ALL CH 3/4.1/4.2 TEXTBOOK QS

identify 4 major exposures to loss for mobile homes

• 1: fire

• 2: windstorm

• 3: hail

• 4: transportation

outline the provisions of the Emergency Removal Expense coverage provided by the Mobile Homeowners Form (IBC 1157)

• If the mobile home is threatened by an insured peril the policy will provide up to 5% of the amount of insurance on the dwelling to pay for reasonable expenses incurred to remove it from the site

• Expenses paid include:

  • Expenses to disconnect water and power

  • Towing or transporting costs

Identify 2 other coverages provided under Coverage C Personal Property of the Tenants Comprehensive Forms (IBC 1163)

• 1: improvements or betterments made by or acquired at the expense of the tenant

• Up to $500 for damage (excluding fire) to the portion of the building occupied by the insured due to:

  • Theft or attempt thereat;

  • to the interior of the building caused by vandalism or malicious acts

indicate how the amount of insurance provided under Coverage D - Additional Living Expenses is determined

Limit of insurance on Tenants Package is 20% of Personal Property limit

Outline the responsibilities of the Condominium Corporation under those Special Acts regarding the placing of insurance coverage

• The Condominium corporation must purchase a single amount of insurance in its own name to cover:

  • The value of the building (as it was originally constructed) including the value of those units owned by its members

  • The value of the common elements

Identify 3 coverages which should be purchased by Condominium Corporations.

• 1: unit improvements and betterments:

• 2: loss assessments:

• 3: unit additional protection:

identify 4 perils insured under most homeowners forms which are not automatically insured by the Seasonal Residence form (IBC 1173)

• 1: transportation

• 2: burglary or robbery

• 3: vandalism or malicious acts

• 4: glass breakage

tenants package forms are designed to:

insure personal property of persons who do not own their own homes.

Special Acts have been enacted:

in all provinces dealing with the establishment and regulation of Condominium Corporations.

individual condominium unit owners are responsible for insuring

the contents of the units

1: unit improvements and betterments:

covers any renovations and betterments made to the individual unit by the unit owner

2: loss assessments:

• acts as back up policy for the condominium corporation policy if a special assessment is assessed against each unit owner because the condo corporation policy is inadequate (under insurance, lapsed coverage) to cover damage to collectively owned property

• coverage is provided only when the assessment is due to a loss insured by the owner’s policy

3: unit additional protection:

covers the insured’s individual unit for damage should the condominium corporation’s policy be inadequate

Fine Arts Endorsement (IBC 1113)

Provides broader coverages than are available under most habitational forms and a more equitable basis of settlement

Personal Articles Endorsement (IBC 1141)

Provides broader coverages than are available under most habitational forms for high valued personal property items

Increased cost Demolition or Construction Endorsement (IBC 1180)

• Changes the basis of settlement to reflect the increased costs to comply with existing building by-law, law or ordinance after a loss.

• Coverage can be purchased for either or both of the following:

  • Sprinkler by-law extension

  • Demolition or construction extension

Residence Glass Endorsement

Adds accidental glass breakage coverage to buildings. Most frequently used as a means of reducing the deductible for glass breakage under the policy

Sewer Back-Up Endorsement

Broadens the coverages provided under most habitational policies to include loss or damage caused by the backing up or escape of water from a sewer or drain, sump, septic tank, eavestrough for downspout (endorsement varies from insurer to insurer)

Travel Trailer Floater

Provides coverage for owned trailers and their contents (normally excluded by habitational policies)

what items are insured under the Outboard Motor and Boat policy

• Coverage can be purchased for either or all of the following items:

  • The boat, including permanently attached equipment (except outboard motors)

  • The motor(s), including fuel containers, starting equipment and controls supplied by manufacturer

  • Other boat equipment including batteries, battery chargers, oars, flares, life preservers

2 important coverages provided in the “all risks” policy of Outboard Motor and Boat

• Coverage is provided for "all risks" including:

  • Transportation losses

  • Collision with rocks and floating objects

5 exclusions in the Outboard Motor and Boat policy

• 1: accumulation damage, however caused

• 2: wear and tears, gradual deterioration, latent defect, mechanical breakdown, corrosion, rust, dampness of atmosphere, freezing or extremes of temperature

• 3: work done on insured property, except for resultant damage caused by fire or explosion

• 4: dishonesty of persons to whom the insured property is entrusted, except carriers for hire

• 5: while insured property is rented or leased to others, used to carry passengers for compensation or being operated in a race or speed test

Explain the Loss or Used coverage in Outboard Motor and Boat policy

Loss of use coverage is limited to $20/day ($200 limit during policy period) for rental of boat and/or motor when the insured watercraft is damaged by an insured peril

Explain the basis of settlement in the event of a loss to watercraft

Coverage is available on either of an actual cash value or replacement cost basis

Explain why boat and motor policies normally contain a minimum retained premium provision

As watercraft are generally not used 12 months each year, the minimum retained premium provision helps to ensure that the insurer receives adequate premium for those months whether there is the greatest potential for loss

Identify 2 types of laws governing most civilized societies

criminal law

civil law

intent/goal of criminal law

deals with wrongs against society. it uses a system of punishment to enforce the laws, all of which are defined in the Criminal Code

intent/goal of civil law

concerned with the settling of disputes between individuals or other legal entities in matters not involving a criminal act

what is statute law?

statute law is written and is derived from bills introduced into parliament and provincial legislative assemblies to deal with specific needs

what effect does statute law have when there is existing common law on the same matter?

statute law takes priority over any existing common law dealing with the same matter

areas of law which most concern the study of insurance

law of contract

law of tort

key differences between the obligations imposed by tort law vs contract law

contract law: deals with obligations set out under contract between 2 or more parties

tort law: deals with breach of a duty laid down by the law

define the 2 major types of torts

intentional tort: there must be an actual intent to invade the rights of the victim or an intentional undertaking which would reasonably be expected to result in injury or damage

unintentional torts: involves careless rather than intentional invasion of another’s rights (i.e. negligence)

3 elements required in every tort action to establish negligence

legal duty owed

duty breached

damages suffered as a proximate result of defendant’s actions

3 features common to most liability insurance policies

insures against bodily injury, property damage and/or other direct financial loss

coverage is provided against third party claims only

payment of damages is limited to those required to compensate third parties for their loss

special damages

damages that can be accurately measured and which are intended o reimburse the plaintiff for out-of-pocket expenses (quantifiable)

general damages

damages that cannot be exactly determined but which reflect amount the court believes necessary to compensate the aggrieved party fairly

what is the legal duty owed to a trespasser

there is no legal duty owed. exceptions:

• occupiers not to set traps

• occupiers not to intentionally harm the trespasser

what is the legal duty owed to a licensee

must take the premises as they found them. exceptions:

• occupier has a duty to warn licensees of any hazard which:

  • has been introduced to the premises which they would not normally expect and

  • which the occupier is aware of and knows to be dangerous

duty owed to an invitee

occupier has a duty to:

• protect the invitee against dangers he is aware of,

• as well as against those which with reasonable care he might discover

explain how the Occupiers Liability Acts in some provinces have amended the common law duty owed to licensees and invitees

several provinces have legislated the Occupiers Liability Acts which amend common law terms of licensee and invitees, classifying them instead within the heading of “visitors”. the effect is to replace the common law duty with a common duty to take reasonable care that visitors are safe when using the premises.

liability of a dog’s owners for injuries inflicted by it (common law)

there is no first free bite, and a dogs owner is held legally liable from the first bite

liability of parents for the torts of their children (common law)

parents are not normally liable for the torts of their children unless it can be shown that:

a) the parents failed to properly control and supervise their children’s activities

b) the injury or damage was caused by a dangerous thing or animal the parents relinquished to their child

c) the child acted on the authority of the parent

d) injury or damage arose out of the duties of employment in the parents business

liability of landlord of apartment and rented dwellings for injury to tenants arising out of the condition of the premises (common law)

landlords are not responsible for ensuring a building or land rented to others is fit for the purpose for which it is rented unless:

• they warrant the fitness for such purpose or

• conceal any adverse conditions.

exceptions:

• when landlord rents furnished premise

• if the landlord contract to maintain the premises and fails after reasonable notice to do so

liability of an owner of property for injury or damage caused to others by activities of an independent contractor (common law)

those who contract with independent contractors to do work for them are not liable for the negligence of an independent contractor. exceptions:

• the work being conducted is inherently dangerous

• the work creates a public nuisance

• the work being done is contrary to established statutes

• damage arose because of defective equipment supplied by the owner or tenant

• the party for whom work is being done controls the manner in which work is to be done

what are the 6 legal precedents relating to personal liability exposures common to most people?

1 Ownership of property

2 Domestic animals

3 Children

4 Landlords of apartments and rented dwellings

5 Joint liability

6 Independent contractors