Baer and Rendall

Question 1

Baer and Rendall - Types of insurers

Answer 1

individual underwriters; joint stock companies; mutual companies; reciprocal exchanges

Question 2

Baer and Rendall - Reasons insurance is exempt from anti-combines legislation

Answer 2

uncontrolled price competition not in publics long term interest; industry encouraged to cooperate to produce adequate premiums

Question 3

Baer and Rendall - Focus of Canadian insurance regulation since confedration

Answer 3

solvency; canadian ownership; creation of tax revenues; marketing integrity and improvement of insurance contract; honesty and competency of insurance intermediaries

Question 4

Baer and Rendall - Forms of insurance legislation

Answer 4

legislation; regulation by Lieutenant Governor; directives issued by Superintendent

Question 5

Baer and Rendall - Differences between social and private insurance

Answer 5

lines insured; universal in application; protect the public; no need for elaborate solvency rules

Question 6

Baer and Rendall - Similarities between social and private insurance

Answer 6

protect integrity of insurance fund and prevent double recovery; problem defining covered events and if a particular loss is covered; difficulty in establishing efficient claims processes and appropriate system for evaluating losses

Question 7

Baer and Rendall - Solutions for loss sharing between collateral fund and tortfeasor

Answer 7

election; cumulation; reimbursement; relieveing the tortfeasor

Question 8

Baer and Rendall - Requirements for duty of care

Answer 8

customer relies on information, reliance is reasonable, company ought to have known of this reliance

Question 9

Baer and Rendall - Definition of standard of absolute liability

Answer 9

if insurer can settle within limits and does not, it is liable to reimburse any claim amount