ETHICS CH.1: Legal framework of life ins Flashcards
Insurance law Sources (#3 CCL)
- constitution
- common law
- legislation + regulation
Canadian Constitution
- takes precedence over all other sources of law
- pariament must comply with it
- insurance law = provincial
Common Law
- based on PAST decisions of judges (case law)
- applies to all CDA except QC
Insurance contract (long)
- short: covers risk of 1 or more ppl dying
- Long: undertaking by 1 person to indemnify (compensate) another against loss, liability for loss, in respect of certain risk/peril to hih the object of insurance may be exposed or pay a sum of money or other thing of value upon the happening of a certain event
ANNUITY CONTRACT
considered life ins
life insurance
covers risk of 1 or more ppl dying
Accident and sickness insurance (DCAARL)
- for loss of health. i.e:
- disability ins
- critial illness
- accidental death
- accidental dismem.
- reimbursement of med costs
- LTC
AGENCY rELATIONSHIP INCLS (3 AAP)
- AGENCY
- AGENTS
- PRINSIPAL
AGENTS
act on behalf of ins co
either :
- employed by indiv insureres (independent)
- independent reps of specific ins co (captive)
AGENTS: Independent agents
- contracts w/ multiple insurers
- place biz through MGA
AGENTS: captive
- rep single insurer or bound by contract or employment to rep single MGA
- only sells that co products
- MIGHT be self emp.
Managing General Agent (MGA)
Facilitates biz btwn agents, clients, insurers by:
- supporting/assisteing in obtaining contracts w insurer, granting aut to agent
- direct sales support
-pooling commisions from various insurers
ETC…..
Insurance Agency
corp pr partnership that holds licence from regulator or several regulators
must have min 1 agent in same category
Regulation of insurance + Licensing
- prov/terr. ins legislation gives actuaries extensive pwoer + responsibilities incl”: reporting on financia soundness of life ins biz
Uniform Law Conference
if Policy holder moves prov’s, NEW prov laws may apply (to will),
but how law interpreted is based on where policy was SIGNED (old prov)
capacity + status of person
to enter contract, must:
- be min age: 18 yrs OR 16 yrs to give/refuse consent re own care
- have legal capacity (able to give valid consent: understand terms, understand agreement is binding)
Natural Person
- a human w legal capacity to make decisions
Partnerships
- 2 or more ppl doing biz together
- can beb individualas or corps
- partners can sign for each other + all partners responsible for other partners signatures/agreements–> except if limited Liability partnership
Limited laibility partnership
partners have statutory of limitations on their liability from other oartners actions
Legal Person (Corporation)
- its a legal person
- seperate entity from owners
- corp can enter a contract
- owned by shareholders, who elect a board of directiors
signing officer (corporation)
person auth to sign on behalf of corp
Executive officers (corporation)
PRFESIDENT OR SECRETARY THAT CAN REP CORP IN SOME TRANSACTIONS/ACTIVITIES
court appointed guardian + 30 day rule
- if DB payable to minor, gaurd. accepts pmt
- of no Guard.: in 30 dys ins. pays $ to courts, $ managed by public trustee or court app. guard.
Power of Attorney (POA)
- Legal doc by 1 person (principal) appointing another (attorney) to deal with biz/property/fin. on their behalf
- end when person becomes mentally incapable (except if ENDURING POA)
Enduring POA
CONTINUES if principal becomes mentaly incapable
may req doctor/capacity assessor to trigger it
attorney cannot make will or chose ben, except if court ordered
POA vs Living will
POA: specific person names
Living will: no specific person named, specifies treatment + pers. care wishes
common law
- no preseumed division
- to specify legal rights: cohabitation agreement
- statues determined by lvg together in conjugal/ marriage like relationship for certain time
- may have rights to spousal support or dependants relief (if death)
Marriage
- presumed division
- domestic marriage contract: to adjust rights before (prenup) or during relationship
Divorce/Seperation: Family property
- division depends on when acquired+ from where
- fam. property: divided equally IF: acquired durng marriage or enjoyed by family or generates income that sopprts family
- if acquired b4 marriage OR inheritance: not divided
eexecutir/ executrix/ estate trustee
- appointed in will to be i charge of estate
-
property not controlled by will
- joint tenancy
- registered plan w named ben
- life ins w named ben
- surviving spouse under pension plan
dependant relief legislation
gives dependants priority b4 any distrbution/disposition
Testate
- died w will
- after debts paid, assets distributed according to will
- seperation doesnt affect will
- divore: as if person died
Intestate
- died w/o will
- someone must apply to court to be in charge of estate and dist. according to prov. rules
Intervivos trust
- between living ppl
Testamentary trusts
- when someone dies
Trusts
- can take property title (Guard., POA CANNOT)
- Can own any type of property, incl ins policy (+ can pay premiums)
- can trf ownership of policy to ben. ORRR collect + handle the $ as directed by trust
Bankruptcy
- too much debt, person has assets but not enought to cover debts
- ins proceeds payable to beneficairy not part of estate— PROTECTED!!!!!
TRUSTEE IN BANKRUPTCY
collect the assets + uses to pay debts
bankruptcy: asset protection
name direct beneficiary INSTEAD of estate
irrevocabe ben
- cannot be changed or removed
- assets protected even if outside of protected asset class
Pension Funds
- LIRA, LIF, ANNUITY purch. w PENSION FUNDS
- soe prov, registered products protected even if no ben. + not issue by life ins. co
Civil fault
- an action/ ommision causing someone loss/harm
Not just physical:
- repuration (defamation)
- emotional
- economic
- privacy violation
- property violation
- constitutional neglect
