Chap 3

Question 0

Absolute liability

Answer 0

A person injured or killed by your vehicle has a right to collect from your insurance company even if coverage is denied to you because you have violated the terms of your contract. (Absolute liability doctrine)

Question 1

What are the 3 legal levels of automobile insurances

Answer 1

1) federal level (criminal code, violation of premiums)
2) provincial level (highway traffic act + rate guidelines)
3) municipal level (parking and crosswalk)

Question 2

Negligence (auto insurance)

Answer 2

Third party liability covers damages or injuries to an innocent third party caused by your negligence

Question 3

Subrogation (auto insurance)

Answer 3

Ontario, Saskatchewan, Quebec and MB have no fault direct compensation for bodily injury which means that each person collects from their own insurance company and the victims insurance can not sue

Question 4

5 criteria on which premiums are determined (auto insurance)

Answer 4

1) probability of loss
2) particular risk
3) size of the deductible
4) amount of excess coverage
5) Tax on the premium

Question 5

Auto insurance/ premiums/ probability of loss/ 9

component

Answer 5

1) age/gender/marital status
2) driver training
3) number of years licenced
4) numbers of criteria
5) number of at fault accident
6) make and model of the car
7) location
8) vehicle use
9) number of operators

Question 6

What criterium can not be used to determine auto insurance premium in SK

Answer 6

Age, gender, location

Question 7

What 8 criterium can not be used to determine auto insurance premium in Ontario

Answer 7

1) credit history
2) bankruptcy
3) employment status
4) owning a credit card
5) time in current location
6) not at fault accident
7) owning or leasing
8) period without insurance

Question 8

What 7 criterium can not be used to determine auto insurance premium in NS

Answer 8

1) age/gender/marital status
2) age of the vehicle
3) previous coverage by the facility association
4) previous refusal of coverage
5) not at fault accident
6) late payments
7) auto insurance laps under 2 years

Question 9

What 9 criterium can not be used to determine auto insurance premium in Newfoundland and Labrador

Answer 9

1) age/gender/marital status
2) age of the vehicle
3) tide sealing (not having other policies with the company
4) being insured with the facility association
5) not at fault claims
6) minor damages without claims
7) non sufficient fund check
8) laps in coverage
9) another company refusing to insure

Question 10

Facilities association

Answer 10

Insurer of last resort that will provide insurance when no private insurers will

Question 11

What are the 7 sections of an auto insurance policy

Answer 11

Section 1: introduction
Section 2: what automobiles are covered
Section 3: third party liability
Section 4: accident benefit coverage
Section 5: uninsured or unidentified motorist
Section 6: direct compensation and property damage
Section 7: optional loss or damage coverage

Question 12

Auto insurance coverage section 1: introduction

Answer 12

Contains the declaration and spells out where the driver is covered and the driver’s responsibility (notify the insurer…)

Question 13

Auto insurance section 2: what automobiles are covered

Answer 13

• The automobile
• newly acquired automobile
• temporary substitute
• auto loss of use (optional)
• trailers
• rented or leased (optional)

Question 14

Auto insurance liability section 3: third party liability

Answer 14

Third party liability covers the insured when he or she is sued and found responsible for the loss or damage to the property of others and or bodily harm or death . Insurer will pay up to the insurance limit + court expenses

Question 15

Auto insurance section 4: accident benefit coverage

Answer 15

It is mandatory in all jurisdiction except Newfoundland and Labrador. Basic mandatory coverage includes the name insured, the driver passengers and pedestrians

Question 16

Auto insurance/ 11 possible coverage of accident benefit

Answer 16

1) income replacement
2) non earner benefit
3) care giver benefit
4) medical benefit
5) rehabilitation benefit
6) case manager service
7) attendant care benefit
8) educational expenses
9) death benefit
10) Funeral expenses
11) house keeping and home maintenance

Question 17

Auto insurance section 5: uninsured or unidentified motorist/ requirement for bodily injury

Answer 17

• the insured must notify the police within 24h

- must notify insurance within 30 days

Question 18

Motor vehicle accident claim fund

Answer 18

Provides statutory accident benefit if the victime does not have auto insurance coverage

Question 19

Auto insurance section 5: uninsured or unidentified motorist/ requirement for property damage

Answer 19

• Notify the insurance within 7 days
• Prevent further damages
• permit inspection
• no reparation without the insurer written concent

Question 20

Auto insurance section 6: direct compensation and property damages

Answer 20

Provides coverage to the owner for the loss or damage to the automobile and its content to the degree that the driver was not at fault in an accident involving at least one other automobile

Question 21

Automobile insurance: 5 possible loss or damage coverage

Answer 21

• specific perils
• comprehensive
• collision or upset
• all perils