BU353 Lecture Notes - Lecture 5: Liability Insurance, Property Insurance, Reinsurance
Document Summary
In four provinces (quebec, manitoba, saskatchewan and ontario), compensation for losses arising from auto accidents is provided by no-fault insurance. In manitoba and quebec, where there is pure no-fault insurance, drivers cannot sue for bodily injury losses; instead, the government insurer provides generous injury benefits to affected parties. Ontario has a partial no-fault system where the insurer pays for relatively small losses, but the injured party can sue the at-fault party for losses above a certain amount. See table 11. 1 for different types of automobile loss exposures and insurance for losses. The absolute liability law gives third parties a direct right of action against the insurer to have the insurance money under the policy paid directly to them. Personal auto insurers generally use rate classification systems that reflect driver characteristics such as years of driving, whether the car is driven to work or for business, driving record, and the geographic territory in which the auto is located.
