Questions - Chapter 4, Section 3 - Insuring Personal Liability Flashcards
Identify the limits generally provided under the various covers under Section II of most Habitational Forms.
Coverage E- Personal Liability - $1 Million
Coverage F - Voluntary Medical Payment - $5,000
Coverage G - Voluntary Payment for Damage to Property - $1,000
Coverage H - Voluntary Compensation for Residence Employees - As per schedule
Identify three additional persons insured under Section II that are not insured under Section I of the policy.
a) Any person or organization legally liable for damages caused by a watercraft or animal owned by the insured and to which this insurance applies.
b) A residence employee while performing duties in connection with the ownership, use or operation of motorized vehicles and trailers for which coverage is provided in this form.
c) Your legal representative having temporary custody of the insured premises, if you die while insured by this form.
d) Any person who is insured by this form at the time of your death and who continues residing on the insured’s premises.
Identify the five additional “premises insured” insured under Section II in addition to that already covered under Section I.
a) premises that you are temporarily residing in or using temporarily
b) premises in Canada to be occupied by you as your principal residence from the date you acquire ownership or take possession but not earliest of 30 consecutive days, the date the policy expires, or the date upon the liability insurance is arranged for such premises.
c) Individual or family cemetery plots or burial vaults.
d) vacant land in Canada you own or rent other than farm land.
e) land in Canada where an independent contractor is building a one - three family residence to be occupied by the insured.
State whether Coverage E would respond in the following situations:
i) ___a meter reader is injured by the insured’s dog.
ii) ___a neighbour slips on your icy steps
iii) ____damage you cause to a rented VCR
iv) ____ fire damage you caused to a rented hotel room
v) ____ fire damage you caused to your home
vi) ___ water damage you caused to a rented hotel room
vii) ___ damage you caused to your neighbour’s table you are refinishing
viii) ___ injuries to a swimmer you caused while operating an owned watercraft equipped with a 20 hp outboard motor
ix) ___ injuries to a swimmer you caused while operating a non-owned watercraft equipped with a 20 hp outboard motor
x) ____ injuries caused to a third party by the insured while operating a ride on a 20 hp lawnmower
xi) ___ injuries caused to a third party by the insured while operating a motorized golf cart off the golf course
xii) ___ injuries caused to a third party by the insured while operating a motorized wheelchair in a shopping mall
xiii) ___ injuries caused to a third party from the insured’s beauty parlour in the basement
xiv) ___ injuries caused to a third party by the insured’s 16 year old daughter operating a lawn care business while on school vacation
i) Yes
ii) Yes
iii) No
iv) yes
v) No
vi) yes
vii) No
viii) No
ix) Yes
x) Yes
xi) No
xii) Yes
xiii) Yes
xiv) Yes
Identify six additional costs the insured will pay under “Defence, Settlement, Supplementary Payments”.
Are these amounts in addition to the limit of the policy?
1) “all expenses which we incur’
2) “all costs charged against you in any suit insured under Coverage E”
3) “any interest accruing after judgment on that part of the judgment which is within the amount of insurance of Coverage E”
4) “premiums for appeal bonds required in any insured lawsuit involving you and bonds to release any property that is being held as security”
5) “expenses which you have incurred for emergency medical or surgical treatment to others following an accident or occurrence insured by this form”
6) “reasonable expenses including actual loss of income up to $100 per day”
The amounts provided by this additional Insuring Agreement are over and above that limit. The limit of insurance purchased by the insureds is reserved for the payment of any judgment against them and cannot be used for any other purpose.
Identify four conditions placed upon the insured under “Defence, Settlement, Supplementary Payments”.
1) Notice of Accident or Occurrence
2) Co-operation
3) Unauthorized Settlements
4) Action Against Us (the Insurer)
Briefly explain the purpose of Coverage F - Voluntary Medical Payments.
Provides payment for reasonable medical expenses when an insured unintentionally injures another person or if they are accidentally injured while on the insured’s premises.
Identify four types of claims for Coverage F - Voluntary Medical Payments for which payment will be included.
- Surgical
- Dental
- Hospital
- Nursing
Under Coverage G - Voluntary Payment for Damage to Property, identify the two situations when coverage will apply.
- Which has been unintentionally caused and for which the insured would not be legally liable.
- Which has been intentionally caused by an insured 12 years of age or under.
Identify two exclusions to Coverage G - Voluntary Payment for Damage to Property.
1) Damage to property owned or rented by an insured or an insured’s tenant.
2) Damage to property which is insured under Section 1
Identify four types of payments that will be made under Coverage H - Voluntary Compensation for Residence Employee.
- Medical Expenses
- Injury Benefits (weekly indemnity)
- ## Loss of Life, including funeral expenses
Identify the two instances when an Umbrella Liability policy will respond.
- There’s not enough insurance under the primary policy.
- There’s no coverage provided under the primary policy.
Briefly explain the operation of the S.I.R.
A self-insured retention (S.I.R) applies to all losses covered by the Umbrella Liability Policy. The SIR really functions as a deductible, the amount of which often varies from company to company.
