Exclusions in the Insurance Contract
FIRE INSURANCE
544(1) … the contract is deemed to cover the insured property
(a) against fire, whether resulting from explosion or otherwise, not occasioned by or
happening through
(i)in the case of goods, their undergoing any process involving the application of heat, or
(ii) riot, civil commotion, war, invasion, act of foreign enemy, hostilities, whether war is
declared or not, civil war, rebellion, revolution, insurrection or military power;
(b)against lightning, but excluding destruction or loss to electrical devices or appliances
caused by lightning or other electrical currents, unless fire originates outside the article
itself and only for the destruction or damage that occurs from that fire;
(c) against explosion not occasioned by or happening through any of the perils specified
in clause (a)(ii) of natural, coal or manufactured gas in a building not forming part of a
gas works, whether fire ensues from the explosion or not.
(2) Unless a contract to which this Subpart applies otherwise specifically provides, it does
not cover the insured property against loss or damage caused by contamination by
radioactive material directly or indirectly resulting from fire, lightning or explosion
within the meaning of subsection (1).
Conditions in the Insurance Contract
PROHIBITED USE BY INSURED
2(1) The insured shall not drive or operate the automobile,
(a) unless he is for the time being either authorized by law or qualified to drive or
operate the automobile; or
(b) while his licence to drive or operate an automobile is suspended or while his right to
obtain a licence is suspended or while he is prohibited under order of any court from driving or
operating an automobile; or
(c) while he is under the age of 16 years or under such other age as is prescribed by the
law of the province in which he resides at the time this contract is made as being the minimum
age at which a licence or permit to drive an automobile may be issued to him; or
(d) for any illicit or prohibited trade or transportation; or
(e) in any race or speed test. REQUIREMENTS WHERE LOSS OR DAMAGE TO PERSONS OR PROPERTY 3(1)
The insured shall,
(a) promptly give to the insurer written notice, with all available particulars, of any
accident involving loss or damage to persons or property and of any claim made on account of
the accident;
(b) verify by statutory declaration, if required by the insurer, that the claim arose out of
the use or operation of the automobile and that the person operating or responsible for the
operation of the automobile at the time of the accident is a person insured under this contract;
and
(c) forward immediately to the insurer every letter, document, advice or writ received by
him from or on behalf of the claimant.
(2) The insured shall not,
(a) voluntarily assume any liability or settle any claim except at his own cost; or
(b) interfere in any negotiations for settlement or in any legal proceeding.
(3) The insured shall, whenever requested by the insurer, aid in securing information and
evidence and the attendance of any witness and shall co-operate with the insurer, except
in a pecuniary way, in the defence of any action or proceeding or in the prosecution of
any appeal.
Insurable Interest
545(1) No insurance agent may knowingly issue any contract for fire insurance on
property situated in Alberta for an amount that with any existing contracts exceeds the
fair value of the property or of the interest of the insured in the property.
(2) Any insurer or insurance agent who knowingly effects, and any insured person who
knowingly procures, insurance on any building or property, or interest in any building or
property, against loss or damage by fire in excess of its insurable value is guilty of an
offence.
Persons insurable – Life Insurance
563 Without restricting the meaning of the expression "insurable interest", a person (the
"primary person") has an insurable interest in the primary person's own life and in the life
of
(a) the primary person's child or grandchild,
(b) the primary person's spouse,
(c) any person on whom the primary person is wholly or in part dependent for or from
whom the primary person is receiving support or education, (d) the primary person's employee, and
(e) any person in the duration of whose life the primary person has a pecuniary interest.
Motor Vehicle Liability Policies - Coverage of owner's policy
616(1) Every contract evidenced by an owner's policy insures the insured named in the
contract (the "named insured") and every other person who with the named insured's
consent drives an automobile owned by the named insured and that falls within the
description or definition of automobile in the contract against liability imposed by law on
the named insured or that other person for loss or damage
(a) arising from the ownership, use or operation of any such automobile, and
(b) resulting from bodily injury to or the death of any person and damage to
property. Misrepresentation
513(7) No contract of insurance may contain or have endorsed on it, or be made subject
to, any term, condition, … providing that the contract is avoided by reason of any
statement in the application for the contract or inducing the insurer to enter into the
contract, unless the term, … is limited to cases in which the statement is material to the
contract, and no contract may be avoided by reason of the inaccuracy of any such
statement unless it is material to the contract.
(8) The question of materiality in any contract of insurance is a question of fact for the jury,
or for the Court if there is no jury, and no … term, condition, … to the contrary contained in
the application or proposal for insurance or in the instrument of contract or in any agreement
or document relating to the contract of insurance has any force or validity.
(10) This section does not apply to contracts of automobile insurance.
Fire Insurance
MISREPRESENTATION 1 If any person applying for insurance falsely describes the
property to the prejudice of the insurer, or misrepresents or fraudulently omits to
communicate any circumstance which is material to be made known to the insurer in
order to enable it to judge of the risk to be undertaken, the contract shall be void as to any
property in relation to which the misrepresentation or omission is material.
MATERIAL CHANGE 4 Any change material to the risk and within the control and
knowledge of the insured shall avoid the contract as to the part affected thereby, unless
the change is promptly notified in writing to the insurer or its local agent; and the insurer
when so notified may return the unearned portion, if any, of the premium paid and cancel
the contract, or may notify the insured in writing that, if he desires the contract to
continue in force, he must, within 15 days of the receipt of the notice, pay to the insurer
an additional premium; and in default of such payment the contract shall no longer be in
force and the insurer shall return the unearned portion, if any, of the premium paid.
Life Insurance
Disclosure of material facts
567(1) An applicant for insurance and a person whose life is to be insured must each
disclose to the insurer in the application, on a medical examination, if any, and in any
written statements or answers furnished as evidence of insurability, every fact within the
applicant's or person's knowledge that is material to the insurance and is not so discl
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