Study 1 Flashcards
WHAT DOES “LIABILITY IMPOSED BY LAW” MEAN IN INSURANCE?
It refers to the RESPONSIBILITY assessed against a person or entity for INJURY or DAMAGE to a THIRD PARTY as required by LAW.
WHAT IS THE ROLE OF LIABILITY INSURANCE?
It covers FINANCIAL OBLIGATIONS owed to an INJURED THIRD PARTY when LIABILITY is imposed by law.
WHO IS LEGALLY RESPONSIBLE IF A DOG BITES SOMEONE?
The DOG OWNER is LEGALLY LIABLE for any INJURIES caused by their dog.
WHAT IS NEGLIGENCE IN THE CONTEXT OF LIABILITY?
NEGLIGENCE is failing to act as a REASONABLE PERSON would, causing FORESEEABLE DAMAGE or INJURY to others.
GIVE AN EXAMPLE OF NEGLIGENCE.
A golfer, like DIPESH, who injures someone during a CARELESS PRACTICE SWING is LIABLE due to NEGLIGENCE.
WHAT IS NUISANCE IN LIABILITY LAW?
NUISANCE is a SUBSTANTIAL and UNREASONABLE INTERFERENCE with someone’s RIGHT to USE and ENJOY their PROPERTY.
WHAT IS A BREACH OF CONTRACT?
It occurs when a PARTY FAILS to HONOUR a FUNDAMENTAL TERM of a CONTRACT, creating LEGAL LIABILITY.
GIVE AN EXAMPLE OF CONTRACTUAL LIABILITY.
If a WINTER MAINTENANCE CONTRACTOR fails to SHOW UP and CLEAR SNOW, this is a BREACH OF CONTRACT, not typically covered by LIABILITY INSURANCE.
HOW IS PUBLIC NUISANCE DIFFERENT FROM PRIVATE NUISANCE?
PUBLIC NUISANCE affects MANY PEOPLE and requires the ATTORNEY GENERAL to bring an ACTION, while PRIVATE NUISANCE affects an INDIVIDUAL’S PROPERTY USE.
DOES LIABILITY INSURANCE COVER BREACH OF CONTRACT?
LIABILITY INSURANCE generally does NOT COVER DAMAGES from FAILURE TO PERFORM CONTRACTUAL OBLIGATIONS.
WHO DIVIDES GOVERNMENTAL POWER IN CANADA?
FEDERAL, PROVINCIAL/TERRITORIAL, and MUNICIPAL GOVERNMENTS.
WHICH AREAS ARE UNDER FEDERAL JURISDICTION?
MILITARY, FOREIGN RELATIONS, CURRENCY, and POSTAL SERVICES.
WHAT DOES PROVINCIAL GOVERNMENT REGULATE?
PROPERTY RIGHTS, EDUCATION, and the INSURANCE INDUSTRY.
WHAT DO MUNICIPAL GOVERNMENTS HANDLE?
FUNCTIONS WITHIN THEIR BOUNDARIES to PROTECT PEOPLE and BUSINESSES.
WHAT’S UNIQUE ABOUT QUEBEC’S LEGAL SYSTEM?
IT USES the CIVIL CODE, unlike other provinces’ COMMON LAW SYSTEMS.
WHY IS KNOWLEDGE OF STATUTE LAW IMPORTANT?
LAWS VARY between JURISDICTIONS and determine if an act is WRONGFUL.
GIVE AN EXAMPLE OF STATUTE LAW.
OCCUPIERS LIABILITY ACT, HIGHWAY TRAFFIC ACT, or SAFETY ACT.
HOW DOES THE CIVIL CODE DIFFER FROM COMMON LAW?
IT CODIFIES LEGAL SITUATIONS, while COMMON LAW relies on CASE PRECEDENT.
WHAT IS THE PURPOSE OF CRIMINAL LAW?
TO PUNISH OFFENDERS and PRESERVE SOCIETY’S SECURITY.
WHAT DOES CIVIL LAW SEEK TO DO?
ASSIGN FAULT and SET COMPENSATION for DAMAGES.
WHAT ARE QUASI-CRIMES?
OFFENCES NOT in the CRIMINAL CODE (e.g., SPEEDING).
CAN A CRIMINAL ACT ALSO LEAD TO CIVIL LIABILITY?
YES! YOU CAN BE SUED for DAMAGES even if CRIMINALLY CHARGED.
WHAT HAPPENS WHEN AN INTOXICATED DRIVER DAMAGES A CAR?
CRIMINAL LAW: PUNISHES. CIVIL LAW: PAYS FOR THE DAMAGES ($1,000).
CAN A SPORTS INJURY LEAD TO CIVIL LIABILITY?
YES, even if NO CRIMINAL CHARGES are laid.
WHAT WAS THE OUTCOME OF TODD BERTUZZI’S CASE?
CRIMINAL CHARGES + CIVIL SUIT SETTLEMENT for DAMAGES.
WHAT ARE CANADA’S TWO CIVIL LAW SYSTEMS?
COMMON LAW and the CIVIL CODE OF QUÉBEC.
WHAT DOES THE CIVIL CODE OF QUÉBEC COVER?
EVERYTHING from BIRTH CERTIFICATES to INSURANCE CONTRACTS.
HOW DO COMMON LAW COURTS DECIDE CASES?
BY RELYING on CASE LAW PRECEDENT and STATUTE LAW.
WHAT HAPPENS IF CASE LAW AND STATUTE LAW CONFLICT?
STATUTE LAW TAKES PRIORITY.
WHAT IS CASE LAW PRECEDENT?
COURT DECISIONS USED to GUIDE FUTURE CASES.
HOW IS PRECEDENT SET?
COURTS DEVELOP FAIR LEGAL PRINCIPLES in THEIR JUDGMENTS.
WHAT HAPPENS IF THERE’S NO EXISTING PRECEDENT?
COURTS CREATE NEW RULES THAT BECOME PRECEDENTS.
WHY IS RESEARCH IMPORTANT IN COMMON LAW?
TO FIND CASES SIMILAR to the CURRENT DISPUTE.
WHAT IS THE ROLE OF CASE LAW?
IT RECORDS COURT DECISIONS to PROVIDE GUIDANCE in DISPUTES.
GIVE AN EXAMPLE OF PRECEDENT INFLUENCE.
A NEW JUDGMENT can SHAPE FUTURE CASE OUTCOMES.
WHAT IS THE LAW OF PRECEDENT IN THE LEGAL SYSTEM?
It requires courts to follow decisions made by HIGHER COURTS in similar cases.
WHICH COURT’S DECISIONS SUPERSEDE ALL OTHERS IN CANADA?
The SUPREME COURT OF CANADA.
WHAT HAPPENS IF A CASE DIFFERS FROM A PRECEDENT-SETTING CASE?
The court may DISTINGUISH the current case by identifying its unique characteristics.
ARE QUEBEC COURTS BOUND BY PRECEDENT?
No, but they are often PERSUADED by case law in practice.
WHAT ARE THE THREE LEVELS OF COURTS IN MOST PROVINCES/TERRITORIES?
SMALL CLAIMS COURTS, county/district courts, and SUPERIOR COURTS.
WHICH COURT HANDLES SMALL CLAIMS?
SMALL CLAIMS COURT.
WHAT IS THE ROLE OF THE PROVINCIAL APPEALS COURT?
It reviews decisions from lower courts within its jurisdiction.
WHAT DOES THE FEDERAL COURT SYSTEM HANDLE?
INTELLECTUAL PROPERTY, federal taxes, MARITIME LAW, and other federal matters.
WHAT CHANGE OCCURRED TO THE FEDERAL COURT OF CANADA IN 2003?
It was split into the FEDERAL COURT OF APPEAL and the FEDERAL COURT.
ON WHAT BASIS DOES THE SUPREME COURT OF CANADA SELECT CASES?
NATIONAL IMPORTANCE or to establish a LEGAL PRECEDENT.
WHY MUST INSURANCE PROFESSIONALS UNDERSTAND CIVIL LAW SYSTEMS?
Insurance policies are CONTRACTS enforced through legal systems.
WHAT DOES AN INSURANCE CONTRACT ESTABLISH?
RIGHTS and DUTIES of insurance professionals, the INSURED, and the PUBLIC.
WHAT TRIGGERED NEW LEGAL CONSIDERATIONS FOR INSURANCE PROFESSIONALS IN 2018?
The LEGALIZATION of recreational CANNABIS in Canada.
WHY DID CANNABIS LEGALIZATION CREATE CHALLENGES FOR INSURERS?
Policies often EXCLUDE damage from CRIMINAL ACTS, and legalization required nuanced responses.
WHAT ADDITIONAL CANNABIS PRODUCTS BECAME LEGAL IN 2019?
EDIBLES and CANNABIS-INFUSED beverages.
WHAT SPECIAL REQUIREMENTS DOES HEALTH CANADA IMPOSE ON CANNABIS EDIBLES?
Separate preparation facilities, strict PACKAGING regulations, and youth protection measures.
WHAT AUTHORITY DOES HEALTH CANADA HAVE OVER CANNABIS LICENSEES?
It can SUSPEND or REVOKE licences for regulation violations.
HOW DID INFORMED BROKERS ASSIST CANNABIS CLIENTS POST-LEGALIZATION?
By ensuring ADEQUATE COVERAGE for operations and anticipating new risks.
WHAT DRIVES INSURERS’ DECISIONS ON APPETITE FOR CANNABIS RISKS?
LEGAL CHANGES and the evolving needs of the cannabis MARKET.
WHAT IS THE ULTIMATE GOAL OF CIVIL LAW IN INSURANCE DISPUTES?
To provide COMPENSATION for damages caused by breaches of duty.
WHAT IS THE SUPREME COURT OF CANADA’S ROLE IN SETTING PRECEDENT?
Its rulings guide all LOWER COURTS across Canada.
WHAT MUST INSURANCE PROFESSIONALS MONITOR CONTINUOUSLY?
CHANGES in laws, REGULATIONS, and SOCIETAL TRENDS affecting insurance.
WHAT IS LIABILITY?
RESPONSIBILITY imposed by law through NEGLIGENCE, NUISANCE, or BREACH OF CONTRACT.
WHAT ARE THE THREE MAIN BASES FOR LIABILITY IN LAW?
NEGLIGENCE, NUISANCE, and BREACH OF CONTRACT.
WHAT IS NEGLIGENCE?
Failing to act as a REASONABLE and PRUDENT person would, or doing something they would not do.
WHAT IS NUISANCE?
Infringement on someone’s right to USE and ENJOY their PROPERTY.
WHAT IS A BREACH OF CONTRACT?
Failing to fulfill a FUNDAMENTAL and IMPORTANT obligation in a contract.
WHAT IS CONTRACTUAL LIABILITY?
LIABILITY assumed through a CONTRACT, often via HOLD-HARMLESS or INDEMNITY provisions.
WHAT ARE THE TWO MAIN TYPES OF LAW IN CANADA?
CRIMINAL LAW and CIVIL LAW.
WHAT IS THE FOCUS OF CRIMINAL LAW?
Acts against SOCIETY, with a high BURDEN OF PROOF and focus on PUNISHMENT.
WHAT IS THE FOCUS OF CIVIL LAW?
Disputes between INDIVIDUALS or CORPORATIONS, seeking FAULT and COMPENSATION.
WHAT STANDARD OF PROOF IS USED IN CIVIL LAW?
The PREPONDERANCE OF EVIDENCE.
HOW IS COMMON LAW DEVELOPED?
Through CASE LAW and STATUTE LAW, based on PRECEDENTS.
WHAT IS THE ROLE OF QUEBEC’S CIVIL CODE?
It governs all areas of law, and courts INTERPRET the CODE.
WHAT IS THE PRIMARY DIFFERENCE BETWEEN COMMON LAW AND THE CIVIL CODE?
COMMON LAW is based on CASE LAW; the CIVIL CODE is a COMPREHENSIVE LEGAL FRAMEWORK.
WHAT ARE THE COURT LEVELS IN CANADIAN PROVINCES AND TERRITORIES?
SMALL CLAIMS COURTS, district/county courts, and PROVINCIAL/TERRITORIAL COURTS.
WHAT IS THE ROLE OF THE COURT OF APPEAL IN EACH PROVINCE OR TERRITORY?
To review decisions from LOWER COURTS.
WHAT IS THE FUNCTION OF THE SUPREME COURT OF CANADA?
It is the FINAL COURT of appeal, setting PRECEDENTS and interpreting LAW.
DOES THE SUPREME COURT OF CANADA HOLD TRIALS?
No, it hears APPEALS from other Canadian appeal courts.
WHY ARE SUPREME COURT DECISIONS IMPORTANT?
They set PRECEDENTS and can CHANGE LAWS.
WHY MUST INSURANCE PROFESSIONALS UNDERSTAND CIVIL LAW?
To navigate RIGHTS and DUTIES for themselves, INSUREDS, and the PUBLIC.
WHY MUST INSURANCE PROFESSIONALS STAY INFORMED ABOUT LEGAL CHANGES?
To adapt to new LAWS, REGULATIONS, and SOCIETAL TRENDS affecting insurance.
WHAT IS THE PURPOSE OF HOLD-HARMLESS PROVISIONS IN CONTRACTS?
To TRANSFER LIABILITY to another party.
WHAT DISTINGUISHES A CRIME FROM A QUASI-CRIME?
CRIMES are against society; QUASI-CRIMES are less severe but still PUBLIC offenses.
HOW DO CIVIL LAW SYSTEMS IN CANADA DIFFER GEOGRAPHICALLY?
COMMON LAW applies to most provinces; Quebec uses the CIVIL CODE.
WHAT GUIDES DECISIONS IN COMMON LAW COURTS?
PRECEDENTS from prior similar cases.
