Podcast
Questions and Answers
Which of the following types of injuries are not covered under the personal liability policy?
Which of the following types of injuries are not covered under the personal liability policy?
- Injuries to residence employees on the job
- Injuries to roomers and boarders (correct)
- Injuries to family members residing in the household (correct)
- Injuries caused by negligence of a third party
In terms of claims, which statement is true about residence employees?
In terms of claims, which statement is true about residence employees?
- They can only sue if they live in a nursing home.
- They must be insured under provincial workers' compensation plans.
- They are entitled to sue for injuries caused by negligence. (correct)
- They are always excluded from coverage.
What is the primary role of the insurer regarding claims against the insured?
What is the primary role of the insurer regarding claims against the insured?
- To deny all claims regardless of their nature
- To cover only the claims deemed valid by the insured
- To investigate claims but not settle them
- To defend claims, even if they are groundless (correct)
Which of the following expenses is the insurer obligated to pay?
Which of the following expenses is the insurer obligated to pay?
Which of the following does not influence the coverage of personal liability for employers?
Which of the following does not influence the coverage of personal liability for employers?
What happens regarding interest on judgments related to coverage E?
What happens regarding interest on judgments related to coverage E?
Which of the following is excluded in Coverage E personal liability?
Which of the following is excluded in Coverage E personal liability?
Which rule applies to the personal actions of a named insured who does not reside on the premises?
Which rule applies to the personal actions of a named insured who does not reside on the premises?
Under what condition does the personal liability coverage apply to business pursuits of an insured person under the age of 21?
Under what condition does the personal liability coverage apply to business pursuits of an insured person under the age of 21?
Which of the following claims would NOT be covered under personal liability coverage?
Which of the following claims would NOT be covered under personal liability coverage?
What must an insured person do to assure coverage for additional business activities?
What must an insured person do to assure coverage for additional business activities?
Which of the following situations is explicitly excluded from personal liability coverage?
Which of the following situations is explicitly excluded from personal liability coverage?
What type of abuse or harassment triggers an exclusion in personal liability coverage?
What type of abuse or harassment triggers an exclusion in personal liability coverage?
What type of expenses are covered under Coverage F for voluntary medical payments?
What type of expenses are covered under Coverage F for voluntary medical payments?
Under what condition will medical payments not be provided by Coverage F?
Under what condition will medical payments not be provided by Coverage F?
What is the typical limit for voluntary payment for damage to property under Coverage G?
What is the typical limit for voluntary payment for damage to property under Coverage G?
Which of the following is NOT covered under Coverage G?
Which of the following is NOT covered under Coverage G?
What does Coverage H provide for residence employees?
What does Coverage H provide for residence employees?
What is the primary purpose of Coverage F?
What is the primary purpose of Coverage F?
Under Coverage H, what must an employee do to accept benefits?
Under Coverage H, what must an employee do to accept benefits?
For which of the following would Coverage G provide voluntary payment?
For which of the following would Coverage G provide voluntary payment?
What is one condition under which the insurer might withdraw the offer of benefits to a residence employee?
What is one condition under which the insurer might withdraw the offer of benefits to a residence employee?
Which of the following does not require separate coverage under the special limitations for watercraft and motorized vehicles?
Which of the following does not require separate coverage under the special limitations for watercraft and motorized vehicles?
Who is excluded from receiving medical payments under Coverage F?
Who is excluded from receiving medical payments under Coverage F?
What is the maximum time frame for incurring medical expenses to be eligible for Coverage F?
What is the maximum time frame for incurring medical expenses to be eligible for Coverage F?
For how long are newly acquired watercraft automatically covered if they exceed the special limitations?
For how long are newly acquired watercraft automatically covered if they exceed the special limitations?
What is included in the benefits under Coverage H for residence employees?
What is included in the benefits under Coverage H for residence employees?
What happens if the benefits offered under Coverage H are accepted by the residence employee?
What happens if the benefits offered under Coverage H are accepted by the residence employee?
What type of watercraft requires separate coverage if it exceeds the limitations mentioned?
What type of watercraft requires separate coverage if it exceeds the limitations mentioned?
What is covered under Section A of the Standard Garage Automobile Policy?
What is covered under Section A of the Standard Garage Automobile Policy?
What must insureds provide to qualify for an Umbrella Liability Policy?
What must insureds provide to qualify for an Umbrella Liability Policy?
When does an Umbrella Policy pay out on a claim?
When does an Umbrella Policy pay out on a claim?
What does the term Self-Insured Retention (SIR) refer to in a commercial Umbrella Liability Policy?
What does the term Self-Insured Retention (SIR) refer to in a commercial Umbrella Liability Policy?
What typical range is suggested for Self-Insured Retention on Personal Umbrella Liability Policies?
What typical range is suggested for Self-Insured Retention on Personal Umbrella Liability Policies?
Flashcards
Coverage Exclusions for Family Members
Coverage Exclusions for Family Members
Homeowners insurance does not cover lawsuits between family members living together, even if one is negligent.
Liability Coverage for Third Parties
Liability Coverage for Third Parties
Homeowners insurance liability coverage is intended only for claims from people outside the household.
Residence Employee Liability
Residence Employee Liability
Homeowners insurance covers legal liability for injuries to employees who live in the residence.
Non-Resident Named Insured Exclusions
Non-Resident Named Insured Exclusions
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Insurer's Defense & Payment Duties
Insurer's Defense & Payment Duties
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Voluntary Medical Payments
Voluntary Medical Payments
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Voluntary Property Damage Payments
Voluntary Property Damage Payments
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Residence Employee Compensation
Residence Employee Compensation
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Watercraft & Vehicle Coverage Limitations
Watercraft & Vehicle Coverage Limitations
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Newly Acquired Watercraft Coverage
Newly Acquired Watercraft Coverage
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Business Claim Exclusions
Business Claim Exclusions
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Intentional Acts Exclusions
Intentional Acts Exclusions
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Umbrella Liability Policy
Umbrella Liability Policy
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Study Notes
Coverage Exclusions
- Family members living in the same household can sue each other for negligence, but judgments against the responsible party are not insured.
- Exclusions also apply to roomers and boarders; liability coverage is intended for third parties only.
- Residence employees injured on the job due to insured’s negligence can sue; homeowners coverage provides this.
Legal Liability Coverage
- Homeowner forms cover legal liability for residence employees. Some provinces require residence employees to be included in workers’ compensation plans.
- Named insureds who do not reside on the premises have exclusions unless they live in a nursing home or care facility.
Defense and Payments
- Insurer defends claims even if groundless, choosing legal counsel and determining if settlement is appropriate.
- Insurer covers all related expenses, costs from lawsuits, and any interest accruing after judgment within the coverage limit.
Voluntary Medical Payments
- Medical expenses for accidents occurring on premises, incurred within one year, are covered, regardless of liability.
- Payments are voluntary; common limit is up to $5,000, covering surgical, dental, hospital, and other related costs.
- No payment if injuries are covered by other insurance plans.
Voluntary Damage Payments
- Insurer makes voluntary payments for unintentional property damage caused by the insured, typically up to $1,000.
- Claims for damage to property owned or rented by the insured are excluded.
Compensation for Residence Employees
- Limited benefits are provided to residence employees injured or killed while working, regardless of liability.
- Payments include loss of life, temporary and permanent disabilities, medical expenses, and are subject to specific conditions.
Special Limitations on Coverage
- Automatic coverage exists for specific watercraft and motorized vehicles, with limitations on size and power.
- Newly acquired boats exceeding limitations have temporary coverage for 30 days.
- Coverage excludes business-related claims unless specified on the coverage summary.
Business and Property Exclusions
- Claims arising from business pursuits or professional services are not covered unless explicitly included.
- Policy excludes coverage for injuries due to intentional acts, sexual abuse, and physical damage to client's vehicles under care.
Umbrella Liability Policies
- Umbrella policies extend coverage for existing primary policies, necessary to provide proof of prior coverage.
- They activate when claims exceed primary policy limits or when claims are not covered by primary insurance.
- High deductibles often apply, also known as Self-Insured Retention (SIR), particularly for commercial exposures.
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