B LAW402 Lecture Notes - Transportation Safety Board Of Canada, Liability Insurance, Bc Transit

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Several bc transit bus drivers are accused of sexually assaulting a young girl. Driver"s homeowner"s policy covers him for liability for bodily injury caused by his actions, except for those caused by intentional or criminal actions. It is the obligation of an insurer to defend a policy holder in a legal action where the policy holder may become liable as the result of the action. It only comes into existence where the insurer has agreed to provide coverage for the liability involved in that case. Example, you have insurance and are involved in a car accident that was caused by your negligence. You injure another person and that person sues you. Your insurance company has the duty to defend you as they provide plpd (public. Liability and property damage) insurance that would be available to be paid to this third party if you are liable, and cover your liability. The duty to indemnify arises only where liability has been proven.

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