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237 Cards in this Set
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Tort (C1-1) |
A legal wrong arising from a duty fixed by law. A breach of this Duty that causes injury to persons or property is repressible by legal action for damages. Liability for tort involves a private or civil wrong or injury and is distinct from that under contract in that the duty is owed to people, generally, rather than to a specified individual |
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Negligence (C1-1) |
Failure to use the degree of care expected from a reasonable and prudent person
- doing something that a reasonable person would not do
- omitting to do something that a reasonable person would do
- often referred to as ordinary negligence |
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Nuisance (C1-1) |
In-law, a class of wrong that arises out of unreasonable, unwarranted, or unlawful use by a person of his own real or personal property Or from his or her own improper, indecent, or unlawful personal conduct and producing an annoyance, inconvenience, discomfort, or hurt to others or to their property that the law would presume a consequential damage |
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Private nuisance (C1-1) |
An unlawful interference of a person's enjoyment and use of his or her land |
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Public nuisance (C1-1) |
An action or a thing that interferes with the general public. It interferes with the public as a class, not merely with one person or a group of citizens
Ex. Shooting fireworks in the streets, harboring a vicious dog, noise, noxious odors |
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Contractual liability (C1-1) |
Liability assumed through a contract, either written or implied.
Legal liability policies are based upon liability in tort or negligence and provide limited coverage for contractual liability.
However, contractual liability may be covered in many instances as an additional risk with an additional premium |
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Hold harmless and indemnity provisions (C1-1) |
A contractual agreement whereby one party assumes the liability and risk of another party, and indemnifies the other party from having to bear the loss |
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Statute law (C1-2) |
A law set down in a government act and passed by legislature
May be set down by federal, provincial or territorial government
Provincial statutes vary between provinces
Civil code of Quebec is the most different of all the provinces |
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Codified law (C1-2) |
Is statute law which is classified and arranged in a systematic collection or code |
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Precedent (C1-2) |
Legal decision serving as an authoritative rule in future similar cases |
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Civil code of Quebec (C1-2) |
Covers matters that may arise in dispute and codifies them into a series of articles Exists only in Quebec (and France) Also called Napoleonic code |
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ABC rule (C2-1) |
A. A duty of care exists B. Breach of that duty occurred C. Casual relationship between the breach and damages is shown |
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Prima facie (C2-1) |
"on the face of it" "at first glance" |
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Duty of care (C2-2) |
The obligation that a person has to exercise reasonable care with respect to the interests of others, including protecting them from harm |
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Occupiers duty of care - what are the four main categories of entrants developed in law? (C2-2) |
1. Trespasser 2. Licensee 3. Invitee 4. Contractual entrant |
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Trespasser (C2-2) |
A person who wrongfully enters onto someone else's land without neither the right nor permission to be there |
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Licensee (C2-2) |
A person who has permission to enter a premises for his or her own purposes |
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Invitee (C2-2) |
A person who is expressly or impliedly invited onto the premises for some purpose involving economic or potential economic benefit to the occupier of the premises. For example, a customer entering a store for the purpose of making a purchase |
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Contractual entrant (C2-2) |
A person who enters onto premises under contract with the occupier. For example, a hotel guest or theater-goer |
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Strict liability (C2-2) |
Liability imposed by a court or by a statute in the absence of fault when harm results from activities or conditions that are extremely dangerous, unnatural, hazardous, extraordinary, abnormal, or inappropriate |
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Hold-harmless agreement (C2-2) |
An agreement that allows one party to protect another party against any future losses or claims that may result from a particular activity. Also known as an indemnity agreement |
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Indemnity agreement (C2-2) |
A written contract entered into between indemnitor and surety in which the indemnitor secures security against loss te surety may sustain, as a result of having issued a bond for a third party (usually a company owed by the indemnitor) or for the indemnitor |
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Bailor (C2-2) |
A person entrusting goods to another |
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Bailee (C2-2) |
In contract and property law, one to whom goods or property are interested for a stated purpose. Can be either gratuitous (for no consideration) or for hire (for consideration) |
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Bailment (C2-2) |
The act of placing or transferring goods from a bailor to a bailee |
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Proximate cause (C2-3) |
A cause that, in a natural and continuous sequence unbroken by any new and independent cause, produces an event and without which the event would not have happened |
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What are the two types of compensatory damages? (C2-3) |
1. Special damages 2. General damages |
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What are special damages? (C2-3) |
Special damages are awarded for out-of-pocket expenses such as medical bills, damaged clothing, and salary already lost. Special damages compensate plaintiffs for expenses they have already incurred. Generally, plaintiffs would be expected to provide receipts for any such expenditures being claimed |
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What are general damages? (C2-3) |
General damages compensate the victim for non-economic, hard to quantify aspects of a claim. Such damages require the discretion of a judge to fix the amount that will properly compensate the injured party. These damages are calculated by considering, among other factors, the pain and suffering of the injured party, loss of enjoyment of life, future expenses and future loss of salary, and permanent disability |
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What are nominal damages? (C2-3) |
Minimal monetary damages awarded by a court when a legal wrong has occurred but limited or no actual loss has been suffered by the party pursuing the action |
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What are punitive damages? (C2-3) |
Damages in excess of those required to compensate the plaintiff for the wrong-doing, which are imposed in order to punish the defendant because of the particularly wanton or willful nature of his or her wrongdoing. Also called exemplary damages |
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Remoteness of damage (C2-3) |
Illegal test to determine the right to recovery based on the predictability of cause or circumstance. Also called remote cause |
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What are the eight methods of defense those accused of committing a tort can use? (C3-1) |
Contributory negligence Act of God No duty owed Denial Remoteness of damage Inevitable accident Voluntary assumption of risk Emergency |
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What must the defendant prove for denial? (C3-1) |
- he or she did not commit the act that caused the complaint - his or her actions were not negligent - the plaintiff suffered no injury as a result of the defendants actions |
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What is required to prove remoteness of damage? (C3-1) |
Defendants must prove that their actions were not the immediate and effective cause (proximate cause) of the plaintiff's injuries or damages. Their actions must be remote from the final consequence in order to escape liability |
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What is required to prove inevitable accident? (C3-1) |
The onus is on the defendant to show that the cause and result of the accident were inevitable. It must be shown that the damages arose from an outside cause over which the defendant had no control |
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What is required to prove no duty owed? C3-1) |
Was the plaintiff a foreseeable plaintiff? This question is asked to show whether an obligation to take care to avoid conduct that might injure or cause the plaintiff to suffer damage is in effect |
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Volenti no fit injuria (C3-1) |
To one consenting, no wrong is done. Where a person voluntarily assumes a risk that results in injury to himself he is not entitled to claim damages from another |
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What is required to prove emergency? C3-1) |
If the defendants try to extricate themselves from danger and cause damage to the plaintiff in the process, they complete emergency as a defense. They are required to show that they were in that position through no fault of their own |
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What is required to prove act of God? (C3-1) |
In-law, an act of God is an act of extraordinary natural forces without human interference. It is unpredictable and impossible to foresee. But, it is sometimes necessary for a defendant who has the duty to foresee a natural event to prove that the severity of the incident was unforeseeable |
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What is required to prove voluntary assumption of risk? (C3-1) |
When a person voluntarily assumes a risk, liability will not result from it. Volenti non fit injuria; to him that is willing, there is no injury. To escape liability, the defendant must show that the plaintiff knew of the risk and accepted it |
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What two steps are required for the defense of volenti to be successful? (C3-1) |
- proving the plaintiff had knowledge of the risk and - proving the plaintiff waved his or her legal right to make a claim |
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What is a disclaimer? (C3-1) |
A disclaimer is a notice of refusal to accept liability for damages that might occur in the future. It provides a warning to a potential plaintiff of a potential peril |
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What is required to prove contributory negligence? (C3-1) |
Contributory negligence is a partial defense - it allows the damages to be reduced by the percentage of blame assigned to the plaintiff. For example, where a plaintiff would have suffered less serious injuries had she been wearing a seatbelt, contributory negligence can be raised as a defense. The amount of damages will be reduced by the percentage of blame allocated to the plaintiff |
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Absolute liability (C3-2) |
Liability associated with very dangerous actions. Often found in cases involving explosives and in many automobile laws. Negligence does not have to be proven |
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What are the five exceptions used to excuse someone from strict liability? (C3-1) |
- act of God - escape caused by the plaintiff's own actions - escape by the deliberate wrongful act of a third party - when the dangerous object is on the defendant's land with the implied or expressed consent of the plaintiff - when the authorization to bring and keep the dangers object on the defendant's land is granted by statute |
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Onus of proof (C3-2) |
The burden or responsibility of proof, and is sometimes referred to by its Latin term, onus probandi |
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Res Ipsa Loquitur C3-2) |
The facts speak for themselves. A doctrine of law or a presumption of certain facts |
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When an accident could not have happened except through the defendant's negligence, the burden of proof shifts to the defendant. What two requirements must be met? (C3-2) |
- the thing that caused the loss must have been within the exclusive control of the defendant - the thing that caused the loss could not have happened without negligence |
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What is the doctrine of scienter? (C3-2) |
This applies to dangerous animals. It leaves the onus on the plaintiff to prove that the animal that caused the damage or injury had a propensity for the actions that caused the harm. If it can be proved that the owner was aware of similar behavior by the animal prior to the incident, the animal will be considered dangerous animal and the owner will be held strictly liable |
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What is the Good Samaritan concept? (C3-2) |
This protects volunteer rescuers by restricting liability against them to the level of gross negligence or recklessness. The Good Samaritan doctrine is a legal principle that provides a defense against torts for an attempted rescue by someone who voluntarily helps a victim in distress |
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What is one of the major differences between the common law and the civil code of Quebec? (C4-1) |
Tort - a civil wrong. The civil law system allows for lawsuits to compensate a grieving party for injuries or damages suffered. The civil code of Quebec includes extra contractual liability for civil wrongs other than a breach of contract |
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What is extra-contractual liability? (C4-1) |
A civil wrong other than a breach of contract |
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What are the five general categories of duty of care for members of society (articles 1457-1469)? (C4-1) |
1. liability for one's own action or fault 2. Liability for others' Acts 3. Liability for damages caused by one's things and buildings 4. Liability for damages caused by one's animals 5. Liability of the manufacturer |
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What are the three elements required to establish civil liability? (C4-1) |
1. Fault on the part of the defendant 2. Injury or damage suffered by the plaintiff 3. Causal link between the fault and injury or damage |
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What is CCQ article 1457? (C4-1) |
Liability for one's own act or fault. This applies to everyone, and it outlines the duty of care: people are expected to abide by appropriate rules of conduct so as not to injure another. In determining the standard of care expected in a particular case, courts will consider the circumstances, usage, and law. A person who does not conduct him or herself carefully may incur liability for harm suffered by a third party
A person may be held liable not only for the consequences of his or her own Acts but for those of other people
Example - a general practitioner is expected to behave similarly to other general practitioners with similar experience and training. An obstetrician - specialist - is expected to meet a higher standard of care when delivering a baby then what would be expected of a general practitioner. |
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What is CCQ article 1459? (C4-1) |
Liability of parents for minor children Persons having parental authority are liable for a Minor's acts causing damage unless the parents can prove the minor has been well supervised, well raised, and adequately educated.
Parents will have to prove, for example, that they had warned their child against using dangerous objects (knives, slingshots, lighters), that they did not show the child any bad habits, that the child was successful at school, and so on. Proof must be both general (a generally good education) and specific (strict supervision at the time of the incident). |
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What is CCQ article 1460? (C4-1) |
Liability of custodians or teachers for minors.
The same principle applies to any other person who, though not the child's parent, is entrusted with the custody, supervision, or education of the child. In other words, a teacher or a babysitter can be liable under this article. However, where this person is acting gratuitously (without pay), or for reward, the burden of proof reverts back to the plaintiff. |
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What is CCQ article 1461? (C4-1) |
Liability of tutors and curators for adults not endowed with reason Persons acting as tutors or curators for adults who are not endowed with reason can be held liable for the latter's acts if the tutors or curators have been guilty of a deliberate or gross fault. Gross fault has been described in jurisprudence as a fault of such recklessness that the most uncaring person would not have committed it. This is essentially similar to the common law doctrine of gross negligence |
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What is CCQ article 1463? (C4-1) |
Liability of employers for employees This article provides that principles (for example, employers) are liable for the faults of their agents (employees) committed in the course of their duties. This does not apply to an employee's fault causing damage to another employee, since the ACT respecting industrial accidents and occupational diseases would apply. The common law doctrine of vicarious liability is similar |
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What is CCQ article 1465? (C4-1) |
Liability for one's things and buildings Just as the civil code holds that the fault of a child is the fault of the parent, it also holds that a person is accountable for damage caused by his or her things, animals, or buildings. The principal set out an article 1465 applies to almost any object, be it a helicopter, a pipeline, an electric cable, a volatile substance, electricity, or water. For example, when a sewer pipe broke in Montreal and water escaped from it into the cellars of some residences, the city was held liable under an earlier version of what is now article 1465, because the pipe and the water contained were things under the city's custody. |
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What is CCQ article 1466? (C4-1) |
Liability for one's animals Under this article, the owner of an animal and the person making use of the animal are jointly liable for any damage it causes. For example, if a person takes his friend's dog for a walk and the dog bites a neighbor, both the dog owner and the friend are liable. This is a type of strict liability in that the plaintiff does not need to prove the owner was at fault; the plaintiff merely has to prove his or her injury. By contrast, common law liability can be based on a theory of negligence of the owner where recovery is based on the action or lack of action by an animal owner/keeper |
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What is CCQ article 1468? (C4-1) |
Liability of the manufacturer Articles 1468, 1469, and 1473 cover liability for safety defects in products. The principal is roughly in line with the decision of the Supreme Court of Canada in General Motors products of Canada vs Kravitz. In this case, the Court held that the dealer and the manufacturer of a new car were jointly and severally liable for damages and for the price of the car. The manufacturer was liable under a warranty against latent defects not only to the immediate purchaser but also to any subsequent purchaser of the car. |
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What are three other general concepts of liability related to common law principles? (C4-1) |
- abuse of right - obligations of neighbors; and - duty of the Good Samaritan |
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What is Abuse Of Right (CCQ article 7)? (C4-1) |
Legislators have incorporated into Quebec's civil code the notion of abuse of right that applies generally to extra-contractual and contractual matters. It might be considered as establishing a general standard of care limiting how one can treat people. |
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What are Obligations Of Neighbors (CCQ article 976)? (C4-1) |
This article provides that neighbors do not have to endure annoyances that are beyond the limit of tolerance according to the nature or location of the land or to local custom. Thus, if one neighbor is conducting some sort of business that emits a powerful and obnoxious smell, preventing others from enjoying their property, a cause of action against the neighbor is a possibility. The general rules of civil liability do not apply and that it is not necessary to establish fault. This provision known as trouble de voisinage is the equivalent of the tort of nuisance under the common law |
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What is Duty Of the Good Samaritan (CCQ article 2)? (C4-1) |
Quebec's Charter of human Rights and freedoms imposes a duty on everyone to help a person in peril. The law encourages its citizens to come to the aid of others in need by limiting the scope of liability for such individuals. |
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If injury or damage is suffered, the plaintiff must prove his or her injury. What are the three damages allowed? (C4-2) |
- bodily injury - material damage (property damage); and - moral prejudice |
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What is moral prejudice? (C4-2) |
In the context of extra-contractual liability, moral prejudice refers to such things as non-economic damages like pain and suffering, loss of consortium, and other less tangible items. |
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Remoteness of damage (C2) |
Illegal test to determine the right to recovery based on the predictability of cause or circumstance. Also called "remote cause" |
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What are six defenses against extra-contractual liability in Quebec? (C5-1) |
- denial - not endowed with reason - Superior force - voluntary assumption of the risk - defences for Good Samaritan - contributory negligence |
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What is gross fault? (C5-1) |
- gross recklessness, gross carelessness, or gross negligence - if gross fault is found, no defense can be successful |
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What is onus of proof? (C5-1) |
A person seeking to assert a right shall prove the facts on which he bases his claim |
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Describe denial in defenses against extra contractual liability in Quebec C5-1) |
Denial of fault, injury, or casual link |
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Describe not endowed with reason in defenses against extra contractual liability in Quebec C5-1 |
Person with intellectual disability |
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Describe superior force in defenses against extra contractual liability in Quebec C5-1 |
Forces beyond the control and without the fault or negligence of any party |
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Describe voluntary assumption of risk in defenses against extra contractual liability in Quebec C5-1 |
- disclaimer is posted and may serve as a warning - waiver is signed and is stronger evidence |
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What is force majeure? (C5-1) |
An unforeseen and irresistible event |
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Describe defences for Good samaritan in defenses against extra contractual liability in Quebec C5-1 |
Exempt from liability except for intentional or gross fault |
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Describe contributory negligence in defenses against extra contractual liability in Quebec C5-1 |
- liability may be allocated between several parties including the victim - solidarity liability (joint and several) - when apportionment is not possible |
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Who are bound by manufacturers obligation? (C5-2) |
- sellers - suppliers - distributors - wholesalers - importers |
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What is the CCQ manufacturers obligation? (C5-2) |
Manufacturer of a movable thing is liable for any injury caused by safety defect in the thing |
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What is the CCQ sellers warranty? (C5-2) |
The property is fit for the use for which it was intended |
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What are the defenses available for manufacturers and distributors of products? (C5-2) |
1. The safety defect in the product could not have been known by the manufacturer at the time 2. The claimant knew of the latent or apparent defect in the product, and its risks 3. The manufacturer made available all the proper information warning of the shortcomings of the product |
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What is the limitation period in Quebec? (C5-3) |
3 years from the date of harm or knowledge of the harm |
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Can any limitation period be extended? (C5-3) |
Yes, bodily injury. This may be extended if physical condition could not be sufficiently determined at the time of judgment |
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How do the special rules of limitation apply in regards to children? (C5-3) |
Prescription starts to run once a minor comes of age. The child is entitled to sue his or her representative or the person entrusted with his or her custody. For example, a child who suffered brain damage at birth could, once an adult, sue his or her parent or tutor for the acts of a negligent obstetrician. This is similar to common law jurisdictions |
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Describe the limitation period regarding accident (C5-3) |
If damage is a pure gradually, the limitation. Starts from the day the damage first appeared. There is an extinctive limit of 10 years, meaning the 3-year period cannot extend for more than 10 years from the accident date |
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Describe the limitation period for libel (C5-3) |
Libel actions must be brought within the year in which the defamed person learned of the defamation |
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What are 5 General Legal Principles? (C6-1) |
- proximate cause - joint tortfeasors - joint and several liability - solidary obligation (Quebec) - vicarious liability |
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Tortfeasor (C6-1) |
A wrongdoer; a party guilty of a tort |
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Joint and several liability (C6-1) |
Under joint and several liability or all sums, claim into me pursue an obligation against any one party as if he or she were jointly liable, and it becomes the responsibility of the defendants to sort out their respective proportions of liability and payment. This means that if the claimant pursues one defendant and receives payment, that defendant must then pursue the other obligers for a contribution to their share of the liability. Joint and several liability is most relevant in tort claims, whereby a plaintiff May recover all the damages from any of the defendants regardless of their individual share of the liability. The rule is often applied in negligence cases, though it is sometimes invoked in other areas of law |
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Describe Proximate Cause as a General Legal Principle (C6-1) |
The negligence of the defendant must be the effective or proximate cause of injury or damage. In other words, there must exist in uninterrupted unfolding of events, from the initial act to the conclusion, without the intervention of another cause |
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Describe Joint Tortfeasors as a General Legal Principle (C6-1) |
Negligence of the other party must be the effect of cause of the injury or damage Must exist an uninterrupted and unfolding of events from the initial act of the conclusion, without intervention of another cause Chain of events leading from the negligence to the injury |
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Describe Joint and Several Liability as a General Legal Principle (C6-1) |
Joint tortfeasors - indivisible cause - joint tortfeasrs are each responsible for 100% - divisible cause - the court May assess part of the damages to each tortfeasor Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others Joint tortfeasors- indivisible cause - joint tortfeasrs are each responsible for 100%- divisible cause - the court May assess part of the damages to each tortfeasor- contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damagesJoint and several liabilityPlaintiff May select one tort visa to sue. Defendants then brings third party action against the others - contributory negligence - the plaintiff may be held partially responsible and assessed a portion of the damages Joint and several liability Plaintiff May select one tort visa to sue. Defendants then brings third party action against the others |
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Describe Solidary Obligation in Quebec as a General Legal Principle (C6-1) |
A civil code of Quebec provides that in the case of multiple tortfeasors in extra-contractual matters, any one defendant may be liable for the entire share of a judgment. The solidary obligation corresponds to the common law principle of joint and several liability. The victim can claim the whole idemnity from one particular defendant. The defendants can resolve the distribution of damages amongst themselves; however, the law provides that the courts may determine the contribution owed by each of the parties at fault. |
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Describe Vicarious Liability as a General Legal Principle (C6-1) |
Legal liabilities incurred go beyond someone's own activities. People can be held responsible for the actions of others in a variety of ways when they conduct such actions on their behalf. Vicarious liability is a form of strict liability. In certain circumstances, the law imposes responsibility on one person for the failure of another (with whom the person has a special relationship). Vicarious liability is science liability for injury or damages to a person caused by another well-acting on his or her behalf |
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Agent (C6-2) |
A person licenced or employed to act on behalf of another |
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Principal (C6-2) |
The individual or corporation whose performance is guaranteed in suretyship |
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Qui facit per alium facit per se (C6-2( |
One who acts through another acts himself |
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What are 4 things that can create agency? (C6-2) |
- contract - ratification - estoppel - necessity |
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How is agency created by contract? (C6-2) |
An Express agreement is in place outlining duties, authority, limitations, termination conditions An Express agreement is in place outlining duties, authority, limitations, termination conditions An Express agreement is in place outlining duties, authority, limitations, termination conditions An Express agreement is in place outlining duties, authority, limitations, termination conditions An Express agreement is in place outlining duties, authority, limitations, termination conditions |
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How is agency created by ratification? (C6-2) |
Agency is implied by actions |
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How is agency formed by estoppel? (C6-2) |
Once agency has been given, it can't be denied by the principal Once agency has been given, it can't be denied by the principal Once agency has been given, it can't be denied by the principal Once agency has been given, it can't be denied by the principal Once agency has been given, it can't be denied by the principal |
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How is agency formed by necessity? (C6-2) |
The principal is bound by reasonable actions taken by the agent as required by necessity The principal is bound by reasonable actions taken by the agent as required by necessity The principal is bound by reasonable actions taken by the agent as required by necessity The principal is bound by reasonable actions taken by the agent as required by necessity The principal is bound by reasonable actions taken by the agent as required by necessity |
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What is solidary obligation CCQ? ((C6-1) |
The victim may choose one of multiple tort pieces and defendants May resolve the distribution of damages among themselves If possible, the court will divide the damages between persons solidarily liable |
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What are the four vicarious liability relationships? (C6-2) |
- Principle and agent - Mandator and mandatary (CCQ) - Master and servant / employer and employee - independent contractors |
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Describe Mandator and Mandatary (C6-2) |
Mandator can base power on the mandatary to act on their behalf "Power of attorney" is the documentation of the agreement |
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Describe Master and servant / Employer and employee (C6-2) |
If the employee is carrying out their assigned duties, the employer will be held responsible to third parties If the employee breaks the rules of employment, the employer will still be held responsible to third parties Employer may sue the employee |
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When is an employer not responsible for damages? C6-2) |
Employee abandons his duties for frolic of his own Employee negligence arises from unauthorized use of the employer's property for his own use Employee delegates his authority to an unauthorized person |
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Describe independent contractors (C6-2) |
Responsible for results, not method Performs independently, without constant supervision Principal or owner is not liable for contractors negligence Principal may be liable if the interfere in the contractors operations. IE "knowledgeable owner" |
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General contractors may be liable for performance or negligence of subcontractors unless... (C6-2) |
Dangerous work is undertaken Unlawful work is done The principal interferes with the contractor |
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Feasance (C6-3) |
The performance of an act. A legal term for doing or accomplishing something |
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Misfeasance (C6-3) |
The improper performance of something that is legal to do |
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Nonfeasance (C6-3) |
The omission to perform duties which by law one is bound to do. The failure to perform an act required by law |
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Malfeasance (C6-3) |
Unintentional act which in itself is unlawful or wrongful, and is conducted by someone in an official capacity as an official Duty, especially by officials or public employees |
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What is the municipal act responsible for? (C6-3) |
Highways, buildings, sidewalks, garbage, etc |
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How long are the notice periods for written notice of claims by parties against the municipality? (C6-3) |
7, 10, or 15 days |
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Describe class action lawsuits (C6-4) |
Permit a member of a group to institute legal action for the benefit of all members Each province has unique rules of court that must be followed Must obtain authorization from the provincial Court and start the action within 3 months of authorization Final judgment determines the amount owed by the debitor, terms and conditions for the payment (may be appealed) |
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What is "res judicata?" (C6-4) |
Court publishes a notice that bars any other action by individuals and gives members one year to file a claim against the fund |
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Describe limitation periods (C64) |
Period of time after which illegal action may no longer be enforced Defined in federal, provincial, or territorial statutes of limitation End of limitation period = statute barred |
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When does the limitation period commence? (C6-4) |
- date of when damage occurred - date of when the plaintiff new or ought to have known the facts - date maybe based on circumstances - age of majority is reached by a child |
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Describe judgment interest (C6-4) |
Interest paid to the plaintiff on their settlement Rate is established by legislation (statute) Time between the time of loss and money received Covered up to the limits of the coverage Post judgment interest may be payable over the policy limits, but only on the part of the judgment that falls within the limit |
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Privity of contract (C7-1) |
Relationship that exists between two parties or more by virtue of their having entered into a contract |
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What does the ladder of supply demonstrate (C7-1) |
Anyone on a run can be responsible for injuries caused. This could result in the injured party suing everyone remotely involved, which can lead to extensive litigation. Government regulation and case law somewhat alleviates this burden |
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What are seven rungs on the ladder of supply? (C7-1) |
- Manufacturer and manufacturer's agent - manufacturer's agent - distributor or jobber - wholesaler - retailer - installer, inspector, or repairer - purchaser, consumer, or user |
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Burden of proof (C7-1) |
The standard by which a claim must be proven to prevail. The burden of proof is typically borne by one party or another |
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What is a supply chain? (C7-1) |
The system through which an organization acquires raw materials, produces products, and delivers the products and services to its customers On their way from producers to end users and consumers, products pass through a series of marketing entities known as distribution channels |
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Describe duties of care through products liability (C7-1) |
- reasonable care varies based on the nature of the product and the type of user - highest for children's products, items with capacity to cause harm - lower for products for large commercial users - industry standards are considered - statute law may provide standards |
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What are two points regarding products liability risk? (C7-1) |
- Mass marketing increases risk of class action lawsuits - globalization increases risk of lawsuits originating elsewhere in the world |
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Burden of proof. What must the plaintiff prove? (C7-1) |
- product was defective when it left the control of the manufacturer - the defect caused the damages suffered - the defect was the result of the manufacturers negligence |
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What is the res ipsa loquitur premise? (C7-1) |
- when the accident could only have happened to due to the manufacturer's negligence - shifts onus to the manufacturer to prove no negligence |
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Describe strict liability for products (C7-1) |
Defendant (manufacturer) has greater onus to prove adequate care was taken |
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What are three things that strict liability applies on? (C7-1) |
- dangerous products - food and drink - medicines and products related to medicines |
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Legislation affirms that products sold must be warranted to meet what two following criteria? (C7-1) |
- be reasonably fit for their intended use - be of merchantable quality |
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What conditions must apply to the sale to qualify for warranty under the legislation? (C7-1) |
The buyer must rely on the skill and judgment of the seller to provide suitable goods - did the seller describe the product to the buyer? - did the seller provide guidance to the buyer and selecting and purchasing the product? - did the buyer indicate why he or she was buying that product? - the decision to buy the product May indicate the buyer relied on the seller's judgment The goods sold must fit within the seller's scope of business - when the seller decides to sell the goods, it is usually sufficient to establish this parameter even if it was the first time the seller sold them |
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Describe product recalls (C7-1) |
- manufacturers duty to warn customers of products that are found to be defective - product recall is a common approach, returning the product for repair or replacement - consumers must be notified in an appropriate manner - sistership - if a particular aircraft has a defect, all of that model are grounded for repairs (insurance policy exclusion) |
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Describe product labels (C7-2) |
- manufacturer's duty to warn customers of products that pose a danger - potential sensitivities, even if uncommon, must be outlined on food or drug labels - information is needed by the customer to decide whether they will accept the risks inherent in the product - inherently dangerous products require a higher standard of care. Like guns, fireworks, gas furnaces, dangerous chemicals - morning maybe inadequate if it is not specific enough to eliminate the danger |
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Describe consumer safety legislation (C7-2) |
- consumer product safety Division of health Canada establishes and enforces safety standards - hazardous products act - regulates dangerous products - food and drug act - regulates food, drugs, cosmetics, etc - consumer packaging and labeling act - provides criteria for packaging to be bilingual and not deceptive |
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Contributory negligence (C7-3) |
Many accidents are the partial fault of both parties who are involved in the accident. The plaintiff who sees another party for damages may also be guilty of some negligence, which is a concurrent cause of the damage, and is therefore guilty of contributory negligence |
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Describe contributory negligence defense (C7-3) |
- customer must use reasonable care in using a product
- may result in a reduction in the damages due to contributory negligence
- misuse of a product - uses the product recklessly |
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Describe abnormal use (C7-3) |
A contributory negligence defense - if the defendant can prove that the product was put to use in a way that was totally unpredicted, it will be absolved of liability because the risk was not foreseeable |
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Describe the voluntary assumption of risk defense (C7-3) |
- volenti non fit injuria - if a consumer ignores information that would cause a reasonable person to fully appreciate the risk, but uses the product anyway |
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What is intermediate examination defense? (C7-3) |
The defect was obvious that the buyer or seller should have noticed and corrected it |
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What is intervening activity defense? (C7-3) |
Product has been tampered with |
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What is learned intermediary rule? (C7-3) |
If the product is technical and used only under expert supervision, manufacturer does not have the same duty of care to the consumer |
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What are the five distinct sections of a CGL policy? (C8-1) |
1. Coverages 2. Who is insured 3. Limits of insurance 4. Conditions 5. Definitions |
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What are the four distinct insuring agreements under section 1- coverages? (C8-1) |
A. Bodily injury and property damage liability B. personal and advertising injury liability C. Medical payments D. Tenants legal liability |
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What two things does each insuring agreement consist of? (C8-1) |
- scope and general terms of coverage - exclusions |
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Compensatory damages (C8-1) |
A sum of money to which a plaintiff is entitled that makes amends for an actual loss sustained and nothing more |
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Bodily injury (C8-1) |
A term used in auto and liability policies meaning physical injury, including sickness, disease, mental injury, shock, or death |
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Property damage (C8-1) |
Injury to real or personal property through another's negligence, willful destruction, or by some acts of nature |
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Occurrence (C8-1) |
A happening or event. Liability policies are usually written on either an accident or occurrence basis. For coverage on an accident basis, the loss or damage must be due to accident; whereas on an occurrence basis, all that is required is the happening or the continual or repeated exposure to an unforeseeable situation, neither intended nor expected to cause injury or damage. In re-insurance and insurance, it is also the grouping of related losses into a single loss situation |
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Occurrence policy (C8-1) |
A liability policy that responds to claims for losses that took place during the policy period, regardless of when claims are made. As a result, claims can be filed years after the time the policy was in effect |
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Claims- made policy (C8-1) |
Refers to an insurance policy that provides coverage when a claim is made against the policy, regardless of when the claim event took place. A claims - made policy is most likely to be purchased when there is a delay between when claims occur and when they are filed |
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Contractual liability (C8-1) |
My ability assumed through a contract, either written or implied. Legal liability policies are based upon liability in tort or negligence and provide limited coverage for contractual liability. However, contractual liability may be covered in many instances as an additional risk with an additional premium |
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Describe coverage A - bodily injury and property damage (C8-1) |
Compensatory damages paid to third party arising out of premises, operations, products or completed operations |
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Describe coverage B- personal and advertising (C8-1) |
Claims against libel, slander, false arrest, wrongful entry or other injuries affecting a third party's reputation, rights or privacy |
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Describe coverage C- medical payments (C8-1) |
No fault benefits paid to a third party where moral responsibility |
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Describe coverage D - tenants legal liability (C8-1) |
Unintentional or unexpected damage caused to property not owned by the insured that they are occupying or renting |
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Describe the scope and general terms of coverage for coverage A - bodily injury and property damage liability |
- compensatory damages only, not punitive or exemplary - legally obligated to pay third parties under tort - property damage - physical damage to tangible property plus loss of use - occurrence-includes continuous event or exposure to harmful conditions - coverage territory |
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What is the coverage territory for coverage A? (C8-1) |
- in Canada or US and its territories and possessions - in international airspace or Waters during travel between them - traveling salesperson - anywhere in the world while short-term traveling - goods or products made or sold in Canada or USA and its territories and possessions, for loss occurring anywhere in the world - actions must be brought or merited in North America - More predictable and stable legal environment |
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When are losses payable in an occurrence policy? (C8-1) |
When damage occurs during the policy term |
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When are losses payable on a claims-made policy? |
When the claim is first made during the policy term |
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Name the 15 exclusions for coverage a - bodily injury and property damage (C8-1) |
- expected or intended injury (willful or reckless actions) - contractual liability - except for liability under law or assumed under insured contract - employers liability obligations under any workers compensation legislations - employers liability arising from bodily injury to employees cash - aircraft/watercraft exclusion - use, ownership, loading / unloading, storing, and all incidental operations - automobile exclusion - damage to property exclusion - property damage to the insured's product or work - property damage to the insured's work within completed operations hazard - property damage to property impaired by defect, deficiency or delay - product recall - compensatory damages are rising out of loss, damage, loss of use corruption of electronic data - bodily injury arising out of personal and advertising injury - professional services liability - abuse committed or alleged to have been committed by an insured or employees |
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Product recall insurance (C8-1) |
Insurance that indemnifies the insured for the cost of recalling products no one or suspected to be defective |
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Trade dress (C8-1) |
The total image and overall appearance of a company or product that may include features such as size, shape, color or color combinations, texture, graphics or even particular sales techniques |
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Describe the scope and general terms of coverage provided by coverage B - personal and advertising injury liability (C8-1) |
- covers liability arising from the intentional conduct of the insured - offenses committed in the coverage territory, during the policy coverage period - includes parts of the insurance website used to track customers |
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What 7 circumstances are covered under coverage B - personal and advertising injury liability (C8-1) |
A. False arrest, detention, or imprisonment B. malicious prosecution C. Wrongful eviction, entry, invasion of tenant's space D. Publication that slanders or libels a person or organization E. Publication that breaches someone's privacy F. Unauthorized use of another's concept in advertising G. Infringement of another's copyright, trade dress, or slogan in advertising |
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What are the 12 exclusions in coverage B -personal and advertising injury? (C8-1) |
A. Intentional injury or harm B. material published with knowledge of its falsity C. Published prior to the policy period D. Criminal Acts E. Contractual liability F. Breach of contract G. Quality of goods not as advertised-excludes the work not the resulting damage E. Wrong description of price in advertising F. Infringement of copyright, patent, trademark, trade secret, or other intellectual property rights (except in advertising) G. Insureds in media and web related business H. Electronic chat rooms or bulletin boards I. Unauthorized use of another's name or product to mislead another's personal customers |
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Medical payments insurance C8-1) |
A special clause in an insurance policy that covers medical payments of others, irrespective of the insured's legal liability |
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Describe the scope and general terms of coverage for coverage C -- medical payments (C8-1) |
- reasonable expenses for third party like immediate first aid; necessary medical, surgical, x-ray, dental prosthetic, ambulance, hospital, professional nursing, or funeral - regardless of fault, not legally obligated - must occur within the coverage territory and during the policy period - must occur accidentally uninsured premises; on the way next to insured premises; or result of insured's operations - must be incurred and reported to the insurer within one year - avoids litigation; helps an injured friend or neighbor |
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What are 7 exclusions under coverage C - medical payments? (C8-1) |
A. any insured, except volunteers B. workers employed by insured or tenant C. Injury occurring to tenant on their own premises D. Anyone entitled to compensation from a workers compensation plan E. Any athletic activities - practicing, instructing, participating F. Products - completed operations hazard G.n exclusions under coverage A - bodily injury and property damage |
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What is the scope and general terms of coverage for coverage D - tenants legal liability? (C8-1) |
- liability for damages from all perils (unless specifically excluded) to rented premises - must be caused by an occurrence, take place in the coverage territory, occur during the policy period - does not include contents (owned property) of the insured |
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What are two exclusions of coverage D - tenants legal liability? |
A. Property damage expected or intended by insured B. contractual liability - except for that insured would have had without the contract, and that assumed in an insured contract |
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Who else is insured under the CGL policy? (C8-1) |
A. additional insurance, in respect to their business duties: - spouse, if insured is an individual, partnership or joint venture - company members, executive officers, directors and shareholders if insured is a limited liability company - volunteers, or employees B. trustees, real estate managers C. Legal Representatives if insured dies D. Newly acquired or formed organization for the first 90 days |
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General aggregate limit (C8-1) |
The maximum amount an insurer will pay for covered losses during a policy period |
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Each occurrence limit (C8-1) |
The maximum the policy will pay in the event of any one claim or occurrence |
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Deductible (C8-1) |
And agreed to specified amount that the insured must pay on a claim before the insurance company will cover the rest of the claim. This amount is agreed upon by both the insurer and the insured. An insured's obligation to pay a deductible is not based on whether the insured is at fault |
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Describe the key points of Section III - limits of insurance (C8-1) |
- limits are specified on the declarations page - maximum amount payable regardless of the number of insurance, claims made or actions brought, or persons or organizations making the claims - there's no automatic reinstatement of limits of insurance - deductibles reduce the limits available. Deductibles apply to coverage A and coverage D - the general aggregate limit is the total payable in the policy. For coverages A, B, and C. Excluding products completed liability - has an additional limit - each occurrence limit - maximum amount payable for anyone occurrence for A and C - personal and advertising injury limit (per claimant) - tenants legal liability limit (per premises) - medical expense limit (per person) |
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What are the 15 conditions found in the standard CGL policy? (C8-1) |
1. Insolvency 2. Canadian currency 3. First named insured 4. Duties of the insured in the event of a claim 5. Insurer's right to inspect the insured's financial records 6. Insurer's right to physically inspect the risk 7. No action clause - how to sue the insurer 8. Other insurance clause Dash contribution clause 9. Deposit premium and earned premium calculation 10. First named insured is responsible for payments 11. Insured must guarantee accuracy of all material statements 12. Cross-liability clause allows one insured to sue another named on the policy 13. Cancellation clause 14. Subrogation rights go to the insurer 15. How the insured may transfer rights and duties to another |
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Pollution exclusion (C8-2) |
Standard General Liability policies include an exclusion for loss arising out of pollution. For certain exposures, this exclusion may be modified; for example, "sudden and accidental" pollution arising from a fire |
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What are 6 common CGL exclusions? (C8-2) |
- any claim caused by asbestos - fungi or spores - nuclear material - pollution exclusion - terrorism - war, invasion, active for an enemy, hostilities, civil war, rebellion, revolution, insurrection, or military power |
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Describe the pollution exclusion part 1 (C8-1) |
Pollution exclusion part 1 removes coverage for bodily injury, property damage, personal and advertising injury - arising out of an actual, alleged or threatened spill, discharge, emission, dispersal, seepage, leakage, migration, release, or escape of pollutants - at or from waste disposal or treatment site, or waste handling - while engaged in pollution cleanup - at or from any premises of the insured, past or present. Except for: A. Smoke, fumes, vapor, or soot from heating/cooling / dehumidifying equipment B. heat, smoke, or fumes from a hostile fire C. Escape of operational fluids in storage, or fumes, gases, vapors from operations D. Insured is an additional insured named in a contractor's liability policy |
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Describe the pollution exclusion part 2 (C8-2) |
Pollution exclusion part 2 States no coverage for loss, cost or expense arising out of legislation or government authority - order that insured test for, monitor, clean up, remove, contain, treat, detoxify, neutralize or respond to the effects of pollutants - claim by governmental authority for damages because of testing, monitoring, etc |
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Terrorism (C8-2) |
An ideologically motivated unlawful act or acts, including but not limited to the use of violence or force or the threat of violence or force committed by or on behalf of any groups come organizations, or governments for the purpose of influence in any government and/or instilling fear in the public or section of the public |
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Supplementary payments (C8-1) |
Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits). Supplementary payments are normally defined to include such items as first aid expenses, premiums for appeal and bail bonds, pre and post judgment interest, and reasonable travel expenses incurred by the insured at the insurers request when assisting in the defense of acclaim |
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What coverages do supplementary payments apply to, and what five supplementary payments can be included? (C8-2) |
Applies to coverage A, B, and D In addition to limits of insurance: - expenses incurred by the insured - cost of a bond to release seized property - reasonable expenses incurred by the insured up to $250 per day - all costs assessed against the insured - judgment interest |
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Policy period (C9-1) |
Duration of policy, most often one year in property and casualty insurance. Also called "policy term" |
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What are 10 things contained on the declaration page? (C9-1) |
- name of insurance company and name of agent/broker - named insured - policy period - limits of insurance and deductibles - form of business - type of business - premises owned, rented, or occupied - premium base and rate - endorsements - countersignature |
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Advance.premiums (C9-1) |
1. The premium charged at the inception of the policy is the advance, provisional, or deposit premium 2. The premium paid at the inception of a policy but subject to adjustment during the policy period or at the end of the term |
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How long does a policy period generally run? (C9-1) |
- usually written for an annual - 12 month. - insurer may write for shorter or longer periods - during the term of the policy may affect the aggregate limit - standard expiration time is 12:01 a.m., standard time, at the mailing address of the named insured Gap in coverage May apply if the time. And place expressed in a replacing policy are not identical example changing mailing address from Halifax to Edmonton |
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What are the 6 limits of insurance categories? (C9-1) |
- each occurrence limit - personal and advertising injury limit for any one person or organization - medical expense limit for any one person - General aggregate limit -tenants legal liability for any one premises - products are completed operations aggregate limit |
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What are the six choices available in the form of business, to categorize the legal nature of the named insured? (C9-1) |
- individual - joint venture - partnership or limited liability partnership - Trust - limited liability company - any other organization |
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What does "other employers liability coverages" provide? (C9-2) |
Employers need to provide: - adequate and suitable working conditions and equipment - reasonable care in selecting competent employees - protect employees from operational injury |
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What are key points of workers' compensation? (C9-2) |
- workers compensation legislation is in force across Canada - prior to this legislation, employees had to sue the employer - participation in workers compensation is compulsory for employers - payments are based on payroll and hazard level of the industry - should an employer be in non-compliance, an employee can still collect benefits if in an employment type covered by the ACT |
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Employers liability insurance (C9-2) |
Coverage for the legal liability imposed on an employer to pay damages to an employee injured by the employer's negligence. This is not workers compensation insurance, where special acts of legislation set out specifically the relationship between the employer and employees in certain circumstances and the formula by which awards in each case are computed |
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What benefits are available with workers compensation? (C9-1) |
-. Medical (not covered by provincial Healthcare) -percentage of earning when disabled - funeral expenses - payments to surviving family members |
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What else is included with workers compensation? (C9-2) |
- occupational diseases - rehabilitation - accident prevention |
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What cannot happen with workers compensation? (C9-2) |
- cannot sue the employer - cannot sue another employer covered under the act |
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What are some features of employers liability insurance?.(C9-2) |
- some trades and classes of employees are not subject to work or compensation Acts - employers liability coverage can be added by endorsement to protect against a lawsuit - endorsement negates exclusions d, e, and f in the CGL for employee bodily injuries |
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Voluntary compensation (C9-2) |
Protection that an employer May purchase to cover employees who are not covered by workers compensation Insurance |
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What are key points of voluntary compensation? (C9-2) |
- endorsement - when feel moral obligation even though no negligence or liability exists - pays out based on schedules for similar items as workers compensation - benefit levels are lower than workers compensation - written in combination with employers liability - employee has choice of accepting this benefit or suing the employer |
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When does contingent employers' liability come into play? (C9-2) |
- employee working outside of jurisdiction limitation reached - employee covered in home jurisdiction but not temporary jurisdiction - not covered in home or temporary jurisdiction - liability under a contract to pay the workers compensation benefit - workers compensation board denies coverage to injured worker |
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Cyber risk (C10-1) |
Any risk of financial loss, disruption of business, or damage to an organization's reputation due to a failure of its information technology systems. |
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What are the 3 general categories of Cyber Risk Insurance? |
- deliberate or unauthorized breaches of security - unintentional or accidental security breaches - operational IT risks |
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What are some situations that create a cyber risk for an organization? (C10-1) |
- a rapidly spreading virus is released on the internet and infects an organization's system when an employee clicks on the link to the site - an employee's laptop is stolen from his or her vehicle - ransomware is embedded in an organization's network, which shuts down access until a ransom is paid - hacker set up a program to randomly check the organization's network security and crack employee passwords, which allows them full access to the company's system - a fake email is sent to employees asking them to send the CEO all their research on a new technology the organization is developing - an email was sent to a company asking to pay a big invoice. An employee pays the invoice to an untraceable account and the monies are gone |
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What are 4 examples of direct losses in cyber risk insurance? (C10-1) |
1. Cost to fix the system 2. Ransom or extortion payments 3. Funds directly lost due to fraud 4. Cost to defend and settle lawsuits |
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What are six examples of indirect losses (as consequence of direct losses) in cyber risk insurance? (C10-1) |
1. Extra expenses (ie: crisis management/communications) - covered 2. Accounting and other professional fees - covered 3. Loss of competitiveness - not covered 4. Loss of business - not covered 5. Loss of reputation - not covered 6. Loss of opportunity - not covered |
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What are the two key areas of cyber risk exposures? (C10-1) |
1. Behavior management 2. Systems and technology management |
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What five perils are included on a general cyber risk insurance package policy? (C10-1) |
- third party liability - cyber crime - extra expense - business interruption losses (resulting from a cyber attack or data breach) - crisis management consulting services (to guide organization on how to manage communications after a loss) |
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What are four perils that can be insured under cyber risk policies? (C10-1) |
- theft of data resulting in a privacy breach - unintentional transmission of a computer virus - Network systems that become unavailable to third parties due to a failure in security - allegations of copyright or trademark infringement, libel, slander, defamation, or various social media activities |
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What are five optional cyber liability coverages? (C10-1) |
- regulatory defense expenses - punitive damages - arbitration expenses - criminal rewards for information leading to the arrest and conviction of the cyber criminal responsible for the loss |
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What are cyber risk insurance exclusions? (C10-1) |
It's hard to quantify losses such as: reputational risk lost intellectual property future losses loss of competitiveness |
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There is limited cyber risk coverage in property insurance. What things would be covered there? (C10-1) |
- damage caused by computer viruses, harmful codes, or harmful instructions entered into a computer system or Network |
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What are 7 specialized cyber risk insurance policies? |
- loss / corruption of data - business interruption - cyber extortion - crisis management - data breach - identity theft - social media / networking liability |
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What are nine factors to consider when recommending cyber insurance? (C10-1) |
- what security is already in place? - what security needs to be in place? - where are the cloud accounts located? - which risks can be avoided, retained, or controlled? - which risks need to be insured (or transferred)? - what kinds of personal information are being stored? - how many records with sensitive information could be accessed? - two clients rely on third-party services or provide services to others? - what are the possible outcomes if a data breach is not detected immediately? |
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Sharing economy (C10-2) |
A collaborative system where participants share access to services and products rather than owning them individually; generally facilitated through an online platform |
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Ridesharing (C10-2) |
Arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee |
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Carsharing (C10-2) |
An arrangement set up by means of a website or mobile app that links renters and car owners. Sometimes called vehicle sharing or peer-to-peer car rental services |
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What are the three types of products and services that are commonly shared? (10-2) |
- automobile and transportation sharing - accommodation sharing - household items sharing |
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Eight points to summarize ride sharing (C10-2) |
- ride sharing apps ex Uber, link owners with riders - vehicle owners are Independent drivers or "partners" - driver partners set their own hours - riders post their ride request details on the app - drivers select from the requests - drivers credit card is billed after the ride - rideshare app operators pay the driver and deduct a service fee for providing the app |
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What are three exclusions on a personal vehicle insurance policy, in regards to carrying passengers for a fee? (C10-2) |
- third party liability claims for bodily injury and property damage - own vehicle damage claims - accident benefits or personal injury claims |
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Transportation Network (10-2) |
An online enabled application or website used by persons to prearrange the transportation of passengers for compensation by a transportation Network driver. Also called ride sharing services |
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What are the three commercial activity periods in ride sharing? (10-2) |
- Period 1 - driver is accessing the app in the vehicle, but has not yet selected a ride - Period 2 - driver has accepted a ride and is driving to pick up the passenger - Period 3 - driver is carrying the passenger from pickup to drop off |
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How are taxis insured? (C10-2) |
- with a "permission to carry paying customers endorsement" - removes the exclusion for carrying paying customers - much higher insurance rate than private vehicles |
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What is a transportation Network company (TNC)? (C10-2) |
- company that uses private vehicles for ride sharing services - fried sharing endorsements at the maximum number of driving hours and that's requirement to meet licensing and driver experience guidelines |
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To be effective, a ride sharing Insurance solution must encompass what 4 things? (C10-2) |
- a rating structure that charges rideshare drivers a fair rate based on their use - premiums that cover claims so that personal use policyholders do not subsidize ride-sharing drivers - market availability for ride-sharing drivers - premiums that are reasonably affordable |
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Accommodation sharing (C10-2) |
An arrangement set up by means of a website or mobile app in which a property primarily occupied by its owner is rented for a short time. To a third party |
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What are 2 types of property damage exclusions? (C10-2) |
- damage to the dwelling and contents of hosts - damage to the property of guests |
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Do accommodation sharing apps provide coverage for property damage? (C10-2) |
Airbnb provides coverage for property damage up to 1 million. Post is not a party to the contract |
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What are five key points about accommodation sharing? (C10-2) |
- some homeowner policy communicational rental subject to maximum days - some homeowners policies exclude damage to the dwelling and contents if building is used for business purposes. Example - any regular pursuit for financial gain - damage to property of guest - excluded under property of roomers or borders - theft exclusion - theft by guests may be excluded - liability exclusion - business pursue liability is excluded |
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What are 3 issues with hosting? (C10-2) |
- guest liability - damage to host property by the guest. 1. Personal liability insurance of the guest may not be available 2. May only cover accidental damage or fire - specific airbnb or peer-to-peer rental coverage endorsement does not available - home-based business insurance for bed and breakfast May provide coverage |
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What are underwriting considerations in regards to hosting? (C10-2) |
- frequency of rentals - how many rooms - number of guests at a time - is there a family member on the premises during rental - is adequate safety information provided to guests - is there a pool - are on site laundry facilities offered |
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What are the five levels of automation - the autonomous vehicle? (C10-3) |
Level 0 - no automation - human driver Level 1 - driver assistance - either steering or acceleration Level 2 - partial automation - both steering and acceleration Level 3 - conditional automation - all aspects of the dynamic driving tests with expectation of driver intervention when requested Level 4 - high automation - automation of all dynamic driving tasks even if human fails to intervene when requested Level 5 - full automation - full-time performance by an automated driving system of all the dynamic driving tasks under all conditions. No driver |
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What are some questions about semi- autonomous vehicles emerging industry? (C10-3) |
- how can the insurance industry secure time and information about the collision experience and repair costs for semi-autonomous vehicles? - will automakers install a black box to record when driver assistance features are engaged? - will insurance companies be allowed to access this data? - what safety technology will be required by regulation in new vehicles? - will the coverage offered need to be? |
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What questions are emerging for the industry about self-driving vehicles? (C10-3) |
- will the insurance coverage for the first self-driving vehicles be modeled on the product liability coverage currently in place for aircrafts, ships, and trains with substantial automation? - what incremental coverage will be offered to drivers who will have the option to take control of self-driving vehicles? - will auto rate regulation apply to product liability coverage for the first self-driving vehicles? - will insurance cover a variety of vehicle ownership alternatives like personal ownership, car sharing, ride sharing, ride hailing and pooled ride hailing? - is the current construction of insurance coverage appropriate for vehicles with automation? - what decisions will manufacturers and regulators make over the next decade that could determine the nature of connected vehicles over the long term? |
