Overall Flashcards

Question

How are the rights of consumers protected?

Answer 1

Common law, civil code and statutory duties flow from the responsibilities assumed by intermediaries: what they say they will do, what they do, and to what extent clients have relied on statements made by them. These laws protect the rights of consumers. When it comes to analyzing to whom the duty of care is owed, the insurance professional can expect that the clients interests should come above those of the insurer.

Answer 2

``` prospect for potential new clients qualify the client advise the client facilitate the application for insurance obtain instructions from the client negotiate insurance facilitate the claims process ```

Answer 3

target marketing? developing a sales strategy to target a specific segment of the population market segmentation? identifying the potential insureds you could approach based on your target marketing plan advertising? advertising your services in relevant publications or by creating a sales publication to be distributed cold?calling? contacting people you have never met, to introduce yourself and offer your services referrals? selling to friends or family members of existing clients based on the clients recommendations

Answer 4

?evaluate clients exposures and advise what improvements can be made to the clients current insurance program ?recommend insurance ?advise of all insurance available ? advise to control risk

Answer 5

?review the clients insurance portfolio ?solicit information from the client, as required ?offer options to improve coverage, if possible ? carry out the clients instructions ?arrange insurance coverage ?arrange changes to existing coverage ?arrange for cancellation or lapsing of coverage

Answer 6

?reassure your client that you are there to assist in notifying the insurer of the claim and in explaining the claims process to the client ?Review the situation and offer any immediate assistance if necessary ?avoid making any comments on the validity of a claim as brokers and agents do not confirm or deny coverage ?outline the basic claims process and advise your client of what to expect ?notify the insurer ? monitor the progress of the claim ? call the client to verify that the claim is progressing to his or her satisfaction

Answer 7

They are protection for the consumer to ensure that those who advise the public on insurance matters are qualified to do so.

Answer 8

Allows the license holder to transact business in only certain classes of insurance, and some offer different levels of licensing. The first level permits the licensee to work under the supervision of a more experienced individual and handle only certain types of insurance. After completing further study and obtaining work experience, individuals are permitted to write the next level of examination.

Answer 9

Must be well informed, comply with the law and relevant rules of insurance, and operate with the utmost good faith.

Answer 10

Duty to clients? provide the coverage best suited to the clients needs, not be swayed by remunerative gain, not take advantage of clients lack of knowledge or inexperience, hold information in strict confidence and competently perform services undertaken, which requires broker to be well educated and indicates the needs for continuing education Duties to the insurer? be honest and trustworthy, stay within the terms of the broker agreement and disclose all relevant material facts to the insurer, even if it will make placing the risk difficult

Answer 11

Any information that could affect the contract of insurance to an extent that, if it were disclosed, it wold change the agreement between the insurer and the insured. Material facts must always be disclosed. If such facts are not revealed when asked about, the policy involved could become void as a result, meaning the clients claim will not be paid.

Answer 12

The Personal Information Protections and Electronic Documents Act?governs the collection and use of personal information. PIPEDA, a federal statue, states that personal information collected must be relevant, and that all information collected must be held in the strictest of confidence.

Answer 13

Timeliness, clarity in conveying information, accuracy, courtesy and professional manners.

Answer 14

verbal? body language, tone, and the way words are delivered, not just through the words themselves Written? email, letters, faxes etc. Active listening? listen to what is being said, interpreting how it is being said, processing non verbal cues, questioning those parts that you did not understand, and confirming that what you did absorb was understood correctly.

Answer 15

When communicating in person with a client if you tend to assume at least some of the same body positions or postures, this is matching. When similar actions are performed, as if looking in a mirror, this is called mirroring.

Answer 16

?tone ?vocabulary ?rate of speech

Answer 17

``` make available the things you will need ? pad of paper ?pens ?access to the computer files ?client files for reference ?a calculator ?any forms or applications you may need ```

Answer 18

Remain calm, clarify the clients position, keep the discussion focused on the facts, and avoid falling into the traps inherent to the specific situation. Spend time with your client, appreciate their feelings, have empathy for the situation

Answer 19

A source of potential clients, this may be further segmented into groups identifiable by age, socio?economic backgrounds, personal interests, business pursuits, coverage needs etc.A Lead is a member of a group of potential clients that fits a certain profile, which you have determined as your marketing target.

Answer 20

``` ?name ?address and email address ?phone numbers ?family information ?interests and hobbies ```

Answer 21

Referrals? majority of brokers business comes from referrals. Because existing clients have referred them, new prospects are generally from the same target segment. Advertising/walk ins? advertising in the local media or yellow pages can generate clients. If your brokerage operates a storefront business clients may see your office and come in. Cold calling? making contact with a person you do not know in order to introduce yourself and your services.

Answer 22

also known as an expiry date, tracking expiry dates is a way to form a database of prospective customers.

Answer 23

There are no provincial regulations that specify how long insurance documents must be kept or how they are to be kept. Generally insurance professionals are guided by the prescription periods applicable to various classes of insurance when determining the length of time that documents should be retained.

Answer 24

In law, is a time after which a cause of action ceases. In insurance, it is the time after which a claim may not be brought.

Answer 25

The minimization (at a cost) of the detrimental effects of risk by identifying the risk, measuring the risk, and controlling the risk.

Answer 26

Assessing your potential clients exposures in the broader context of risk. this includes, risk to physical property, financial exposures to liability risks, and the assessment of the potential client.

Answer 27

Physical property refers to any material goods a client may own. These can range from high value items such as a car or house, to a clients collection of antique dolls. Anything that would result in a financial loss to the client should loss or damage occur

Answer 28

Liability refers to a legal obligation. Liability exists where an individual has a responsibility for the safety or property of another. Not only are individuals responsible for their own actions, however unintentional, they are also responsible for the actions of their children and pets.

Answer 29

?The subject of insurance exposed to loss ?the perils that might give rise to loss ?the estimated financial impact a loss will cause

Answer 30

What is exposed to loss. ex. house, car, personal property, liability

Answer 31

An event that could cause a loss ex. fire, theft windstorm, explosion, earthquake, and vandalism.

Answer 32

direct losses? loss of property and contents indirect losses? financial losses caused not by the event itself but as a consequence of the property being destroyed. ex. a small restaurant is destroyed by fire, as they can not operate due to this loss they will also have a loss of income.

Answer 33

A hazard is a condition that may cause a peril to occur. physical hazard? a factor that may influence the outcome of a loss. It increased the change of a peril affecting the insured, or makes the damage resulting from the peril more severe. Usually it can be quite readily identified and measured and often it can be completely removed or reduced by preventive methods. ex. flammable materials stored near a heating system increase the likelihood of a fire occurring and spreading more quickly to other areas of the building. Moral Hazard? refers to conditions attributable to the human element. It grows out of attitudes, and depends on the character of insureds and their employees. It can involve outright dishonesty, which could lead to fraud, but it is also concerned with carelessness and poor management. It may lead to the occurrence of a peril, or to making the resultant damage from a loss more severe.

Answer 34

moral hazards are the characteristics of the insured (or applicant) that increase the probability or severity of a loss. ex. a client that has gone bankrupt several times may benefit financially from an insurance loss and would then find making an insurance claim attractive. Morale hazard relates not to the dishonesty and the like, but to a poor attitude on the part of the insured. Ex. poor upkeep of the premises, poor maintenance of equipment, a don't care outlook, hiring low quality employees or lack of supervision.

Answer 35

? establish a one on one relationship ?if meeting at the clients residence or place of business you also have the opportunity to inspect the premises as part of your assessment. ?affords you the opportunity to secure a premium deposit immediately.

Answer 36

An aspect of risk management, involves suggesting safety precautions for the identified loss exposure that can help prevent perils from occurring, or that can help reduce the extent of loss arising from a particular peril.

Answer 37

Using risk control techniques will reduce the amount of money that insurers pay in claims, which improves the financial results of the insurers and ultimately reduces insurance costs to consumers. Remind clients that extra care and investment now may save them the time and trouble of claims made later as a result of possibly preventable peril.

Answer 38

A request for insurance that introduces the applicant to the insurance company. It also identifies your brokerage as the broker of record, and identifies the insurer to whom you are directing the request for coverage.

Answer 39

Can be a new client who has no coverage at all, is looking for an alternate quote for whatever policy is currently expiring, or wants to evaluate the services provided by another broker because they are not satisfied with their present broker

Answer 40

Is fundamental to the principle of utmost good faith that underlies all insurance transactions. Misrepresentation of material facts in the application can have serious consequences, in the most extreme cases causing losses to be denied and/or the insured policy to be voided.

Answer 41

Giving false information to an underwriter, knowing it is false? in other words, telling a lie.

Answer 42

A factual statement about the risk, either expressed or implied, that needs to be communicated to the underwriter so that the risk may be properly assessed.

Answer 43

When the insured and broker discuss insurance needs, either over the phone or in person, and you document your conversation in signed, dated notes.

Answer 44

This may be a printed form provided by the insurer, a combination of a letter and forms developed by either the insurer or the broker, or just a letter. the form can be conventional paper or electronic versions.

Answer 45

A national organization of property and casualty insurers and independent insurance brokers working together to achieve electronic business solutions for the insurance industry.

Answer 46

When the applicant stands in such position to the subject of insurance that he or she could be financially prejudiced by that property's loss or damage, and financially benefited by its continued existence. The applicant also has an insurable interest in his or her potential capability to pay damages in the event that he or she is found responsible (legally liable) for having caused injuries to other or damage to their property.

Answer 47

Trade names are not legal entities until registered as a limited company.

Answer 48

The generic term for someone other than the named insured to whom the proceeds of insurance will be paid.

Answer 49

A special class of loss payee. Mortgagees have a registered interest on real property?that is, buildings or land? offered as security for the money that they have loaned the property owner. Unlike other loss payees, who are simply noted on the policy as such with respect to the property that they have an interest in, the mortgagees interests are protected by a separate insuring clause granting additional protection to the mortgagee.

Answer 50

It becomes a declaration made by the applicant, confirming that the statements made are accurate and even when it does not form part of the policy, the application is the basis on which the contract issued.

Answer 51

?Checking the insurers underwriting guidelines. These will normally be clearly outlined in the personal lines manual that each insurer provides your brokerage ?analyzing and comparing the products of your insurer. Each insurer has its own version of the various personal lines package policies?broad form and limited (or named perils) form. Automobile wordings are statutorily dictated by province ?selecting an insurance policy based on your analysis of your clients needs and the policies your insurers supply.

Answer 52

?applying your knowledge of the products available. Select appropriate policies based on your discussions with your client and your analysis of their insurance needs and the adequacy of their existing coverage. ?applying your knowledge of what your insurer(s) want. The insurers will have communicated to your broker management the classes of business they cover and the specific products they offer. Some of your markets may be better able than others to meet your clients insurance needs ?talking to your colleagues about which market would be the most appropriate for your client, if you are unclear about what your markets want. As you gain experience, you will come to know the types of business that you various markets prefer.

Answer 53

A brokers capacity to confirm to applicants that they have coverage against certain losses. Individuals with binding authority can tell their clients that they are covered by an insurance policy without first submitting the application for insurance to the insurer.

Answer 54

Broker agreement

Answer 55

Not all brokers are granted binding authority or the same degree of binding authority. When granted, binding authority is normally limited to personal lines policies and smaller commercial lines policies. The binding authority depends on the terms negotiated between insurer and brokerage, and may differ between brokerages contracted with the same insurer. ex. wholesale brokers generally are granted binding authority for specific situations only, such as pre arranged insurance programs where the wholesale broker operates as the insurer.

Answer 56

?the classes of risk and the limits of insurance that the brokerage is permitted to bind ?the risks that the brokerage cannot bind. (such risks could be extremely hazardous, or require special underwriting expertise, or an insurer may simply have decided not to insure these classes of risk, or not be licensed to write them.) ?the reporting requirements, including time frame within which the insurer expects the broker to forward notice of binding. That is, you will have a certain number of days after binding insurance to submit the binder to the insurer, or binding will not be valid, and you could be held liable for any uninsured or under insured loss.

Answer 57

The binding limits outlined in the broker agreement do not represent the maximumamount an insurer will consider; they primarily act as a control on brokers' bindingpowers.

Answer 58

Brokers have an important role to play in fraud prevention; they are the eyes andears of the insurer.

Answer 59

Client wants you to backdate a policy Client asks to bind coverage for a new risk without adequate information A new applicant is in a hurry to get the cover bound

Answer 60

A binder can be written or oral. Since there is typically a delay between the time a risk is bound and the time thepolicy is issued, it is preferable to have written confirmation of the coverage that wasbound.

Answer 61

There are two forms of document used to record interim or temporary cover:1. A cover note issued by the broker2. A binder issued by the insurer

Answer 62

?Name of the insured ?Mailing address of the insured ?Any loss payees or mortgagees ?Time and date that the coverage takes effect ?Time and date the coverage expires ?Location and type of risk that is being insured ?Exact coverage details ?Clause that states that the cover is subject to all the terms and conditions usual tothe insurer's policy wording Details of deductibles, special warranties, any conditions, or any special wordingsthat restrict or broaden coverage ?A clause stating, This policy contains a clause that my limit the amount payable."

Answer 63

means against the offeror."Any ambiguity in wording will be construed in favour of the insured."

Answer 64

Automobile Insurance ?Automobile policy wordings are subject to a standard form legislated by statute orregulation in the various provinces and territories. In common law provinces, automobile policies are subject to Statutory Conditions. In Quebec, automobile policies are subject to the General Conditions. Property Insurance? Property insurance policy wordings differ from insurer to insurer. Provincial statutes state the minimum coverage that fire policies must include ?perils of fire, lightning, and limited explosion?but do not specify the exact wordingsof policies. Provincial legislation can also specify information that must be included in the policywording. If there is any clause in the policy that limits the amount an insured may recover,such as, a deductible, co?insurance, or distribution clause, the phrase This policycontains a clause that may limit the amount payable." must be stamped or printed onthe face of the policy.

Answer 65

``` names of the insured and the insurer; effective and expiry dates; names and addresses of any loss payees and mortgagees; total premium; and amount insured. ```

Answer 66

Explains what is covered and for how much

Answer 67

Shows the coverage's applicable; term of the policy; perils covered; exclusions (which restrict the perils insured); and circumstances under which the insured will receive payment of the proceeds of a claim.

Answer 68

policy conditions affect the actions of the insured or insurer under the contract under certain circumstances. If a condition is breached by the insured, the policy may be void or voidable, or a claim arising out of the breach may be denied by the insurer, depending upon the condition involved.

Answer 69

the policy is treated as if it never existed

Answer 70

means that the policy can be affirmed or rejected at the option of the aggrieved party? effectively, the insurer (if the aggrieved party) has the discretion to either pay or deny any claims

Answer 71

promises the insured makes as part of the contract that a specified state of affairs will continue to exist for the duration of the policy. They are obligations which the insured must fulfill in order to keep the policy in force. A failure to satisfy a warranty could result in the insurer not paying a claim

Answer 72

A true condition may be recognized by the fact that the clause says, in effect, if the insured does or does not do such and such, the insurer will not pay or the policy will be voidable. A warranty is a promise by the insured to do something or to maintain something in a particular condition.

Answer 73

The amount of a loss that the insured must pay.

Answer 74

Larger deductibles can be selected as a method of reducing premiums.

Answer 75

``` ?location ?construction ?age of building ?occupancy ?maintenance and housekeeping ?protection ?nearby risk exposures ```

Answer 76

Underwriters want to know the risk's proximity to fire protection (fire hydrant, fire halletc.).

Answer 77

?The type of construction materials used in the building affects how susceptible it is toloss. ?There are separate rating classifications for frame, brick veneer, masonry, or fireresistive construction. ?The more fire resistive the construction, the less likely it will suffer a fire loss,therefore, the lower the premiums will be. ?The roofing materials are rated separately. ?the more fire resistant the building, the less likely it is to be involved in a fire, so the lower the premiums charged.

Answer 78

?The method and the materials used to construct a building are directly related to abuilding's age. ?Newer buildings conform to newer (stricter) fire codes. ?Historic buildings are a specialized insurance risk ?Materials for rebuilding historic buildings may be difficult to obtain, and the repaircosts higher than those to replace a normal (non?historic) building, thus, insurancefor them ay carry a higher premium. ?Since the value of historic buildings is difficult to determine, they should beappraised by an independent professional. ?Building services include electrical, heating, and water systems, and insurers willwant to know details about them including any updates to them. ?Some insurers require all services to be updated every 30 years, others only requiresome updates to services and proper overall maintenance to the rest.

Answer 79

?owner occupied principal residence ?seasonal dwelling or cottage ?rented dwelling .

Answer 80

A form of home ownership that allows the purchaser to buy the home without having to buy the building.

Answer 81

A form of home ownership which can be similar to condominiums, though not as common. Members of equity cooperatives own the building collectively and each member of the cooperative owns a share or shares in the cooperative and is granted a lease of his unit. Non equity, non profit cooperatives own the building collectively. In the most common form of cooperative, the member is not required to make any monetary outlay except for a monthly housing charge. Certain cooperatives may be organized differently and actually permit ownership of the unit.

Answer 82

?Is it a year?round dwelling or luxury dwelling intended to be a retirementhome? ?What is the age, construction, heating system, and general condition of thecottage? ?It is one building or many? ?How often is the cottage used and what time of the year is it used? (i.e. is itwinterized?) ?How accessible is it throughout the seasons? ?What municipal fire protection is available? ?Are there any year round neighbors with access to the cottage? ?Is there aneighborhood watch?

Answer 83

Limits for the outbuildings are including in the limit for the main building

Answer 84

?The market for small residential rental businesses can be quite restrictive. ?Query your client's leasing conditions. ?The number of tenants is an underwriting and rating factor. ?Larger rental properties (risks with more than four to six rental units) aregenerally insured as commercial risks. ?Clients with a home business have exposures beyond the scope of a typicalhomeowner and may require separate insurance.

Answer 85

? Premises are unoccupied when the building contains contents but no one lives orworks in it. Some insurers extend coverage if notified of the vacancy. ?Premises are vacant is when they contain no belongings, no one lives or works inthem and the insured does not plan to return to them.

Answer 86

?Premises that are under construction have similar considerations to vacantpremises. ?If a new building is being constructed, it may require a builder's risk form or course of constructionform. ?If an existing building is being renovated, the insurer mayagree to endorse the existing policy to give permission for renovations or repairs. ?If your client advises you she is renovating, determine the extent of the renovations? buildings altered one part at a time can create concreted spaces; buildingscompletely gutted essentially become a new building with an old facade.

Answer 87

Properties that are attached or in close proximity to your clients premises represent a potential increased risk of loss to your clients premises. If the building next door is a chemical research plant or a dynamite manufacturer the business is exposing your client's premises to additional risk.

Answer 88

If renovations alter one part at a time, or are mostly cosmetic, the alterations can create concealed spaces, which increases the risk of a fire starting unnoticeably and spreading quickly.

Answer 89

?sprinkler systems ?security guards/watchmen ?central station burglary alarm protection

Answer 90

Provide the insured with better coverage than he or she had previously or, at least, no less comprehensive than his or her expiring policy.

Answer 91

Some insurers offer preferred rates or premium discounts to a particular target group or groups of personal lines clients, such as discounts for mortgage?free homeowners, certain age groups, or non smokers. Other insurers offer discounts to clients who have multiple policies or lines of coverage with them or are loyal customers who have maintained their insurance with the same insurer for a number of years. Discounts may also be offered to clients who have extra security systems, such as alarm systems or watchman services, particularly for commercial insurance clients. Loss history is another factor that will affect any discounts offered.

Answer 92

Contents coverage only

Answer 93

Covers the unit owners share of the damge to common elements of the condo building

Answer 94

Covers loss arasing from any deficiency in the condo's coverage policy

Answer 95

rented dwelling

Answer 96

Stamp collections are covered under a personal articles floater

Answer 97

Basic, Broad & Comprehensive

Answer 98

?owner occupied principal residence ?seasonal dwelling or cottage ?rented dwelling

Answer 99

Replacement cost

Answer 100

Fire, lighning, and explosion of coal, natural or manufactured gas

Answer 101

Defamation or injury of a person reputation by a published writing

Answer 102

Verbal defamation or injury of a persons reputation

Answer 103

Occurrence basis? most common form of liability wordings Claims?made basis? cause of loss must not be excluded Accident basis? covers bodily injury or property damage which was unitended or unexpected

Answer 104

?The Homeowner's Basic Form (IBC 1151) provides coverage for named perilsincluding theft, glass breakage, and transportation. ? The Homeowner's Broad Form (IBC 1153) provides coverage for all risks on thedwelling building and detached private structures and named perils on the personalproperty ?The Homeowner's Comprehensive Form (IBC 1155) provides all risks on all items,subject to policy exclusions. All homeowner's package policies insure the dwelling building, detached privatestructures, contents, and additional living expenses.

Answer 105

Insurers will pay the full cost of rebuilding even if this were to exceed the amount of insurance purchased provided the ?amount of insurance was 100% of the replacement cost at last valuation ?insured notified the insurer within 90 days of the start of work on any improvement, extension, or addition ?increased costs were not due to the operation of a by?law

Answer 106

Insurance valuation is concerned with the actual costs to repair or replace thestructure with one of like kind and quality on the current site. A number of different valuation guides are available that may be helpful whendetermining replacement costs. ?Obtain appraisals

Answer 107

Client can determine if the standard limit offered on the policy is enough toadequately protect him or her by completing an inventory of his or her possessions

Answer 108

The limit of contents coverage under a homeowners form is usually a predetermined percentage of the building limit, some companies will allow the insured to increase this amount if it is not adequate. An inventory can be completed to determine an adequate limit.

Answer 109

?All homeowner's package policies insure the dwelling building, detached privatestructures, contents, and additional living expenses. The Homeowner's Basic Form (IBC 1151) provides coverage for named perilsincluding theft, glass breakage, and transportation. The Homeowner's Broad Form (IBC 1153) provides coverage for all risks on thedwelling building and detached private structures and named perils on the personalproperty The Homeowner's Comprehensive Form (IBC 1155) provides all risks on all items,subject to policy exclusions. Tenants package policies are for insureds who rent houses or apartments. They are similar to homeowners policies except that the do not cover the building(except for limited coverage for theft damage). These policies cover the insured's contents and leasehold improvements. The insured determines the amount of insurance coverage for his contents. There are two forms: ?basic?which is a named perils form ?comprehensive?which is an all risks form

Answer 110

contingent insurance?covers loss to the insured own unite arising fromany deficiency in the condominium corporations policy loss assessment insurance?covers the unit owner's share of anassessment for damages to the common elements of the condominium.

Answer 111

A broad definition of a mobile home is one factory?built on its own chassis. With mobile homes, items that are considered contents in a normal home?such as appliances? can by considered part of the building. Because these fixtures tend to be built in, damage to them can lead to structural damage as well; this means that what might be a minor loss to a conventional home could be a major loss to a mobile home. Also, because of the high rate of depreciation of mobile home, replacement cost is not usually available for the building, though it might be available for the contents

Answer 112

Items such as jewellery, fine arts, furs, coin and stamp collections are generally restricted under the homeowners, condo and tenants policies, the personal articles floater provides coverage, subject to exclusions for these items.

Answer 113

Requires client to provide copies of appraisals or valuations for items insured. Some insurers will provide insurance on a valued basis, so that in the event of a claim, the value of an item agreed upon will be paid by the insurer.

Answer 114

There are two ways to insure property that forms part of a collection, Blanket basis with a single limit of insurance or separate limits for each item. When a blanket limit is provided insurer may limit is exposure to loss from any one item.

Answer 115

loss or damage caused by: wear and tear birds or vermin nuclear incident war intentional or criminal acts by the insured electrical currents, other than lightning, which damage electrical devices or appliances.

Answer 116

This coverage provides physical damage coverage to boats and motors. ? It can include limited cover for the insured's liability for property damage arising fromcollision while afloat. ?It does not cover bodily injury. ?While wordings vary, there are some common exclusions: Damage to the boat when it is used for a purpose other than private pleasure, Damage to the boat while it is being refinished, renovated, or repaired, Damage to the boat when racing it

Answer 117

There are two restrictions: ?The navigation warranty governs the use of the boat beyond the specifiedarea ?The lay up warranty governs the use of the boat when it is supposed to belaid up

Answer 118

Burglary is the unlawful removal of property from premises with visible signsof forcible entry (or exit).

Answer 119

?business interruption

Answer 120

Because of unique exposures of farms as dwellings and businesses at one location, insurers developed a specific series of wordings to provide the required coverage in one policy.

Answer 121

retail?a typical retail store could include insurance for COED, BI, crime exposures, CGL, and glass, also could include building, boiler and machinery, accounts receivable Office? Could include COED, EDP, software and hardware, valuable paper, accounts receivable, extra expense, money and CGL Contractors? Due to the wide range of work a contractor may specialize in, the information required by an underwriter and the coverage offered can vary, they may require COED, accounts receivable, valuable papers, tools and equipment, transit, installation floater or builders risk, CGL

Answer 122

Covers a new area of law, or it consolidates and codifies existing practices.

Answer 123

off?premises

Answer 124

civil law? courts determine fault and compensation criminal law? courts determine guilt and punishment

Answer 125

occupier's liability act

Answer 126

the number of employees, type of product or service, the size of the business

Answer 127

trespasser, licensee and invitee

Answer 128

location of the business, condition, maintenance and construction of the physical premises, loss history for a minimum of 5 years

Answer 129

a punishment of the wrongdoer

Answer 130

Items such as out of pocket expenses

Answer 131

Asum of money claimed or awarded as compensation for loss or injury.

Answer 132

To compensate the third party for injury sustained because of the actions of the defendant

Answer 133

Compensation for such things as pain or suffering

Answer 134

res ipsa loquiter

Answer 135

Personal Acts, Premises, Tenant's legal liability, Employer's liability

Answer 136

negligence, nuisance and breach of contract

Answer 137

? Legal liability refers to responsibility assessed against a person for injury or propertydamage to another person as a result of the law being applied. ?A person can be held liable actions or inactions that cause harm to others ordamage to property of others. ?Under certain circumstances, people can be held liable for the acts and omissions ofothers (such as their minor children). ?Liability being assessed against a person, can have serious financial consequences:all of a person's financial assets could be at risk. ?The costs to defend a liability lawsuit can be devastating (even if the person is foundnot liable). ?Liability insurance covers something abstract ? the possibility that an insured will besued for loss or injury to a third party, whether or not the insured is actuallyresponsible for the loss. ?Liability insurance protects a person found legally liable for the compensatorydamages incurred to an injured party and for the costs to defend against lawsuits,regardless of whether the lawsuits have merit. ?Thus, liability insurance protects an insured against lawsuits in two ways: ?For the costs of defending an action ?For the costs of settle the claim with the third party

Answer 138

?The Civil Code of Quebec covers matters that might give rise to a dispute andcodifies them into a series of articles. The court's role is to settle disputes according to the Civil Code. If a specific dispute is not detailed in the Civil Code, courts will apply the generalprinciples of justice set out in the Civil Code. ?The common law applies in all other jurisdictions. General principles developed through successive judicial decisions over many yearsform the basis of common law. It is the law of precedent ? judgments of current cases are based on, and guidedby, judgments made in prior, similar cases. Legal principles change over time as new cases are heard and social values evolve. The common law is a mixture of case law and statute law.

Answer 139

?Statutes are laws passed in written form by governments. ?A statue covers a new area of law or consolidates and codifies existing practice. ? In common law jurisdictions, statute laws supersede case law if there is a conflict. ?in Quebec, a statute replaces or amends the Civil Code, unless the statutespecifically states otherwise.

Answer 140

the omission to do something that a prudent and reasonable person wouldnot do or doing something that a prudent and reasonable person would not do.

Answer 141

a wrongful act

Answer 142

This is the substantial and unreasonable interference with a person's right to enjoyand use his or her property. Legal actions of this type are relatively rare.

Answer 143

A breach of contract occurs when one of the parties to a contract fails to fulfill one or more of its obligations under the contract. Liability insurance usually has only limited application to breach of contract. A breach that is often covered under a liability policy concerns a clients responsibilities for bodily injury or property damage as the occupier of premises. Since insurable exposures arising from breach of contract are most likely related to lease agreements, or sales and supplier agreements, a review of these documents is advisable.

Answer 144

?The duty of care owed to children is higher than to other persons, premises must bekept safe for children, even if they are trespassing. ?Occupiers must take care to make potentially dangerous sites not accessible tochildren. Sites which by their vary nature draw children to investigate them?such asconstruction sites or pools ? are considered an attractive nuisance or allurement.They may be subject to special legislation, such as municipal bylaws requiring poolsto be fenced and have a gate to restrict access to them.

Answer 145

A place or thing, such as a construction site, that draws children to investigate it or play with it by its very nature

Answer 146

? In most provinces, liability arising out of owning an animal is defined in legislation. ?Usually, an animal's owner is responsible for the supervision and actions of theanimal and can be held liable if unable of disinclined to properly control the animal. ?The owner could be liable for injury or property damage caused by the animal. ?Guard dogs are a significant liability exposure?the owner could be liable if the dogscause injury to visitors, even thieves entering the property illegally.

Answer 147

Some exposures are subject to a higher standard of liability called strict liability ex? ownership of dangerous things

Answer 148

When employers are liable for the actions of persons employed by them

Answer 149

?the number of employees; whether customers/suppliers/contractors visit the home; the operations or activities related to the business that occur off thepremises; the size of the business; and the type of product or service provided by the business

Answer 150

Due to nature of a farm as home and business both types of exposures areconsidered together. Exposures that you will investigate will be similar to those for either personal orcommercial liability coverage.

Answer 151

premises and operation, off premise, products liability, completed ops

Answer 152

?Personal lines and commercial liability exposures arise from the property theyoccupy. ?Underwriters consider the same details for property risks as well as details ofexposures arising from what is being done on the premises. ?Business owners have a duty of care to the individuals entering the premises. ? An inspection of the premises may help a broker discover exposures, and thenprovide the opportunity to give the insured loss prevention assistance. ?Operations include what is done both on the insured premises and away from thepremises.

Answer 153

Exposure could arise from bodily injury or property damage caused by the goods that your clients make or sell. To be held liable for injury or damage arising out of the product, the client need not be the manufacturer of the goods?they could be the distributor, wholesaler or any other part of the chain of production

Answer 154

If your client is a contractor, his product is the work he does. Once he has completed the job, he has exposure to liability arising out of that completed work. ex. if a contractor installs cabinets and they were later to fall off the wall and cause injury or damage to any third party, this would be a completed ops claim. Note that damage to the cabinets themselves is not covered under the CGL policy

Answer 155

Claims manager or claims superintendent, claims examiner, telephone adjuster

Answer 156

give timelines, avoid giving legal opnions, reiterate policy specifics

Answer 157

transfers the insured's right of action against the party responsible for the loss or damage to the insurer, and the insurer requires the third party to pay for the damage.

Answer 158

report loss promptly, mitigate loss from further damage, obtain estimates when requested

Answer 159

In some jurisdictions they are employed by the insurer or by the insurance regulator, is available to answer insurance queries, or to help resolve claims complaints.

Answer 160

In law, means the time after which a cause of action ceases

Answer 161

Actions or lack there which may cause one party to draw certain logical conclusions

Answer 162

The voluntary relinquishment of a known right

Answer 163

an amendment to a policy that changes the terms and conditions

Answer 164

flat, pro rata, short rate

Answer 165

Remarketing

Answer 166

For Commercial accounts or high valued personal lines policies

Answer 167

When an entire book of business is transfered from one insurer to another

Answer 168

Makes it possible to insure a vehicle for less than it is appraised valued

Answer 169

Insurer agrees to repair the vehicle as if it was brand new

Answer 170

Allows the insured to obtain replacement cost coverage on his vehicle

Answer 171

Temporarily removes third party liability and collision cover

Answer 172

Males, under the age of 25

Answer 173

A type of risk sharing plan

Answer 174

The ability to pay for any damage incurred as a result of the driver's actions or inactions

Answer 175

A combination of collision or upset, specified perils and comprehensive

Answer 176

Someone who has claim on the legal title of the vehicle as security

Answer 177

Provides coverage when the third party is underinsured to cover for bodily injury

Answer 178

Tort and No?Fault

Answer 179

Saskatchewan, Manitoba, and British Colombia

Answer 180

Motor Vehicle Record

Answer 181

driver exeperience, driving location, driving location, vehicle use

Answer 182

Canadian Loss Experience Automobile Rating

Answer 183

Under a liability policy, the insurer agrees to pay those sums that the insured becomeslegally obligated to pay as compensatory damages because of bodily injury or propertydamage to a third party.

Answer 184

This coverage protects against damage caused by fire, explosion, water escape (asdefined), or smoke to premises or contents that the insured does not own but isusing or has in his care, custody, or control.

Answer 185

The policy will reimburse the insured to a limited extent for voluntary payments madeto injured third parties where the insured is not legally liable but feels morallyobligated to pay for the damage. Voluntary medical payments ? reimburse the insured for expenses paid by or to injuredthird parties for surgical, medical, dental, hospital, nursing, ambulance, and funeral costs.The insured must provide written proof and medical documentation. Voluntary damage to property ? covers unintentional direct damage to third partyproperty caused by the insured and intentional direct damage caused by anyone included asan insured under the age of 12. Voluntary compensation for residence employees ? compensates residence employeesfor loss of life, limb, sight, or hearing; provides a weekly indemnity for disability; and coversmedical expenses to employees injured during the course of their employment.

Answer 186

Third party liability coverage for bodily injury or property damage arising out of theinsured'so business premises; operations; products (made by the business); and completed operations. Defence, settlement, and supplementary payment agreements Personal injury coverage Tenants legal liability coverage Medical payments coverage

Answer 187

The named insured on a CGL policy differs from a personal liability policy becauseof the nature of a business entity. ? If the business is a person, it includes the named insured and his or her spouse. ?If the business is a partnership/joint venture, it includes the members, partners, andtheir spouses. ?If the business is a company, it includes the executive officers, directors, andstockholders. ?In all cases, coverage is only provided with respect to business duties.

Answer 188

Provides coverage for legal liability insurance for an employer whose employees or contractors use vehicles not owned by the business for business related activities. Ex. pizza delivery

Answer 189

The main reason to buy umbrella liability insurance is to obtain higher limits ofcoverage and broader coverage at a reasonable cost.

Answer 190

Broader personal liability including premises, occurrences, sports mishaps,personal injuryo Watercraft liability , Non?owned aircraft, Employers' liability, Advertising liabilityo Rental cars

Answer 191

Umbrella coverage is usually subject to a self insured retention or net retained limit? sometimes in the range of $5000 to $25,000, although it can be as little as $500. The SIR is similar to a deductible in that it is deducted from any loss that is not insured by the underlying insurance policy.

Answer 192

If a claim exceeds the limit of the underlying policy the umbrella policy provides theexcess coverage up to its policy limit. The umbrella policy drops down" when ?the underlying policy does not provide specific cover; ? limit of liability on the underlying policy is exhausted;

Answer 193

All provinces and territories have legislation requiring automobile owners (with certain exceptions) to carry insurance. Financing companies require vehicles purchased using their financing to be insured. Leasing companies require vehicles leased from them to be insured. Drivers are required by law to be financially responsible for any accident they cause. ?

Answer 194

the ability to pay for any damage incurred as a result of the driver's actions or inactions.

Answer 195

To protect their investment To protect against injuries or damages caused by another person

Answer 196

product knowledge? Through your knowledge of insurance policies, assist the clients in assessing their specific risks and assist them in selecting insurance coverage to protect them. Do not advise on limits of coverage to buy market knowledge?knowledge of insurers underwriting criteria enables you to match your client with an appropriate insurance carrier customer services? spend time with clients, answer questions, suggest alternative coverages peace of mind? inspire trust in your client by providing knowledable and professional advise

Answer 197

A pink card, also known as a liability certificate, serves as proof of insurance

Answer 198

``` Name and address of insurer ? Name and address of the insured ? Agency/brokerage name or number ? Description of the insured vehicle ? Policy number ? Effective date and expiry date of the policy ? Vehicle license plate number ```

Answer 199

``` Fines ? Demerit points ? Loss of driving privileges ? Imprisonment ```

Answer 200

Driver or passenger who is injured in an accident cannot collect income replacement or non?earner benefits ? Automobile owner cannot collect damages in a no?fault jurisdiction ? Being personally liable for all damages incurred as an at fault uninsured motorist? this could include being sued

Answer 201

B.C. Manitoba, Saskatchewan, and Quebec

Answer 202

In B.C., the government insurer known as the Insurance Corporation of British Columbia (ICBC) must provide compulsory coverage to all persons In Saskatchewan and Manitoba, the provincial insurers?Saskatchewan Government Insurance (SGI) and Manitoba Public Insurance (MPI)?are required to provide basic compulsory insurance to all provincial residents driving registered vehicles governed by the automobile insurance acts. ? Quebec Quebec's automobile insurance plan is a combination plan, with some compulsory coverage provided by the government insurer and some provided by private insurers. Insurers can transfer non?standard risks into a shared pool known as the Plan de Repartition des Risques (PRR) or Risk Sharing Plan. When a risk is transferred to PRR the rates are still set by the insurer, although a premium surcharge might be applied in certain cases.

Answer 203

In provinces where the government does not provide basic coverage, legislation has been passed to ensure a market is available to all insureds (including non?standard risks). The Facility Association is a pool that provides insurance for licensed drivers who are less desirable from an underwriter's point of view because their risks are more hazardous.

Answer 204

``` Insured Lienholder Lessor Vehicle(s) Use of the vehicle Driver Loss history Broker's knowledge of the client ```

Answer 205

the make, model, body type, year, and vehicle identification number (VIN) or serial number.

Answer 206

``` The use of the vehicle(s). ? The conditions under which it is used and frequency it is on the road increase the likelihood of its being involved in an accident. ? Confirm if the vehicle is used for ``` pleasure; driving to and from work (if so, how far it is to the client's workplace); or business

Answer 207

compensation for hire

Answer 208

age, gender, marital status, and driving experiences are all factors that can predict potential for loss.

Answer 209

``` Insured lienholder lessor vehicle(s) use of vehicles the drivers licensing and training experience loss history lapsed coverage and reason ```

Answer 210

Client sold her car without replacing it with a new one ? Client moved temporarily out of the country ? Client used a company car and so had no need to own a vehicle

Answer 211

The wording of automobile policies and endorsements is controlled by provincialgovernments, and a government regulator in each jurisdiction approves the wording. each jurisdiction has its own wording In common law jurisdictions, policies contain statutory or mandatory conditions thatare quoted verbatim from the insurance act. In Quebec, policies are subject to similar conditions known as general conditions,but they do not have to be printed in the policy.

Answer 212

responsibilities for all parties tothe insurance contract (insurer and insured).

Answer 213

negligence

Answer 214

Some provinces have adopted no?fault rules, where claimants are reimbursed bytheir own insurer, regardless of who is at fault. Under no?fault systems, the right to sue is eliminated or restricted. Insurers still determine who is at fault in an accident ? in order to apportionthe deductible and calculate future premiums. Quebec, Ontario, New Brunswick, and Manitoba have no?fault schemes, butthey differ in how they are implemented.

Answer 215

Third party liability Accident benefits Uninsured automobile coverage

Answer 216

Covers bodily injury and property damage arising from the use, ownership, oroperation of a motor vehicle, subject to exclusions. Coverage is extended to the named insured and any person using or operating theautomobile with the permission of the named insured. (Operating" includes drivingthe vehicle and/or operating any part of the automobile, such as a door or window)."

Answer 217

Accident benefits provide no?fault coverage for costs arising from bodily injury to thedriver and passengers. They are compulsory in most provinces, but each province differs in how they areimplemented. The coverage limits also vary among the provinces. In provinces where the injured party's right to sue has been eliminated, the benefitstend to be more generous, since they are the only way the victim can becompensated for injuries suffered in an automobile accident.

Answer 218

When an at?fault third party is unknown or uninsured, this coverage will compensatethe named insured or any passengers who suffer bodily injury. The coverage varies from province to province. Coverage takes effect if there is no known third party insurer or Highway Victim'sIndemnity Fund, or when the compensation provided by such a fund has beenexhausted.

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