5 - General Provisions, Definitions, and Exclusions Flashcards
What are the territorial limitations of an Owner’s Policy? How do they compare to the territorial limitations of coverage under basic Autoplan?
This provision specifies that the policy applies only while the automobile is being operated, used, stored, or parked within Canada, the USA, or upon a vessel plying between ports of those countries. There is no coverage if an automobile is used or stored in Mexico. Automobile insurance must be purchased from a Mexican insurer before crossing the border.
ICBC
Basic Autoplan and extension Third Party Liability and Own Damage coverage also cover losses occurring in Canada or the USA or on a vessel travelling between them.
Define “occupant” under the SPF 1.
The SPF 1 defines “occupant” as:
A person driving, being carried in or upon entering or getting onto or alighting from an automobile.
Define “occupant” under the Insurance (Vehicle) Regulation.
The ICBC Regulation defines “occupant” as a person operating or riding in a vehicle or camper and includes:
a) A person entering or alighting from a vehicle or camper: and
b) A person, other than a garage service operator, or an employee of a garage service operator, who is working, or whose dependant is working, in or on a vehicle or camper owned by that person.
Why is there no need under Autoplan for a specific exclusion to deny Third Party Liability coverage to an occupant or driver of a vehicle driven without consent?
This is because an insured person under Third Party Liability (Part 6) is deemed to be an individual who, with the consent of the owner or while a member of the owner’s household, operates the vehicle described in the owner’s certificate.
Why are garage personnel excluded from coverage under the SPF 1 and basic Autoplan?
Garage personnel require a Garage Policy to cover them when they are working on customers’ automobiles.
Describe four types of vehicle that are considered an automobile for the purpose of coverage under the SPF 1.
a) Described automobile. This is an automobile specifically described in the policy.
b) Newly acquired vehicle When an insured purchases an additional or replacement automobile, coverage is automatically extended to it, subject to certain conditions.
c) Temporary substitute vehicle. This is an automobile that is not owned by the insured or anyone living in the insured’s household, but that is being used as a temporary substitute for a described automobile that cannot be used because of its breakdown, repair, servicing, loss, destruction, or sale.
d) Borrowed automobile. Automobiles not owned by the insured, but driven by the insured or the insured’s spouse who lives with him or her, subject to certain conditions.
