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38 Cards in this Set
- Front
- Back
- 3rd side (hint)
Legislation |
All businesses are governed by legislation. Insurance has specific legislationFire Insurance Act |
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Fire Insurance Act |
Fire insurance applies to insurance against loss of or damage to property arising from the peril of Fire |
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Province of Quebec |
An Act respecting insurance deals with the technical aspects of forming and operating insurance companies |
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Civil Code of Quebec-Book 5 |
Articles 1371-2643 deal with obligations of contract |
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Contents of a policy |
Name of insurer Name of insured Loss payable Amour of premium Subject matter of insurance Indemnity for which insurer may be liable Effective & expiry date |
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Provisions for Appraisal |
Insurers will hire an appraiser, insured hires an appraiser and the 2 appraisers will hire an umpire. If they fail to agree, they submit their differences to the umpire. |
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Provisions for Appraisal |
Insurers will hire an appraiser, insured hires an appraiser and the 2 appraisers will hire an umpire. If they fail to agree, they submit their differences to the umpire. |
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Proof of Loss |
The Insurer, in any event not more than 60 days after receiving Notice of Loss, must provide the insured with forms to make the required proof of liss |
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Provisions for Appraisal |
Insurers will hire an appraiser, insured hires an appraiser and the 2 appraisers will hire an umpire. If they fail to agree, they submit their differences to the umpire. |
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Proof of Loss |
The Insurer, in any event not more than 60 days after receiving Notice of Loss, must provide the insured with forms to make the required proof of liss |
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No action for recovery |
For 60 days after proof of loss, this protects the insurer but the insurer loses this protection if they Do Not provide the Proof of Liss to the insured |
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Provisions for Appraisal |
Insurers will hire an appraiser, insured hires an appraiser and the 2 appraisers will hire an umpire. If they fail to agree, they submit their differences to the umpire. |
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Proof of Loss |
The Insurer, in any event not more than 60 days after receiving Notice of Loss, must provide the insured with forms to make the required proof of liss |
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No action for recovery |
For 60 days after proof of loss, this protects the insurer but the insurer loses this protection if they Do Not provide the Proof of Liss to the insured |
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Perils in a Fire Insurance Contract: |
Fire-actual ignition and visible flames Lightening Explosion Contamination |
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Distribution |
Defined as the splitting of a single amount of insurance to apply to property in more than one lication |
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Underinsured |
The value of insured property is greater than the amount insured |
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If insured rejects the new policy, it will become.... |
Void AB INITIO |
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15 Statutory Conditions: |
Misrepresentation Property of Others Change of Interest Material Change Termination Requirements After Loss Fraud Who May Give Notice and Proof Salvage Entry, Control, Abandonment Appraisal When Loss Payable Replacement Action Notice |
My P C Might Take Refuge From White Sea (SEA) W R A N My Acronym |
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To AVOID the contract- |
To make the contract VOID -of no legal effect |
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Stat Condition #3, Change of Interest |
The Insurer is obliged to insure a new interest replacing the named Insured for: 1. Under the Bankruptcy Act 2. Change in title by succession 3. Change in title by operation of law 4. Change in title by death of the named insured |
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Stat Condition #1-Misrepresentation |
This happens BEFORE the contract takes effect |
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Stat Condition #1-Misrepresentation |
This happens BEFORE the contract takes effect |
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Stat Condition. #4: Material Change |
This happens AFTER the contract takes effect |
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5 Elements of a Contract: |
1)An Agreement 2)Between legally capable parties 3)For a consideration 4)Demonstrating intent 5)To do something that is legal |
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Principal of Indemnity: |
The Insured shall not receive more than the actual loss suffered. |
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Surrogate on means... |
The substitution of one party for another as creditor |
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Proximate Cause |
Often related to an exclusion but may sometimes determine whether coverage exists |
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Subject Matter of Insurance- |
The property for which the insured will be indemnified if it is damaged or destroyed |
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Direct Loss |
Refers to the value of the physical property that is damaged or destroyed |
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Direct Loss |
Refers to the value of the physical property that is damaged or destroyed |
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Indirect Loss |
Arises from direct loss; it encompasses other loss suffered as a consequence of the damage to or destruction of the physical property. |
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Business Interruption is... |
Most common type of indirect loss |
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Fortuitous |
A chance event |
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Modular Policy |
Made up of several parts |
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Limited Exclusion |
Means there may be Some coverage |
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Nuclear Incident |
An occurrence resulting in injury or damage that is from a breach of duty |
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Flashpoint of a liquid... |
Is the lowest temperature at which the liquid gives off sufficient vapours to form an ignitable mixture with the air |
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