CAS Exam 6C Fall 2017, 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 Ontario, Driver A was injured in a motor vehicle accident due to Driver B's negligence. Driver A has settled with Driver B for all of the damages, explicitly including medical expense. Driver A then brought action against his own insurer to recover his medical expenses, citing the following clause in the standard personal automobile insurance policy:
The Insurer agrees to pay for each person who sustains Bodily Injury caused by an accident while driving, all reasonable expenses incurred as a result of such injury, for necessary medical, surgical, hospital services.
Part b (1 point)
An insured has been sued for causing damages as a result of sexual assault. The insurance company is denying any duty to defend, as intentional act is excluded from the insured's personal liability coverage. The possibility of action in negligence by the insured has also been ruled out. The insured in turn files a lawsuit against the insurance company, arguing the insurance company has a duty to defend.
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