LIBERTY INTERNATIONAL UNDERWRITERS

Transcription

1 LIBERTY INTERNATIONAL UNDERWRITERS Fax: (416) MEDICAL MALPRACTICE LIABILITY INSURANCE

2 Policy Number: Reference# Renewal of: Renewal# Medical Malpractice Liability Insurance Declarations THIS IS A CLAIMS MADE POLICY This policy covers only claims first made against an Insured and reported to the Company during the Policy Period or during the Extended Reporting Period (as defined in the policy). Please read the attached policy terms carefully. ITEM I: NAMED INSURED Assured Name Addtional Named Insureds ITEM II: NAMED INSURED'S ADDRESS Assured Address ITEM III: POLICY PERIOD (A) From 12:01 a.m. Inception Date (B) To 12:01 a.m. Expiry Date Both local time at the address shown in Item II ITEM IV: LIMIT OF LIABILITY (A) Each Claim PRL Limit US (B) Aggregate per policy period PRL Aggregate Lmt US ITEM V: DEDUCTIBLE Deductible PRL DeductibleUSN/A Aggregate DeductibleUS Each and Every Claim Any one Claim including costs Aggregate per policy period 1 2

3 Policy Number: Reference# Renewal of: Renewal# ITEM VI: RETROACTIVE DATE Retroactive Date Retroactive DateN/A ITEM VII: INSURED S PROFESSION Insured s Profession: Insured's professional services for dec page ITEM VIII: ENDORSEMENT(S) Endorsement(s) 1-Endorsement Count PRL incl Manuscripts onlyinclusive ITEM IX: PREMIUM Premium: EO Annual Premium US This policy (consisting of this declaration, the applicable application, the attached policy terms and the endorsement(s) referred to in Item VIII) is valid only if, in addition to the facsimile signature of the President of Liberty Mutual Insurance Company, it is dated and signed below by a duly authorized representative of Liberty Mutual Insurance Company. Authorized Representative of Liberty Mutual Insurance Company Date For purposes of the Insurance Companies Act (Canada), this document was issued in the course of Liberty Mutual Insurance Company s insurance business in Canada. LIBERTY MEDICAL MALPRACTICE LIABILITY INSURANCE 2 2

4 Medical Malpractice Liability Insurance THIS IS A CLAIMS MADE POLICY - PLEASE READ CAREFULLY In reliance upon the statements made and information furnished in the Application and any attachments or supporting materials, including all agreements and representations, all of which is deemed to be made a part hereof, and in consideration of the payment of premium, the undertaking by the Named Insured to pay the Deductible stated in Item V of the Declarations and subject to the Limit of Liability stated in Item IV of the Declarations and the Exclusions, Conditions and other terms of this policy, the Company agrees with the Named Insured as follows: INSURING AGREEMENTS (1) COVERAGE To pay on behalf of the Insured all sums which the Insured is legally obligated to pay as damages as a result of a claim, provided, the claim is both first made against the Insured and reported to the Company in writing during the policy period or Extended Reporting Period, if any, and; the claim is a result of a wrongful act committed by an Insured or any person for whose acts the Insured is legally liable, and; the wrongful act arose out of professional services rendered or which should have been rendered, as specified in Item VII of the Declarations, and; (d) the wrongful act was first committed during the policy period, or after the Retroactive Date specified in Item VI of the Declarations, if any. (2) DEFENSE COSTS, CHARGES, EXPENSES AND SETTLEMENT With respect to such coverage as is afforded hereunder and, as part of and subject to the Limit of Liability, the Company shall: have the right to appoint counsel and have the duty to defend any covered suit or claim against the Insured alleging a wrongful act and seeking damages which are or may be payable under the terms of the policy whether such suit or claim is groundless, false or fraudulent. 1 13

5 reimburse the Insured for all reasonable expenses, other than loss of earnings, incurred at the Company's request. pay premium on appeal bonds; but only for bond amounts within the applicable limit of insurance, required in any action or suit brought against the Insured alleging a wrongful act but without any obligation to apply for or furnish any such bonds. (d) have the right to make such investigation and negotiation it deems expedient and, with written consent of the Insured, make any settlement of any claim afforded coverage hereunder. (e) if the Insured refuses to consent to any settlement or compromise recommended by the Company and elects to contest the claim, suit or proceeding, then the Company's liability shall not exceed the amount for which the Company would have been liable for damages and claims expenses if the claim or suit or proceeding had been so settled or compromised, when and as so recommended, and the Company shall have no liability for claims expenses accruing thereafter and the Company shall have the right to withdraw from the further defense thereof by tendering control of said defense to the Insured. (f) the Company shall not be obligated to pay any claim, judgment, award or claims expenses, or to undertake or continue defense of any suit or proceeding after the applicable limit of the Company's liability has been exhausted by payment of judgments, awards, settlements, or claims expenses or after deposit of the applicable limit of the Company's liability in a court of competent jurisdiction, and that in such a case, the Company shall have the right to withdraw from further defense by tendering control of said defense to the Insured. DEFINITIONS (3) WHEREVER USED IN THIS POLICY Named Insured means the Named Insured designated in Item I of the Declarations. "Insured" means: (i) the Named Insured (ii) any person who was, is now, or during the policy period becomes an officer, director or employee of the Named Insured, but solely while acting on behalf 2 13

6 of the Named Insured and while rendering professional services as stated in Item VII of the Declarations. (iii) any former officer, director or employee of the Named Insured but solely while acting within their professional capacity on behalf of the Named Insured, in the rendering of professional services as stated in Item VII of the Declarations. (iv) the estate, heirs, executors, administrators and legal representatives of any Insured in the event of such Insured's death, incapacity, insolvency or bankruptcy but only to the extent that such Insured would otherwise be provided coverage under this policy. "Damages" means only compensatory amounts and shall not include fines or penalties imposed by law or otherwise nor the return of or restitution of fees or charges for professional services rendered, nor is there any coverage for punitive, exemplary or aggravated damages, nor for any claim seeking non-pecuniary or injunctive relief. (d) "Policy Period" means the period of time stated in Item III of the Declarations or any lesser period in the event of cancellation of this policy and specifically excludes any Extended Reporting Period hereunder. (e) "Wrongful Act" means any act, error, omission or breach of duty committed by the Insured solely within the scope of professional services of the Insured's profession as stated in Item VII of the Declarations. (f) "Claim" means a written or oral notice of an intention to seek damages from any Insured. (g) "Claims Expenses" means: (i) fees charged by a lawyer(s) designated by the Company; and (ii) all other fees, pre-judgment interest, post judgment interest, cost and expenses resulting from the investigation, adjustment, defense, and appeal of a claim incurred by the Company. However, "claims expenses" does not include salary charges of regular employees or of the officials of either the Company or Insured. 3 13

7 (h) "Professional Services" means duties and responsibilities undertaken by the Insured pursuant to an agreement (written or verbal) to provide the professional services described in Item VII of the Declarations, including responsibilities implied by the agreement and assumed by the custom of the Insured's profession, whether expressly undertaken or not. (i) "Retroactive Date" means coverage afforded by this policy applies on the basis of claims which are first made against the Insured during the policy period provided that such claim arises out of an act, error, omission or breach of duty committed or alleged to have been committed on or after the date stated in Item VI of the Declarations. EXCLUSIONS (4) THIS POLICY DOES NOT APPLY TO any claim based upon or arising out of fraudulent, dishonest, criminal or other malicious wrongful acts, errors, omissions or breach of duty of the Insured; any claim made against the Insured solely because the Insured is a partner, officer, director, stockholder, or employee of any firm or corporation not named in the Declarations; any claim based upon or arising out of bodily injury, sickness, disease including death at any time, or destruction of any tangible property including the loss of use resulting therefrom caused by an Insured or any of his employees in the commission of any intentional act; however, this exclusion shall not apply with respect to any Insured who is neither the author of said act nor an accomplice; (d) any claim based upon or arising out of bodily injury, sickness, disease including death at any time whilst an Insured or any of his employees are under the influence of hypnotics, intoxicants or narcotics; (e) any claim made against any Insured in respect of any act, error, omission or breach of duty which occur during the period of suspension of the license of an Insured; (f) any claim based upon or seeking non-pecuniary or injunctive relief; (g) any claim based upon or arising out of express warranties or guarantees; 4 13

8 (h) any claim based upon or arising out of failure or omission to provide, effect or maintain any bond, suretyship or any form of insurance; (i) any claim based upon or arising out of any prior or pending litigation at the inception date of this policy; (j) any claim based upon or arising out of any act, error, omission or breach of duty which at the inception date of this insurance, any Insured: (i) had knowledge, or; (ii) had a basis to believe was a breach of duty and/or is likely to give rise to a claim; (k) any claim based upon or arising out of false arrest, humiliation, detention or imprisonment, wrongful entry or eviction or other invasion of private occupancy, or malicious prosecution, libel, slander or other defamatory or disparaging material, or a publication or an utterance in violation of an individual's right of privacy; (l) any claim based upon or arising out of any disputes involving the Insured's fee or charges or any personal profit or advantage to which the Insured is not legally entitled; (m) any claim based upon or arising out of the liability of others assumed by any Insured under any contract or agreement unless such liability would have attached to the Insured even in the absence of such an agreement; (n) any claim based upon or arising out of discrimination by the Insured; (o) any claim based upon or arising out of physical abuse, misconduct, molestation or assault; (p) any claim based upon or arising out of patent infringement; (q) any claim based upon or brought by any person or entity which is an Insured within the definition of this policy; (r) 5 13 any claim based upon or arising out of:

9 (i) the actual, alleged or threatened discharge, dispersal, release or escape or seepage of any solid, liquid, gaseous or thermal irritant or contaminants, including but not limited to smoke, vapors, soot, fumes, acids, alkalis, toxic substances, waste materials including materials to be recycled, reconditioned or reclaimed, oil, petroleum substance or derivatives (including any oil, refuse or oil mixed with waste), or other irritants, contaminants, or pollutants: (d) at or from premises, owned, rented or occupied by the Insured; at or from any site or location used by the Insured or others for the handling, storage, disposal, processing or treatment of waste; which are at any time transported, handled, stored, treated, disposed of, or processed as waste by or for the Insured or any person or organization from whom the Insured may be legally liable; at or from any site or location on which the Insured or any contractors or subcontractors working directly or indirectly on behalf of the Insured are performing operations: (1) if the Pollutants are brought on or to the site or location in connection with such operations; or (2) if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize the Pollutants. (e) any loss, cost, or expense arising out of any governmental direction or request that the Insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize Pollutants. (s) any claim based upon or arising out of: (i) goods or products composed in whole or in part of asbestos or asbestos related material(s), regardless of whether such goods or products are manufactured, sold, handled, maintained, repaired, removed, disposed of, transported, distributed, installed by, or in any way connected with the Insured or other person or entity trading under his, her or its name; or (ii) any storage device, container, wrapping, packaging, warehouse, building or other structure of any kind, or any part thereof, composed in whole or in part of asbestos or asbestos related material(s); or (iii) any goods or products which are damaged, contaminated or otherwise affected by asbestos related material(s); or 6 13

10 (iv) health hazard (including the clean-up, repair, or any other corrective measures voluntarily undertaken or required by any governmental body or other entity to eliminate such health hazard) occasioned by the existence of asbestos within the land and/or building(s) which are either owned, leased, or otherwise controlled by the Insured. (t) any claim based upon or arising out of any injury, sickness, disease, death, destruction or property damage caused by exposure to radioactivity or to any Nuclear Material, or the operation of any Nuclear Facility. As used in this Exclusion: (i) "Radioactivity" means the spontaneous emission of ionizing radiation, either directly from unstable atomic nuclei as a consequence of a nuclear reaction, and the radiation so emitted, including but not limited to, alpha particles, nucleons, electrons, and gamma rays; (ii) "Nuclear Material" means any material, regardless of its state, that spontaneously emits Radioactivity, irrespective of its use or source, including but not limited to, materials which are defined as "source material", "special nuclear material" and "byproduct material", as defined in the Atomic Act of 1954, nuclear fuel, including spent nuclear fuel, and nuclear waste materials of any kind whatsoever; (iii) "Nuclear Facility" means: any nuclear reactor, as defined below; any equipment or device designed or used for separating radioactive isotopes, processing or utilizing nuclear fuel or in any way handling, processing or packaging any Nuclear Material; any structure, container, excavation, premises or places, prepared or used for the storage, disposal, processing or use of any Nuclear Material, including the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations. (iv) Nuclear Reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable materials. 7 13

11 GENERAL CONDITIONS (5) LIMIT OF LIABILITY The total limit of the Company's liability for all claims for damages during the policy period, and any extension thereof as provided for herein, shall never exceed the amount stated in the Declarations at Item IV as Aggregate per policy period. The inclusion herein of more than one Insured or the making of claims or the bringing of suits by more than one person or organization, shall not operate to increase the limit of the Company's liability. Amounts payable by virtue of "Defense Costs, Charges, Expenses and Settlement" shall be part of and subject to the Limit of Liability stated in Item IV of the Declarations. If several claims arise out of the same or related wrongful act they shall be deemed to be a single claim and shall apply against: the policy period during which the first of such claims was first made against the Insured and reported in writing to the Company or; if the Insured has previously given written notice to the Company of a circumstance which subsequently gives rise to the claim or claims, the policy period during which such circumstance was notified. The Company's Limit of Liability shall be excess of the Deductible as stated in the Declarations in respect of any claim or claims afforded coverage hereunder and then subject to the Limit of Liability, Aggregate per policy period, as stated in the Declarations. 8 13

12 (6) DEDUCTIBLE The Named Insured shall first be liable for the "Deductible" amount as stated in Item V of the Declarations in respect of each single claim for damages hereunder inclusive of amounts payable by virtue of "Defense Costs, Charges, Expenses and Settlement". (7) INSURED'S DUTIES IN THE EVENT OF CLAIM OR SUIT As a condition precedent to the right of insurance coverage afforded herein, the Insured shall: in the event any claim is made against the Insured, give immediate written notice, to Liberty International Underwriters, Bay-Wellington Tower, Brookfield Place, 181 Bay Street, Suite 1000, P.O. Box 744, Toronto, Ontario M5J 2T3. in the event suit is brought against the Insured, immediately forward to the Company every demand, notice, summons, or other process received by the Insured or by the Insured's representatives; cooperate with the Company and upon the Company's request, submit to examination and interrogation by a representative of the Company under oath if required and attend hearings, pretrial proceedings and trials and assist in effecting settlement, securing and giving evidence, obtaining the attendance of witnesses, and, in the conduct of suits, as well as in the giving of a written statement or statements to the Company's representatives and meeting with such representatives for the purpose of investigation and/or defense, and disclose to such representatives all books and records requested by the Company, all without charge to the Company. (d) the Insured shall further cooperate with the Company and take such action as may be necessary to secure and effect any rights of indemnity, contribution or apportionment which the Insured may have. (e) the Insured shall not demand or agree to arbitration of any claim made against the Insured without written consent of the Company. The Insured shall not, except at the Insured's own cost, make any payment, admit any liability, settle any claims, assume any obligation or incur any expense without the written consent of the Company. 9 13

13 (8) OTHER INSURANCE The insurance provided by this policy shall apply excess of the Deductible stated in Item V of the Declarations and excess of any other valid and collectible insurance available to the Insured whether such other insurance is stated to be primary, pro rata, contributory, excess, contingent or otherwise, unless such insurance is written only as a specific excess insurance policy over the Limit of Liability of this policy. (9) POLICY TERRITORY This policy only applies to wrongful acts committed by, and suits brought against the Insured in Canada, its territories or possessions. (10) DISCOVERY If during the policy period the Insured first becomes aware of any negligent act, error, omission or breach of duty likely to give rise to a claim for which insurance is otherwise provided hereunder and, if the Insured, gives written notice which is received by the Company during the policy period then any claim subsequently arising out of such negligent act, error, omission or breach of duty shall be deemed to have been made on the date on which such written notice is received by the Company. Such written notice shall include: particulars sufficient to identify the Insured; the specific negligent act, error, omission or breach of duty; particulars of the damages that have or may reasonably be expected to result from such negligent act, error, omission or breach of duty; (d) the circumstances by which the Insured first became aware of such damages for any negligent act, error, omission or breach of duty; and (e) the Insured shall cooperate fully with the Company as provided in the Conditions of this policy, and any investigation conducted by the Company or it's representatives shall be subject to the terms set forth in this policy as though an actual claim had been made.

14 (11) EXTENDED REPORTING PERIOD If the Company shall cancel or refuse to renew this policy the Named Insured may elect, upon payment of an additional premium of seventy-five percent (75%) of the total annual premium, to a period of ninety (90) days following the effective date of such cancellation or refusal to renew in which to give written notice to the Company of claims made against the Insured during said ninety (90) day period for any wrongful act committed during the policy period or after the Retroactive Date stated in Item VI of the Declarations and which would otherwise be afforded coverage under this policy. The rights contained in this clause shall terminate, however, unless written notice of such election together with the additional premium due is received by the Company not later than ten (10) days after the effective date of cancellation or refusal to renew. Any Extended Reporting Period will not reinstate or increase the Limit of Liability or extend the policy period. Extended Reporting Period shall mean the period commencing on the effective date of cancellation or refusal to renew and continuing for a period of ninety (90) days thereafter. This clause shall not apply to any cancellation resulting from non-payment of premium. (12) SUBROGATION In the event of any payment under this policy, the Company shall be subrogated to all the Insured's rights of recovery therefore against any person or organization and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing to waive or prejudice such rights. (13) ASSIGNMENT The interest hereunder of any Insured is not assignable. If the Insured shall die or be adjudged incompetent, insolvent or bankrupt, this policy shall cover the Insured's legal representative as the Insured with respect to liability previously incurred and covered by this policy. (14) REIMBURSEMENT OF THE COMPANY If the Company has paid any amount in settlement or satisfaction of claims or judgments or claims expenses in excess of the applicable Limit of Liability or within the amount of the applicable Deductible, the Named Insured shall be liable to the Company for any and all such amounts and, upon demand, shall pay such amounts to the Company promptly. (15) ENTIRE CONTRACT By acceptance of this policy the Insured agrees that the statements in the Declarations and Application are his agreements and representations, that this policy is issued in reliance upon the truth of such representations and that this policy embodies all agreements existing between the Insured and the Company or any of its agents relating to this insurance

15 (16) AUDIT The Company may examine and audit the Named Insured's books and records at any time during the policy period and within three (3) years after the final termination of this policy, as far as they relate to the subject matter of this policy. (17) CHANGES Notice to any agent, broker or representative or knowledge possessed by any agent, broker, representative or any other person shall not effect a waiver or a change in any part of this policy or estop the Company from asserting any right under the terms of the policy; nor shall the terms of the policy be waived or changed, except by endorsements issued by an authorized representative to form a part of this policy. (18) NOTICE OF CANCELLATION This policy may be cancelled by the Named Insured by surrender thereof to the Company or any of its authorized agents or by mailing to the Company written notice stating when thereafter the cancellation shall be effective. This policy may be cancelled by the Company mailing to the Named Insured at the address shown in this policy written notice stating when not less than thirty (30) days thereafter such cancellation shall be effective. However, if the Named Insured has failed to pay a premium when due or has failed, after demand, to reimburse the Company such amounts as the Company had paid in settlement or satisfaction of claims or judgment or for claims expenses in excess of the applicable limit of the Company's liability or within the amount of the applicable Deductible, this policy may be cancelled by the Company by mailing a written notice of cancellation to the Named Insured at the address shown in this policy stating when not less than ten (10) days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the Named Insured or by the Company shall be equivalent to mailing. If the Named Insured cancels, the minimum earned premium or short rate cancellation of the annual premium, whichever is greater, will be charged to the Named Insured. If the Company cancels, the computed pro rata cancellation of the annual premium will be charged to the Named Insured. (19) CURRENCY CLAUSE All limits of insurance, premium and other amounts as expressed in this policy are in Canadian Currency, unless expressly indicated otherwise. (20) IRREVOCABLE AGENT 12 13

16 The Named Insured shall be deemed the sole and irrevocable agent of each and every Insured under this policy for the purpose of: giving instructions to or agreeing with the Company for alternations of the policy wording; making or receiving payments of premiums and adjustments of premiums; receiving from the Company notice of cancellation of coverage for any other Insured. In witness whereof, the Company has caused this policy to be signed by its president and secretary and counter-signed on the Declarations page by a duly authorized representative of the Company. President Secretary 13 13