Study 2 Critical Thinking Questions Flashcards
What does the Basis of Payment clause entitle an insured to expect in settlement of a claim?
The principle of indemnity is to leave the insured in the same financial position as before the loss.
The Basis of Payment clause entitles the insured only to the least of
the following:
1. The actual cash value of the property at the time the loss occurred
2. The interest of the insured in the property
3. The limits specified in the policy
What does the Basis of Payment clause entitle an insured to expect in settlement of a claim?
The principle of indemnity is to leave the insured in the same financial position as before the loss.
The Basis of Payment clause entitles the insured only to the least of
the following:
1. The actual cash value of the property at the time the loss occurred
2. The interest of the insured in the property
3. The limits specified in the policy
How do the definitions of personal information differ between PIPEDA and
the Privacy Act?
In PIPEDA, the definition of personal information is concise: It simply means
information about an identifiable individual.
In the Privacy Act, a much more detailed definition of personal information includes
(a) information relating to the race, national or ethnic origin, colour, religion, age,
or marital status of the individual
and
(b) information relating to the education or the medical, criminal, or employment
history of the individual or information relating to financial transactions in
which the individual has been involved, along with seven other elements.
The definition in the Privacy Act also includes four further elements that explain what
personal information does not mean for purposes of the Access to Information Act.
What kinds of personal information must an insurer collect with an application for insurance?
l What personal information is collected? l Why is it collected? l How is it collected? l What is it used for? l Where is it kept? l How is it secured? l Who has access to or uses it? l To whom is it disclosed? l When is it disposed of?
What questions must insurers answer for insureds about their personal information?
If the insured requests information that has been collected, insurers are required to comply. Such inquiries must, however, be approached cautiously. The identity of the person requesting information must be verified, as well as his or her entitlement to the information requested. For that reason, inquiries should be directed to the insurer’s designated Privacy Officer. Depending on their nature, requests made directly to a broker or agent should similarly be directed to the insurer. Information collected by a broker or agent on behalf of the insurer must be submitted to the insurer.
What is the mandate of Insurance Bureau of Canada?
The IBC mandate is to advocate for insurers and consumers on property and casualty insurance issues that affect all Canadians
How does IBC’s Intercompany Arbitration Agreement work?
By joining IBC, insurers agree to participate in agreements such as the Intercompany Arbitration Agreement that allow insurers to resolve disputes over insured losses of less than $50,000 without litigation. Through a pre-arbitration process, senior claims staff resolve the majority of property and liability disputes. If the pre-arbitration officers are unable to reach consensus, a panel of Claims Managers from the Canadian Insurance Claims Managers Association (CICMA) will hear and decide the outcome. This agreement cannot be used to arbitrate matters where insureds have losses that are outside the scope of their insurance coverage.
What is the purpose of IBC’s Agreement of Guiding Principles (Property Insurance)?
The Guiding Principles provide a defined priority of payment and formulas for the apportionment of indemnity. They are relied on while additional information is collected but are not binding on insurers if the matter must be resolved through litigation.
