Chapter 2

Question 1

The wording of policy forms and endorsements forms are used to provide coverage is governed by each province and territories except ?

Answer 1

Saskatchewan

Question 2

name and explain the six policy’s forms that are approved for use in province and territories including Alberta ?

Answer 2

1. standard owner automobile policy- provides coverage for owners of vehicle that are used for commercial or personal.
2. standard driver automobile policy- provides coverage fro driver who are driving vehicle they do not own
3. standard garage automobile policy- provides certain type of automobile related businesses (generally referred to as garage, but could include dealership, repairs shop, parking operations, and so on
4. standard non owned automobile policy - provides non owned automobile insurance where there is responsibility for the use and operation of non owned vehicle
5. excess automobile policy- provides excess insurance for liability exposures.
6. lessors contingent automobile policy- provides contingent insurance for businesses that lease vehicle on a long term basis.
7. (Alberta only) |Transportation network policy- covers accidents that arise from the use or operation of the automobile as a transportation network automobile

Question 3

contingent insurance refers to a policy that is contingent on the absent of other insurance and does not apply if there is another policy providing coverage

Answer 3

contingent insurance refers to a policy that is contingent on the absent of other insurance and does not apply if there is another policy providing coverage

Question 4

Excess Insurance
insurance that does not participate until all other similar insurance on the same subject is exhausted, or until the loss exceeds a previously agree upon amount . where there are 2 policies on a risk and both contain a provision that they are “ excess to all other insurance “ the problem is resolved by the general guiding principles.

Answer 4

Excess Insurance
insurance that does not participate until all other similar insurance on the same subject is exhausted, or until the loss exceeds a previously agree upon amount . where there are 2 policies on a risk and both contain a provision that they are “ excess to all other insurance “ the problem is resolved by the general guiding principles.

Question 5

Who is covered under the Third party Liability coverage?

Answer 5

third party liability coverage under the owners policy covers the negligence arising from the actions of the following people that cause injury to a third party.

1. the named insured
2. anyone else who, with consent of the named insured, personally drives the insured automobile.
3. Anyone who, with consent, operates a part of the automobile, for example a door, a window.

Question 6

Who is covered under the Third party Liability coverage?

Answer 6

any or all the person describe as insureds are covered for the legal liability, imposed on them by law, arising out of the ownership , use, or operation of the automobile and resulting in bodily injury to or death of any persons or damage property.

Question 7

What is not covered under the Third party Liability coverage?

Answer 7

Third party liability coverage has certain exclusions, which may vary across jurisdictions. they exist to ensure that claims are not paid that were never intended to be covered and for which no allowance was made in the premium calculations. damage to property carried in or on the automobile is not usually covered, except in Quebec and Ontario, nor is damage to property owned or rented by the insured or in the care, custody, or control of the insured because there are other ways of insuring such property.

Question 8

Accident Benefits?

Answer 8

The accident benefits section of the automobile insurance provides coverage without reference to fault and is commonly refereed to as no-fault coverage. accident benefits coverage were originally designed to provide insured persons with nominal amount of insurance should they be injured or killed in automobile accident, regardless of who was at fault for the accident. in provinces where the right to sue has been removed or restricted, accident benefits have been greatly enhanced as they may be all that is available to an injured person.

Question 9

who is considered an insured person under the section of the owners policy?

Answer 9

1. The named insured
2. The named insured’s spouse
3. Dependents of the named insured/ spouse
4. Any driver named in the policy
5. Any person who is involved in an accident with the insured automobile

Question 10

Accident benefits cover expenses arising out of bodily injury or death, not for property damages, and the injury or death must be as a direct result of an accident involving the use or operation of an automobile

Answer 10

Accident benefits cover expenses arising out of bodily injury or death, not for property damages, and the injury or death must be as a direct result of an accident involving the use or operation of an automobile

Question 11

All provinces, excepts Alberta and Newfoundland and Labrador, have passed legislation that prohibits or severely limits liability lawsuits against third parties for injuries arising out of automobile accident caused by negligence.

Answer 11

All provinces, excepts Alberta and Newfoundland and Labrador, have passed legislation that prohibits or severely limits liability lawsuits against third parties for injuries arising out of automobile accident caused by negligence.

Question 12

What are the provincial Variations in Quebec and Manitoba?

Answer 12

in Quebec and Manitoba, injured persons or their dependents may not sue a liable third party no matter how serious the injury or even if death occurs. They will be reimbursed according to the schedule of benefits provided by the government accident benefits plan. higher limits are available from private insures for additional premiums if insureds want to purchase them.

Question 13

What is the Threshold for lawsuits in Ontario ?

Answer 13

Ontario’s non fault plan features a verbal threshold. the threshold denotes the degree of injury that must be sustained to allow a civil action against the at-fault motorist for non-pecuniary (non-economic) loss. the original definition of threshold has been modified since it was set up lawsuits are also permitted for pecuniary (economic) loss subject to special rules and certain restrictions.

Question 14

Explain the choice in benefits in Saskatchewan?

Answer 14

Saskatchewan is the only province that offers insureds the choice of either tort or no fault benefits. The tort option provides a lower level of defined benefits regardless of fault and in addition, provides access to the courts to for actual financial losses above the level of defined benefits and for non-economic losses, including pain and suffering.

Question 15

Briefly explain what is Direct compensation- property damage coverage (DCPD0) ?

Answer 15

Direct compensation- property damage coverage allows insured drivers to be compensated by their own insurer for property damage resulting from an automobile collision caused by another party. working with their own insurer allows drivers involved in automobile collision to complete the claims process more efficiently and obtain appropriate compensation quickly.

Question 16

what are the four coverage available?

Answer 16

1. All perils
2. collision or upset
3. comprehensive
4. special perils

Question 17

Describe All perils?

Answer 17

this is the broadest coverage. it combines and broadens the protection provided by the other three coverage named. if this coverage is selected, none of the others are required.

Question 18

Describe Collision and upset?

Answer 18

this coverage protects the insured against damages to the vehicle caused by colliding with another object or tipping over.

Question 19

Comprehensive coverage?

Answer 19

This coverage protects the insured vehicle against any perils other than collision or upset.it is usually sold in combination with collision coverage. It gives broader protection than specified perils in that if the loss is not specifically excluded by the policy, it is payable under the comprehensive coverage. for example, comprehensive provides windshield and vandalism cover whereas specified perils does not. it should be noted that collision with an animal is usually covered under the comprehensive section rather than the collision section.

Question 20

What is covered under specified perils coverage?

Answer 20

This coverage names the perils insured against. as with comprehensive coverage, it is usually sold in combination with collision coverage but may be purchased separate.

1. fire
2. Lightning
3. Theft and attempted theft
4. windstorm
5. earthquake
6. Hail
7. Explosion
8. Riot or civil commotion
9. Falling or force landing of aircraft or parts thereof
10. Rising water
11. Stranding sinking, burning, derailment or collision of any conveyance in or upon which the automobile is being transported on land or water.

Question 21

Deductibles?

Answer 21

A deductible is an agreed specified amount that the insured must pay on a claim before the insurance company will cover the rest of the claim. This amount is agreed upon by both the insurer and the insured. An insureds obligation to pay a deductible is not based on whether he or she is at fault.

Question 22

Exclusions?

Answer 22

1. The type of damage usually associated with the general wear and tear or lack of maintenance of a vehicle.
2. Damage caused by theft of the vehicle by any person who is in lawful possession of the automobile under a mortgage or conditional sale or lease.
3. Damage caused by the voluntary parting with title of ownership, whether or not induced to do so by any fraudulent scheme, tricks or false pretend
4. Damage directly or indirectly caused by contamination by radioactive material. because of possible scope of such damage, it is not covered under normal insurance policies
5. Damage to contents of trailers or to personal effects, such as clothing, blankets or other similar items.
6. Damage to media and equipment for use with sound systems installed in vehicle when they are detached from the system
7. The insurer is not liable for any damage to insured automobile when the insured drives or operates it while under the influence of intoxicating liquor or drugs to such an extent as to be incapable of the proper control of the automobile.
8. loss or damage caused by theft by any person or persons living in the same dwelling premises as the insured or by any employee of the insured engaged in operation or maintenance of the automobile.

Question 23

Additional Agreement ?

Answer 23

1. Customs duties for replacement parts if the described automobile needs to be repaired while the insured is visiting the USA
2. cost to repair damages that the insured cause to automobiles that the insured may be using while the described automobile is unavailable because of it breaking down or being in the shop for repair.
3. Cost paid for replacement transportation if the described automobile has been stolen.

Question 24

Highway Victims Indemnity funds?

Answer 24

In Canada, all jurisdictions except the territories and the Atlantic provinces have government funded highway victims indemnity funds plans also called unsatisfied judgment funds. in the Atlantic provinces like New Brunswick, New Newfoundland and Labrador, prince Edwards Island and Nova Scotia funding comes from the facility association. the exact name of the plan varies depending on the province.
In many Canadian jurisdictions, the coverage originally provided by highway victims indemnity funds is now included under the standard automobile owners policy’s as part of the uninsured motorist coverage.

Question 25

Uninsured Motorist Coverage?

Answer 25

Uninsured motorist coverage is designed to provide indemnity for bodily injury caused by the negligence of such uninsured motorist and has the ultimate effect of putting the insured in the position of there being highway victims indemnity fund. The insured must be legally entitled to recover from the uninsured or unidentified motorist, these terms are defined in the policy or regulations.

Question 26

Underinsured motorist?

Answer 26

this coverage is known as underinsured motorist protection or underinsured motorist coverage in some province and the family protection endorsement in others. it may be used to provide additional benefits to the named insured and other insured persons, as defined in the policy, who have claim against at fault motorist for injuries or death, if the other motorists has insufficient insurance to pay the claim or is uninsured.