receipt. Issued by the insurer.
Cover note issued by a broker
Binder issued by the insurance company
5 sections of the insurance policy
Coverage summary
Insuring agreements
Statutory/general conditions
Policy conditions
Signature Clause
Coverage summery
Part of the policy that should be read. Insurance company and insurer, start and end date, rate and premium and amounts of what’s insured.
Insuring agreement
Meet and potatoes of the policy.
List the perils, and what is covered for or what is not included. Also proceeds how the payment.
Statutory/general conditions
Auto accident and fire
- must be in the policy. Duties of the insurance company.
Policy conditions
Conditions that set in place that say what the insurer has to do.
Eg factory needs a security guard. For an active insurance.
Signature Clause
Legally binding contract with signatures and date.
Assigning, terminating or renewing an insurance policy.
Insured cannot assign their insurance contract to someone else without their insurers consent.
UNLESS - bankruptcy, death
Terminated if Insurance Contracts
Can be cancelled due to:
Statutory or Quebec General conditions.
2 types of policy Cancellation
Pro rata
Shirt rate
Pro Rata
From the insurance company.
Cancelled and full return of premium for unexpired term.
Short Rate
The insured can cancel at any time but the insurer will retain premium.
Extra fees
Cancel policy
Is the insurance company wants to cancel they can.
Treat the policy as valid refund the remainder of the term.
Void
Treat as if it never existed.
Renewals
Send out instructions or
Automatic renewal
