Requirements Where Loss or Damage to Persons or Property After an incident in which there has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Requirements Where Loss or Damage to Persons or Property After an incident in which there has been a third-party liability loss, insureds must meet certain obligations. If the insured does not comply, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. The following are required actions: Give prompt written notice to the insurer of any accidents or resulting claims. Verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy. Forward immediately to the insurer all writs, claims, correspondence, and so on. Do not assume or admit liability. . Do not interfere with claims proceedings. Aid in securing information and evidence and the attendance of witnesses, and co-operate in the defence of any action (without cost to the insured). The insured must verify that the claim arose from the operation of the automobile by an insured person and establish that the vehicle and the driver are insured by the specified policy. This information enables the insurer to investigate the loss and to set up a defence if one is required. The insured may be required to give information in a statutory declaration (sworn statement) in certain circumstances-for example, if the insurer suspects fraud or that the insured is not telling the truth. The insured must forward all writs, claims, and correspondence to the insurer immediately. The insurer must be kept informed of what is happening with respect to the third parties. Complying with this provision is absolutely essential to protect the interests of both the insurer and insured. The insurer has 20 days from the time the statement of claim is issued to enter an appearance. If it serves a notice of intent to defend, it has another 10 days. If these steps are not taken, the plaintiff can apply to the court for a default judgment. In the additional coverages under third-party liability coverage, the insurer agrees to defend the insured, so the insurer must be kept fully informed of what is happening in order to conduct a proper defence. A breach of this requirement could have serious consequences for the insured. It could prejudice his or her chances of recovery from a third party and could result in the insurer denying coverage as well. If the insured voluntarily assumes liability or makes settlement of a claim, he or she does so at his or her own cost because these actions may negate a defence being set up by the insurer. This is one condition that should be pointed out to individuals when they apply for insurance, and again when notice of loss is received. The insured must not interfere with claims proceedings. If the insured does these things, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. Although the insured may have the best intentions, he or she may upset the progress made by the insurer to date. The additional coverages under third-party liability coverage appoint the insurer as the attorney for the defence of a claim. There is a contractual obligation on the insurer to conduct the defence properly. If that is not done, the insured may have a cause of action against the insurer. On the other hand, the insurer cannot carry out an effective defence if the insured interferes in a prejudicial manner, even if it is with the best of intentions. Requirements Where Loss or Damage to Automobile One purpose of this condition is to state the obligations of the insured in the event of a physical damage loss to the automobile, although other matters pertaining directly to determining the amount of loss are also incorporated into the condition. This condition states the following: When there has been a loss, the insured is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days. Any further loss is excluded if it is caused by the insured's failure to protect the automobile. There are to be no repairs made (except the repairs necessary to prevent further loss) nor any removal of evidence of damage unless the insurer gives its written consent, or there has been a reasonable time for the insurer to examine the automobile. The insurer may require the insured to submit to an examination under oath and to present all documents pertaining to the loss. The insurer's maximum limit of liability is the least of the actual cash value (ACV) of the automobile or the cost to repair or replace with like, kind, and quality (LKQ). The insurer may choose to repair, rebuild, or replace the damaged automobile subject to the following: Written notice of this intention is given to the insured within seven days of receiving proof of loss. Repairs or replacement must be of like, kind, and quality. Repairs or replacement must be done within a reasonable time. The insured may not abandon the automobile to the insurer without the insurer's consent even if the vehicle is a total loss. Whether the insurer pays the actual cash value of the automobile or exercises its option to replace the automobile, salvage, if any, vests in the insurer. In case of disagreement on repairs or the amounts payable, the insurance acts provide for appraisal by an independent panel. CIP Repairing, Rebuilding, or Replacing Should the insurer elect to repair, rebuild, or replace the lost or damaged vehicle rather than settling the loss in cash, it must notify the insured of its intention within seven days of receiving the proof of loss. If the insurer does not do so, the insured is entitled to insist on a settlement in cash. Once the insurer has elected to repair, rebuild, or replace the lost or damaged property, it must be done within a reasonable time. In addition, the insurer is not limited to the payment of a fixed amount (such as the actual value of the automobile), but is required to follow through and replace (or repair or rebuild, as the case may be) the damaged property. In short, the contract becomes one of performance rather than one of payment. Salvage When an insured property is not totally destroyed or lost, some portion of the property remains and usually has some money value. If the insured is reimbursed for the loss as though the property were totally destroyed-a total loss-the insurer is entitled to possession of the property remaining. The insurer can then sell that property and retain the proceeds as salvage and thus reduce its loss. Salvage is property saved from loss. Salvage is also used as a verb indicating the process of taking steps to reduce the amount of a loss. Occasionally, insureds want to keep the salvage themselves. Its value is then deducted from the total loss settlement so that the insured does not profit from the loss. See Example-Salvage. Requirements Where Loss or Damage to Persons or Property After an incident in which there has been a third-party liability loss, insureds must meet certain obligations. If the insured does not comply, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. The following are required actions: Give prompt written notice to the insurer of any accidents or resulting claims. Verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy. Forward immediately to the insurer all writs, claims, correspondence, and so on. Do not assume or admit liability. . Do not interfere with claims proceedings. Aid in securing information and evidence and the attendance of witnesses, and co-operate in the defence of any action (without cost to the insured). The insured must verify that the claim arose from the operation of the automobile by an insured person and establish that the vehicle and the driver are insured by the specified policy. This information enables the insurer to investigate the loss and to set up a defence if one is required. The insured may be required to give information in a statutory declaration (sworn statement) in certain circumstances-for example, if the insurer suspects fraud or that the insured is not telling the truth. The insured must forward all writs, claims, and correspondence to the insurer immediately. The insurer must be kept informed of what is happening with respect to the third parties. Complying with this provision is absolutely essential to protect the interests of both the insurer and insured. The insurer has 20 days from the time the statement of claim is issued to enter an appearance. Requirements Where Loss or Damage to Persons or Property After an incident in which there has been a third-party liability loss, insureds must meet certain obligations. If the insured does not comply, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. The following are required actions: Give prompt written notice to the insurer of any accidents or resulting claims. Verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy. Forward immediately to the insurer all writs, claims, correspondence, and so on. Do not assume or admit liability. . Do not interfere with claims proceedings. Aid in securing information and evidence and the attendance of witnesses, and co-operate in the defence of any action (without cost to the insured). The insured must verify that the claim arose from the operation of the automobile by an insured person and establish that the vehicle and the driver are insured by the specified policy. This information enables the insurer to investigate the loss and to set up a defence if one is required. The insured may be required to give information in a statutory declaration (sworn statement) in certain circumstances-for example, if the insurer suspects fraud or that the insured is not telling the truth. The insured must forward all writs, claims, and correspondence to the insurer immediately. The insurer must be kept informed of what is happening with respect to the third parties. Complying with this provision is absolutely essential to protect the interests of both the insurer and insured. The insurer has 20 days from the time the statement of claim is issued to enter an appearance. If it serves a notice of intent to defend, it has another 10 days. If these steps are not taken, the plaintiff can apply to the court for a default judgment. In the additional coverages under third-party liability coverage, the insurer agrees to defend the insured, so the insurer must be kept fully informed of what is happening in order to conduct a proper defence. A breach of this requirement could have serious consequences for the insured. It could prejudice his or her chances of recovery from a third party and could result in the insurer denying coverage as well. If the insured voluntarily assumes liability or makes settlement of a claim, he or she does so at his or her own cost because these actions may negate a defence being set up by the insurer. This is one condition that should be pointed out to individuals when they apply for insurance, and again when notice of loss is received. The insured must not interfere with claims proceedings. If the insured does these things, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. Although the insured may have the best intentions, he or she may upset the progress made by the insurer to date. The additional coverages under third-party liability coverage appoint the insurer as the attorney for the defence of a claim. There is a contractual obligation on the insurer to conduct the defence properly. If that is not done, the insured may have a cause of action against the insurer. On the other hand, the insurer cannot carry out an effective defence if the insured interferes in a prejudicial manner, even if it is with the best of intentions. If it serves a notice of intent to defend, it has another 10 days. If these steps are not taken, the plaintiff can apply to the court for a default judgment. In the additional coverages under third-party liability coverage, the insurer agrees to defend the insured, so the insurer must be kept fully informed of what is happening in order to conduct a proper defence. A breach of this requirement could have serious consequences for the insured. It could prejudice his or her chances of recovery from a third party and could result in the insurer denying coverage as well. If the insured voluntarily assumes liability or makes settlement of a claim, he or she does so at his or her own cost because these actions may negate a defence being set up by the insurer. This is one condition that should be pointed out to individuals when they apply for insurance, and again when notice of loss is received. The insured must not interfere with claims proceedings. If the insured does these things, it could have a detrimental effect on any defence or negotiations being conducted by the insurer. Although the insured may have the best intentions, he or she may upset the progress made by the insurer to date. The additional coverages under third-party liability coverage appoint the insurer as the attorney for the defence of a claim. There is a contractual obligation on the insurer to conduct the defence properly. If that is not done, the insured may have a cause of action against the insurer. On the other hand, the insurer cannot carry out an effective defence if the insured interferes in a prejudicial manner, even if it is with the best of intentions. Requirements Where Loss or Damage to Automobile One purpose of this condition is to state the obligations of the insured in the event of a physical damage loss to the automobile, although other matters pertaining directly to determining the amount of loss are also incorporated into the condition. This condition states the following: When there has been a loss, the insured is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days. Any further loss is excluded if it is caused by the insured's failure to protect the automobile. There are to be no repairs made (except the repairs necessary to prevent further loss) nor any removal of evidence of damage unless the insurer gives its written consent, or there has been a reasonable time for the insurer to examine the automobile. The insurer may require the insured to submit to an examination under oath and to present all documents pertaining to the loss. The insurer's maximum limit of liability is the least of the actual cash value (ACV) of the automobile or the cost to repair or replace with like, kind, and quality (LKQ). The insurer may choose to repair, rebuild, or replace the damaged automobile subject to the following: Written notice of this intention is given to the insured within seven days of receiving proof of loss. Repairs or replacement must be of like, kind, and quality. Repairs or replacement must be done within a reasonable time. The insured may not abandon the automobile to the insurer without the insurer's consent even if the vehicle is a total loss. Whether the insurer pays the actual cash value of the automobile or exercises its option to replace the automobile, salvage, if any, vests in the insurer. In case of disagreement on repairs or the amounts payable, the insurance acts provide for appraisal by an independent panel. CIP Requirements Where Loss or Damage to Automobile One purpose of this condition is to state the obligations of the insured in the event of a physical damage loss to the automobile, although other matters pertaining directly to determining the amount of loss are also incorporated into the condition. This condition states the following: When there has been a loss, the insured is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days. Any further loss is excluded if it is caused by the insured's failure to protect the automobile. There are to be no repairs made (except the repairs necessary to prevent further loss) nor any removal of evidence of damage unless the insurer gives its written consent, or there has been a reasonable time for the insurer to examine the automobile. The insurer may require the insured to submit to an examination under oath and to present all documents pertaining to the loss. The insurer's maximum limit of liability is the least of the actual cash value (ACV) of the automobile or the cost to repair or replace with like, kind, and quality (LKQ). The insurer may choose to repair, rebuild, or replace the damaged automobile subject to the following: Written notice of this intention is given to the insured within seven days of receiving proof of loss. Repairs or replacement must be of like, kind, and quality. Repairs or replacement must be done within a reasonable time. The insured may not abandon the automobile to the insurer without the insurer's consent even if the vehicle is a total loss. Whether the insurer pays the actual cash value of the automobile or exercises its option to replace the automobile, salvage, if any, vests in the insurer. In case of disagreement on repairs or the amounts payable, the insurance acts provide for appraisal by an independent panel. CIP Repairing, Rebuilding, or Replacing Should the insurer elect to repair, rebuild, or replace the lost or damaged vehicle rather than settling the loss in cash, it must notify the insured of its intention within seven days of receiving the proof of loss. If the insurer does not do so, the insured is entitled to insist on a settlement in cash. Once the insurer has elected to repair, rebuild, or replace the lost or damaged property, it must be done within a reasonable time. In addition, the insurer is not limited to the payment of a fixed amount (such as the actual value of the automobile), but is required to follow through and replace (or repair or rebuild, as the case may be) the damaged property. In short, the contract becomes one of performance rather than one of payment. Salvage When an insured property is not totally destroyed or lost, some portion of the property remains and usually has some money value. If the insured is reimbursed for the loss as though the property were totally destroyed-a total loss-the insurer is entitled to possession of the property remaining. The insurer can then sell that property and retain the proceeds as salvage and thus reduce its loss. Salvage is property saved from loss. Salvage is also used as a verb indicating the process of taking steps to reduce the amount of a loss. Occasionally, insureds want to keep the salvage themselves. Its value is then deducted from the total loss settlement so that the insured does not profit from the loss. See Example-Salvage. Repairing, Rebuilding, or Replacing Should the insurer elect to repair, rebuild, or replace the lost or damaged vehicle rather than settling the loss in cash, it must notify the insured of its intention within seven days of receiving the proof of loss. If the insurer does not do so, the insured is entitled to insist on a settlement in cash. Once the insurer has elected to repair, rebuild, or replace the lost or damaged property, it must be done within a reasonable time. In addition, the insurer is not limited to the payment of a fixed amount (such as the actual value of the automobile), but is required to follow through and replace (or repair or rebuild, as the case may be) the damaged property. In short, the contract becomes one of performance rather than one of payment. Salvage When an insured property is not totally destroyed or lost, some portion of the property remains and usually has some money value. If the insured is reimbursed for the loss as though the property were totally destroyed-a total loss-the insurer is entitled to possession of the property remaining. The insurer can then sell that property and retain the proceeds as salvage and thus reduce its loss. Salvage is property saved from loss. Salvage is also used as a verb indicating the process of taking steps to reduce the amount of a loss. Occasionally, insureds want to keep the salvage themselves. Its value is then deducted from the total loss settlement so that the insured does not profit from the loss. See Example-Salvage.
Expert Answer:
Related Book For
Understanding Business Ethics
ISBN: 9781506303239
3rd Edition
Authors: Peter A. Stanwick, Sarah D. Stanwick
Posted Date:
Students also viewed these finance questions
-
University of NEWCASTLE SENG6110 Programming Assignment 1 Trimester 1, 2023 Electronic submission via Canvas by 11:59pm on Friday 17 th March 2023 Cryptocurrency Capital Gains Tax and Profit...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
An aircraft in a steady, level, right turn is flying at a constant altitude and a constant turning rate Turn. If P is the vehicle's roll rate, Q is the pitch rate, and R is the yaw rate, and assuming...
-
The dimension of a services cape where the background characteristics of the environment that are meant to satisfy our five senses and include things such as temperature, lighting, noise, music, and...
-
(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...
-
Calculate the annual value of the depreciation tax shield given the following information: A project under consideration will increase annual sales by $355,000 and cash expenses by $277,000. The...
-
What are the advantages and disadvantages of biometric security devices, such as fingerprint readers, in comparison with other security measures such as passwords and locked doors?
-
The Akron Police Department has five detective squads available for assignment to five open crime cases. The chief of detectives, Paul Kuzdrall, wishes to assign the squads so that the total time to...
-
This part of the IC3 was established in 2018 and is focused on streamlining communication with financial institutions and to assist FBI field offices with the freezing of funds for victims who made...
-
An increasing number of Americans are moving to a warmer climate when they retire. To take advantage of this trend, Sunny Skies Unlimited is undertaking a major real estate development project. The...
-
The purpose of genetic counseling is to estimate individuals' risk of having a child with a genetic disorder or of developing an inherited disorder themselves. Do you agree that genetic counseling is...
-
To prepare for this question, first create new table in the ischool_v2 database called new_person_records . The code for creating the table is provided in Q1_Partial_Code.sql. For this question,...
-
1. The following probability distributions of returns for two stocks have been estimated: Probability 0.25 Stock X Stock Y 3% 6% 0.35 8% 3% 0.40 6% 1% What is the coefficient of variation for the...
-
Occasions Ltd . manufactures an electronic toy. The cost per unit is as follows: Direct materials and direct labor $ 3 3 Variable overhead 2 4 Fixed overhead 4 8 Total $ 1 0 5 The fixed overhead is...
-
Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues...
-
Woven Corporation, which manufactures baskets, is developing direct labor standards. The basic direct labor rate is $15.00 per hour Payroll taxes are 12% of the basic direct labor rate, while fringe...
-
Ronald and Bonnie Stark were separated and lived apart for the entire current tax year. On bad advice, Ronald filed Married Filing Separately (MFS), claiming one dependent and was not allowed to...
-
What is an insurable interest? Why is it important?
-
Sexual harassment is a critical area for misbehavior in companies. Can a company eliminate sexual harassment? Why or why not?
-
Why do you think Pepsi decided to release the AMP app in the opening vignette? Do you think Pepsi officials were surprised by the response of the public?
-
In 2002, Blake Mycoskie and his sister Paige competed in the CBS reality program The Amazing Race. During their travels in that competition, Blake and Paige travelled through Argentina. Although they...
-
In what two ways can the breakeven point be stated?
-
The Thermo-Bond Manufacturing Company maintains its fixed-asset records on its computer. The fixed-asset master file includes the following data items: Required Refer to Table 9-7, which describes...
-
If total monthly fixed costs for a company were plotted on a graph for seven months, would the line drawn between the plotted points be parallel to the base or sloped? Explain why.
Study smarter with the SolutionInn App