Chapter 2 Quiz

Question 1

With respect to auto insurance, subrogation rights:

a) do not exist
b) may be limited/removed by provincial legislation
c) may be limited/removed by federal legislation
d) exist only if the insured gives written authorization to the insurer at the time a clam is paid

Answer 1

b) The right of subrogation can be removed/limited by legislation, as has been done in several provinces.

Question 2

Negligence means:

a) the omission to do something which a reasonable person would do, or doing something which a prudent and reasonable person would not do
b) burden/responsibility of proof
c) transfer of legal rights of someone whos debts or expenses have been paid
d) legal concept where insurer is responsible to pay TP claims even though the insured has breached a policy condition

Answer 2

a) Negligence

Question 3

When MVA involved vehicle and pedestrian, which of the following persons is presumed to be liable and must prove is not negligent (this does not apply in BC by Motor Vehicle statue)

a) claimant
b) pedestrian
c) motorist
d) third party

Answer 3

c) motorist

Question 4

Minimum TP Liability required by Autoplan is:

a) $50K
b) $150K
c) $250K
d) $200K

Answer 4

d) $200K

Question 5

If the insured drove his own auto into his own garage door, which of the following would be covered under TP Liability coverage of his auto policy:

a) only automobile
b) only garage door
c) neither
d) both

Answer 5

c) neither

Question 6

Precedent is:

a) judge made law
b) statute governing BC auto insurance
c) established by Lieutenant Governor
d) established by the Order in Council

Answer 6

a) judge made law

Question 7

Absolute liability implies that:

a) insurer must pay TP damaged up to minimum limits of the jurisdiction in question, even if the insured violated policy condition
b) insurer must pay TP damages regardless of amount involved
c) insurer must pay TP damages up to actual policy limits, even if insured violated policy condition
d) all liability claims resulting from MVA are settled on a 50/50 basis

Answer 7

a) insurer must pay TP damaged up to minimum limits of the jurisdiction in question, even if the insured violated policy condition

Question 8

Which of the following is not a true statement:

a) legal liability arises out of negligence
b) TP liability coverage provides protection not only for the insured but also for anyone who drivers/operates any part of auto with the insured’s consent
c) TP liability coverage provides protection only in cases where liability is imposed by law
d) when liability claim arises out of MVA between 2 autos, the onus of proof is upon the defendant

Answer 8

d) when liability claim arises out of MVA between 2 autos, the onus of proof is upon the defendant

Question 9

Burden of proof is:

a) denying that one was negligent
b) explaining to court that the other party was negligent
c) having to prove to court the other party was negligent
d) showing one’s ID at the bar

Answer 9

c) having to prove to court the other party was negligent

Question 10

The best defense for insurers against absolute liability claims is to:

a) hire good defence counsel
b) use defense of misrepresenation
c) ensure you prove onus probandi (he obligation to prove an assertion or allegation that one makes; the burden of proof.)
d) do research before binding coverage

Answer 10

d) do research before binding coverage

Question 11

Under the Limitation Act, time limit for filing auto claim is:

a) 1 year
b) 2 yrs
c) 3 yrs
d) unlimited time frame

Answer 11

b) 2 yrs

Question 12

Which province/territory has a dual system of auto insurance in which province covers BI claims while private insurers cover PD claims?

a) AB
b) NFLD
c) QE
d) NS

Answer 12

c) QE