The Basics Flashcards
(32 cards)
Saskatchewan Insurance Act (SIA)
- Requires all companies, agents, brokers, adjusters, and agencies to be properly licensed and regulated
The Insurance Companies Act of Canada
Gives authority to the Office of the Superintendent of Financial Institutions
Automobile Accident Insurance Act
Sets out requirements for compulsory insurance, only sold through SGI
Office of the Superintendent of Financial Institutions
Strict financial standards established by the OFSI for insurance companies
Ensures insurance companies are financially solvent and provide reasonable and fair protection
Role of Provincial Government
If licensed provincially, insurance companies are under jurisdiction of the Superintendent of Insurance
Superintendent of Insurance
Monitors solvency, supervise terms and conditions, license and regulate, delegates authority to General Insurance Council of Saskatchewan
General Insurance Council of Saskatchewan
Regulatory body, license and regulate agents/agencies/adjusters, set standards of professionalism, investigates, disciplines, sets out requirements for licensing
Ethics of Insurance Agents/Brokers
Most suitable Product for Customer Duty to client Fair and honest with Insurance Companies Utmost good faith (uberrima fides) Absolute honesty
Professional Liability Insurance/Errors and Omissions
Lack of Standard of care legally liable for negligence Failure to obtain all information -ensure vehicle is registered -failure to recommend adequate insurance - cancelling or revising on wrong vehicle
Preventing risk
E&O insurance
Complete Documentation (rec. coverages, limits, deductibles, pertinent information)
Potential claims reported ASAP
Binding coverage comply with insurer
Insured
1st party, protected by policy
Insurer
2nd party, provides insurance
Others
3rd party, involved in crash
Cooperative Insurance Companies
Owned by members
Mutual benefit to the members
Mutual Companies
Owned by policyholders, insurance at low cost, community involvement, low operating costs
Stock Companies
limited liability, making profit for stakeholders
Government Insurers
Crown corporation
Insurance Agent
Intermediary between client and insurer Independent Sells w/ one insurance company Collect & retain prem Solicit & service insurance binding authority
Ins. Broker
Agent of the insured
independent
1+ insurance companies
Collect prem and hold in trust & remit
Insurer
meet needs of policyholders
profit for their owners
licensed federally or provincially
Lenders
interest in insurance contracts
want to see loans (chattel or real property) INSURED
Chattel Property
Mobile assets
No obligation to lender
Insurer to pay any loss jointly w/ lender & insured
Real property
real estate
“standard mortgage clause”
Leasing companies
Lessee owes money to lessor to purchase an asset lessee “rents” the asset and insures it
Lessor continues to own asset
Lessor can be sued for damages as the owner
Insurance protects lessors
