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OTL Insurance > Auto 1, 2, 3 > Flashcards

Auto 1, 2, 3 Flashcards

1
Q

True or false an automobile applicant must be signed before the policy can be issued

A

False

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2
Q

Does the agent or broker need to sign the automobile application

A

No

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3
Q

What is the correct term when an insurance company must pay when innocent third parties suffer a loss, even when the insured has breached their obligations under the statutory conditions

A

Absolute liability

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4
Q

What optional coverage is only available under section 7 loss or damage

A

Accident Benefits

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5
Q

When misrepresentation occurs, which coverage will insureds still have access to

A

Accident Benefits

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6
Q

Are changes to coverage valid if an underwriter issues the policy in a way that is different than requested on the automobile application

A

Yes, if the change is clearly marked and the insured does not object within 7 days

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7
Q

Which document is approved by the superintendent of insurance and contains the information to underwrite an automobile policy in Ontario

A

OAF 1

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8
Q

Damage to property belonging to a third party that the insured has cause would be covered under what

A

Liability coverage

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9
Q

What impact does absolute liability have on the insured

A

The insured is responsible to pay back the amounts paid out by the insurer

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10
Q

How are damages for lost income calculated

A

70% of the gross income

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11
Q

What specific policy is the automobile policy not meant to cover

A

Nuclear hazards

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12
Q

Is liability needed when the other vehicles policy does not have DCPD

A

Yes

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13
Q

For liability, all jurisdictions require a certain portion of the policy limit to be reserved for bodily injury claims and a different amount to be reserved for property damage. What is this known as

A

Priority of payments

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14
Q

Insureds may not receive a non earner benefit if they are recieveing the following benefits

A

Income replacement benefit

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15
Q

Under additional agreements of insurer what legal costs is the insurer responsibility for paying in the event of an automobile accident

A

The insurer pays for the cost to defend the insured

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16
Q

What are some of the optional expenses available under accident benefits

A

Housekeeping, education expenses, and cost of examination

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17
Q

What does the definition of an insured person extend to include under accident benefits in Ontario

A

Any occupant of the insured automobile for accidents anywhere in Canada

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18
Q

What is the purpose of the minor injury guideline

A

List the minor injuries that will not be covered under accident benefits

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19
Q

Which accident benefits coverages are not available when a driver has an accident while under the influence of drugs or alcohol

A

Income replacement and non earner benefits

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20
Q

What is the total amount the standard death benefit would pay out to the wife and four children when the husband/ father dies as a result of injuries sustained in an automobile accident

A

65,000

25,000 for the wife and 10,000 for each dependant

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21
Q

What were the changes made to the statutory accident benefits SABS coverage in 2016

A

Provide the option for an insured to purchase limits of additional accident benefits coverage

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22
Q

What are collateral benefits

A

Entitlements outside of the automobile insurance policy

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23
Q

What are benefits for services provided by an aide or those provided in a long term care facility known as

A

Attendant care

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24
Q

What is proximate cause

A

Immediate and effective cause of loss

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25
Q

A high risk industrial operation is an example of what type of risk

A

Special risk

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26
Q

What condition must be met for guaranteed replacement cost to be applied in the event of a claim

A

The insured must have notified the insurer within 90 days of starting work if any improvement has been made to the building

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27
Q

Which of the following perils is covered under an extended coverage endorsement (home)

Riot
Flood
Vandalism
Earthquake

A

Riot

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28
Q

True or false it is the responsibility of the broker or agent to advise the insurer of business written and submit applications promptly

A

True

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29
Q

What is the document that confirms thay a contract of insurance has been agreed upon

A

Interim receipt

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30
Q

What is the main purpose of the application process

A

Provide information relating to the subject matter of insurance

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31
Q

What type of adjuster is appointed by the insurer to assist in the settlement of a claim

A

Independent adjuster

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32
Q

Under the comprehensive homeowners policy what does inflation coverage extension do

A

Increases the amount of coverage on a policy renewal

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33
Q

Which of the following items are not restricted by a special limit

Jewellery
Theft or freezer food
Coin collection
Computer software

A

Theft of freezer food

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34
Q

Actual cash value of an item is best described as

A

Fair market value

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35
Q

Which of the following is true with regards to an all risks policy

Its often subject to many exclusions
It is the same as the basic Fire policy but with EC endorsement

A

Its often subject to many exclusions

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36
Q

On a comprehensive homeowners policy which of the following is NOT a specified peril

Sudden water damage
Theft
Explosion
Smoke

A

Theft

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37
Q

Statutory conditions do not deal with

Salvage
Right of access to premises after a loss
Change of title of insured property
Premium

A

Premium

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38
Q

An insureds all risk home policy has a special limit of 2000$ on jewellery for losses not caused by a specified peril. During a fire the insureds house and their unscheduled jewellery is worth 15,000$ is damaged. How much will the insured be indemnified for the loss of the jewellery

A

Full amount of jewellery

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39
Q

Which of the following limits does NOT appear on a commercial general liability policy

Aggregate limit
Each occurence limit
Personal injury limit
Special limit

A

Special limit

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40
Q

Under a comprehensive homeowners policy, special limits of insurance apply to jewellery and coin collection for ___________ lossess

A

Theft

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41
Q

The insureds dining furniture was badly damaged when a fire broke out. The claim was settled by paying an amount equal to the replacement cost minus physical depreciation. This illustrates the application of

A

Actual cash value

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42
Q

Commercial property floater covers

A

All risk policy that includes theft insurance and covers property at specified premises of the insured newly acquired property and while in transit within CA and US. It covers stock, equipment and tenant improvements and virtually any contents that may move along locations.

DOES NOT COVER THE BUILDING NEED COMMERCIAL BUILDING FORM FOR THIS

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43
Q

Glass insurance covers

A

Breakage from everything except fire, war and nuclear damage

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44
Q

Insurance to protect against the destructive effects of power that is accidentally liberated has traditionally been known as

A

Boiler and Machinery insurance

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45
Q

A form of insurance policy covering the extra expense of an insured in carrying on a business following a loss by an insured peril

A

Extra expense insurance/ form

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46
Q

Which of the following is not covered under glass insurance

Scratching and defacement
Fire
Repairing damaged window sashes

A

Fire

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47
Q

Glass coverage covers against breakage from any cause except

A

Fire, war and nuclear damage

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48
Q

For glass insurance some additional damage such as ___________ and ______________ may be covered for an additional premium

A

Scratching and defacement

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49
Q

ABC company manufactures paper, fire damage destroyed all their paper products. What inherent hazard is associated with paper products

A

Damagability

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50
Q

_____________ includes furniture, fittings, fixtures, machinery, tools, utensils, appliances and generally contents of every description except stock

A

Equipment

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51
Q

The minimum coverage that must be provided on a fire policy are

A

Fire, lightning and limited explosion

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52
Q

Which of the following underwriting factors is unique to a tenant policy application

A) the location of the dwelling
B) the applicants claims history
C) how the building was constructed
D) the amount of personal property insurance required

A

D

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53
Q

Loss assessment condo coverage could occur for reasons such as the following

A

1) uninsured
2) application of a penalty under coinsurance clause
3) the cause of loss is not an insured peril or is specifically excluded under the building policy
4) breach of a policy condition by the condo corp

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54
Q

Many seasonal dwelling policies do not include ______________ or ___________ and ________________ and ____________ insurance but they can be added for additional premium

A

Burglary, vandalism and malicious acts and glass insurance

55
Q

For coverage of outbuildings that are part of a seasonal dwelling the limit on these other structures is usually ____________________

A

A percentage of the amount of insurance on the building

56
Q

Under the commercial building, equipment and stock form fittings, fixtures and tools would be classified as what

A

Equipment

57
Q

Income replacement insurance replaces

A

Income lost due to an interruption

58
Q

In a commercial general liability policy The maximum total amount that will be paid out in actual claims during a policy year is called

A

Aggregate limit

59
Q

What document is approved by the superintendent of insurance and contains the information to underwrite, rate and issue an automobile policy in Ontario

A

OAF 1

60
Q

What info is required under the driver information section of the automobile application

A

Names of all drivers in the household.

61
Q

What is the insurers responsibility for paying for legal costs in the event of an automobile accident

A

The insurer pays the cost to defend the insured - the insurer agrees to pay court costs and post judgement interest assessed against the insured

62
Q

Under which act is negligence defined

A

Highway traffic act

63
Q

Accident benefit coverage provides

A

Immediate financial assistance without regard to fault for those injured in an automobile accident

64
Q

What does the acronym SABS stand for

A

Statutory Accident Benefits Schedule

65
Q

Established in 1994 __________ __________ benefits schedule gave increased and wide ranging benefits and included death, serious disfigurement or impairment of physical, mental or psychological function

A

Statutory Accident Benefits Schedule

66
Q

With regards to contract law a “meeting of the minds” is necessary to fulfill the element of

A

Agreement

67
Q

Extended coverage covers losses resulting from

A

Explosion, falling object, impact by aircraft of land vehicle, lightning damage to electrical appliances, riot, water escape, rupture, freezing, smoke, vandalism or malicious acts, windstorm and hail

68
Q

Under repair or replacement the insurer may instead of making a cash settlement repair or replace the auto providing he notifies the insured within

A

7 days after receipt of proof of loss

69
Q

If third party is unidentified the accident must be reported to the police within _____ hours or as soon as possible. The insured must give____________ statement within _________ setting out details of the accident

A

24 hours and written notice 30 days

70
Q

When the 3rd party is uninsured the insured must give the insurer __________ _________ within ______ _____

A

Written notice within 30 days

71
Q

When the 3rd party is either uninsured or unidentified within ___ ____ or if unable as soon as practicle after that the insured must provide as much evidence as possible in support of the claim

A

90 days

72
Q

To a driver who knew or ought to have known that he was operating an uninsured auto the insurer is not required to pay

A

Income replacement benefits
Death or funeral benefits
Attendant care benefits

73
Q

The maximum total amount that will be paid out in actual claims during a policy year is called

A

Aggregate limit

74
Q

A sum of money to which a plaintiff is entitled that makes amends for an actual loss sustained and nothing more

A

Compensatory damages

75
Q

Liability insurance promises to pay on behalf of the insured those sums

A

For which the insured is legally liable, subject to the policy limits

76
Q

Bond executed on behalf of a person appointed by a court to a position of trust that guarantees the performance of statutory duties and proper accounting. Example would be executors of estates, trustee in bankruptcy and guardians of minors

A

Fiduciary bonds

77
Q

Bond that guarantees that the successful bidder of a project will enter into the contract under the bidding terms. The purpose is to make sure that bids are made in good faith and the contractor whose bid is accepted will accept the construction contract as bid

A

Bid bond

78
Q

Special limits apply to other types of personal property that could involve considerable values such as ______________ these limits apply to losses caused by all risks

A

Garden tractors, watercraft, computer software, and spare automobile parts

79
Q

This type of risk encompasses the chance of loss arising from a persons own bodily injury loss of life or loss of income

A

Personal risk

80
Q

What happens to the premium paid on a policy when the policy is made

A

The entire premium is returned to the insured

81
Q

If the insured cancels or terminates the policy what happens to the premium

A

The insurer will retain premium calculated on a short rate basis

82
Q

What is an advantage of using a written applcation

A

Eliminates misrepresentation and supports insurable interest

83
Q

What does the defence, settlement, supplementary payments policy for

A

Defending insureds against any claims insured under coverage E alleging bodily injury or property damage and seeking compensatory damages even if such claims are groundless false or fraudulent

84
Q

Under voluntary medical payments coverage F the policy will pay reasonable medical expenses incurred within _____ ______ of the date of the accident

A

One year

85
Q

Voluntary medical payments coverage F is available if

A

The insured unintentionally injures another person or if the person is accidentally injured on the insured premises

86
Q

Tenants policies usually have

A

A deductible

87
Q

Tenants policies usually have

A

A deductible

88
Q

Regarding coverage for non owned autos the policy covers other automobiles not owned by the insured but driven by

A

The insured or the insureds spouse who lives with him or her

89
Q

If the insurer recieved proof of loss and chooses not to repair rebuild or replace the damages automobile the insurer must pay the claim within how many days

A

60 days

90
Q

A high risk industrial operation is an example of what type of risk

A

Special risk

91
Q

Which of the following statements describes the term consideration as an element of a contract

The ability to form an agreement

A service to be determined sometime in the future

Evidence that the parties intend to be bound by the agreement

A

3

92
Q

The subject matter of the insurance, the perils insured against, the exclusions and the circumstances under which the insured may receive the proceeds of the insurance are what part of the policy

A

Insuring agreements

93
Q

Under what circumstances would a broker be required to disclose information about an insureds business affairs

A

What a request is required by a court of law

94
Q

Which of the following perils is covered under the extended coverage endorsement

Riot
Flood
Vandalism
Earthquake

A

Riot

95
Q

This clause requires that the insured in the event of a loss do whatever is reasonably necessary to protect or recover the insured property the insurer will cover expenses. Examples include: covering up exposed property with a tarp, shutting off building services, hiring a plumber to repair broken pipes

A

Sue and Labour

96
Q

In the tenants policy under the personal property insurance limit (often 500$) may be applied to pay for damage not including __________ damage but to the dwelling directly caused by ___________ and to the interior of the dwelling directly caused by ____________

A

Fire damage
Theft or attempted theft
Vandalism and and malicious mischief

97
Q

How is the condo unit policy similar to a homeowners policy

A

Coverage on contents is subject to similar limitations and exclusions

98
Q

What is the insurers obligation when it incorrectly classifies am automobile risk under an approved rating system

A

Make the correction and if there is an overpayment the insurer must refund it WITH INTEREST

99
Q

The following are typical personal liability coverage limitations under a homeowners policy

A

Watercarft
Motorized vehicles
Trailers
Business and business property

100
Q

Under the personal liability coverage there is no coverage for claims arising under the policy for any watercraft or motorized vehicle used for the following

A

Carrying passengers for compensation
Business purposes
Racing
Rental

101
Q

Tenants legal liability is legal liability for property damage to premises or their contents that insureds are using, renting, or have in their custody or control caused by

A

Fire, explosion, water escape or smoke - not smoke from a fireplace though

102
Q

This is an unincorporated association of insurers, and provides automobile insurance to owners and operators of motor vehicles who may otherwise have difficulty obtaining insurance through the voluntary market

A

The facility association

103
Q

The association through its rules of operation maintains the following manuals

A
  1. Accounting and statistical manual
  2. Manual of rules and rates
  3. Claims guide
  4. Rick sharing poll procedures manual
104
Q

A _____ _____ is the measurement of an insurers exposure. Example a single policy providing coverage on 3 automobiles for a six month term would be 1.5 _____ _______

A

Car year

Car years

105
Q

The structure of FSCO financial services commission of ontario comprises 3 elements

A

The commission or board
The financial services tribunal
Superintendent of financial services

106
Q

The commission or board has 5 members

A

The chair, two vice chairs, the director of arbitrations and the superintendent of financial services

107
Q

The director of arbitrations is responsible for

A

The automobile insurance dispute resolution system

108
Q

The financial services tribunal is an independent body that

A

Hears appeals of regulatory decisions and reviews proposed orders of the superintendent

109
Q

Coverage under the personal articles endorsement is an

A

All risks coverage on specific classes of property of a personal nature

110
Q

Rating for a commerical property floater includes a loading because

A

An additional amount is needed to cover more perils

111
Q

Major consideration when underwritting and rating a contractors equipment floater is

A

How the equipment will be used

112
Q

In addition to the limit of liability on the automobile policy the insurer agrees to pay which of the following additional costs under the third party liability coverahe

A

Interests on the insureds portion of a court judgement

113
Q

___________ is not covered in specified perils auto

A

Vandalism

114
Q

Some losses not covered by specified perils under own damage are

A

Vandalism, malicious mischief, glass breakage or impact with an animal

115
Q

Theft of the insured vehicle as a result of _______ or _______ are excluded under the own damage coverage

A

Fraud or trickery

116
Q

Loss of income is an example of what type of risk

A

Personal risk

117
Q

Payment within _____ days of reciept of proof of loss and if appraisal requested ______ days after recipet of appraisal

A

60 days

15 days

118
Q

Bill 164 1994 introduced

A

Statutory accident benefits
Amended the threshold to allow suits for death or serious disfigurement or serious impairment of an important physical, mental or psychological function 10,000 $ deductible was applied to amount of damages recoverable

119
Q

Bill 198 2003 with regards to threshold

A

A 30,000$ deductible applies to lawsuits for pain and suffering

120
Q

Bill 198 threshold revised to allow suits on grounds of

A

Death permanent serious disfigurement or permanent serious impairment of an important physical mental or psychological function

121
Q

With respect to boat insurance a full average clause

A

Relates an insurers share of loss to the adequacy of the amount of insurance

122
Q

Liability coverage for automobile for a driver who does not have an automobile but requires coverage for other automobiles. Or if unsure the car is insured

A

Drivers policy

123
Q

Special programs available to ensure insurance availability for less desirable and more hazardous risks are sometimes referred to as

A

Residual markets

124
Q

In defending the insured the liability policy includes payment of

A

Reasonable expenses, including loss of earnings up to 100$ a day, which the insured incurs at the request of the insurer

125
Q

Rating on a commercial property floater includes loading because

A

An additional amount is needed to cover more perils

126
Q

It is important to encourage insureds to carry adequate amounts of insurance because

A

Rates are based on the assumption the total values are insured

127
Q

On which part an insurance policy states the rules for when an insurer may cancel the policy

A

Statutory conditions

128
Q

If an applicant makes a false statement that is considered to be material on an application, the insurer can

A

Cancel the policy

129
Q

The family boxer is worth 1500$ is the dog covered in each of the following situations

A. Run over by a car
B. Killed in a house fire

A

A. No Because impact with a land vehicle is excluded

B. Yes. To the maximum of 500$ because fire is a specified peril and a covered loss

130
Q

How does the comprehensive homeowners form provide insurance coverage

A

Determines the amount of certain coverages based on the amount of coverage on the building

131
Q

One of the major changes with the introduction of bill 198 was the right to recover from a responsible third party for

A

Medical expenses

132
Q

Under requirements after loss (own damage) the insured must deliver a proof of loss to the insurer within

A

90 days after the date of the loss

133
Q

A premium adjustment clause in the commercial building, equipment and stock form is intended to be used by

A

A retail business where the amount of stock held by the firm is likely to change periodically through the term

134
Q

The period of time within which a claim may be brought about by a policy holder is known as

A

Prescription period

OTL Insurance (17 decks)

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