Chapter 9 - Declarations Page; Miscellaneous Liability Coverages Flashcards
What are the specific items on the declarations page?
- Insurer and broker
- Named insured
- Policy period
- Time of policy (mailing address time zone)
- Limits of insurance declared
- Form of business
- Description of business
- All premises owned, rented or occupied
- Premium base and rate
- Advance premium
- Total premium
- Minimum retained premium
- Endorsements
- Countersignature
What are the obligations of the first named insured?
- Paying the premium
- Recording information for premium computation
- Sole authority to request policy changes
What is the standard expiration time of a policy?
12:01am in the time zone of the mailing address
What are the limit categories listed?
- Each occurrence limit
- Personal and advertising injury limit per person/organization
- Medical expense limit per person
- General aggregate limit
- Tenants legal liability per premises
- Products/completed operations aggregate limit
What are the six choices available under form of business?
- Individual
- Joint ventures
- Partnership or limited liability partnership
- Trust
- Limited liability company
- Any other organization
How is premium calculated?
Revenue is used as a base.
Rates are expressed per mille (thousand).
ie. Revenue is $1m, prescribe rate is $2 per mille, premium would be $2,000.
What is advance premium?
An amount payable in advance to the policy term, a deposit premium.
What is total premium?
Includes any applicable taxes.
When substantial, may pay in installments.
What is a countersignature?
A secondary confirmation that the document is authentic. Typically signed by a broker or representative of the insurer.
Who usually provides the primary signature?
The insurer’s CEO.
What two types of insurance do garage policies usually need?
- Automobile insurance
- General liability insurance
What is the name of the garage automobile policy?
SPF 4
Why would they need automobile insurance if they have a CGL?
Automobiles are an exclusion under a CGL
What are two of the common ways that premium for garage liability is established?
Estimated payroll or revenue
What are three other common exposures for garage liability?
- Elevators
- Contractual liability
- Any other business or occupational pursuits
Explain employers liability
Employers are liable for torts committed by employees while they are acting in the course of their employment.
Employers negligently causing injury to their employees are liable for damage
What are the two principal methods to protect employers against costs out of injury?
- Workers compensation statutes
- Employers liability coverage
What is the workers compensation legislation in Ontario?
Workplace Safety and Insurance Act
What are some types of employees excluded from workers compensation?
- Farm employees (some jurisdictions)
- Domestic servants
- Casual employees of certain types
- Certain clerical employees
Are employees able to sue employers under common law?
No, they receive payment through workers compensation
What was the relevance of Piercey et al v. General Bakeries?
Workers compensation act of Newfoundland did not offend the equality provision of the Charter of Rights and Freedoms.
The plaintiff attempted to state that the act taking away her right to sue contravened the charter.
How is an employers liability usually covered?
By endorsement; it deletes BIPD exclusions D, E & F
How does employers liability differ from how workers compensation is paid?
It is not a no-fault coverage.
The claimant must prove the employer was both responsible and negligent.
How are limits laid out in an employers liability policy?
Per employee and per accident
Explain voluntary compensation for employees
Compensation is paid for weekly indemnity for total or partial disability regardless of legal liability.
Can voluntary compensation for employees coverage be purchased individually?
No. It is always written with employers liability.