CAIB 1 - Chapter 5

Insurance Training & Education

• Ensure Training & Education company provides training and education resources.

CAB1 General Insurance

• CAB1 General Insurance is a training program.
• Includes various topics relating the core components of insurance
• Icons represent different coverages like food, accommodation, transport, homes etc.

Attendance Poll

• Poll conducted to check audio/visual accessibility for remote participants.
• Students are asked if they can hear the facilitator and see the slides.

What Jumped Out At You?

• Students take two minutes to identify the most resonant topic or fact from the current training.
• A graph displays the Forgetting Curve highlighting the importance of reviewing learned material.

Insurance Graphic Organizer

• Organizer for Insurance information.
• The graphic organizer is for CAIB1 Chapter 4.

Multi-Point Question

• Focuses on 6 legal precedents related to personal liability exposures.
• The questions in the multi point relates to the duty owed to children, and the slides contain the required info to answer this question.
• CAIB 1 Chapter 4, Section 2

Legal Precedents Related to Personal Liability Exposures (cont'd)

• Details specific aspects of insurance precedents for incidents involving children.
• Parents are not usually held accountable for their children's actions or errors.
• Exceptions are noted when parents demonstrate failure in supervision or relinquish control in dangerous situations.
• Parents are held financially liable when children cause harm to others when acting on parental instructions.

Legal Duty Owed

• Liability is imposed on parents when proven they failed to supervise their children or left them unattended in potentially dangerous public situations.
• Parents are financially liable if a child causes harm under parental supervision or after being relinquished to another's care.

Farm Insurance

• Section 1 outlines farm coverages and types of farms.
• Product types like produce, livestock, specialized farm equipment, buildings. are included in the training.
• Machinery/equipment used for producing various types of farm produce is included.

Farming

• Defines farming as the maintenance, use of premises, raising and caring of livestock.
• This includes related operations like running farm stands and operating farm markets for selling produce.

What Farm Policies Include

• Dwelling/personal property coverage.
• Major outbuildings/contents coverage.
• Machinery/equipment coverage.
• General Liability coverage.

Farm Coverages

• Most farm policies are package policies.
• Multiple coverages are needed to qualify for low rates, such as Dwelling, building, personal property, outbuildings and contents, machinery, and equipment.
• Coverages are similar to town/city resident policies.

Dwelling/Building/Personal Property

• Homeowner's policies, tenancies, condominium unit owners, and mobile homeowners are all similar property types insured in a similar way.
• Insurers offer the same coverage options for people in towns/cities and rural areas.

Major Outbuildings/Contents

• Coverages are similar to business property insurance.
• Covers barns, workshops, and machinery storage buildings.
• Exclusions may apply to buildings used for commercial purposes, like seed cleaning workshops.

Major Outbuildings/Contents (continued)

• Includes windmills, towers, and appurtenances (associated items) as part of the specified coverage.
• Limits on coverage related to damage to metal roofs by wind/storm are indicated.

Major Outbuildings/Contents (continued)

• Policies cover buildings built within the last 15 years mostly of new materials, on permanent foundations, and used for the original intended purpose.
• A replacement cost alternative is noted for situations where these characteristics are not met.
• Includes Deferred losses if a building isn't replaced.

Major Outbuildings/Contents (continued)

• Addresses fire department charges as a potential policy requirement in some regions.
• Insureds aren’t necessarily obligated to pay for firefighting costs when a serious neighboring fire incident occurs.

Major Outbuildings/Contents (continued)

• Covers expenses for debris removal related to insurable perils.

Contents

• Contents coverage can be on a Scheduled or Blanket basis.
• High-value items like welders, grinders, and lathes should be specifically listed.
• Policies often include a 80% co-insurance requirement. Items for a farm might be covered on an “All Risks” basis. Coverage requirements vary.

Machinery/Equipment

• Policies cover mobile farm and field equipment, including attached and owned/used equipment.
• Standard equipment in farming operations is included, but some situations necessitate extra premiums.
• Policies on custom farming operations are often specific to the insurer.
• Exclusions are noted.

Machinery/Equipment (continued)

• Identifies when exclusions apply and definitions of particular farming equipment and uses.
• Exceptions are noted for how insurance policies cover items.

Machinery/Equipment (continued)

• Specific exclusions are noted for losses resulting from electrical current and mechanical breakdowns.
• Loss or damage from logging, forestry, brush cutting or clearing are excluded.
• Additional exclusions for data loss, machinery and farm implement damage, and various other incidents are also noted.
• Policy features for coverage on Blanket or Scheduled Basis and Co-insurance clauses are noted

Machinery/Equipment (continued)

• Discusses newly acquired or replaced machinery coverage that usually extends for a 30 days.

Machinery/Equipment (continued)

• Policies cover specific losses for existing machinery/equipment and for additional equipment that is acquired during the policy period.

Machinery/Equipment (continued)

• Notes the need to consult with insurance brokers on machinery/equipment purchased/rented during the policy period.

Other coverage details for Machinery/Equipment

• Addresses exclusions for loss or damage due to electrical and mechanical failures where fire or explosion isn't the direct cause, including those related to logging, forestry and brush cutting/clearing.
• Exclusions for loss/damage to the insured’s data, internal damage to implements such as combines, balers and harvesters, and for certain loss/damage from operating machinery are also detailed.

Policy Features (Machinery/Equipment)

• Features like coverage on a Blanket or Scheduled Basis and Co-insurance Clauses are applicable. Loss of use (extension) coverage is an additional aspect.

Policy Features (Machinery/Equipment) (continued)

• Newly Acquired Machinery (extension) of the coverage, if an item is added or replaced during the policy period the coverage may extend for 30 days.

Policy Features (continued)

• Addresses the need for a broker to be contacted when purchasing or renting machinery or equipment during the policy period, as well as if there are replacement cost coverages or if the machinery purchased/added is less than 5 years old. Covers waivers of depreciation for Scheduled or Blanket Equipment.

General Liability

• Indicates that there isn’t a standard policy form; other names like farmers general liability and comprehensive liability are in use.
• Includes various insuring agreements, like bodily injury/property damage, medical payments, voluntary compensation for damage to property, persons insured, and territory.

Persons Insured By Policy

• Includes named insured, spouse, relatives of insured/spouse, parties under 21 (in care of), foster children, exchange students, and non-relatives residing in the household.

General Liability (continued)

• Defines employees and the type of employees covered, including those on farm property and incidental volunteers.
• Covers different categories of employees on a farm.

General Liability (continued)

• Covers volunteers helping during farm activities (seeding/harvest).

Territory

• Indicating regions of coverage in Canada and the USA, including territories/possessions.
• Coverage includes goods/products manufactured/sold by the insured within the covered territory.
• Details situations when coverage extends to activities away from the insured's territory.

Bodily Injury and Property Damage Liability

• Explaining policy coverages, payments on behalf of the insured in cases of bodily injury and property damage.
• Details various situation when payments are made, like those involving accidents and negligent acts of others and similar liability policies.

Bodily Injury and Property Damage Liability (continued)

• Coverage includes cases of accidental injury/damage to others in the insured’s operations.

Premises Liability

• Identifying all insured premises (all residence/family dwelling)
• Indicates that insured premises' coverage extends to the farm’s land where farming activities occur and to nearby areas, as part of the insured location, like other properties or plots where activities are carried out.

Premises Liability (continued)

• Premises liability covers damage to properties by those activities on the farm, and the approaches and surrounding areas for activities that may include cemeteries or burial vaults on the property.

Premises Liability (continued)

• Addresses coverage for temporary resident situations.
• Covers situations on insured properties temporarily occupied by others, or where the insured is temporarily living on properties owned by others.

Premises Liability (continued)

• Addresses coverage needs when on-farm machinery usage occurs along roadways.

Premises Liability (continued)

• Covers losses arising from renters and tenants on or near the property owned or rented by the insured.

Watercraft Liability

• Policies cover owned and non-owned watercraft and the associated damages and injuries. Describing different coverage situations based on ownership.

Definitions (Land Motor Vehicles)

• Defines different types of vehicles (land motor, including semi-trailer, recreational motor—golf carts, ATVs).
• Details situations where additional coverage for these vehicles might be needed, such as for vehicles used off-road.

Motorized Vehicle Liability

• Covers farm liability situations.
• Farmers using older vehicles for other purposes (such as carrying water, feed, or property) are covered for the specified purpose and operations, such as moving items between locations, and transportation work in the same area.
• Identifies when situations involving older vehicles or their use on the farm aren't covered.

Motorized Vehicle Liability (continued)

• Addresses situations when the insured is towing or moving motor vehicles.
• Includes coverages for utility boats, camp trailers, and home trailers.
• Address situations related to recreational motor vehicles on or off the insured property.

Motorized Vehicle Liability (continued)

• Coverage for all types of motorized vehicles, noting coverage limitations or exceptions for motorized vehicles or for situations with motorized vehicles on or around insured premises.

Motorized Vehicle Liability (continued)

• Covers situations associated with farm-type tractors and farm implement use away from the premises or when used off public roadways.

Business/Business Property Liability

• Coverage exclusions relating to business or personal activities of the insured or when the insured is engaged in any non-business work or activity that’s outside of their regular business activity. This includes situations where the insured is operating in a location where they don’t regularly work

Business/Business Property Liability (continued)

• Includes actions where a business person is renting or holding rented space in the premises, such as a dwelling or accommodation space that’s meant to be used in residence.

Insurance Exclusions for Bodily Injury/Property Damage

• This section excludes common property damage situations related to accidents.
• Exclusions covered during operations, in use, ownership, or existence for activities like loading and unloading air cushion vehicles or aircraft.
• Exclusions in certain situations are also listed.

###Exclusions (Bodily Injury/Property Damage) (continued)

• Covers certain cases of property damage and bodily injury related to employment situations excluding situations when the injured person is a residence employee or are compensated through worker’s compensation. Also excludes those of a casual worker. Excludes coverage of injuries that are related to an incident not being an accident, or are the cause of a deliberate action.

###Exclusions (Bodily Injury/Property Damage) (continued)

• Addresses situations where individuals are compensated by accident insurance or for their work and the expenses are covered by their employers' liability coverage.
• This excludes certain losses during the normal course of employment activities that are due to using tools, and improper equipment use in job tasks.

###Exclusions (Bodily Injury/Property Damage) (continued)

• Contains exclusions to avoid situations where the insured may be held responsible. These include situations outside of the employment contract when accidental damage, injury, death or harm occurs to others or to things, or from the use of something (like farm tools or equipment).

###Exclusions (Bodily Injury/Property Damage) (continued)

• Addresses losses or damage that happen to the property of the insured, particularly when this is a result of working on those properties.

###Exclusions (Bodily Injury/Property Damage) (continued)

• Notes exclusions on property damage to products made by the insured or other work performed by or for the insured.
• Addresses situations where there might be defective products, and how payments for those are handled.

###Exclusions (Bodily Injury/Property Damage) (continued)

• The section relates to property damage from substances released from aircraft. This includes situations with activities like crop dusting or spraying.

Create a "Why" Question

• Prompt asking students to create a “Why” question based on the material from past training sessions.

Your Assignment/Instructions

• Explains that material on "Environmental Exclusion" has been updated.
• Students can access the updated material through the graphic organizer (a more comprehensive resource) in the student portal.
• Students can ask questions directly to the facilitator in class or in the online format

Defence-Settlement Supplementary Payments

• Identifies when costs are paid by the insurer, whether in addition to or separate from the policy amount.
• Discusses situations where the insurer is required to defend legal actions, including circumstances when an investigation, negotiation, or settlement action is required.

Defence-Settlement Supplementary Payments (continued)

• Details when the insurer is required to pay for costs, including premium payment when bonds are required.
• Addresses situations where an insured might incur additional costs for investigations and defense, including situations where the insured must pay expenses that result when court action occurs.

Defence-Settlement Supplementary Payments (continued)

• Describes when the insurer pays costs due to interest accrual, and payments based on courts and how the costs are calculated and payable.
• Includes payment details and additional circumstances impacting additional expenses.

Medical Payments

• Covers reasonable medical expenses incurred.
• The coverage is "voluntary" by the insurer, irrespective of fault.
• Policy limits and coverage time periods are noted.

Voluntary Compensation for Damage to Property

• Outlines the payment process when an insured causes damage to the property of another.
• Details exclusions, with particular focus on situations with property owned or rented by the insured.
• Notes that the coverage may apply to situations where property damage results when the insured is using land owned by someone else.

Voluntary Compensation for Damage to Property (continued)

• Notes exclusions on the basis of ownership, maintenance, or operation of particular equipment if damage is a result of those. Other exclusions include loss from loading or unloading of aircraft or certain vehicles.

Underwriting Farm Insurance Coverages (1)

• Details the requirements for applying for a Farm Insurance policy.
• Items like application completion, diagrams for property distances, and photograph requirements are included.

Underwriting Farm Insurance Coverages (2)

• Includes specifics about when brokers can provide insurance binding authority, such as situations where property is vacant or unoccupied, specialized buildings or construction projects.
• Addresses other factors that influence risk factors and coverage decisions by insurers.

Underwriting Farm Insurance Coverages (3 & 4 )

• Covers minimum premium ranges and average deductibles for dwellings, personal properties and agriculture buildings/contents, considering all risks.

Underwriting Farm Insurance Coverages (5)

• Shows additional coverages available for personal and agricultural property. These often include agricultural produce, fertilizers, chemical floaters, farm livestock riders and farm business interruption insurance.

Term and Definition Flashcards

• Students create flashcards to define terms or concepts covered.

Quiz

• A quiz on material covered with additional questions.