CAS Exam 6C Fall 2015, Question 4
Study guide: Exam 6C
In each of the following scenarios, explain a likely outcome for the insurance company and cite any relevant precedents used to support the conclusion drawn.
Part a (1 point)
In British Columbia, one personal property policyholder complains to the Privacy Commissioner that their credit score has been collected and used for underwriting by their insurance company without their consent. The insurance company claims that it had obtained their consent with a standard form created by the Centre for Study of Insurance Operations.
Part b (1 point)
In Ontario, one personal automobile policyholder struck an infant boy in a motor vehicle accident, causing the boy to suffer severe brain damage. The policyholder's Bodily Injury limit is $500,000. The boy's counsel advised the policyholder's insurance company that the claim could be settled for $450,000 without going to trial; however the claims manager of the insurance company believed the claim could be settled for less. The case eventually went to trial, and the boy was awarded damages of $800,000. The policyholder sued their insurance company for the additional amount.
Part c (1 point)
In British Columbia, a firm has a multi-peril property insurance policy. The insured recently made a claim for a loss caused by fire that occurred more than a year ago. However, the claim was made within one year of filing the proof of loss. The firm sued the insurance company for denying coverage.
Part d (1 point)
A banker has been accused of fraud, a peril excluded under the banker's professional liability insurance policy. The insurance company is denying any duty to defend the banker for fraud. The banker in turn files a suit against the insurance company, arguing the insurance company has a duty to defend.
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