Chapter 9

Question 1

Define policy period

Answer 1

Duration of policy, most often one year in property and casualty insurance. Also called policy term

Question 2

List several terms of cgl policy declarations form contains

Answer 2

1. The name of the insurance company and the name of the agent or broker
2. The named insured
3. The policy period usually written for an annual period
4. The limits of insurance
5. Form of business, which categories the legal nature of the named insured
6. Type of business is then described
7. All the premises owned, rented, or occupied by the insured are listed
8. Any endorsements that apply to the policy are shown
9. Counter signed by broker or other authorized representative of the insurer.

Question 3

List six limit categories

Answer 3

1. Each occurrence limit
2. Personal and advertising injury limit for any one person or organization
3. Medical expense limit for any one person
4. General aggregate limit
5. Tenant legal liability for any one premises
6. Products or completed operation aggregate limit

Question 4

The insured indicated its form of business, which organizes the legal nature of the named insured: list six choices that are available

Answer 4

1. Individual
2. Joint venture
3. Partnership or limited liability partnership
4. Trust
5. Limited liability company
   6 any other organization

Question 5

Define advanced premiums

Answer 5

The premium charged at the inception of the policy is the advance, provisional, or deposit premium

The premium paid at the inception of the policy but subject to adjustment during the policy period or at the end of the term

Question 6

What is workers compensation legislation known in Ontario as?

Answer 6

Workplace safety and insurance board in Ontario

Question 7

What happened to an employer before workers compensation legislation was passed?

Answer 7

Before workers compensation legislation was passed, and employer could be sued for injuries to employees on the job. However, employees were required to prove such negligence in court, which was not easy since the evidence was in control of the employer.

In addition, employees rarely had the financial resources to pursue their claims through the courts, particularly if the injuries were serious enough that they could not work. Since the situation was not satisfactory, the various Acts were passed to spread the cost such as injuries among all employers.

To combat these costly lawsuits against employers and to protect employees, legislation was passed provide benefits to employees who are injured in the course of their employment.

Question 8

True or false. It is compulsory for employers to pay assessments to the respective boards that pay compensation to injured employees from the fund.

Answer 8

True

Question 9

True or false. Assessments are based on a rate against payroll, with more hazardous types of industries paying the highest rates

Answer 9

True

Question 10

True or false. There are no penalties against employers who fail to comply with workers compensation act

Answer 10

False

There are penalties against employers who fail to comply with the workers compensation act, but none compliance by an employer does not affect the right of the employees to collect benefits as long as they are in a type of employment subject to the acts

Question 11

Who are some categories of employees that are excluded under the legislation for workers’ compensation

Answer 11

1. Farm employees in some jurisdictions
2. Domestic servants
3. Casual employees for certain types
4. Certain clerical employees

Question 12

Define employers liability insurance

Answer 12

Coverage for the legal liability imposed on an employer to pay damages to an employee’s injured by an employer’s negligence. It is not workers compensation insurance, or special acts of legislation set out specifically the relationship between the employer and employees in certain circumstances and the formula by which awards in each case are computed.

Question 13

How does workers compensation pay out to injured employees?

Answer 13

In general, medical expenses are paid without limit unless covered by a provincial or territorial health plan

For total disability, compensation is based on a percentage of earnings, but earnings are usually limited to a maximum amount for the purpose of calculating compensation

If death results from the injuries, funeral expenses are allowed up to a specified amount and the widower or her or his dependents may receive a lump sum plus a monthly payment. Such payments are usually payable for a lifetime of the widower or until he or she remarries. If there are dependent children, additional payments are made.

Question 14

In addition to financial benefits of workers compensation, what else is offered to the injured worker?

Answer 14

Rehabilitation programs are offered to a injured worker to assist disabled workers to return to active employment as quickly as possible. Workers compensation boards are also active in accident prevention. Generally, the various acts provide that the employer’s premises and operations can be inspected by board representatives to ensure that proper safety precautions are being practiced.

Question 15

Is the workers compensation board no fault?

Answer 15

The benefits of the acts are available to employees regardless of fault or negligence on the part of employers or other employees

Question 16

Can some trades in classes of employees still Sue their employer if they are found negligent for their injuries?

Answer 16

Some trades in classes of employees are not subject to the various compensation acts. And employer could be sued under common law if the employee is injured in the course of employment and the injured employee could successfully recover damages if the employer is found negligent. However this exposure can be covered by employers liability insurance

Question 17

Define voluntary compensation Insurance

Answer 17

Protection that an employer May purchase to cover employees who are not covered by workers compensation Insurance

Question 18

How does employers liability insurance work?

Answer 18

Employers liability insurance policies and use, in many instances insurers amend the cgl policy by endorsement to cover the employer’s exposure to liability. The endorsement deletes section A bodily injury and property damage liability exclusions, section d, section e, and section f, thus providing coverage for claims or actions of bodily injury to an employee of the insured rising out of and in the course of employment by the insured in the business described on the declarations page. However subject to certain exclusions

Question 19

List three occasions when employers liability insurance is required even if the employer is eligible under the acts.

Answer 19

1. Legislation makes provisions for employees normally based in one jurisdiction but working temporarily in another. Coverage is provided for a limited time., Which sometimes can be extended by applying to the workers compensation board. In this way, the employees are covered by the board of their home restriction will temporarily working outside of it. However there may be occasions when the extended period is exceeded or a trade covered in one jurisdiction is not covered in another. Employees could be in a position of not being covered by either the home restriction or the one in which they are working. If employees are injured during the course of such employment, they may be entitled to bring a common law action against their employer
2. There are circumstances when employers may be called upon to pay the workers compensation benefits paid to employees because they have assumed certain liabilities under contract.
3. Workers compensation board made tonight coverage to an injured worker on the grounds the injury occurred off the job. The worker would be free to bring suit and tort against the employer. The employers cgl insurer would be obligated to defend the action. If the employer is found to be legally liable, the claim can be resubmitted to the board for payment. The employer must follow the legislative rules to qualify for consideration.

Question 20

What is an example of contingent employers liability coverage?

Answer 20

A building contractor may enter into a contract containing a whole harmless clause in favor of the building owner. The contractors employee is injured due to the negligence of the building owner, the employee has two choices

1. Sue the building owner at common law
2. Except the benefits available under workers’ compensation

If the latter courses taken, the workers compensation board will have subrogation rights against the building owner. In any case, the building owner, if proven negligent, can be sued by the injured employee through a common law action or by the workers’ compensation board through its rights of segregation. However, the owner has a hold harmless agreement with the contractor and a found liable, will no doubt look to be indemnify by the contractor for any damages the owner may be called upon to pay.