Assignment 3

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Canadore College *

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123A

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Law

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Apr 3, 2024

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docx

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Uploaded by BrigadierTankGull41

CIP C130- Assignment 3 Wan Ning (Helen) Li 1. a. Briefly describe the protection provided under the guaranteed replacement cost provision of a dwelling policy. the insurer will pay the cost of repairs to or replace the dwelling building even if it is more than the amount of insurance on the dwelling building, provided certain conditions are met in addition to those that normally govern settlement at replacement cost. b. Briefly outline what insurance is provided under the unit improvements and betterments coverage of a condominium unit owners policy.  Upgraded kitchens and bathrooms  Hardwood flooring  Custom-made closets  Built-in cabinetry  Structural changes within the unit itself 2. Describe the coverage provided under a mobile homeowners policy.  Personal property insurance—coverage for the cost of repairing or replacing the building and contents of the mobile home damaged by an insured peril  Personal liability insurance—coverage for paying amounts awarded to third parties for bodily injury or damage to property and for the cost of defending the insured in a lawsuit 3. a. Briefly outline the coverage provided under a fine arts floater, including any special exclusions and limitations.  The fine arts floater may insure such items as sculptures, paintings, etchings, pictures, tapestries, glassware, porcelain and china, antique furniture, and other property of rarity, historical value, or artistic merit. Coverage is on an all-risks basis and no deductible applies. Breakage of fragile or brittle articles is excluded unless caused by a major peril. If property is moved, a warranty in the policy requires that packing and unpacking of the property must be done by competent professional packers. b. Briefly explain what the tort of negligence is and what the consequences of negligence are.

 Negligence is failure to use the degree of care expected from a reasonable and prudent person.  The consequences of negligence are the results of legal liability, imposed on them by law, arising out of the ownership, use, or operation of the automobile and resulting in bodily injury to or death of any persons or damage to property. 4. a. Briefly explain the difference between a trespasser and a licensee. In your answer, define both terms.  Trespasser: A person who wrongfully enters onto someone else’s land with neither the right nor permission to be there.  Licensee: A person who has permission to enter a premises for his or her own purposes.  An occupier owes a greater duty of care to a licensee than to a trespasser. An occupier has a duty to protect a licensee from known concealed traps or dangers. b. Briefly explain the difference between the coverage afforded by an umbrella policy and an excess policy.  Both umbrella & excess policies provide higher limits of insurance over the underlying policies but, unlike umbrella policies, an excess policy is designed to provide coverage in excess of existing underlying insurance on a per occurrence basis based on the same terms and conditions as the underlying insurance. It is also known as coverage on a follow form or following form basis. 5. Describe the insured’s liability exposures arising out of the actions of employees. In your answer, define vicarious liability.  the employer is responsible for the employee’s actions when the employee is negligent and causes damage or injury while performing employment duties.  vicarious liability : A situation in which one party—for example, an employer—is held partly responsible for the unlawful actions of a third party, an employee. Vicarious liability can arise in situations where one party is supposed to be responsible for (and have control over) a third party, and is negligent in carrying out that responsibility and exercising that control. 6. a. Briefly explain why automobile insurance is required.

Owners of automobiles stand to incur costs if their vehicle suffers a physical damage loss. They can also suffer loss in the form of damages if they are sued for causing an accident that injures another person or damages another’s property. Automobile insurance can mitigate these financial losses by covering some of these costs in exchange for the payment of a small premium. b. Briefly outline the information required in the described automobile section of an automobile application.  Applicant’s name and primary address  Policy period  Described automobile(s)  Driver information  Previous accidents and insurance claims  Convictions  Rating information  Insurance coverages requested  Remarks  Signature of applicant  Penalty clause  Report of broker or agent 7. a. Briefly describe how an agent or broker can direct a client’s attention away from the cost of an automobile policy. Agent or broker should refocus the client on the importance of service and protection. They can discuss several possible scenario to determine clients’ level of comfort with each outcome. For example, are they comfortable with the minimum mandatory liability limit? Are they okay with the brand new car replaced on the depreciated value? When they paying extra for higher limits or additional coverages can have benefits to them. b. Briefly describe the coverages available under the own damage section of an automobile policy.  All perils—the broadest coverage. It combines and broadens the protection provided by the other three coverages named.  Collision or upset—protects the insured against damage to the vehicle caused by colliding with another object , such as another vehicle, a tree, a guard rail, or any other object, or tipping over. “Another object” includes the surface of the ground and a trailer attached to the vehicle insured. This coverage can be sold alone but is more usually sold in combination with comprehensive coverage.  Comprehensive—protects the insured vehicle against any peril other than collision or upset. It is usually sold in combination with collision coverage. It gives broader protection than specified perils in that, if the loss is not

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