Page 1 of 32
CIP C112 PRACTICAL ISSUES IN CLAIMS
MANAGEMENT EXAM | FREQUENTLY TESTED
QUESTIONS WITH CORRECT ANSWERS |
BRAND NEW!
(What term/s do the) courts use to determine bad faith? - ✔✔✔
Correct Answer > harsh, vindictive, reprehensible, high-handed,
oppressive, malicious
When a company executes an audit to uncover the root cause of
an issue, unknown, immediately is an example of an - ✔✔✔ Correct
Answer > emergency audit
Subrogation (definition) - ✔✔✔ Correct Answer > is the right of an
insurance company that has paid a claim to step into the shoes
of the policyholder, in order to take
Legal action against an at-fault third party to recover what was
paid.
In regards to subrogation, loss adjusters need to - ✔✔✔ Correct
Answer > 1. Promptly identify subrogation potential
2. Plan an intense investigation
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3. Produce the type of evidence needed to establish legal liability
against a wrongdoer
Subrogation, when is an insurer not bound by a release signed by
the insured - ✔✔✔ Correct Answer > if notice is given to the tortfeasor
of the insurer's interest. (case law the insurer is not bound by the
release)
Accident Benefits Ontario (even though DCA applies) - ✔✔✔ Correct
Answer > Insurer can subrogate AB for
Vehicles that are more likely to be involved in claims resulting n
bodily injury (heavy commercial hits passenger vehicle,via loss
transfer payment).
Loss Transfer form (ON) - ✔✔✔ Correct Answer > Request for
indemnification form is completed when payment is actually
requested.
Somersall v Freeman (2002) - insured was paid to the limits of
the policy by Third Party ($200k) at trial in exchange for a
release. Insured then sued own Insurer for the remainder of the
costs. - ✔✔✔ Correct Answer > Courts agreed no prejudice as the
insured was limited to the TP policy and their damages where
greater than the agreed payout.
,Page 3 of 32
Garnishee (definition) - ✔✔✔ Correct Answer > legal process to seize
the property, money, earnings or receivables of a debtor that are
being held by a Third Party.
Laches - ✔✔✔ Correct Answer > undue delay in asserting the claim or
right of claim (suffered some prejudice from delay)
Marshalling - ✔✔✔ Correct Answer > enabling creditors to realize the
greatest possible recovery from a debtor
Law of equity over the common law - law of equity vs common
law - ✔✔✔ Correct Answer > rule of equity wins
Indemnity agreement - ✔✔✔ Correct Answer > protect the insurer's
right to recoup any losses or expenses paid on the bond
Quia Timet Order (Because he fears) - ✔✔✔ Correct Answer > is an
injunction sought when the plaintiff wants to prevent harm
before it occurs (needs strong evidence harm will occur)
Mareva injunction - ✔✔✔ Correct Answer > used in order to force a
third party to preserve their assets in anticipation of a recovery
action.
, Page 4 of 32
Anton Piller Order - ✔✔✔ Correct Answer > granting civil authority for
search and seizure of relevant property (possessed unlawfully or
Being used illegally)
What is the only province in which subrogation is sought in the
insurers name - ✔✔✔ Correct Answer > Quebec (unless goes to
federal court)
Litigation (definition) - ✔✔✔ Correct Answer > carry on a legal contest
or legal challenge by judicial process.
Litigation Plan - ✔✔✔ Correct Answer > Maps out how a case will
proceed, with a timetable that includes judicial deadlines and
estimates when the claim will be resolved. Includes time limit to
respond to pleadings.
Interrogatories - ✔✔✔ Correct Answer > written questions prepared by
a party to a civil action to serve on another person, who is
required to reply in writing under oath.
Counterclaims - ✔✔✔ Correct Answer > denies the plaintiff allegations
and asserts an independent cause of action against the plaintiff.
(courts may exclude the Counterclaim)
CIP C112 PRACTICAL ISSUES IN CLAIMS
MANAGEMENT EXAM | FREQUENTLY TESTED
QUESTIONS WITH CORRECT ANSWERS |
BRAND NEW!
(What term/s do the) courts use to determine bad faith? - ✔✔✔
Correct Answer > harsh, vindictive, reprehensible, high-handed,
oppressive, malicious
When a company executes an audit to uncover the root cause of
an issue, unknown, immediately is an example of an - ✔✔✔ Correct
Answer > emergency audit
Subrogation (definition) - ✔✔✔ Correct Answer > is the right of an
insurance company that has paid a claim to step into the shoes
of the policyholder, in order to take
Legal action against an at-fault third party to recover what was
paid.
In regards to subrogation, loss adjusters need to - ✔✔✔ Correct
Answer > 1. Promptly identify subrogation potential
2. Plan an intense investigation
,Page 2 of 32
3. Produce the type of evidence needed to establish legal liability
against a wrongdoer
Subrogation, when is an insurer not bound by a release signed by
the insured - ✔✔✔ Correct Answer > if notice is given to the tortfeasor
of the insurer's interest. (case law the insurer is not bound by the
release)
Accident Benefits Ontario (even though DCA applies) - ✔✔✔ Correct
Answer > Insurer can subrogate AB for
Vehicles that are more likely to be involved in claims resulting n
bodily injury (heavy commercial hits passenger vehicle,via loss
transfer payment).
Loss Transfer form (ON) - ✔✔✔ Correct Answer > Request for
indemnification form is completed when payment is actually
requested.
Somersall v Freeman (2002) - insured was paid to the limits of
the policy by Third Party ($200k) at trial in exchange for a
release. Insured then sued own Insurer for the remainder of the
costs. - ✔✔✔ Correct Answer > Courts agreed no prejudice as the
insured was limited to the TP policy and their damages where
greater than the agreed payout.
,Page 3 of 32
Garnishee (definition) - ✔✔✔ Correct Answer > legal process to seize
the property, money, earnings or receivables of a debtor that are
being held by a Third Party.
Laches - ✔✔✔ Correct Answer > undue delay in asserting the claim or
right of claim (suffered some prejudice from delay)
Marshalling - ✔✔✔ Correct Answer > enabling creditors to realize the
greatest possible recovery from a debtor
Law of equity over the common law - law of equity vs common
law - ✔✔✔ Correct Answer > rule of equity wins
Indemnity agreement - ✔✔✔ Correct Answer > protect the insurer's
right to recoup any losses or expenses paid on the bond
Quia Timet Order (Because he fears) - ✔✔✔ Correct Answer > is an
injunction sought when the plaintiff wants to prevent harm
before it occurs (needs strong evidence harm will occur)
Mareva injunction - ✔✔✔ Correct Answer > used in order to force a
third party to preserve their assets in anticipation of a recovery
action.
, Page 4 of 32
Anton Piller Order - ✔✔✔ Correct Answer > granting civil authority for
search and seizure of relevant property (possessed unlawfully or
Being used illegally)
What is the only province in which subrogation is sought in the
insurers name - ✔✔✔ Correct Answer > Quebec (unless goes to
federal court)
Litigation (definition) - ✔✔✔ Correct Answer > carry on a legal contest
or legal challenge by judicial process.
Litigation Plan - ✔✔✔ Correct Answer > Maps out how a case will
proceed, with a timetable that includes judicial deadlines and
estimates when the claim will be resolved. Includes time limit to
respond to pleadings.
Interrogatories - ✔✔✔ Correct Answer > written questions prepared by
a party to a civil action to serve on another person, who is
required to reply in writing under oath.
Counterclaims - ✔✔✔ Correct Answer > denies the plaintiff allegations
and asserts an independent cause of action against the plaintiff.
(courts may exclude the Counterclaim)
