Insurance Law Flashcards
1
Q
Insurance Act
A
- based on type of insurance
- requirements of insurance contracts, the operation and standards of insurance industry
-requires all non-provincial insurance corporations to be registered and sets out the amount of reserves that must be retained to cover eventual claims (type of consumer protection legislation)
2
Q
Contra Proferentum Rule
A
Since contracts formed by insurance companies, courts try to balance inequalities
coverage will be broadly construed, exclusions will be narrowly interpreted
favor insured, since insurer chose language to use
3
Q
Property Insurance
A
- covers losses to property
- comprehensive policies
- co-insurance clause: you bear some risk
- cant collect more than loss
- more than one insurance policies, those companies “Contribution”
4
Q
Business interuption Insurance
A
- cover lost profits and added expenses incurred to bring company back into production
- put into same financial position it would have been in if the event hadnt occured
5
Q
Life and Health Insurance
A
- who you can insure: Vertical
- “key man policy” when insurable interest
- Health disability: health care expenses, income while unable to work, usually beneifits from employer
- Term insurance: in event of death
- Whole life insurance: in event of death, investments, and retirement income
6
Q
Liability insurance
A
- insurer pays when insured is at fault - negligence
- ensure adequate coverage
- covers loss, legal defense, and court cost
- “professional liability insurance”, “Building risk policy”, and “umbrella liability”
7
Q
Bonding
A
- Fidelity Bonds: if employee commits wrong. insurer can go after employee for reimbursements
- Surety Bonds: assurance that a contract will be performed
8
Q
- insurable interest
A
- without insurable interest - void
- insured must prove loss, insurance provides payoff and no more
- can only claim what was lost and no more, up to policy limit
- when payout a windfall - void as illegal
9
Q
Utmost good faith
A
- Risk is the key element
- Duty to Disclose
- insurance a contract of utmost good faith
- Prompt notice
- contract voidable when nondisclosure, false statements
- Insurer duty to process claims fairly
- insurer duty to defend insured if sued
10
Q
Subrogation
A
- Stepping into position on insured once its paid a claim
- can bring lawsuit that insured entitled to bring against perpetrator - in insureds name
- insurer tries to recoup what they can
11
Q
Salvage
A
- insurer tries to minimize losses
- can sell damaged goods, or when stolen then returned
- personal property - depreciated value
- personal household insurance - full value
12
Q
Forfeiture Rules
A
- criminal shouldnt be allowed to profit from his crime
- insured cant profit from wilful misconduct
- also extends to claims though criminal estates
