Study 2 Flashcards
Common Law
A system of laws originating and developed in England by judges based on court decisions and similar tribunals. Also known as case law or the law of precedent.
Civil Code of Québec
The civil code in force in the province of Quebec.
precedent
A legal decision that serves as a basis to resolve subsequent disputes in similar cases
case law
The body of a previously decided case that courts review for guidance on cases currently in dispute
Statute Law
A law set down in a government act and passed by legislature
contra proferentem
A legal term that provides that any ambiguity in a contract must be interpreted against the person who drew the contract because that person had the opportunity to make it clear.
material facts
A fact that would affect a contract of insurance enough to influence an insurer’s decision regarding whether to accept or reject the risk or the premium to be set. Material facts must be disclosed by the applicant if asked about.
ab initio
A Latin term meaning “to go back to the beginning.” When a policy is rejected or made void ab initio, premium is refunded entirely, and the contract is treated as though it never existed.
privity of contract
Relationship that exists between two parties or more by virtue of their having entered into a contract.
short-rate cancellation
The cancellation by the insured of a policy before its natural expiration; the insurer pays a return premium that is less than the proportionate part that remains unearned.
minimum retained premium
minimum retained premium
A premium specified on an individual policy that is the minimum amount retained by the insurer in the event that the policy is cancelled midterm by the insured.
Proof of Loss
proof of loss
A formal statement of facts about a loss, attested to by the claimant, in a form specified by the insurer. A proof of loss may need to be notarized. An insurer must respond to a proof of loss after a specified time period with a formal disposition of the claim (approved or denied).
subrogation
Legal process by which an insurance company, after the payment of a loss, is assigned the rights of the insured to recover the amount of the loss from those who are legally liable for it.
Personal Information Protection and Electronic Documents Act (PIPEDA)
A federal statute that governs the collection and use of personal information. It states that personal information to be collected must be relevant, and that all information that has been collected, is being collected, or will be collected must be held in the strictest of confidence.
Civil law is concerned with _______
settling disputes
In regards to Civil law, courts decide 1. and 2.
- Whether to rule in favour of the plaintiff
- Whesther to assess compensation
2 Main systems of Civil Law
- The common law (all cept quebec)
- Civil code of Quebec
Common Law was influenced by
Canon (church) law and Roman Law
Common Law was developed as unwritten law based on the rule of
Precedent
What is Relief from Forfeiture?
Insured argues the policy condition is unjust or unreasonable - insured applies to court for relief from forfeiture. If court agrees, the insured may be excused in whole or in part. ‘relieved’ from perfect compliance with that particular condition
QUEBEC - predecessor of The Civil Code of Quebec
The Civil Code of Lower Canada
Why is the applicant in a superior position to the insurer in applying for insurance?
They know the MATERIAL FACTS
Stat Condition 2 - Property of Others
The insurer is not liable to pay for losses to any person other than the insured unless their interest is stated in the contract
Stat Condition 3 - Change of Interest
This condition identifies exceptions in which the insurer is obliged to insure a new interest replacing the named insureds interest.
Stat Condition 3 - Change of Interest Exceptions include
- An authorized assignment under the bankruptcy and Insolvency Act
- A change of title by Succession, operation of law, or the death of the named insured
Another name of Heir
The Successor
Statutory Condition 4 - Material Change
For facts that apply AFTER the policy takes effect. Stat 1 is all about before it takes effect
Stat 4 - Material Change. If insured doesn’t inform insurer, they are
in BREACH
If change in risk is discovered following a loss, burden of proof rests on the _______ that the undisclosed circumstances are _________ and that there is a ______
INSURER has the burden.
The changes are MATERIAL to the U/W of the risk
There is a CONNECTION between the cause of the loss and the material Change
In Alberta, registered mail can be known as _______
RECORDED MAIL
In Ontario, the alternatives to registered mail are
Personal Delivery or Delivery by Prepaid Courier
_____ Days notice is required when the notice is delivered personally or by prepaid courier
FIVE DAYS
______ Days noice is required when notice is delivered by recorded or registered mail
FIFTEEN DAYS
When does the 15 day period begin?
The day following receipt of the letter at the post office to which it is addressed (In AB and BC - it begins on the day the recorded or reg. letter or notification is delivered to the insureds postal address)
Who must the insurer also notify?
The Lienholders
Statutory Condition 6 - Requirements after loss
Requires the insured to provide notice of a loss to the insurer in writing as soon as possible
Statutory Condition 8 - Who may give Notice and Proof
- The insured
- The rep (broker / agent)
- any person to whom insurance money is payable may report the loss or give proof of loss
Stat Condition 11 Appraisal - What can it not be used for?
Used to settle disputes on whether coverage applies for the loss.
Goes to litigation if no resolution
Stat 12 - when loss payable.
The insurer is required to respond to it and make payment within ___ days
60 DAYS - can be changed by the insurer (lowered only)
Stat 13 - Replacement
The insurer may, within _____ days of receiving the proof of loss, notify the insured in writing of its intent to directly repair or replace the damaged property.
30 DAYS
Repairs must commence within _______ of the insurers receipt of the proof of loss
45 DAYS
If the insurer elects to repair and the extent of damage is greater than anticipated, the insurer ____
Must still complete the repairs even if the additional costs are above the insurance limit
FOIPPA stands for?
Freedom of Information and Protection of Privacy
FOIPPA applies where?
All jurisdictions EXCEPT NB, Newfoundland, and Labrador, Quebec, and the Territories
What is FOIPPA
Regulates public bodies such as prov. gov deps, munis, unis, school boards, and crown corps
Also covers professional regulatory bodies such as the LAW SOCIETY and the COLLEDGE OF PHYSICIANS and SURGEONS
PIPA stands for?
PERSONAL INFORMATION PROTECTIONS ACT
What is PIPA?
Governs PRIVATE SECTOR ORGS in course of Commercial Business
Contains specific provisions regarding the collection and use of elec data
ATIPPA stands for?
ACCESS TO INFORMATION AND PROTECTION OF PRIVACY ACT
Where is ATIPPA applied?
Applies to the TERRITORIES and LABRADOR
What is ATIPPA
Relates to info held by PUBLIC BODIES and the DEPT of JUSTICE
New Brunswick has the _________
RTIPPA
RTIPPA stands for?
Right to Information and Protection of Privacy Act
Quebec has the ____
No acronym found! Has the Act Respecting Access to Documents held by PUBLIC BODIES and the Protection of Personal Information
