COMPENSATION AND SETTLEMENT Clause Samples

COMPENSATION AND SETTLEMENT. 4.1 Basis of settlement (Articles 2490, 2491, 2493)

COMPENSATION AND SETTLEMENT. 4.1 In General 4.2 Variable Cost Recovery 4.3 Fixed-Cost Recovery 4.4 Revenue Credit ARTICLE 5 - MARKET MONITORING 5.1 Mitigation 5.2 Adjustment

COMPENSATION AND SETTLEMENT. 4.1. Time of payment (Articles 1591, 2469 and 2473 CCQ)–The insurer shall pay the indemnity within sixty (60) days after receiving the notice of loss or, at their request, all relevant information and vouchers, provided the lnsured shall have complied with all the terms of the contract. 4.2. Limitation of actions (Article 2925 CCQ)–Every action or proceeding against the insurer under this Policy shall be commenced within three (3) years from the date the right of action has arisen. 4.3. Subrogation (Article 2474 CCQ)–Unless otherwise provided, the insurer shall be subrogated to the extent of the amount paid or the liability assumed therefore under this Policy to the rights of the insured against persons responsible for the loss except when they are members of the insured’s household. The insurer may be fully or partly released from its obligation towards the insured where, owing to any act of the insured, it cannot be so subrogated.

COMPENSATION AND SETTLEMENT. 4.1 Basis of settlement (Articles 2490, 2491, 2493) (applicable to property insurance only) Unless otherwise provided, the Insurer shall not be liable for more than the actual cash value of the property at the time of loss as normally determined. In unvalued policies, the amount of insurance does not make proof of the value of the insured property. In valued policies, the agreed value makes complete proof, between the Insurer and the Insured, of the value of the insured property. If the amount of insurance is less than the value of the property the Insurer is released by paying the amount of the insurance in the event of total loss or a proportional indemnity in the event of partial loss. 4.2 Pair and set (applicable to property insurance only) In the case of loss of or damage to any article or articles, whether scheduled or unscheduled, which are part of a set, the measure of loss of or damage to such article or articles shall be a reasonable and fair proportion of the total value of the set, but in no event shall such loss or damage be construed to mean total loss of set. 4.3 Parts (applicable to property insurance only) In the case of loss of or damage to any part of the insured property, whether scheduled or unscheduled, consisting, when complete for use, of several parts, the Insurer is not liable for more than the insured value of the part lost or damaged, including the cost of installation. 4.4 Replacement (Article 2494) (applicable to property insurance only) Subject to the rights of preferred and hypothecary creditors, the Insurer reserves the right to repair, rebuild or replace the insured property. He is then entitled to salvage and may take over the property. 4.5 Time of payment (Articles 1591, 2469 and 2473) The Insurer shall pay the indemnity within sixty days after receiving the notice of loss or, at his request, all relevant information and vouchers, provided the Insured shall have complied with all the terms of the contract. Any outstanding premium may be deducted from the indemnity payable. 4.6 Property of others (applicable to property insurance only) Where a claim is made as a result of loss of or damage to property not owned by the Insured, the Insurer reserves the right to pay the indemnity to the Insured or to the owner of the property and to deal directly with such owner.

COMPENSATION AND SETTLEMENT. Basis of settlement (Articles 2490, 2491, 2493) (applicable to property insurance only)

COMPENSATION AND SETTLEMENT. 4.1 Basis of settlement (Articles 2490, 2491, 2493) 4.2 Pair and set In the case of loss of or damage to any article or articles, whether scheduled or unscheduled, which are part of a set, the measure of loss of or damage to such article or articles shall be a reasonable and fair proportion of the total value of the set, but in no event shall such loss or damage be construed to mean total loss of set. 4.3 Parts In the case of loss of or damage to any part of the insured property, whether scheduled or unscheduled, consisting, when complete for use, of several parts, the Insurer is not liable for more than the insured value of the part lost or damaged, including the cost of installation. 4.4 Replacement (Article 2494)

COMPENSATION AND SETTLEMENT. 4.1 In General 4.2 Variable Cost Recovery 4.3 Recovery of RMR Avoidable Costs