Book 1 Study 6

Question 1

True or False : Priority of Payment for third party property damage in Newfoundland is $20,000.

Answer 1

True

Question 2

True or False : An insurer will under no circumstances pay more than the actual third party limits insured under a policy.

Answer 2

False

Question 3

True or False : The Absolute Liability Law safeguards the rights of third parties in auto accidents.

Answer 3

True

Question 4

True or False : If an insurer pays a third party claim under the provisions of the Absolute Liability Law, the insured is required to repay that amount to the insurer.

Answer 4

True.

Question 5

True or False : All Canadian jurisdictions require compulsory accident benefits automobile insurance.

Answer 5

False

Question 6

True or False : Highway Traffic or Motor Vehicle Act apply to accidents on private property.

Answer 6

False

Question 7

True or False : Liability for damages resulting from an auto accident can be appropriated in varying percentages among those involved.

Answer 7

True

Question 8

True or False : Automobile insurance is standard throughout Canada.

Answer 8

False

Question 9

True or False : When an insured is charged with a criminal offence arising out of an auto accident, an insurer will not be called upon to pay any claims,

Answer 9

False

Question 10

True or False : Onus of proof means burden of proof.

Answer 10

True.

Question 11

True or False : Negligence is measured against what a reasonable person would or would not do.

Answer 11

True

Question 12

True or False : Minimum limits refers to an amount of auto insurance that is compulsory.

Answer 12

True

Question 13

True or False : Under third party liability auto insurance anyone who drives the auto is afforded protection.

Answer 13

False.

Question 14

True or False : Motor vehicle liability insurance cards are proof that a person has insurance and when presented to a repair garage allow them to get started immediately with vehicle repairs.

Answer 14

False.

Question 15

True or False : When pedestrians are involved in accidents with motorists, the pedestrians are presumed not at fault unless the motorists can prove their own innocence except in Newfoundland.

Answer 15

True

Question 16

True or False : Bodily injury refers to claims resulting from libel or slander.

Answer 16

False

Question 17

True or False : Under the provisions of auto policy insured’s may choose to conduct their own defence in civil suits arising out of automobile accident.

Answer 17

False

Question 18

True or False : The carrying of adequate third party liability auto insurance is moral as well as legal responsibility.

Answer 18

True

Question 19

True or False : Defence costs for civil actions against an insured, arising out of an auto accident, are covered by the policy.

Answer 19

True

Question 20

True or False : Third party minimum limits for automobile insurance in Saskatchewan are $190,000.

Answer 20

False

Question 21

True or False : Quebec is the only province to introduce no-fault automobile insurance.

Answer 21

False

Question 22

True or False : One objective of no-fault insurance is to keep claims out of the courts.

Answer 22

False

Question 23

True or False : In Ontario all liability suits are prohibited.

Answer 23

False

Question 24

True or False : The threshold in Ontario determines when an insured may sue for property damage.

Answer 24

False

Question 25

True or False : Where no-fault insurance exists, high third party liability limits become less important.

Answer 25

False