FOI Flashcards
Five elements of a contract
Agreement, consideration, Legality of the object, legal capacity, genuine intention
three special elements to INSURANCE CONTRACT
Insurable interest, indemnity, utmost good faith
Property Policy Exclusion
Classes of property that usually will be excluded under personal and commercial property insurance policies. Exists because a greater than normal loss potential, expensive to insurer or specialized insurance already exists (specialized insurance: example automobile insurance)
Factors used to determine the amount to be paid for a claim
Replacement cost. ACV = RC - DEPRECIATION
Interest of the insured (how much of the property they own)
Limit of insurance
Whichever is less amount
Debris Removal coverage
additional 5% of the amount of Coverage A
The broadest definition of a disability is found in policies providing..
own occupation = if the insured is unable to perform important activities of their regular occupation, full benefits would continue to be paid even if they were working at another occupation
The most limiting definition of a disability is contained in policies providing
any occupation = there is no benefit if the insured is able to engage in any occupation for which they are reasonable fitted by education, training, experience and income
Business interruption: Recommended form when potential for lost customers
Profit form
Recommended form for business that needs to reopen ASAP
Extra Expense Form
Compulsory Autoplan
BC, SK, MB
Exclusions common to both personal and commercial insurance property policies are:
Flood, War, Earthquake, Nuclear incident, wear and tear, smoke due to agricultural or industrial operations, sewer back up, increase cost to repair or construction
Provinces that provide government insurance
BC, SK, MB, QB
Loss resulting from the taking of property by a person breaking into the premises is defined as
Burglary
Comprehensive Form covers
All risk of direct physical loss or damage, subject to the policy conditions and exclusions
Payment is made for as long as the business result are affected by the interruption, subject to specified limits
profit form
If the insured wishes to sue the insurer for failure to pay a claim, how long do they have to initiate the action?
One year from the date of the loss or damage
People entrusted with the safe keeping, servicing or repairing of another’s good are called
Bailees
According to the Canadian Legal System, the Insurance Act is
Statute Law
unlicensed motor vehicle can be purchase to provide coverage for
an unlicensed dump truck in storage
roadstar package does not cover
cost to replace or recode locks, keys, or remote keyless
Principle of indemnity
Allow the insured to receive the actual amount of the loss, nothing more, nothing less
Types of general insurance
Auto
Property
Liability
Property policies provide coverage for property removed to another location for how long
30 days
Liability policies cover which type of tort?
Unintentional
Strict Liability
Performance of a reasonable activity in an unreasonable setting (covered by insurance)
SEF No. 20 - Loss of Use Endorsement, the usual limit for personal automobiles is…
$50/day - 30 days max
Section A - 3rd Party Liability, the deductible for coverage is…
$0
BC minimum third party liability
$200,000
If an insurance company turns out to be insolvent, who steps in to indemnify policy holders?
Property & Casualty Insurance Compensation Corporation (PCICC)
All Perils, Specified Perils or Comprehensive, coverage for loss of use due to theft of the entire automobile.
$25/day for 30 days
Commercial vehicles entering the province are required to register immediately if they are over how much weight?
5000kg
Define all the components of bodily injury.
injury from external sources, sicknesses that manifest internally and death resulting from bodily injury or from sickness.
Vicarious liability means…
Indirect liability for the act or omission of another. EX: an employer being vicariously liable for the actions of their employee)
Coverage D - Additional Living Expenses will provide any extra expenses needed to maintain your normal quality of life when your home is uninhabitable due to damage by an insured peril. If you were forced to evacuate due to a nearby insured peril (i.e. forest fire), Coverage D would cover you for how many days?
14 days
Homeowners Forms:
Section I - Property Coverage
Coverage A – Dwelling Building
Coverage B – Detached Private Structures
Coverage C – Personal property
Coverage D – Additional living expenses
Homeowners Forms:
Section II - Liability Coverage
Coverage E - Personal liability
Coverage F – Voluntary medical payments (no deductible)
Coverage G -Voluntary payment for property damage
Coverage H – Voluntary compensation for residence employees (no deductible)
Homeowners Form (BASIC FORM)
13 Named Perils
7 exclusions: vacant, application of heat,
Homeowners Broad Form
Named perils from basic form plus building coverage for ALL risk
Comprehensive Form
Named perils + property coverage for all risks
Utility vehicles and off road vehicles (ORVs) that are permitted on public land. Don’t need license but must display ORV sticker plate
snowmobiles, dirt bikes, golf carts, all terrain vehicles
third party liability coverage for heavy commercial vehicles (more thank 5,000 kg) commercial trailers, buses, taxis and limos
$1 million
Liability for vehicles that carry dangerous goods
$2 million
Priority of Claims = Priority of claim rule (90/10 rule)
BC regulates that when claims made for both injury and property damage equal or exceed a policyholder third party liability the injury claim is to be paid first.
Under the Homeowners’ Basic Form (IBC 1151) only the following loss is covered:
Smoke damage due to the faulty operation of the basement furnace
the Uninsured or Unidentified Motorist Protection coverage provided by Basic Autoplan would provide for the following payment
$400
In British Columbia, the administrative functions related to licensing, handling complaints, and the disciplining of brokers are the responsibility of
The Insurance Council of BC
Property policies exclude certain types of property. The following is NOT EXCLUDED
Building that to the insured’s knowledge has been vacant for more than 15 days
Misrepresentation
Statement made by the applicant which lead the insurer to think that the risk is better than it actually is
Homeowners Comprehensive Form does NOT COVER
Damage to the dwelling caused by an earthquake tremor
Amount of Insurance Applicable to Coverage B - Detached Private Structure
10% of coverage A, which is in addition to the amount of insurance stated for Coverage A
To get coverage for accidents caused by an unidentified motorist, you must notify the police w/ in 24 hours and give a statement to the insurer within…
30 days
