C13 Insurance Against Liability – Part 1 Download

C13 Insurance Against Liability

1. C13 Study Summary Notes 7 Pages Long.pdf   View
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2. STUDY 1 – Introduction to Liability Insurance .pdf View
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3. STUDY 2 – Negligence.pdf  View
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4. STUDY 3 – Defences Against Negligence in Common Law.pdf View
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5. STUDY 4 – Negligence – the A.B.C. Rule (Quebec).pdf View
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6. STUDY 5 – Defences and Negligence Cases (Quebec).pdf View
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7. STUDY 6 – General Legal Principles.pdf  View
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8. STUDY 7 – Products Liability and its Effects.pdf  View
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9. STUDY 8 – Standard C.G.L. Policy.pdf  View
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10. STUDY 9 – Miscellaneous Liability Coverages.pdf  View
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11. STUDY 10 – Underwriting Exposure Measurement.pdf  View
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C13 - Chapter 1 Intro to Liability Insurance

Terms	Definitions
What word equates to the term "responsibility" as it is used in the insurance business?	liability
What are three categories used to classify the way in which the law imposes liability?	nuisance, breach of contract, negligence
What is a tort?	is a civil wrong or injury other than breach of contract, courts will permit action and award compensation
What is a private nuisance?	infringe on a person's use and enjoyment of living area
What is a public nuisance?	infringe on the rights of many people
What is a breach of contract?	when one party of the contract failes to observe to its obligations
Why does our system of civil justice impose responsibilities on people?	is a natural deterrent to irresponsibility in both personal and corporate acts.
Identify three levels of government that enact laws.	federal, provincial and municipal levels
What is a crime?	an act against society which is prohibited by the Criminal Code of Canada
What types of rights are likely to be involved in civil lawsuits?	individual rights, family relationships, estates, contracts and any dispute not involving criminal or quasi-crimes.
What is a quasi-crime?	Offences that are not prohibited by the Criminal Code of Canada. e.g. speeding
What is the difference between criminal law and civil law?	criminal law demands punishment, civil law demands compensation
Very briefly review the history of the legal system in Quebec.	Civil code of Lower Canada was greatly influenced by the Customs of Paris and the Napoleonic Code
What is the role of the court in Quebec in civil matters?	role is to settle dispute according to the specifications set out in the Code. To interpret the law not set it.
What types of law comprise the common law system?	case law and statute law.
How are cases decided under the common law system?	the courts look upon precedents to guide how to resolve cases in dispute.
How is precedent set?	the court in its judgement may organize a set of rules with attendant criteria in a local argument in support of its decision.
What is the judicial hierarchy in the common law provinces?	if more than one judgement is found with similar facts, the court will follow the precedent set by the higher court.
How is Quebec affected by case law?	not bounded by precedents but are used when arguments are supported by case law.
Not every case can be tried in the Supreme Court of Canada. Explain why.

Terms	Definitions
LIABILITY	Legal responsibility arising from:  1) Actions. 2) Ownership of something. 3) Use of something.
NEGLIGENCE	A person (TORTFEASOR) or persons (JOINT TORTFEASORS) committing a civil wrong (TORT), other than a breach of contract, against another person causing bodily injury or property damage.
NUISANCE	a) Private Interfering with an occupant's use / enjoyment of their premises. b) Public Interfering with a right common to members of a community
BREACH OF CONTRACT	Failing to observe an important or fundamental issue of the contract based on the level of obligation imposed on contract parties
Liability Insurance	*Compensates the victim for injuries or damages caused by the insured. Protects the insured provided a) The insured is legally liable. b) Damages or injury have been caused. c) The activity is covered under the policy
JURISDICTIONS	1) Federal 2) Provincial  3) Municipal
Federal	Military, foreign relations, currency, crown corporations
Provincial	Property rights, education, regulating insurance industry
Municipa	By-Law enforcement
CRIMINAL LAW	*Act against society prohibitedby statute. (Criminal Code) *Guilt is determined by courts *Penalties - Fine / Imprisonment
CIVIL ACTION	*Dispute between individuals or legal entities. *Fault (Legal Liability) determined by courts *Penalties - Compensation for injured party
Hierarchy of Precedent	Lower courts follow similar case decisions made in higher courts.
COURTS	1)Supreme Court of Canada Ultimate authority for cases of national impact 2) Provincial Appeals Court Final means of provincial recourse. 3) Jurisdiction Superior Court Large cases. 4) District/County Court Intermediate cases. 5) Small Claims Court Small cases (< set amount).

C13 - Chapter 2 - Negligences - the ABC Rule

Terms	Definitions
What three elements must be present to establish a cause of action for negligence?	a duty of care exists, breach of that duty occurred and causal relationship between the breach and damages is shown.
Name two statutes relevant to liability insurance that specify a duty of care.	a) duties of landlords or tenants outlined  b) environmental protection acts describe duties
What rules were developed to prove negligence in R. in Right of Canada v. Saskatchewan Wheat Pool?	1. The statute must have been breached. 2. The conduct which was a breach of the statute must also have caused the damage for which compensation is sought. 3. The statute must have been intended to prevent the damage which occurred. 4. The person making the claim must be among the group which the statute was intended to protect.
What is the common law duty of care?	Under the common law, the duty of care in each case is considered individually to determine whether the conduct in question was reasonable under the circumstances.
What case furnished the common law world with the definition of negligence?	Blyth v. Birmingham Water Works
Define negligence.	Negligence is the omission to do something which a reasonable [person], guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable [person] would not do.
How has a reasonable person been defined in Canada?	[The reasonable person] is a mythical creature of the law whose conduct is the standard by which the Courts measure the conduct of all other persons and find it to be proper or improper in particular circumstances as they may exist from time to time.
How was neighbour defined in Donoghue v. Stevenson?	persons responsible for damage to others when it should have been reasonably contemplated that injury would occur in carrying out the act.
On what basis do consumers qualify as persons to whom a duty of care is owed?	they would qualify as an invitee.
In law, who is an occupier?	An occupier is the person who has the immediate supervision and control of the premises and the power to admit and exclude the entry of others.
Which law takes precedence when statute law and common law are both involved ?	statute law takes precedence
In common law, what duty is owed to strangers who do not enter the premises or land?	a duty to keep the property free from any danger.
In common law, what duty is owed to owners and occupiers of adjoining properties?	owners/occupiers are held liable to damage of adjoining properties without have to prove negligence
What four categories of persons in common law might enter premises?	Trespasser, Licensee, Invitee, Contractual Entrant.
List the factors considered in Veinot v. Kerr to determine whether an occupier's duty to a trespasser has been breached.	a. gravity and likelihood of the probable injury; b. character of the intrusion or trespass; c. nature of the premises trespassed upon; d. knowledge the occupier had or ought to have had of the likelihood of a trespassers presence; e. cost to the occupier of preventing the harm.
What is a licensee?	enters upon land with the consent of the occupier.
What duty is owed to a licensee according to the common law?	has a duty to protect a licensee from known concealed traps or dangers.
What is an invitee?	a person who enters onto the premises with permission when the occupier has some financial or other material interest in the matter.
What duty of care is owed to the invitee by the occupier under the common law?	occupier's duty to exercise reasonable care to prevent damage to such a person from unusual danger or which the occupier knows or ought to have known.
Give an example of a contractual entrant.	a hotel guest or theatre patron.
How does allurement relate to an occupier's duty of care?	a higher standard of duty id demanded from an occupier towards a child. Must ensure that the premises are safe so that no danger exists.
Under what three circumstances will parents be responsible for the negligent actions of their children?	a. The child was acting on the parents' express instructions, or under their authority. b. The child was employed by the parent and acting within the scope of the employment. c. The damage was caused by a dangerous thing or animal which the parents had allowed the child to control, such as a motor vehicle.
Why must bailees exercise a high standard of care with property entrusted to them?	the basis upon which the property changed hands affects the level of duty of care.
What is the purpose of hold-harmless and indemnity provisions in a contract?	they are used together to transfer liability from where it would normally lie to someone else and direct who shall pay for expenses related to defending an action.
What is a prima facie finding of liability?	the court presumes that the information is true until or unless evidence is introduced to the contrary.
How is a duty of care established in Quebec?	a breach of the civil code would be a breach of statutory duty.
How did the case of Polemis and Furness Withy & Co. Ltd. explain foreseeability and its consequences?	The charterers were held liable for the destruction of a ship even thought he fall of the plank could not be expected to destroy the ship.
How did foreseeability develop in the Wagon Mound case?	established that it was not reasonably foreseeable that such circumstances would arise despite their negligence.
What concept similar to foreseeability is used as a defence against liability?	Remoteness of damage is used when pleading a defence.
What is proximate cause?	an uninterrupted unfolding of events without the intervention of another main cause from the initial act to the conclusion.
What are compensatory damages?	refers to money that will reimburse the plaintiff for the injury or loss actually suffered.
What are the two main categories of damages?	special - out of pocket expenses general - at discretion of the judge, e.g. pain and suffering, future expenses etc.
What factor is traditionally necessary for loss of profit to be recoverable?	when physical injury to person or property has occurred.
How are claims involving loss of production often valued?	the law is more restrictive in terms of recovering in a tort action for negligence.
What are nominal damages?	when the plaintiff has suffered no real loss. e.g. slander, libel.
What is another name for punitive damages and when might it be imposed?	exemplary damages is another name.  may be imposed where the reckless or wilful behaviour is a factor.

C13 - Chapter 3

Terms	Definitions
How is denial used as a defence to an action?	they can deny liability by denying the act, negligence or injury
What is remoteness of damage and how can it be proven?	defendants must prove that their actions were not the immediate and effective cause of the plaintiff's injuries or damages.
How does the defence of inevitable accident operate?	it places the onus on the defendant to show that the cause and result of the accident was inevitable.
What is the leading case in which the defence of no duty owed was used successfully?	Palsgraf v. Long Island Railroad Co.
Describe a case that would suit a defence based on a plea of emergency.	ex. a child runs into the road in front of a bicyclist who swerves to avoid him and injures another pedestrian.
What is the restriction in effect on an act of God defence?	no human interference.
What does volenti non fit injuria mean?	"to him that is willing, there is no injury" when a person voluntarily accepts a risk, liability will not flow from it.
What two steps were established in Waldick v. Malcolm to form a successful volenti defence?	plaintiff has knowledge of risk and waives rights of legal claim.
List the circumstances cited in the Occupiers' Liability Act of Ontario that would likely form a successful defence based on volenti.	a) Rural premises that are used for agricultural purposes including land under cultivation, orchards, pastures, woodlots and farm ponds; vacant or underdeveloped premises; forested or wilderness premises; b) Golf courses when not open for playing; c) Utility rights-of-way and corridors, excluding structures located thereon; d) Unopened road allowances; e) Private roads reasonably marked by notice as such; f) Recreational trails reasonably marked by notice as such
What defence seeks to have a plaintiff accept part of the fault for an injury?	contributory negligence - will allow the amount of damages to be reduced by the percentage of blame assigned to the plaintiff.
What type of agreement relinquishes the right to recovery?	disclaimer - it denies a plaintiff's right to recovery.
What is a limitation period?	it is a legal time period in which a legal action may be taken by the offended party.
What common law doctrine is concerned with domestic pets?	the common law doctrine of scienter applies to domestic pets particular dogs.
Upon whom does the burden of proof usually rest?	the party who alleges a fact has the burden of proving it.
Where does the onus of proof rest with respect to bailees? Why?	the onus of proof is on the bailee and is up to them to establish that they were not negligent.
Upon whom does the burden of proof rest when the evidence leads to res ipsa loquitur as a conclusion?	the burden of proof shifts to the defendant
Under what circumstances does res ipsa loquitur apply?	1. The thing that caused the loss was in the exclusive control of the defendant. 2. The thing that caused the loss could not have happened without negligence.
Which court case introduced the doctrine of strict liability?	Rylands v. Fletcher 1868.
What are the two most common situations in which strict liability arises?	The most common cases in which strict liability arises are those involving fire or large volumes of water used for industrial or transportation purposes.
List five defences against strict liability.	a) Act of God (something escapes as a result of an unforeseen event which cannot be prevented, such as an earthquake) b) Escape caused by the plaintiff's own actions c) Escape by the deliberate wrongful act of a third party d) When the dangerous object is on the defendants land with the implied or express consent of the plaintiff e) When the authorization to bring and keep the dangerous object on the defendant's land is granted by statute
Give an example of a statute imposing absolute liability upon persons.	the Environmental Protection Act of Ontario places an absolute liability upon persons in control of a substance that is spilled and which causes damage to the environment. They must clean it up regardless of who was at fault for the spill.

C13 - Chapter 4

Terms	Definitions
What three elements must be established by the plaintiff in a liability suit?	a duty of care exists, breach of that duty occurred, causal relationship between the breach and damages is shown.
What is the standard of care required of depositaries and mandataries?	2283 C.C.Q. - The depositary shall act with prudence and diligence in the safekeeping of property. 2138 C.C.Q. - A mandatary is bound to fulfill the mandate he has accepted and he shall act with prudence and diligence in performing it.
What are the four categories of liability associated with duty of care in Quebec?	liability for one's negligence, for other's acts, for damages caused by one's things, animals and buildings, of the manufacturer
What is an extracontractual prejudice?	It is the consequence of a wrongful act outside any contractual obligations.
What is the liability of individuals for their own acts of negligence in the C.C.Q?	Every person has a duty to abide by the rules of conduct which lie upon him according to the circumstances, usage or law, so as not to cause injury to another.
What are the "certain cases" where one may be held liable for another's negligence?	In certain cases, to reparation for injury caused to another by the act or fault of another person or by the act of things in his custody.
How does the law in Quebec differ from the Common Law provinces in regard to parents responsibility for their children's negligence?	Persons having parental authority are liable for the minor's negligence or acts causing damages, unless they can prove they have well supervised, raised and educated them.
Describe the three statutes that cover liability for one's things, animals or buildings.	things - 1465 C.C.Q.  animals - 1466 C.C.Q.  property - 1467 C.C.Q.
Which case enforced liability under the equivalent of section 1465 C.C.Q.	Montreal v. Watt & Scott (1922) - the city was held liable because the pipe and the water it contained were things under its custody.
What were the results of Kravitz v. General Motors [1979] in relation to sections 1468,1469 and 1473 of the C.C.Q.?	the manufacturer being liable on a warranty against latent defects not only to the immediate purchaser (the dealer), but also to any subsequent purchaser of the car. A manufacturer is liable for injury caused by a safety defect in its product, to a third person.
Name two other categories of persons upon whom the same liability rests.	1. the same liability rests with persons who distribute the thing under his name or as his own 2. to any supplier of the thing. e.g. wholesaler or a retailer.
What defence is available to the manufacturer, distributor or supplier of movable property under section 1473 C.C.Q.?	- not liable if he proves that the victim knew or could have known of the defect, or could have foreseen the injury. - prove that defect was not foreseeable - prove that he was neglectful to provide info when aware of defect.
Briefly describe the sections that were enacted to deal with asbestos.	3129 C.C.Q - rules of code are imperative in matters of civil liabiity for damage suffered as a result of exposure to or to the use of raw materials, originating in or outside Quebec. 21.1 C.C.P. - court of Quebec has exclusive jurisdiciton to hear in first instance all demands or actions founded under 3129 C.C.Q. 180.1 C.C.P. - the recognition and execution of a judgment rendered outside Quebec shall be denied where by reason of the subject matter,
Describe the duties relating to contract outlined in section 1458 C.C.Q.	every person has a duty to honour his contractual undertakings. where he fails, he is liable for any bodily, moral or material injury he causes to the other contracting party.
What can be claimed in damages in Quebec?	damages resulting from delictual liability or contractual liability.
What are the guidelines for structured settlements in Quebec?	In bodily injury cases, the Court can impose structured settlements and the case isn't really closed until three years after judgment.
How do courts award compensation for loss of future income in Quebec?	It must be noted that the courts compensate the loss of capacity to earn income and not the loss of future salary. There is one other kind of damage which may be awarded in negligence cases: this is punitive or exemplary damages.
How are damages affected by Quebec's Charter of Human Rights and Freedoms?	Quebec's legislature several years ago enacted its Charter of Human Rights and Freedoms which overrides any other law enacted by the legislature and by which it must abide. If someone willfully interferes with one of these rights, he can be subject to exemplary damages under section 49 of the Charter.

C13 - Chapter 5 Defences and Negligence Cases (Quebec)

Terms	Definitions
What is the standard that every person has a duty to respect?	every one has a duty to abide by the rules of conduct which lie upon him according to the circumstances, usage or law so as not to cause injury to another.
What is the first line of defence for a defendant against a liability action?	the first line is to show that he respected the rules of conduct.
In Quebec a defendant may escape liability by showing that he or she is not endowed with what quality?	that he is not endowed with reason.
Describe the defence available in Quebec based on superior force.	a person may free himself from liability for injury caused by proving that the injury results from a superior force.
What is the Good Samaritan rule in Quebec?	every person must come to the aid of anyone whose life is in peril unless it involves a danger to himself or to a third party.
For what type of damages can a person limit his or her liability?	only in material injury cases.
What must a party prove existed at the time the contract was formed to invoke a limit to an obligation?	the party must prove that a notice stipulating the exclusion or limitation was known to the other party when the contract was formed
Is a person permitted to exclude or limit his or her obligation to a third party? Explain.	may not limit his obligation to a third party by notice, but can constitute a warning of danger
List four instances where a presumption of liability for acts of others rests upon a defendant.	as a tutor of a minor, person entrusted with the custody of a thing, owner of an animal, owner of an immovable (prove ruin not from defect or repair)
Who may be liable to a third party because of a safety defect in a thing?	the manufacturer and the retailer.
What rights are granted to the consumer in the Consumer Protection Act of Quebec?	the rights of action against the manufacturer.
When might a consumer have recourse against a merchant or a manufacturer?	when there is a latent defect in the goods forming the object of the contract
What are the two pleadings unavailable to a merchant or manufacturer under the CPA?	they cannot plead that he was unaware of the defect or lack of instructions.
How does the Civil Code of Quebec treat volenti non fit injuria?	plaintiff's assumption of risk is not a complete defence in court.
How much time does a plaintiff generally have to file a suit?	3 years from the accident to file a suit.
What is the time limitation for a claim of defamation?	within 1 year in which the defamed person learned of the defamation.

C13 - Chapter 6

Terms	Definitions
Give an example of an intervening cause that would provide a defendant with a defense of remoteness of cause.	a pedestrian suffers a arm injury when hit by a cyclist. on the way to the doctors, he is hit by a car and injures his leg. he can claim damages from the cyclist for the arm injury but not the leg which was caused by the motorist.
Describe the case of Scott v. Shepherd (1773) to illustrate what is meant by a chain of events and the effect it has on proximate cause.	the defendant threw a lighted firecracker into a crowded market. this started a chain of events in which it was thrown around. the firecracker exploded and caused an eye injury. the defendant was held liable as the court felt the others acted rationally in the case of the emergency.
Chain of events and intervening causes were subsequently dealt with in two Quebec cases. Describe the outcome of these two cases.	Laperriere v. The King (1946) - the army (King) was held responsible since it was foreseeable that abandoning explosives would cause injury. Beaudoin v. T.W. Hand Fireworks (1961) - father or his employer was held liable for negligence of failing to dispose of firecrackers properly.
What are joint tortfeasors?	are two or more persons acting in concert for a common purpose and causing injury or damage to another.
What right does a joint tortfeasor have when a plaintiff chooses only him or her to proceed against in an action where joint and several liability applies?	the defendant has a right to seek contribution from the other tortfeasors sharing fault.
How is apportionment of liability among joint tortfeasors handled in Quebec?	the victim can claim the whole indemnity from either one of the defendants and it will be up to them to settle their scores. 469 C.C.P.
What is vicarious liability?	responsibility for the actions of others.
What is the general rule outlining the responsibility of principals for the acts of their agents?	as long as the agent is acting within the authority conferred, the principal will be responsible for all commitments entered by the agent.
How is the concept of principal and agent referred to in Quebec?	it is referred to as mandator and mandatary.
Explain four ways in which agency can be created.	1. by contract (express)  2. by ratification -authority conceded later. 3. by estoppel - restraint placed on a person by law to prevent them from denying previous representations 4. by necessity - urgency leads to acting as an agent. e.g. carrier of perishable goods
Under what circumstances in a principal and agent relationship can an agent be held liable to a third party?	-agent is improperly identified - when the principal does not exist - when the agent exceeds authority of contract.
How does the C.C.Q. define a mandate?	it is a contract where the mandator empowers the mandatary to represent him in the performance of a judicial act with a third party.
What legal liabilities arise out of the relationship between the mandator and mandatory?	the mandator is liable to third parties for all obligations contracted by the mandatary.
What principle is demonstrated in Lockhart v. C.P.R. (1941)?	the employer is responsible for the actions of his employee and the way in which they are done.
How can responsibility remain with the employer even though the employee acts in a way that is expressly forbidden?	the employer is responsible for the acts of a negligent employee in the course of carrying out work duties
What is "a frolic of his own" and how would it affect an employer's responsibility for damage arising from it?	an employee may, during work hours, abandon work and do something unrelated to it and cause damage. Employer is not responsible for said damage.
How would liability be assigned if an employee was using the employer's property without authority to do so?	an employer is not responsible for negligence of the employee in this case.
When are independent contractors not solely liable for damage they negligently cause others?	1. dangerous work 2. unlawful work 3. interference
What principle was reinforced in Davie Shipbuilding v. Cargill Grain (1978)?	the principle of "who knows better". the owner in the case Cargill had more technical expertise and ignored warnings on the potential collapse of the warehouse which did.
How can municipal liability arise?	from misfeasance, nonfeasance and malfeasance.
Define misfeasance, nonfeasance, and malfeasance?	misfeasance - improper performance of something that is legal to do nonfeasance - omission to perform duties which by law one is bound to do. malfeasance - an act which is unlawful.
What are some municipal liability exposures?	slippery pavements, nonrepair of highways, defective water pipes.
How do requirements with respect to notice compare between municipal and other types of liability?	the time period for notice varies with the type of loss.
What must an insurer do to protect its subrogation rights?	the municipality must be notified in the prescribed manner and within the time limit to protect its rights.
How is municipal liability determined in Quebec?	it is a legal person established in the public interest and it is primarily governed by public and administrative law.
What standard of conduct is enunciated in s. 1457 of the Civil Code?	the cities and towns act, the municipal code and city charters set out the requirements of notice of claims.
Who may bring an action in a class action?	a member of a group that will institute a legal action for the benefit of all members.
In general terms, who may launch a class action and how would they go about it?	when each member of the class has the same interest and not just a similar interest in the subject matter of the litigation ii. the claim is against a discernible fund or asset existing for the benefit of the class.
What are the procedures in launching a class action in Quebec?	1. prior authorization of the superior court must be obtained. 2. plaintiff must prove that the group shares an interest in identical, similar or related questions of law or fact. 3. representatives are in a position to do so adequately. 4. action must be taken within 3 months
In a class action what conditions does the court impose when the final judgment is given?	it may fix terms and conditions of payment.
What is a limitation period?	it is a period o time after which a cause of legal action may no longer be enforced.
Under common law when does a cause of action time period begin?	the cause of action time period begins from the date the damage is incurred.
How have some limitation statutes modified the common law?	by specifying that the time begins to run from the date the conduct was discovered or some other event.
What types of interest might an insurer be called upon to pay in addition to an actual loss?	prejudgment interest - claims arising from contractual obligations postjudgment interest - usually runs from the date judgement is rendered until the damages are paid.
How is interest computed on a judgment in Quebec?	it is computed on the amount specified in the judgement from the day the action is filed to the day when it is paid.

C13 - Chapter 7

Terms	Definitions
Who may be involved in a products liability claim?	only the original parties to a contract have the right to sue one another.
What is privity of contract?	it is the relationship between the contracting parties.
What effect did privity of contract have on consumers and products liability?	only the buyers could sue for injuries. Purchasers and middlemen were left out.
What is the tort theory established by the U.S. case of McPherson v. Buick Motor Co. (1916)?	the injured party may sue the manufacturer.
Outline the case of Buckley v. Mott (1920) and the principle it reinforced.	the plaintiff was injured by powdered glass found in a chocolate ice cream bar. It reinforced the principle of negligently made goods.
In what landmark case was the tort duty of care set out for manufacturers?	Donoghue v. Stevenson (1932) It extended the duty of care of the manufacturer not only to the purchaser but to anyone who foreseeably be injured.
What is the purpose of a sale of goods act or the Consumer Protection Act?	to recognize that an innocent party should receive adequate protection from manufacturers.
What must the manufacturer of inherently dangerous products provide?	they must provide adequate warnings on the products.
What was the outcome in Lambert v. Lastoplex Chemicals Co. (1972) and why?	the manufacturer was found liable for labels that failed to warn of the high inflammability of the product and words used did not alert of the necessity to extinguish pilot lights.
What must manufacturers do when a defect in their products is discovered?	the onus is on the manufacturer to warn customers when the defect is discovered.
How did the term sistership arise in products liability?	a particular airplane was found to have a certain defect. all planes of that model were grounded to repair or replace affected parts if found to be defective.
In Rivtow Marine Ltd. v. Washington Iron Works (1973) a manufacturer was held liable even though the product had not yet manifested damage. What was the principle established here?	the manufacturer was liable to warn the plaintiff of a prior knowledge of a defect despite no damage occurring.
What factors are considered to determine whether reactions caused by drugs are claimable?	the benefit to society and adequate warning on the label are factors.
What are the elements of a tort action in a products liability case?	contributory negligence volenti non fit injuria denial of negligence
Why is it so difficult for the plaintiff to provide proof that the defendant was negligent in the manufacturing process?	it is difficult to prove as the product may have become defective as it passed through some phase of preparation, handling, sale and service while in the hands of the manufacturer, wholesaler, distributor, retailer and the service, repair or maintenance agencies.
What does res ipsa loquitur describe and how does it affect onus of proof?	it describes an inference that the manufacturer was negligent because there was no other possible way that the product could become defective. onus shifts to the manufacturer.
Under what circumstances can you bring suit for breach of warranty?	when the product is unfit for its intended purpose and the plaintiff suffers damages.
What warranty is provided through the sale of goods acts?	the buyer is entitled to a warranty of fitness from the seller.
When goods are purchased under a brand name what warranty exists?	there is no warranty.
A suit in contract does not require a finding of negligence and thus it is related to what particular type of liability.	products liability.
What are some of the duties imposed by the Consumer Protection Act of Quebec?	reasonable fitness of goods and the goods must conform to the description of them. Sets out action that can be taken by the injured parties when no contract exists with the manufacturer.
How do insurance policies usually deal with deliberate actions?	claims may not be covered as the damage was a result of a deliberate action of the manufacturer.
How does products liability law compare between Canada and the U.S.A.?	the U.S. places a heavier burden on manufacturers and suppliers than Canada. a doctrine of strict liability exists in most U.S. states were the manufacturer is held liable without the plaintiff being required to prove negligence.

C13 - Chapter 9

Terms	Definitions
Why is the garage liability policy seldom used today?	When the C.G.L. policy wording was overhauled, garage liability coverage was provided by endorsing the C.G.L. with the garage liability extension endorsement.
What risks is a garage operator exposed to and how is coverage provided?	Premises, products and completed operations exposures. Full details of each exposure must be reported for consideration.
What activities are carried out by workers' compensation boards?	Boards administer compensation to injured workers. They also are active in rehabilitation programs for disabled workers and accident prevention.
What kinds of exposure are covered by employers' liability insurance?	If an employee is injured in the course of employment and the injured party could successfully recover damages if the employer is found negligent.
How can employers protect themselves against costs arising out of injury to their employees?	The two principal methods are worker's compensation statutes and employers' liability coverage.
What must an employee do to collect under the voluntary compensation for employees?	They are required to release the employer from any legal liability claims under common law.
When is employers' liability insurance required even if the employee is eligible under the provincial workers' compensation act?	There are occasions when an employee is temporarily working outside of their home jurisdiction. E.g. work travel.
Other than tenants' legal liability insurance what kind of policy is likely to cover the same exposure?	Personal liability coverage also covers the perils of fire, smoke, explosion and water damage.
What is bailees coverage and how is it handled?	Bailees are businesses that accepted their customer's goods to store or work on them. E.g. laundries, dry cleaners, storage depots. They have a legal liability for the goods in their custody but are not liable for every lost. They are protected against acts of god.
How is personal liability insurance generally sold?	They are generally sold as part of a residential package policy such as a homeowners condominium unit owners or tenants policy.
What are four coverages under the personal liability policy?	Personal liability, premises liability, tenant's legal liability, employer's liability.
What two extensions of coverage are offered under the personal liability policy?	Voluntary medical payments (unintentionally injures another) and Voluntary Payment for Damage to Property (reimburse for direct property damage caused by intentionally by a minor under the age of 12)
What type of vehicles are covered under the personal liability policy?	Motor vehicles such as lawn mowers, snow blowers, golf carts, motorized wheelchairs.
What is the farmers' personal liability policy designed to cover?	It is especially designed to cover the exposure of a farm in addition to personal activities.

C13 - Chapter 10

Terms	Definitions
What is a moral hazard?	it is the likelihood of a loss caused by some deficiency in the character of the insured.
What is a physical hazard?	they are losses that arise from the nature of the work undertaken. e.g. construction, location etc.
What can an insurer do to identify physical hazards?	they can gain information from applications, inspections and surveys.
What kind of information is found in a survey?	risks are classified in surveys under 3 categories: simple, complex and hazardous
What type of information is required for a construction risk?	identity of the insured, general contractor, supervision, permits, blueprints, materials and machinery, nature of tools and equipment, unusual practices or hazards.
What specific information about manufacturing risks is needed?	class and type of goods manufactured, machinery, loading arrangements, processes and materials involved, quality control, U.S. sales.
Name four hazardous risks.	gas distribution operations (explosion hazard), off-premises welding (fire), construction sites, certain theatres, stadiums and sporting events.
What information would an underwriter need for a weed spraying operation?	identity and competence of persons doing spraying, who controls it, equipment, chemicals used, purpose of spraying, exact location of spraying, wind directions, farming methods, copy of contracts and terms
Of what interest are claims reports to underwriters?	comments on desirability of a risk has an important bearing on an insureds future insurability.

 

 

 

 

 

 

 

 

 

Terms	Definitions
Compensatory damages	damages that compensate the 3rd party for injury sustained. Awarded in payment for actual injury or economic loss.  -> does not include punitive or exemplary damages, or mutiple portion of any multiple damages awarded special damages: out of pocket example; lost income or wages, hospital bills general damages: non-monetary aspects of harm suffered example; pain and suffering, future income/wage loss
6 property exclusions	1. owned, rented, occupied 2. sold, given away, abandoned (aka "alienated premise") 3. property loaned to insd 4. property in insd care, custody, control 5. that particular part of real property the insd/contractor/sub-contractor is working on  6. that particular part of real property that must be restored, repaired, replaced due to incorrectly performed work
INSURED CONTRACTS	1. lease of premise 2. sidetrack agreement  3. easement/licence agreement 4. any other easement agreement 5. obligation to a muicipality (as required by ordinance to indemnify a municipality) 6. elevator maintenance agreement 7. hold-harmless agreements
bodily injury	- sickness or disease - death - bodily injury
property damage	- damage to tangible property - loss of use of damaged property - loss of use of undamaged property
CGL liability exposure coverages	A: Bodily injury and property damage liability B: Personal and advertising injury liability C: Medical payments D: Tenants Legal Liability
occurance	an accident including continuous or repeated exposure to substatially the same general harmful conditions.

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