- Dicembre 20, 2020
The duty of defence and the obligation to compensate arise from the conditions of the insurance policy itself. The tasks are separate, but interconnected. The duty of defence is broader and only occurs in situations where compensation is possible. The duty of defence arises from the charges against the insured. On the other hand, the obligation to compensate arises from the facts that support the law. The Supreme Court of Canada described the duty to defend itself in 1990 in Nichols v. American Home Assurance Co. as follows: the doctrine of waiver was defined by the Alberta Court of Appeal by Mitchell-Jewell Ltd. against Canadian Pacific Express Co. as follows: As a general rule, a letter of reserve of ownership contains various conditions that would lead to your insurance company denying or reducing your right. Most insurance policies require an insurer to sue the insured if insurance coverage is insured. The possibility of a conflict may arise if a claim exceeds the policy limit, if all aspects of the claim are not covered by the policy, if several policyholders have different interests, or if there is a valid waiver agreement or a reserve of rights.
In the event of conflicting interests or mandates between an insurer and its policyholders, a conflict may arise. I was surprised to learn that a number of insurers wrongly require Hurricane Michael policyholders to sign non-waiver agreements or letters from rights receivers before their investigation begins. A copy of such an agreement is attached. On the other hand, an insured should be concerned about the protection of his or her own rights. An insured should ask for clarification as to why the insurer is considering refusing to cover the cases. Before executing a non-waiver agreement, an insured should seek legal advice on the legal effect of the non-waiver agreement on his or her ability to enforce police coverage rules. For legal experts, the question is whether these agreements are valid and, if so, how they can be used to reduce insurance obligations to policyholders. Legal experts are looking at whether there are other ways to obtain the same protection without the insured`s tolerance. You did not report the right in a timely manner: you did not report the claim as quickly as possible and the insurance company will now have difficulty properly reviewing the claim as a result of the delay.
In most cases, an insured should not sign a waiver contract. However, there are circumstances in which an insured may wish to do so. For example, there are significant benefits for an insured if the insurer provides and pays for a defence. The effectiveness of a reserve letter depends on the clarity of the statement of the situation, the amount of information provided, the reasons for refusal of coverage and the timing of the letter`s writing.