CH.11-INTRO TO AUTO INSURANCE

Question 1

AUTO INSURANCE POLICIES PROVIDE COVERAGE FOR:

Answer 1

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

Question 2

Auto insurance provided by (diff in each province):

Answer 2

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

Question 3

Private Insurers

Answer 3

• 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

Question 4

Compulsory government Insuracne plans

Answer 4

• 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
  *

Question 5

No fault ins plans

Answer 5

• 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

Question 6

Application form (12)

Answer 6

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

Question 7

Application form: Info req

Answer 7

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

Question 8

Application Form: 1. Applicants full name and Addres

Answer 8

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

Question 9

Application Form: 2. Policy Period

Answer 9

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

Question 10

Application Form: 3. Particulars of described auto

Answer 10

• 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?

Question 11

Application form: 4. Driver info

Answer 11

• 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

Question 12

Application Form: 5.Prevoous accidenrs adn Insurance claims

Answer 12

• 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
    *

Question 13

Application Form: 6. History of convictions

Answer 13

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

Question 14

Aplication form: 7. Rating Information

Answer 14

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

Question 15

Application Form: 8. Insurance coverages applied for

Answer 15

• 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
  *

Question 16

Application Form: 9. Remarks

Answer 16

• space for applicant to give additional info

Question 17

Application Form: 10.Method of payment

Answer 17

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

Question 18

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

Answer 18

• 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)

Question 19

Apllication form: 11. Delcaration (pt.2)

How insurers verify truth of application

Answer 19

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

Question 20

Aplication form: 12. Report of broker/Agent

Answer 20

• 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

Question 21

Special notes: Applcaition pg.2

Answer 21

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

Question 22

Ontario Auto Policy (OAP1) Sect 1.1

Answer 22

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

Question 23

Certificate of auto insurance for renewals

Answer 23

• 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

Question 24

Types of coverage

Answer 24

Required (LAUD)

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

Optional:

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

Question 25

3RD PARTY LIABILITY

Answer 25

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

Question 26

Accident Benefits

Answer 26

* 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

Question 27

Uninsured auto

Answer 27

* 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

Question 28

Accident benefits coverage before and after June 2016

Answer 28

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

Question 29

Accident benefits coverage: Caregiver Benefit

Answer 29

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

Question 30

Accident benefits coverage: housekeeping and home maintenence expenses

Answer 30

* reimbursement for someone to take care of household responsibilities * $100/week

Question 31

Accident benefits coverage: Income Replacement Benefits (IRB)

Answer 31

* 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

Question 32

Accident benefits coverage: DEPENDENT CARE BENEFIT (ADD ON)

Answer 32

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

Question 33

Accident benefits coverage: death and funeral benefit (add on)

Answer 33

* 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

Question 34

Accident benefits coverage: indexation benefit

Answer 34

* to adjust benefit annually for inflaation * MUST BUY

Question 35

Accident benefits coverage: Tort deductible

Answer 35

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