CAS Exam 6C Spring 2017, Question 4
Study guide: Exam 6C
In each of the following scenarios, an insurance company is defending its position in court. Explain a likely outcome for the insurance company and cite any relevant precedents used to support the conclusion drawn.
Part a (0.75 points)
In Ontario, a personal automobile policyholder is injured in a motor vehicle accident as a result of the negligence of another driver. The policyholder obtains a settlement against the negligent driver which includes their total medical expenses. The policyholder then brings this action against their own motor vehicle insurer for the total amount of their medical expenses. The insurer objects to paying.
Part b (0.75 points)
In Ontario, an insurer issues a policy protecting the insured's property against loss by fire, lightning, windstorm, theft, etc. The policy specifies proof of loss within 60 days after a loss. The insured's exposure is unrelated to marine adventure, even though the policy is headed "inland marine policy". Following a fire loss, the insured makes a claim as soon as practicable on the 70th day after the loss. The insurer denies the claim.
Part c (0.75 points)
In Ontario, an insured A suffers serious injuries in a motor vehicle collision and brings an action against the driver of the other vehicle B, an underinsured motorist. Insured A subsequently enters into a limits agreement with B, without notice to A's insurer. The agreement provides that B will admit liability and A will not sue them in excess of their liability insurance coverage. A seeks to recover the remainder of the damages from their insurer. A's insurer argues that a limits agreement precludes A from advancing a claim against the insurer.
Answer this question and see the worked solution