- Protect consumers by defining and outlining the rights and duties of insurer / insured.
- Prescribed in the Civil Code of
- Not required to appear in policy wordings.
1) STATEMENTS
1.1) Representation of risk Applicant must divulge all details within their knowledge.
1.2) Material change in risk Insured notifies insurer promptly of any change in risk, has 30 days to pay any additional premium.
1.3) Misrepresentation / Contract is nullified provided the insurer would not have
Concealment covered the risk if they knew the true fact(s).
1.4) Warranties Coverage is suspended until a) Insurer accepts risk.
b) Insured remedies breach.
2) GENERAL PROVISIONS
2.1) Insurable interest Exists at time of loss.
2.2) Changes Must be made by endorsement.
2.3) Assignment Insurer consents unless a) Death b) Bankruptcy c) Transfer.
2.4) Books and records Insurer can examine insured’s books up to 3 years after expiry.
2.5) Inspection Insurer can inspect to investigate claim or confirm insurability.
2.6) Currency Claim payment, limits and premiums are in Canadian dollars.
3) LOSSES
3.1) Notice of loss To insurer as soon as insured is aware of it.
3.2) Information a) Details b) Extent of damage c) Location d) Other interests
3.3) False representation Claim is void on class of property misrepresentation relates to.
3.4) Intentional fault Insurer doesn’t compensate insured who commits (Arson).
3.5) Notice to police Prompt notice to police if loss caused by criminal act (Theft).
3.6) Safeguarding / Insured: a) Protects property. c) Permits inspection.
Examination b) No abandonment.
3.7) Admission / Insured: a) Cooperates with insurer.
Cooperation b) Doesn’t settle or admit liability on their own.
4) COMPENSATION AND SETTLEMENT
4.1) Basis of settlement a) A.C.V. b) Agreed value. c) Policy limit.
4.2) Pair and set Valued in proportion to the total value of same.
4.3) Parts Valued in proportion to the total value of whole.
4.4) Replacement Insurer: a) Can repair, rebuild, replace.
b) Entitled to salvage/ownership.
4.5) Time of payment Within 60 days after notice of loss, less outstanding premium.
4.6) Property of others Insurer pays or deals directly with the owner of the property.
4.7) Waiver Insurer can investigate without having to pay claim (Fraud).
4.8) Limitation of actions Action must commence within 3 years of date cause arose.
4.9) Subrogation Insurer has right of recovery unless household member.
5) OTHER INSURANCE
5.1) Property insurance Insured may choose which of multiple insurers pays loss.
5.2) Liability insurance
6) CANCELLATION
Same provisions as in Statutory Condition 5 - Termination in Common Law provinces.
7) NOTICE
a) Any form to insurer / representative. b) Sender must prove such notice was received.
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