Study 9 Flashcards
What does the DECLARATIONS PAGE include?
It includes info about WHO and WHAT is insured, along with identifying details about the client and the object of insurance.
Where is the DECLARATIONS PAGE found?
It’s attached to the COMMERCIAL GENERAL LIABILITY (CGL) POLICY.
What kind of information does the DECLARATIONS PAGE list?
It lists the business type, policy period, and ENDORSEMENTS.
What other LIABILITY COVERAGES should businesses and insurance pros be aware of?
WORKERS’ COMPENSATION and EMPLOYERS LIABILITY INSURANCE.
True or False: The DECLARATIONS PAGE only lists the type of business.
False. It also includes WHO and WHAT is insured.
What is the purpose of the DECLARATIONS PAGE in a CGL policy?
To provide identifying info about the CLIENT and the OBJECT of INSURANCE.
What is included in the DECLARATIONS PAGE of a CGL policy?
The DECLARATIONS PAGE includes the name of the insured, company details, contact info, business details, and more.
Why is it important to verify the information on the DECLARATIONS PAGE?
To ensure it is LEGITIMATE and accurate.
Who is the ‘named insured’?
The ‘NAMED INSURED’ is the party contracting with the insurer and enjoys the policy’s benefits.
What obligations does the NAMED INSURED have?
Paying premiums, recording info for premium computation, and requesting policy changes.
What does the policy period typically last for?
Usually a 12-month period, though it can be shorter or longer.
How does changing insurers affect coverage?
A gap in coverage may occur if policy times or locations don’t align.
What does the CGL policy show regarding the limits of insurance?
It shows the limits for EACH OCCURRENCE, PERSONAL INJURY, MEDICAL EXPENSES, and more.
What are the types of business the NAMED INSURED can be?
Individual, Joint venture, Partnership, Trust, LLC, or any other organization.
Why is it important to list the type of business on the DECLARATIONS PAGE?
To set boundaries for the RISK accepted by the underwriter.
What is the PREMIUM BASE used for?
It helps to calculate the premium based on business REVENUE.
What is the ‘advance premium’?
The premium paid upfront before the policy term begins.
What happens if the premium is substantial?
The insured may arrange to pay in INSTALMENTS.
What is the MINIMUM RETAINED PREMIUM?
The amount that won’t be refunded even if the policy is cancelled early.
True or False: The DECLARATIONS PAGE includes any ENDORSEMENTS to the policy.
True.
Who signs the DECLARATIONS PAGE?
The insurer’s CHIEF EXECUTIVE OFFICER and often a broker or authorized representative.
What is the purpose of the countersignature on the DECLARATIONS PAGE?
It serves as secondary confirmation that the document is AUTHENTIC.
What may be required if the premium isn’t paid all at once?
An AUDIT period may be set to calculate further payments.
What happens during an AUDIT period?
Premium calculations may be revisited, leading to further payments if needed.
True or False: The DECLARATIONS PAGE includes detailed descriptions of all other liability policies.
False. It includes specific liability policies and ENDORSEMENTS for the policy.
What are employers liable for regarding employee injuries?
Employers are liable for TORTS committed by employees during their employment and for NEGLIGENTLY causing employee injuries.
What must employers provide for their employees?
Employers must provide ADEQUATE working conditions and EQUIPMENT for employees to carry out their duties.
What are the two main methods of protecting employers from employee injury costs?
Workers’ COMPENSATION and employers LIABILITY INSURANCE.
True or False: Workers’ Compensation is compulsory in all provinces.
True.
Why was workers’ compensation legislation passed?
To spread the cost of injuries among all employers and protect employees from costly lawsuits.
What does the workers’ compensation legislation apply to?
It applies to MOST types of employment, with some exclusions (like farm employees in some areas).
What benefits are provided to injured workers under workers’ compensation?
Medical expenses, disability compensation, funeral expenses, and support for dependents.
True or False: Employees can still sue their employer under common law if they accept workers’ compensation benefits.
False. Employees cannot sue once they accept workers’ compensation.
What is the employer’s responsibility for workplace safety?
Employers must maintain SAFETY and provide proper supervision and instruction to avoid injuries.
What is Employers Liability Insurance used for?
It covers situations where employees are not covered by workers’ compensation and may sue the employer for NEGLIGENCE.
How is Employers Liability Insurance different from Workers’ Compensation?
Employers Liability is NOT no-fault, meaning the employee must prove NEGLIGENCE for the claim to be paid.
What is Voluntary Compensation Insurance?
It provides coverage for employees not covered by workers’ compensation and is a NO-FAULT type of accident insurance.
What happens if an employee accepts voluntary compensation benefits?
They must release the employer from legal liability claims under common law.
How is the premium for Employers Liability Insurance determined?
It is based on PAYROLL and may be adjustable at the end of the policy term.
What is Contingent Employers Liability Coverage?
It covers employers in situations where workers’ compensation does not apply, such as employees working outside their home jurisdiction.
When can an employer’s CGL insurer defend an action?
When the workers’ compensation board denies coverage and the employee sues the employer in TORT.
What is a hold-harmless clause in the context of Employers Liability?
It is an agreement where one party agrees to indemnify another for liabilities, often used in construction contracts.
True or False: If a worker is injured outside the scope of workers’ compensation coverage, they can still bring a lawsuit against their employer.
True, they can sue if the injury occurred outside coverage.
Who’s responsible if an employee gets hurt?
The EMPLOYER! They’re liable for TORTS and NEGLIGENTLY causing injury to employees.
What must employers give to employees to avoid liability?
A SAFE WORKPLACE with proper EQUIPMENT and TRAINING.
What’s the double defense for employers against injury claims?
WORKERS’ COMPENSATION and EMPLOYERS LIABILITY INSURANCE.
True or False: Workers’ compensation is optional in Canada.
FALSE! It’s COMPULSORY for most jobs.
Why did workers’ compensation laws get passed?
To STOP costly lawsuits and SPREAD the injury costs among employers.
Who’s excluded from workers’ compensation?
Some FARM workers, casual employees, and certain clerical workers.
What do injured workers get under workers’ comp?
MEDICAL coverage, disability payments, and support for family if needed.
True or False: You can sue your boss after accepting workers’ compensation benefits.
FALSE! No suing once you accept those benefits.
What’s the employer’s job when it comes to employee safety?
Be the SAFETY BOSS! Ensure everything’s safe and SOUND.
What’s the deal with Employers Liability Insurance?
It’s for situations when workers’ comp doesn’t cover you.
Is Employers Liability Insurance no-fault?
No! You’ve gotta PROVE negligence for it to pay out.
What’s Voluntary Compensation Insurance?
It’s like a BACK-UP plan. If you’re not covered by workers’ comp, it pays for injuries on the job.
What happens if you take Voluntary Compensation benefits?
You can’t SUE your boss later.
How is Employers Liability Insurance priced?
It’s based on PAYROLL.
What’s Contingent Employers Liability Coverage?
It kicks in when workers’ comp doesn’t cover an injury.
What happens if workers’ comp doesn’t cover an injury?
The EMPLOYER’S CGL insurer steps in to DEFEND them.
What’s a “hold-harmless” clause?
It’s a “you take the blame, I’ll cover the costs” agreement.
True or False: You can sue your employer if you get hurt outside of workers’ compensation rules.
TRUE! If you’re not covered, lawsuit time!
What’s included on a CGL policy declarations page?
The name of the INSURER, NAMED INSURED, POLICY PERIOD, LIMITS, BUSINESS TYPE, PREMISES, PREMIUM, ENDORSEMENTS, and COUNTERSIGNATURE.
What’s covered under Workers’ Compensation in every province and territory?
MEDICAL expenses, DISABILITY benefits, FUNERAL or DEATH benefits, and REHABILITATION programs.
True or False: Workers’ compensation benefits are based on FAULT.
FALSE! They’re provided REGARDLESS of fault.
What happens if an employee isn’t covered by Workers’ Compensation?
The EMPLOYER can get EMPLOYERS LIABILITY INSURANCE to cover injuries.
What’s the deal with voluntary compensation for employees?
It’s when employees take benefits without proving FAULT from the employer.
What’s contingent employers liability coverage for?
It covers employees working outside their jurisdiction, or when workers’ comp doesn’t pay.
