Book 1 Study 7

Question 1

When a loss occurs

a) the agent of the insured must give notice.
b) only the insured can legally give notice.
c) any person to whom any part of the insurance money is payable may give notice.
d) the insurance agent and the agent of the insured are the same.

Answer 1

c) any person to whom any part of the insurance money is payable may give notice.

Question 2

In Quebec

a) the exact wording of the General Conditions is set out by legislation.
b) General Conditions do not apply to Auto insurance.
c) only the subject matter of the conditions is specified by legislation.
d) all of the above are false.

Answer 2

c) only the subject matter of the conditions is specified by legislation.

Question 3

The following damage is included under all perils coverage

a) vandalism of a vehicle.
b) rusting of the vehicle body.
c) radioactive contamination.
d) damage cause to the vehicle while the driver was under the influence of drugs.

Answer 3

a) vandalism of a vehicle.

Question 4

Accident benefits do NOT pay any expenses, arising out of an auto accident for

a) vehicle damage.
b) loss of wages.
c) dental work.
d) funerals.

Answer 4

a) vehicle damage.

Question 5

Which of the following is NOT covered under the specified perils section

a) pit marks in windshield from hail.
b) collision with a tree.
c) ferryboat sinking and taking auto with it.
d) damage to car roof as a result of overturn during a riot.

Answer 5

b) collision with a tree.

Question 6

Statutory Conditions

a) are made up of definitions, rules and regulations which govern auto.
b) are known as special condition in Alberta.
c) contain the exact words as specified in the Charter of Rights.
d) do not apply to extension policies.

Answer 6

a) are made up of definitions, rules and regulations which govern auto.

Question 7

An Auto policy

a) cannot be terminated in Quebec once it has been in effect.
b) terminated by the insurer can be achieved by giving notice by registered mail.
c) termination by the insured requires 15 days notice.
d) terminated by the insured is subject to a return premium on a pro-rated basis.

Answer 7

b) terminated by the insurer can be achieved by giving notice by registered mail.

Question 8

After being involved in an accident where injuries occurred, an insured must

a) contact a lawyer immediately.
b) comply with all requirements found in the policy.
c) try to settle amicably with the injured parties.
d) not do anything until he knows if there will be a claim.

Answer 8

b) comply with all requirements found in the policy.

Question 9

A proof of loss

a) may be orally given.
b) details a loss and the resulting claim.
c) has no time limit in which it must be submitted.
d) must be prepared by a lawyer.

Answer 9

b) details a loss and resulting claim.

Question 10

Tortfeasor is a:

a) claimant
b) wrongdoer
c) plaintiff
d) defendant

Answer 10

b) wrongdoer

Question 11

Salvage

a) belongs to the insurer when the claim has been paid and nothing can change that.
b) always belongs to the insured.
c) consists of the useless debris of a total loss.
d) disposition can be negotiated between the insured and the insurer.

Answer 11

d) disposition can be negotiated between the loss insured and the insurer.

Question 12

A deductible usually applies to

a) fire damage.
b) lightning damage.
c) stone damage to windshield.
d) electrical fire damage.

Answer 12

c) stone damage to windshield.

Question 13

Automobile insurance in Canada contains certain no-fault elements. Which coverage presently available in all provinces and territories has some no-fault features?

a) physical damage.
b) uninsured motorist.
c) third party liability.
d) accident benefits.

Answer 13

d) accident benefits

Question 14

The owner’s policy or insurance coverage on a specific automobile is

a) excess coverage.
b) primary coverage.
c) secondary coverage.
d) optional coverage.

Answer 14

b) primary coverage.

Question 15

Which statement is FALSE?

a) A newly acquired auto is automatically insured for a specified time period if it replaces another insured vehicle of similar type.
b) It is possible to insure more than one vehicle on the same policy.
c) An auto with a trailer attached is considered as one vehicle for purposes of accident benefits limits.
d) No coverage applies to temporary substitute vehicles.

Answer 15

d) No coverage applies to temporary substitute vehicles.

Question 16

When an insured’s vehicle is damaged in an accident, the insured must do certain things. One of these is

a) protect the vehicle from further damage.
b) decide if he wants the vehicle repaired or replaced.
c) get repairs under way as quickly as possible.
d) all of the above.

Answer 16

a) protect the vehicle from further damage.

Question 17

Which of these statements is TRUE? Uninsured motorist coverage

a) is not offered by all insurers.
b) is provided by the government in all jurisdictions.
c) is identical in all provinces.
d) will come into force only when the insured is not at fault.

Answer 17

d) will come into force only when the insured is not at fault.

Question 18

Under Third Party Liability coverage, insurers would NOT be liable under the Absolute Liability Law for bodily injury to a third party if the insured allows someone to drive

a) whose license is under suspension.
b) who is under the legal licensing age.
c) who has consistently failed driving tests.
d) who has misplaced their driver’s license.

Answer 18

d) who has misplaced their driver’s license.

Question 19

Which one of these statements is TRUE?

a) Coverage under an auto policy is excluded by endorsement if an all-terrain vehicle is used in the water.
b) All drivers of recreational vehicles must be licensed.
c) Recreational vehicles are not permitted to cross highways.
d) Motorized snow vehicles are automatically covered under an auto policy. No endorsements are needed at any time.

Answer 19

a) Coverage under an auto policy is excluded by endorsement if an all-terrain vehicle is used in the water.

Question 20

The family protection endorsement

a) provides coverage similar to that found under accident benefits.
b) replaces Highway Victims’ Indemnity Funds in certain provinces.
c) gives insured’s the same amount of protection if injured by a negligent motorist who has only minimum limits of coverage, as the insured’s own policy would provide if they are negligently injured by someone else.
d) provides medical protection for all family members injured in non-motor accidents.

Answer 20

c) gives insured’s the same amount of protection if injured by a negligent motorist who has only minimum limits of coverage, as the insured’s own policy would provide if they are negligently injured by someone else.