Podcast
Questions and Answers
The Genetic Non-Discrimination Act allows individuals to be forced to undergo genetic testing for insurance purposes.
The Genetic Non-Discrimination Act allows individuals to be forced to undergo genetic testing for insurance purposes.
False (B)
An insurance policy allows a business to shift the risk of various kinds of losses.
An insurance policy allows a business to shift the risk of various kinds of losses.
True (A)
Under the Genetic Non-Discrimination Act, insurance companies are allowed to use genetic test results without client consent.
Under the Genetic Non-Discrimination Act, insurance companies are allowed to use genetic test results without client consent.
False (B)
The Canadian Coalition for Genetic Fairness supports the idea that genetic test results should be disclosed to insurance companies.
The Canadian Coalition for Genetic Fairness supports the idea that genetic test results should be disclosed to insurance companies.
The average annual insured damages from severe weather events between 1983–2008 was $3.1 billion.
The average annual insured damages from severe weather events between 1983–2008 was $3.1 billion.
Insurance companies argue that the Genetic Non-Discrimination Act could lead to lower claims costs for them.
Insurance companies argue that the Genetic Non-Discrimination Act could lead to lower claims costs for them.
Insurance is considered a comprehensive solution for all business risks.
Insurance is considered a comprehensive solution for all business risks.
Severe weather has led to an increase in insurance premiums and changes in coverage availability.
Severe weather has led to an increase in insurance premiums and changes in coverage availability.
Individuals who fail to disclose their genetic predispositions can have their insurance contracts voided.
Individuals who fail to disclose their genetic predispositions can have their insurance contracts voided.
Insurance prevents losses from occurring in the first place.
Insurance prevents losses from occurring in the first place.
Disclosing genetic predisposition is always beneficial for individuals seeking insurance coverage.
Disclosing genetic predisposition is always beneficial for individuals seeking insurance coverage.
In 2022, the insured damages from severe weather reached $5 billion.
In 2022, the insured damages from severe weather reached $5 billion.
The Genetic Non-Discrimination Act carries penalties of up to $1 million for violations.
The Genetic Non-Discrimination Act carries penalties of up to $1 million for violations.
The distribution centre at Sunbury is responsible for waste disposal.
The distribution centre at Sunbury is responsible for waste disposal.
The relationship between genes and disease is always clear and certain.
The relationship between genes and disease is always clear and certain.
The insurer receives a payment known as a premium from the insured party.
The insurer receives a payment known as a premium from the insured party.
Kathy can insure her son Ian's car without having an insurable interest in it.
Kathy can insure her son Ian's car without having an insurable interest in it.
Once the mortgage is paid off, the bank's insurable interest in the property persists.
Once the mortgage is paid off, the bank's insurable interest in the property persists.
In contracts of indemnity, a person may profit from the insured event.
In contracts of indemnity, a person may profit from the insured event.
Sunbury can collect the total loss amount from multiple insurance companies when both have insured its facilities.
Sunbury can collect the total loss amount from multiple insurance companies when both have insured its facilities.
A co-insurance clause is intended to encourage insuring property for more than its actual value.
A co-insurance clause is intended to encourage insuring property for more than its actual value.
Ian must give his consent for Kathy to insure his vehicle since he is the legal owner.
Ian must give his consent for Kathy to insure his vehicle since he is the legal owner.
The bank stands to gain from the destruction of the plant if it has an existing mortgage.
The bank stands to gain from the destruction of the plant if it has an existing mortgage.
Insurable interest must exist at the time the insurance contract is made to be valid.
Insurable interest must exist at the time the insurance contract is made to be valid.
An insurer is not permitted to deny coverage for non-disclosure if the loss is unrelated to the undisclosed information.
An insurer is not permitted to deny coverage for non-disclosure if the loss is unrelated to the undisclosed information.
The insured must disclose all matters that are known to them, even if they are common knowledge.
The insured must disclose all matters that are known to them, even if they are common knowledge.
The duty to disclose information to an insurer is only applicable at the time of applying for coverage.
The duty to disclose information to an insurer is only applicable at the time of applying for coverage.
Welding operations are commonly known to pose a risk of fire, so it is not necessary for the insured to disclose this hazard to the insurer.
Welding operations are commonly known to pose a risk of fire, so it is not necessary for the insured to disclose this hazard to the insurer.
If an insured party changes the nature of their business, they are required to inform the insurer in writing.
If an insured party changes the nature of their business, they are required to inform the insurer in writing.
The insurer has the right to cancel the policy if the insured leaves the premises vacant without notification.
The insurer has the right to cancel the policy if the insured leaves the premises vacant without notification.
The obligation to disclose only applies to the initial application for the insurance policy.
The obligation to disclose only applies to the initial application for the insurance policy.
An insured can feel confident that they must disclose everything to the insurer to avoid having their policy declared void.
An insured can feel confident that they must disclose everything to the insurer to avoid having their policy declared void.
Closure due to COVID contamination can trigger business interruption insurance coverage.
Closure due to COVID contamination can trigger business interruption insurance coverage.
Sunbury can be held liable for clean-up costs even after it no longer owns the polluted land.
Sunbury can be held liable for clean-up costs even after it no longer owns the polluted land.
Pollution exclusion clauses in insurance policies are designed to broaden coverage for environmental claims.
Pollution exclusion clauses in insurance policies are designed to broaden coverage for environmental claims.
Environmental impairment liability policies tend to be less expensive than standard commercial general liability policies.
Environmental impairment liability policies tend to be less expensive than standard commercial general liability policies.
The term 'pollutant' in commercial general liability policies includes thermal irritants.
The term 'pollutant' in commercial general liability policies includes thermal irritants.
Litigation regarding pollution exclusion clauses has been minimal since their introduction.
Litigation regarding pollution exclusion clauses has been minimal since their introduction.
An operational management policy is a foolproof way to prevent environmental accidents.
An operational management policy is a foolproof way to prevent environmental accidents.
Business interruption insurance exclusively covers losses unrelated to physical damage.
Business interruption insurance exclusively covers losses unrelated to physical damage.
Commercial crime insurance protects businesses from employee theft but not from embezzlement.
Commercial crime insurance protects businesses from employee theft but not from embezzlement.
Directors and Officers Liability Insurance covers personal liability for failing to remit taxes.
Directors and Officers Liability Insurance covers personal liability for failing to remit taxes.
Precision expected indemnification for chemical escape due to its activities.
Precision expected indemnification for chemical escape due to its activities.
Employee theft costs Canadian businesses approximately $1.4 million dollars annually.
Employee theft costs Canadian businesses approximately $1.4 million dollars annually.
The Supreme Court of Canada agreed to hear the appeal regarding the pollution exclusion policy.
The Supreme Court of Canada agreed to hear the appeal regarding the pollution exclusion policy.
Sunbury is particularly vulnerable to the theft of drugs due to their portability and high market value.
Sunbury is particularly vulnerable to the theft of drugs due to their portability and high market value.
Employers frequently recover losses from dishonest employees through legal action.
Employers frequently recover losses from dishonest employees through legal action.
Corporate liability can be incurred for permitting the release of non-toxic substances into the environment.
Corporate liability can be incurred for permitting the release of non-toxic substances into the environment.
Flashcards
Insurance Coverage
Insurance Coverage
A contract where an insurer agrees to compensate the insured for a specific loss.
Insurer
Insurer
The party who provides insurance coverage and promises compensation if loss occurs.
Insured
Insured
The individual/business that purchases insurance coverage.
Insurance Premium
Insurance Premium
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Risk Management
Risk Management
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Severe weather
Severe weather
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Cost of Insurance
Cost of Insurance
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Insurance limitations
Insurance limitations
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Genetic Non-Discrimination Act
Genetic Non-Discrimination Act
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Insurance discrimination (genetics)
Insurance discrimination (genetics)
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Genetic testing
Genetic testing
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Insurance contract (good faith)
Insurance contract (good faith)
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Risk to insurance companies (genetic)
Risk to insurance companies (genetic)
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Preventative measures (genes)
Preventative measures (genes)
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Complexity of gene-disease relationship
Complexity of gene-disease relationship
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Increased insurance claims (genetic)
Increased insurance claims (genetic)
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Insurance Disclosure Duty
Insurance Disclosure Duty
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Material Change
Material Change
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Common Knowledge Exception
Common Knowledge Exception
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Duty to Disclose (Ongoing)
Duty to Disclose (Ongoing)
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Policy Voidability
Policy Voidability
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Non-Disclosure Impact
Non-Disclosure Impact
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Statutory Conditions
Statutory Conditions
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Welding Example
Welding Example
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Pollution Exclusion
Pollution Exclusion
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Commercial Crime Insurance
Commercial Crime Insurance
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Employee Theft
Employee Theft
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Directors and Officers (D&O) Liability Insurance
Directors and Officers (D&O) Liability Insurance
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Corporate Liability
Corporate Liability
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Errors and Omissions (E&O)
Errors and Omissions (E&O)
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Federal & Provincial Legislation
Federal & Provincial Legislation
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Toxic Substances Release
Toxic Substances Release
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Insurable Interest
Insurable Interest
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Indemnity Principle
Indemnity Principle
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Co-Insurance Clause
Co-Insurance Clause
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Contribution Principle
Contribution Principle
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Why can't Kathy insure Ian's car?
Why can't Kathy insure Ian's car?
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Who has insurable interest in a property?
Who has insurable interest in a property?
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Can you insure something you don't own?
Can you insure something you don't own?
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Can you profit from an insurance claim?
Can you profit from an insurance claim?
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Pollution Exclusion Clause
Pollution Exclusion Clause
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Pollutants
Pollutants
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Environmental Impairment Liability
Environmental Impairment Liability
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Operational Management Policy
Operational Management Policy
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Subsequent Owner Liability
Subsequent Owner Liability
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Why are Environmental Impairment Liability policies expensive?
Why are Environmental Impairment Liability policies expensive?
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What is the effect of a Pollution Exclusion Clause?
What is the effect of a Pollution Exclusion Clause?
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Why is the Pollution Exclusion Clause so broad?
Why is the Pollution Exclusion Clause so broad?
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Study Notes
Chapter 28: Insurance - Objectives
- Understanding the role of insurance in risk management.
- Understanding the nature of insurance contracts, including rights and obligations of the insurer and insured.
- Understanding the various types of insurance.
Business Law in Practice - "Gotcha"
- Simon Balistar, Vice President of Operations, received a message on his work computer from hackers demanding $100,000 in Bitcoin.
- The message also stated that personal customer information would be released if the demand was not met within 24 hours.
- Simon contacted Sunbury's Chief Technology Officer (CTO), who confirmed that ransomware had blocked the company's operating system.
- Sunbury had a comprehensive insurance program in place after a previous incident of extreme flooding.
- Sunbury manufactures various products, including medicines, generic pharmaceuticals, over-the-counter drugs, conducts clinical trials and provides patient support services.
- Sunbury's facilities include a manufacturing plant, a waste disposal site, and a distribution center with delivery trucks.
Introduction
- Insurance is a core component of effective risk management.
- It facilitates the transfer of various risks to an insurance company.
- In exchange for insurance premiums, the insured receives protection against loss or damage.
- Severe weather events (floods, wildfires, etc.) can cause substantial insured damages, with payouts increasing.
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Description
Explore the critical role of insurance in risk management and learn about the rights and obligations of both insurers and the insured. This quiz also helps you identify and understand various types of insurance contracts through a contemporary business law example involving ransomware. Test your knowledge on business law principles and insurance practices.
