Study 9

Question 1

What does the DECLARATIONS PAGE include?

Answer 1

It includes info about WHO and WHAT is insured, along with identifying details about the client and the object of insurance.

Question 2

Where is the DECLARATIONS PAGE found?

Answer 2

It’s attached to the COMMERCIAL GENERAL LIABILITY (CGL) POLICY.

Question 3

What kind of information does the DECLARATIONS PAGE list?

Answer 3

It lists the business type, policy period, and ENDORSEMENTS.

Question 4

What other LIABILITY COVERAGES should businesses and insurance pros be aware of?

Answer 4

WORKERS’ COMPENSATION and EMPLOYERS LIABILITY INSURANCE.

Question 5

True or False: The DECLARATIONS PAGE only lists the type of business.

Answer 5

False. It also includes WHO and WHAT is insured.

Question 6

What is the purpose of the DECLARATIONS PAGE in a CGL policy?

Answer 6

To provide identifying info about the CLIENT and the OBJECT of INSURANCE.

Question 7

What is included in the DECLARATIONS PAGE of a CGL policy?

Answer 7

The DECLARATIONS PAGE includes the name of the insured, company details, contact info, business details, and more.

Question 8

Why is it important to verify the information on the DECLARATIONS PAGE?

Answer 8

To ensure it is LEGITIMATE and accurate.

Question 9

Who is the ‘named insured’?

Answer 9

The ‘NAMED INSURED’ is the party contracting with the insurer and enjoys the policy’s benefits.

Question 10

What obligations does the NAMED INSURED have?

Answer 10

Paying premiums, recording info for premium computation, and requesting policy changes.

Question 11

What does the policy period typically last for?

Answer 11

Usually a 12-month period, though it can be shorter or longer.

Question 12

How does changing insurers affect coverage?

Answer 12

A gap in coverage may occur if policy times or locations don’t align.

Question 13

What does the CGL policy show regarding the limits of insurance?

Answer 13

It shows the limits for EACH OCCURRENCE, PERSONAL INJURY, MEDICAL EXPENSES, and more.

Question 14

What are the types of business the NAMED INSURED can be?

Answer 14

Individual, Joint venture, Partnership, Trust, LLC, or any other organization.

Question 15

Why is it important to list the type of business on the DECLARATIONS PAGE?

Answer 15

To set boundaries for the RISK accepted by the underwriter.

Question 16

What is the PREMIUM BASE used for?

Answer 16

It helps to calculate the premium based on business REVENUE.

Question 17

What is the ‘advance premium’?

Answer 17

The premium paid upfront before the policy term begins.

Question 18

What happens if the premium is substantial?

Answer 18

The insured may arrange to pay in INSTALMENTS.

Question 19

What is the MINIMUM RETAINED PREMIUM?

Answer 19

The amount that won’t be refunded even if the policy is cancelled early.

Question 20

True or False: The DECLARATIONS PAGE includes any ENDORSEMENTS to the policy.

Answer 20

True.

Question 21

Who signs the DECLARATIONS PAGE?

Answer 21

The insurer’s CHIEF EXECUTIVE OFFICER and often a broker or authorized representative.

Question 22

What is the purpose of the countersignature on the DECLARATIONS PAGE?

Answer 22

It serves as secondary confirmation that the document is AUTHENTIC.

Question 23

What may be required if the premium isn’t paid all at once?

Answer 23

An AUDIT period may be set to calculate further payments.

Question 24

What happens during an AUDIT period?

Answer 24

Premium calculations may be revisited, leading to further payments if needed.

Question 25

True or False: The DECLARATIONS PAGE includes detailed descriptions of all other liability policies.

Answer 25

False. It includes specific liability policies and ENDORSEMENTS for the policy.

Question 26

What are employers liable for regarding employee injuries?

Answer 26

Employers are liable for TORTS committed by employees during their employment and for NEGLIGENTLY causing employee injuries.

Question 27

What must employers provide for their employees?

Answer 27

Employers must provide ADEQUATE working conditions and EQUIPMENT for employees to carry out their duties.

Question 28

What are the two main methods of protecting employers from employee injury costs?

Answer 28

Workers' COMPENSATION and employers LIABILITY INSURANCE.

Question 29

True or False: Workers' Compensation is compulsory in all provinces.

Answer 29

True.

Question 30

Why was workers' compensation legislation passed?

Answer 30

To spread the cost of injuries among all employers and protect employees from costly lawsuits.

Question 31

What does the workers' compensation legislation apply to?

Answer 31

It applies to MOST types of employment, with some exclusions (like farm employees in some areas).

Question 32

What benefits are provided to injured workers under workers' compensation?

Answer 32

Medical expenses, disability compensation, funeral expenses, and support for dependents.

Question 33

True or False: Employees can still sue their employer under common law if they accept workers' compensation benefits.

Answer 33

False. Employees cannot sue once they accept workers' compensation.

Question 34

What is the employer's responsibility for workplace safety?

Answer 34

Employers must maintain SAFETY and provide proper supervision and instruction to avoid injuries.

Question 35

What is Employers Liability Insurance used for?

Answer 35

It covers situations where employees are not covered by workers' compensation and may sue the employer for NEGLIGENCE.

Question 36

How is Employers Liability Insurance different from Workers' Compensation?

Answer 36

Employers Liability is NOT no-fault, meaning the employee must prove NEGLIGENCE for the claim to be paid.

Question 37

What is Voluntary Compensation Insurance?

Answer 37

It provides coverage for employees not covered by workers' compensation and is a NO-FAULT type of accident insurance.

Question 38

What happens if an employee accepts voluntary compensation benefits?

Answer 38

They must release the employer from legal liability claims under common law.

Question 39

How is the premium for Employers Liability Insurance determined?

Answer 39

It is based on PAYROLL and may be adjustable at the end of the policy term.

Question 40

What is Contingent Employers Liability Coverage?

Answer 40

It covers employers in situations where workers' compensation does not apply, such as employees working outside their home jurisdiction.

Question 41

When can an employer's CGL insurer defend an action?

Answer 41

When the workers' compensation board denies coverage and the employee sues the employer in TORT.

Question 42

What is a hold-harmless clause in the context of Employers Liability?

Answer 42

It is an agreement where one party agrees to indemnify another for liabilities, often used in construction contracts.

Question 43

True or False: If a worker is injured outside the scope of workers' compensation coverage, they can still bring a lawsuit against their employer.

Answer 43

True, they can sue if the injury occurred outside coverage.

Question 44

Who’s responsible if an employee gets hurt?

Answer 44

The EMPLOYER! They're liable for TORTS and NEGLIGENTLY causing injury to employees.

Question 45

What must employers give to employees to avoid liability?

Answer 45

A SAFE WORKPLACE with proper EQUIPMENT and TRAINING.

Question 46

What’s the double defense for employers against injury claims?

Answer 46

WORKERS' COMPENSATION and EMPLOYERS LIABILITY INSURANCE.

Question 47

True or False: Workers' compensation is optional in Canada.

Answer 47

FALSE! It’s COMPULSORY for most jobs.

Question 48

Why did workers' compensation laws get passed?

Answer 48

To STOP costly lawsuits and SPREAD the injury costs among employers.

Question 49

Who’s excluded from workers' compensation?

Answer 49

Some FARM workers, casual employees, and certain clerical workers.

Question 50

What do injured workers get under workers' comp?

Answer 50

MEDICAL coverage, disability payments, and support for family if needed.

Question 51

True or False: You can sue your boss after accepting workers’ compensation benefits.

Answer 51

FALSE! No suing once you accept those benefits.

Question 52

What’s the employer’s job when it comes to employee safety?

Answer 52

Be the SAFETY BOSS! Ensure everything’s safe and SOUND.

Question 53

What’s the deal with Employers Liability Insurance?

Answer 53

It’s for situations when workers’ comp doesn’t cover you.

Question 54

Is Employers Liability Insurance no-fault?

Answer 54

No! You’ve gotta PROVE negligence for it to pay out.

Question 55

What’s Voluntary Compensation Insurance?

Answer 55

It’s like a BACK-UP plan. If you’re not covered by workers' comp, it pays for injuries on the job.

Question 56

What happens if you take Voluntary Compensation benefits?

Answer 56

You can’t SUE your boss later.

Question 57

How is Employers Liability Insurance priced?

Answer 57

It’s based on PAYROLL.

Question 58

What’s Contingent Employers Liability Coverage?

Answer 58

It kicks in when workers’ comp doesn’t cover an injury.

Question 59

What happens if workers' comp doesn’t cover an injury?

Answer 59

The EMPLOYER’S CGL insurer steps in to DEFEND them.

Question 60

What’s a “hold-harmless” clause?

Answer 60

It’s a “you take the blame, I’ll cover the costs” agreement.

Question 61

True or False: You can sue your employer if you get hurt outside of workers’ compensation rules.

Answer 61

TRUE! If you're not covered, lawsuit time!

Question 62

What’s included on a CGL policy declarations page?

Answer 62

The name of the INSURER, NAMED INSURED, POLICY PERIOD, LIMITS, BUSINESS TYPE, PREMISES, PREMIUM, ENDORSEMENTS, and COUNTERSIGNATURE.

Question 63

What’s covered under Workers' Compensation in every province and territory?

Answer 63

MEDICAL expenses, DISABILITY benefits, FUNERAL or DEATH benefits, and REHABILITATION programs.

Question 64

True or False: Workers' compensation benefits are based on FAULT.

Answer 64

FALSE! They’re provided REGARDLESS of fault.

Question 65

What happens if an employee isn’t covered by Workers' Compensation?

Answer 65

The EMPLOYER can get EMPLOYERS LIABILITY INSURANCE to cover injuries.

Question 66

What’s the deal with voluntary compensation for employees?

Answer 66

It’s when employees take benefits without proving FAULT from the employer.

Question 67

What’s contingent employers liability coverage for?

Answer 67

It covers employees working outside their jurisdiction, or when workers' comp doesn’t pay.