Chapter 8 Flashcards
What is statutory conditions known as in Novia Scotia, BC and Quebec ?
Novia Scotia statutory conditions are known as mandatory conditions
BC - known as prescribed conditions
Quebec - known as general conditions
True or false provincial and territorial Insurance acts require that statutory conditions be a part of every automobile insurance contract.
True or false the conditions are printed in every policy and are deemed to be a part of every contract, even when a risk is bound orally or before a policy is issued
True
True
How is the wording of statutory conditions different in Quebec?
In quebec, the wording is not regulated, however, the subjects to be covered are
What are some listed statutory conditions found in AB standard owners auto policy ? ( SPF 1 )?
Material change in risk
Prohibited use by insured ( and prohibited use by others )
Requirements where loss or damage to persons or property
Requirements where loss or damage to the automobile
Inspection of automobile
Time and manner of payment of insurance money
Who may give notice and proofs of claim
Termination
Notice
Define material change
Those changes that would influence a reasonable and prudent insurer to decide whether to stay on the risk or influence the terms on which the risk is retained. The general context of this condition can however encompass a wide range of possible changes
Material changes include ?
Sale, assignment, or other change in the insureds insurable interest in the described automobile except through change of title by succession death or proceedings under the bankruptcy and insolvency act
For insurance against loss of or damage to the automobile
- any change in mortgages, liens, or encumbrances on the automobile or
- other insurance being places on the automobile
Prohibited use by insured
there is no coverage under the policy if Insurance drive or operate the automobile in the following circumstances
They are not authorized to drive or they have been prohibited under a court order from driving or operating a vehicle
They’re not qualified to drive
they’re below the minimum licensing age of the province or territory they reside in
They are engaging in any illicit or prohibited trader transportation
There in any race or speed test
Define writ
A court document commanding the defendant to enter an appearance within a specified number of days of he wishes to dispute the claimants claim
Prohibited use by others the insured must not permit or allow other people to use the automobile in the following circumstances
They are not authorized to drive
They’re not qualified to drive
they’re below the minimum licensing age of the province or territory they reside in
They’re engaging in any illicit or prohibited traitor transportation
There in any race or speed test
Requirements where loss or damaged to persons are property.
After an incident bin which there has been a third party liability loss insureds must meet certian obligations list the following requirements
Give prompt written notice to the insurer of any accidents or resulting claims
verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy
forward immediately to the intro all ritz, claims, correspondence, and so on
Do not assume or admit liability
Do not interfere with claims proceedings
Aiden securing information and evidence and the attendance of witnesses and cooperate in the defense of any action
Define statutory declaration
A declaration made under statutory authority before a Justice of the peace or commissioner of oath asserting knowledge of a circumstance, event, or fact. This may be substituted for a statement under oath or affirmation
Define statement of claim
A written statement by a plaintiff detailing the facts that support the claim against the defendant and the relief sought
Define notice of loss
notification received by the insurance company from the insured that a loss has occurred failure to give such notice has been held to be a bar against recovery
Define proof of loss
a formal statement of facts about a loss, attested to by the claimant, in a form specified by the interior. A proof of loss may need to be notarized. And insurer must respond to a proof of loss after I specified time period with a formal disposition of the claim
In a circumstance of suspected fraud what would the insurer have the insured do ?
The insured may be required to give information in a statutory declaration ( sworn statement )
What is the time frame from the time the statement of claim is issued to an appearance? And the time frame if it serves as a notice of intent to defend
20 days
If it serves as a notice of intent to defend it has another 10 days
Requirements were lost or damage to automobile
This condition States the following
when there has been a loss, the insurance is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days
any further loss is excluded if it is caused by the insurance failure to protect the automobile as far as reasonably possible
there are to be no repairs made nor any removal of evidence of damage unless the insurer gives a written consent or their husband a reasonable time for the interior to examine the automobile
the insurer may require the insured to submit to an examination under oath and to present all documents pertaining to the loss
the insurers maximum limit of liability is at least actual cash value of the automobile or the cost to repair or replace with like, kind, and quality
the insured may not abandon the automobile to the insurer without the insurance consent even if the vehicle is a total loss
if the insurer and insured disagree about repairs or Replacements or the amounts payable they must comply with a dispute resolution process as provided under the insurance act
there is no right to a dispute resolution process and tell a specified demand for it is made in writing and the proof of loss has been delivered
What’s the purpose for the insurer to inspect the automobile
the insurer has the right to inspect the automobile and its equipment at all reasonable times. This is intended as a deterrent to fraud
What is the time frame the insurer is required to make payment after a loss after receiving a period of loss?
What is the time frame after a dispute resolution process?
60 days
15 days after the dispute resolution process
Who may give notice and proof of a claim?
The agent of the insured, or any person to whom any party of the insurance money is payable
How does termination of a policy take place for the insurer and insured?
The insured may terminate the policy at any time by making a request
The insurer may terminate the policy by doing either of the following
Giving 15 days written notice by registered mail.
Giving 5 days written notice of hand delivered
Define prorata cancellation
cancellation of an insurance policy or a bond with the return premium credit being the full proportion of premium for the unexpired term of the policy
Minimum retained premium
a premium specified on an individual policy that is the minimum amount retained by the insurer in the event that the policy is canceled midterm by the insured
Short rate cancellation
the cancellation by the insured of a policy before its natural expiration date, the insurer pays a return premium that is less than the proportionate part that remains unearned
Short rate
The charge required for insurance or bond taken for less than one year
