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RIBO LEVEL 1 > CH.11-INTRO TO AUTO INSURANCE > Flashcards

CH.11-INTRO TO AUTO INSURANCE Flashcards

1
Q

AUTO INSURANCE POLICIES PROVIDE COVERAGE FOR:

A
  • 3RD PARTY LIABILITY
  • PERSONAL INJURY W/O REGARD TO FAULT (ACCIDENT BENEFITS)
  • LOSS/DAMAGE TO INSURED AUTO
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2
Q

Auto insurance provided by (diff in each province):

A
  1. Private insurers (inl facility associations)
  2. Compulsory gov insurance plans
  3. No fault ins plans
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3
Q

Private Insurers

A
  • AB,ON,Atl prov.
  • SPF. NO 1 STANDARD AUTO POLICY (OWNERS FORM)
  • Standard endorsement forms available to modify coverages
  • Facility associations: for ppl unable to qualify for coverage in regular market place
    • established in each prov
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4
Q

Compulsory government Insuracne plans

A
  • BC, SK, MB
  • coveage diff in each prov.
  • drivers ENTITLED to purchase min. limits so NO FACILITY ASSOCATIONS
  • compete w/ gov. ins plans for excess coverages
    *
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5
Q

No fault ins plans

A
  • plans are differen but purpose is the same- benefits for ppl injured in car accidents no matter who is at fault
    • pure no fault: no legal action against drivers
    • threshold no fault: in ON, must meet monetary threshold to take legal action against responsible person
    • Modified no fault: In SK, claimants can claim compesation for inury/death from OWN insurer
      • if amts not enough, can take action against responsible person
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6
Q

Application form (12)

A
  1. Applicant full name + address
  2. policy period (starts at time of app, ends 12:01am std time at insured addr)
  3. Particulars of described auto
  4. Driver info
  5. previous accidents
  6. History of convictions
  7. Rating Info
  8. Insurance Coverages applied for
  9. Remarks
  10. Method pmt
  11. Declaration of applicant
  12. report of broker/agent
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7
Q

Application form: Info req

A
  • need Owners form OAF 1 filled out fully
  • insures private pasenger + commercial vehicles
  • can insure more then 1 auto
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8
Q

Application Form: 1. Applicants full name and Addres

A
  • Insurer req driver history from prov licencing body
  • if being leased: Lessors full name adn Addr req
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9
Q

Application Form: 2. Policy Period

A
  • Coberages starts at time of applcaitoon
  • Coverage ends 12:01 std time at addr of insured
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10
Q

Application Form: 3. Particulars of described auto

A
  • model, year, make, trade name, body type, VIN, etc…
  • If owned or leased
  • purchase price (incl options, taxes, etc)
  • commuting distance to work, annual drivingdistances
  • if any car pooling
  • modifications
    • Non FACTORY INSTALLED ELECTONIC EQUIPMENT: LIMIT $1500
  • May req additional coverage if car:
    • being renred/leased
    • passengers for compentsqation, hauling a trailer, carrying explosives or radioactive materials
  • how many cars in houshold? how many drivers?
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11
Q

Application form: 4. Driver info

A
  • persons not named can use auto
    • Applicant must provide:
      • names of all drivers
      • approx % of use of auto
      • # years licenced
  • retiree discount: must sign declaration of retirement
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12
Q

Application Form: 5.Prevoous accidenrs adn Insurance claims

A
  • details of previous accidents and claims for last 6 years
    • incl if accident was in an employer auto
    • applies to all owned vehicles or operation/use pf any auto
      *
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13
Q

Application Form: 6. History of convictions

A

info req:

  • convictions history (3 years)
    • from impaired driving, failure to yield righ of way, etc even if no accident
  • Accident and claims history (6 years)
  • INCL:
    • accident caused by app.
    • caused by others having use of applicants auto
    • claims for other damage like fire, hail, theft
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14
Q

Aplication form: 7. Rating Information

A
  • this section for broker/company use
  • develops rating info from previous sections of application
  • will determine premium to be charged
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15
Q

Application Form: 8. Insurance coverages applied for

A
  • clients selects coverages req
  • selects limits and deductibles
  • total premium shown per vehicle
  • premium is estimated and subject to adjustmnet/conformation
  • details minimum premium charge in case of cancellation
    *
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16
Q

Application Form: 9. Remarks

A
  • space for applicant to give additional info
17
Q

Application Form: 10.Method of payment

A
  • type of payment plan
  • estimated policy premium
  • PST
  • interest
  • total estimated cost
18
Q

Application Form: 11. Declaration of applicant, penalty for false stmt

A
  • applicant sign signs confirm understands that drivers:
    • cannot have mental or health related disabilities that will interfere with driving
    • cannot be addicted to alcohol, drugs, that interferes with driving
    • must notify ministry if they become physically/emotionally disabled that will interfere with driving
  • cannot recover under policy if insured:
    • gives fake description of car insured
    • knowingly misrepresents risk/fails to disclose facts (i,e prev accidents, inteded use of car, etc…)
    • breaches policy term
    • commits fraud
    • wilfully makes false stmt in respect of a claim (tries to deceive insurer)
19
Q

Apllication form: 11. Delcaration (pt.2)

How insurers verify truth of application

A
  • 2 common sources:
    • Dept of motor vehicles, etc
    • applicants prev. insurer as disclosed on application
20
Q

Aplication form: 12. Report of broker/Agent

A
  • completed by broker/agent
  • indicates:
    • coverage bound
    • if new business to broker
    • type of liability card (temp/perm)
    • if applicant known to broker
    • how long broker has known principal driver
21
Q

Special notes: Applcaition pg.2

A

Note 1: explanation of modified/customized question in sect.3

  • i.e: engine modifications, paint change, non factory wheels/radios/cd player
  • may req special endorsement, more premium

Note 2: Explains retiree discount, such as qualifications and requirements

  • discount applies if main driver:
    • retired
    • age 65+ and receiving prension
    • no earned incme
    • not working
    • not employed in last 28 weeks of 52
    • not operating a business
22
Q

Ontario Auto Policy (OAP1) Sect 1.1

A
  • “policy is part of contract”
  • contract has 3 parts:
    • completed/signed app for insurance
    • certificate of auto insurance
    • policy
23
Q

Certificate of auto insurance for renewals

A
  • when policy renewed –> new cert of auto ins.
    • new inception/expiry date
  • if other terms change= varied terms basis
    • ins act req insurer gives notice to broker within 45 days before renewsl of terms
    • broker notifies insured within 30 days (otherwise will be held responsible)
    • not offering a renewal is also “cvaried terms basis”, broker must advise w/in 30 days
24
Q

Types of coverage

A

Required (LAUD)

  • 3rd party Liability
  • Accident benefits
  • Uninsured auto
  • Direct compensartion property damage ( DCPD)

Optional:

  • Increased liability
  • loss/damage to your auto
  • Other
25
Q

3RD PARTY LIABILITY

A
  • protects you when someone injusred/killed/property dmaged
  • pays defence costs to settle claims against you up to limit
  • MINIMUM IN ON $200,000
26
Q

Accident Benefits

A
  • coverss expenses not covered by OHIP regardless who is at fault
    • medical rehab
    • attendant care
    • catastrophic injuries
    • caregiver benefits
    • housekeeping/home maintenance
    • incoem replacement benefits
    • dependant care benefit (add on)
    • death and funeral benefits (add on)
    • indexation benefit- Must buy
    • tort deductible
27
Q

Uninsured auto

A
  • protects you + family if injured/killed by hit n run by uninsured motorist
  • covers dmaage to vehicle caused by identified , uninsured drivers
  • if someone else at fault, covers damage to YOUR vehicle, contents, equipment, incl loss of contents
28
Q

Accident benefits coverage before and after June 2016

A

Prior to June 2016:

Non catastrophic

  • medical and rehab: $50,000
  • Attendant care: $36,000

Catastrophic:

  • Medical and rehab: $1,000,000
  • attendant care: $1,000,000

After June 2016:

Non catastrophic:

  • medical and rehab and attendant care: $65,000 (reduced)

Catastrophic:

  • medical and rehad and attendant care:
  • $1,000,000
29
Q

Accident benefits coverage:

Caregiver Benefit

A
  • catastrophic only
  • mom covered
  • reimburesed to hire someone to care for dependants
  • 1st dependent:
    • $250/wk
  • addtional dependents
    • $50/week
30
Q

Accident benefits coverage:

housekeeping and home maintenence expenses

A
  • reimbursement for someone to take care of household responsibilities
  • $100/week
31
Q

Accident benefits coverage:

Income Replacement Benefits (IRB)

A
  • weekly income up to $400 1 week after accident
  • 70% of gross income up to $400/wk max
  • can inccrease to $600, $800, $1000 a week
32
Q

Accident benefits coverage:

DEPENDENT CARE BENEFIT (ADD ON)

A
  • reimbursement for additional expenses toc are for your dependents if employed and injured
  • 1st dependent
    • $75/week
  • additional dependents:
    • $25/week
33
Q

Accident benefits coverage:

death and funeral benefit (add on)

A
  • lump sum pmt to spouse/dependents
  • 2nd lump sum pmt for cost of funeral
  • $25,000 to spouse
  • $10,000 each dependent
  • up to $6000 for funeral
34
Q

Accident benefits coverage:

indexation benefit

A
  • to adjust benefit annually for inflaation
  • MUST BUY
35
Q

Accident benefits coverage:

Tort deductible

A
  • amt deducted for court awarded compensation for pain and suffering
  • $36,905.40 deductible (double chk for 2018)
36
Q
A

RIBO LEVEL 1 (18 decks)

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