Donwload the latest uploaded file - July 2012
C12 - Chapter 1
Terms | Definitions |
|---|---|
 What book of the Civil Code of Quebec is concerned with obligations? | book 5 |
| Describe the conditions in which a contract is deemed to have been made "in province." | 1. subject of contract is property in the province 2. resident of province has insurable interest |
| What nine pieces of information must every policy contain? | 1. name of insurer 2. name of insured 3. name of person whom insurance money is payable to 4. amount of premium for the insurance 5. subject matter of insurance 6. indemnity which the insurer is liable 7. the event on the happening of which liability is to accrue 8. effective date of insurance 9. expiry date of insurance |
| If two appraisers cannot resolve a dispute between an insurer and an insured, who determines the outcome of the disagreement? | an umpire is assigned |
| When can a contract term be waived in whole or in part by the insurer? | when a waiver is stated in writing |
| How may an insurer respond to an unpaid premium? | insurer may terminate contract after giving 15 days notice by registered mail |
| How many days must pass after proof of loss before an action may be brought for recovery of money payable under a contract of insurance? | 60 days must pass |
| In the Insurance Act, what is excluded in the description of loss against fire? | 1. goods undergoing application of heat 2. riot, war, rebellion etc. |
| Describe the conditions in which fire insurance would not cover damage caused by an explosion. | not covered if the cause of explosion was due to riot, war, rebellion etc. |
| If property is removed from the premises to prevent loss or damage, is that property still covered under a contract of fire insurance? Explain. | provincial insurance acts extend coverage to insured property if it is needed to be moved to prevent damage or further damage |
| Why is an insured obliged to take all reasonable steps to minimize loss? | insured receives no more than the insured amount |
| What provisions help ensure that the insurer is not placed at a disadvantage while helping the insured minimize loss? | automatic extension applies for no more than 7 days from the time property is removed. |
| Define distribution. | splitting of a single amount of insurance to apply to property in more than one location |
| Describe the two conditions upon which the distribution provision is based. | 1. amount of insurance is only the difference between the original amount of insurance and the amount of loss already suffered when it was removed 2. if the amount of loss is equal to or greater than the amount of insurance, the full amount is payable |
| What are the benefits of written applications? | reduces misunderstanding |
| Why do insurers use custom applications for certain kinds of insurance contract? | it makes it easier for the insured to see what options are offered and allows insurer to be aware of requests for variation in the terms of customary contracts |
| If an insurer issues a policy on different terms than the application and advises the insured accordingly, but the insured does not reject the contract within two weeks, what options does the insured have? | the insured cannot reject the change in terms but only can terminate the application |
| Explain limiting clauses and what is required for them by the Insurance Acts. | limits recovery by the insured to a specified percentage of the value of property at the time of loss. insurance at requires that policy be marked to that effect. |
| When more than one of an insured's contracts contain a deductible, how are the insurers' shares of a loss determined? | each insurer is liable to the insured for its rateable proportion of the loss. |
| Describe the three conditions on which the insurer may avoid a contract for misrepresentation. | 1. falsely described property to the detriment of the insurer 2. misrepresented any circumstance material to the insurer's assessment of the risk 3. fraudulently omitted to mention such circumstance |
| What must an insurer prove in order to avoid a contract for omission of a material circumstance? Why? | an insurer must prove material fact |
| Why have the courts found Statutory Condition 2 difficult to apply? | the condition does not define the word "owned" |
| What differentiates Statutory Condition 4 from Statutory Condition 1 | the difference is that stat 4, false material facts are given during the policy term |
| If an insurer cancels a policy, how is the insurer's pro rata share of the policy premium calculated | it is unearned premium minus earned premium |
| According to Statutory Condition 7, how is fraudulence determined | the onus is on the insurer to prove fraud |
| How does Statutory Condition 9 maximize the value of the insurer's salvage rights | it obligates the insured to protect damaged property from further damage |
No comments:
Post a Comment