Automobile Insurance (Multiple Choice) Flashcards
Understanding Auto Insurance via multiple choice questions.
Your client has just purchased a new snowmobile. To properly insure it you advise your client that you will:
a) Provide coverage by issuing an endorsement extending Liability on the Homeowner Policy.
b) Issue an “all risk” policy specifically designed to insure recreational vehicles.
c) Cover it on an OAP 1.
d) Advise the client that the Liability coverage under his current OAP 1 automatically extends to cover the snow vehicle if it is less than 4500 kilograms.
c) Cover it on an OAP 1.
Which of the following is not considered when rating a policy of automobile insurance?
a) Color of the car.
b) Claims history.
c) Use of the automobile.
d) Conviction history.
a) Color of the car.
With respect to past license experience, the insurer wants to know of any convictions in:
a) Six years.
b) Three years.
c) Four years.
d) Five years.
b) Three years.
With respect to past license experience, the insurer wants to know of any accidents the insured or any listed drivers have had within the last:
a) Six years.
b) Three years.
c) Four years.
d) Five years.
a) Six years.
Which one of the following is not part of the OAF 1: Ontario Application for Automobile Insurance Owner’s Form?
a) Financial and credit information relating to the applicant within the past 6 years.
b) Particulars of the described automobile.
c) Use of the vehicle.
d) Particulars of all accidents and claims of the applicant arising out of the operation of any automobile within the past 6 years.
a) Financial and credit information relating to the applicant within the past 6 years.
The automobile application asks about physical impairments of an operator. Which one would not likely be of any consequences?
a) Total deafness in one ear.
b) An artificial leg.
c) A heart condition.
d)A bad scar from a previous accident.
d) A bad scar from a previous accident.
The wording of the OAP 1 falls under:
a) Provincial jurisdiction.
b) Federal jurisdiction.
c) Either of the above depending on the specific province.
d) Neither, each individual insurance company devises their own automobile policy.
a) Provincial jurisdiction.
What is the minimum amount of Loss or Damage Coverages one is required by law to carry?
a) Collision and Comprehensive.
b) Collision.
c) Specified Perils.
d) There is no legal requirement to carry physical damage on your vehicle.
d) There is no legal requirement to carry physical damage on your vehicle.
What is the minimum amount of Liability coverage that must be carried in Ontario?
a) $500,000.
b) $200,000.
c) $300,000.
d) $100,000.
b) $200,000.
What coverage is also mandatory with the purchase of Liability?
a) DCPD.
b) Accident Benefits, Uninsured Automobile, and DCPD.
c) Only Liability is required.
d) Uninsured Motorist Coverage.
b) Accident Benefits, Uninsured Automobile, and DCPD.
The basic concept of no-fault insurance is:
a) To provide compensation for not at fault vehicular damage quickly under the insured’s own policy.
b) To provide greatly increased Accident Benefits.
c) To limit legal action for bodily injury to serious injuries which fall within a specified definition and have the courts determine who will be given back the right to sue.
d) All of the above.
d) All of the above.
The owner’s policy of insurance coverage on a specific automobile is:
a) Excess coverage.
b) Primary coverage.
c) Secondary coverage.
d) Optional coverage.
b) Primary coverage.
The verbal threshold in an Ontario Automobile Policy refers to:
a) Amounts scheduled under Accident Benefits the insured can receive if injured.
b) Judgements for pain and suffering resulting from death or permanent serious disfigurement or impairment of an important physical, mental or psychological function.
c) Amounts the insured can receive for future medical costs anticipated to be incurred.
d) The $1,000,000 minimum Liability limit in Ontario.
b) Judgements for pain and suffering resulting from death or permanent serious disfigurement or impairment of an important physical, mental or psychological function.
Which of the following is not included in the definition of “threshold”?
a) Permanent serious impairment of an important physical, mental, or psychological function.
b) Permanent, serious disfigurement.
c) Death of the injured person.
d) Two broken legs.
d) Two broken legs.
Which of the following statements is true about the Facility Association?
a) It is a non-profit organization.
b) It is designed to allow all insurers in Ontario to share the risk of insuring particularly bad drivers.
c) Certain companies are designated as “servicing carriers” and issue policies and pay claims on behalf of the Facility Association.
d) All of the above.
d) All of the above.
Which of the following does not have coverage restricted/claims denied, if the responsibilities of the insured are not met?
a) Using the automobile for any illegal trade or transportation.
b) Driving while impaired under the influence of alcohol or drugs.
c) Driving the automobile in a race or speed test.
d) Driving while not authorized by law to drive.
b) Driving while impaired under the influence of alcohol or drugs.
If an applicant makes a false statement on the auto application and it is discovered 60 days after the policy has been in force, the insurance company may:
a) Surcharge the policy with a lying surcharge.
b) Do nothing if the contestability period has expired.
c) Deny a claim that occurred prior to cancellation.
d) Cancel the policy by giving 15 days’ notice by registered mail or 5 days hand delivered.
d) Cancel the policy by giving 15 days’ notice by registered mail or 5 days hand delivered.
Which of the following would be covered under an Automobile policy?
a) Driving a rental vehicle in Greece.
b) Driving the automobile in Mexico.
c) Transporting the automobile from Vancouver (BC) to San Francisco by ship.
d) Transporting the automobile from Halifax (NS) to Lisbon (Portugal) by ship.
c) Transporting the automobile from Vancouver (BC) to San Francisco by ship.
The Ontario Automobile Policy will respond to cover a claim if:
a) The car is being used as a taxi.
b) The vehicle is used to occasionally carry children to or from school activities.
c) The vehicle is used in a race.
d) The vehicle is being driven by an excluded driver.
b) The vehicle is used to occasionally carry children to or from school activities.
Under the Statutory Condition “Time and Manner of Payment”, the insurer must make the required payment within:
a) 60 days after receipt of the proof of loss form.
b) 90 days after receipt of the proof of loss form.
c) 30 days after receipt of the proof of loss form.
d) 12 months after receipt of the proof of loss form.
a) 60 days after receipt of the proof of loss form.
Your client was on vacation in California. He drove across the border into Mexico and while there, he was involved in a hit and run accident for which he was not at fault. His vehicle sustained substantial damage. His policy has $1,000,000 Liability, Collision $500 deductible and Comprehensive $300 deductible. He calls you for advice.
a) He would be responsible for a $300 deductible and the claim would be paid out under Uninsured Automobile Coverage.
b) The claim would be paid under his Collision coverage subject to his $500 deductible.
c) He would not have to pay his deductible and the claim would be resolved as a Direct Compensation - Property Damage claim.
d) There is no protection under his policy as he has exceeded his territorial limits.
d) There is no protection under his policy as he has exceeded his territorial limits.
If a person has an OAP 1 and is killed while crossing the road in London, England the policy would pay his surviving spouse:
a) Nothing at all.
b) 90% of four years net wages (no less than $50,000 and no more than $100,000 per dependent).
c) $25,000 plus $10,000 per dependent.
d) $50,000.
a) Nothing at all.
An elderly insured calls you. He has sold his vehicle and will no longer drive. He wants to know what to do about his automobile insurance.
a) Advise him that since the OAP 1 is a government legislation he has to request cancellation from the provincial government.
b) Ask that he send in a signed cancellation request for a pro-rata refund.
c) Ask that he send in a signed cancellation request for a short rate refund.
d) Advise him that due to the car being sold the premium is considered fully earned and he will not get any kind of refund for early cancellation.
c) Ask that he send in a signed cancellation request for a short rate refund.
I use my six-passenger van to carry people into town to the office where we all work. Every two weeks, each of my five passengers pay me a fee of $30.00. How would it be covered by the OAP 1?
a) It is fully covered against whatever coverage was purchased.
b) Only when increased limits of liability are purchased.
c) For bodily injury to the kids only.
d) Such use is excluded unless a specific endorsement is purchased to remove the exclusion and allow carriage of passengers for compensation.
d) Such use is excluded unless a specific endorsement is purchased to remove the exclusion and allow carriage of passengers for compensation.
