Chapter 3 Flashcards
What are two sources of automobile insurance in Canada?
i) Private Insurers
ii) Government Insurers
What do the following abbreviations mean? S.P.F. / S.E.F.
i) S.P.F. – Standard Policy Form
ii) S.E.F. – Standard Endorsement Form
Which three common law provinces currently have government automobile schemes?
i) British Columbia
ii) Saskatchewan
iii) Manitoba
Identify the minimum amount of third party liability insurance required in common law provinces.
Answer: $200,000
S.E.F. No. 44 Family Protection Endorsement provides valuable coverage for insureds. When will this endorsement respond to bodily injury losses of insureds.
This endorsement will respond when insureds are injured or killed by an underinsured motorist or uninsured motorist
Indicate how coverage amounts are determined using this endorsement.
SEF No. 44 Family Protection Endorsement
The S.E.F. No. 44 Family Protection Endorsement will provide the difference between the insured’s Third Party Liability limit and Third Party Liability limit of the at fault driver.
Your insured has $1,000,000 TPL coverage with the S.E.F. No. 44 Family Protection Endorsement. She is injured by an underinsured driver who only carries $200,000 in TPL coverage. Your insured successfully sues the responsible party and receives a judgment in the amount of $1,000,000. Indicate amounts paid by the following policies.
i) Responsible driver’s policy - $200,000
ii) Insured’s policy - $800,000
Accident Benefits are paid to injured parties on a no-fault basis. What does that mean?
Accident Benefits are available regardless of who is at fault.
What coverage options are available to insureds when they wish to insure their own automobile?
i) All Perils
ii) Collision or Upset
iii) Comprehensive
iv) Specified Perils
What are the two conditions of coverage in “Loss of Use by Theft” which is included automatically in all automobile policies insuring the peril of “theft”.
i) Coverage is provided for $25 - $30 per day
ii) Coverage is provided for up to 30 days
How does the S.E.F. No. 20 Loss of Use Endorsement differ from the Loss of Use by Theft coverage mentioned above.
S.E.F. No. 20 Loss of Use Endorsement will provide coverage for loss of use expenses when insured automobiles are damaged from any insured perils, not just theft.
What are two expenses covered by the S.E.F. No. 20 Loss of Use Endorsement?
i) Costs to rent substitute automobiles
ii) Costs to use taxicabs or public means of transportation
What are the three “triggers of coverage” in the S.E.F. No. 20 Loss of Use Endorsement?
i) When insured automobile cannot be operated under its own power, coverage begins immediately
ii) When insured automobile is stolen, coverage begins day following report to police or insurer
iii) In all other cases when insured automobile is dropped off for repairs coverage begins
Your client rents their automobiles on a short-term basis (usually under 2 weeks). What endorsement is needed to provide coverage on these rented automobiles?
S.E.F. No.5c Permission to Rent or Lease Endorsement
Your client leases their automobiles on a long-term basis (usually 2 or 3 years). What endorsement is needed to provide coverage on these leased automobiles?
S.E.F. No. 5 Permission to Rent or Lease Endorsement
Identify and explain two other coverages that should be purchased by businesses leasing automobiles on long-term leases.
i) S.P.F. No. 8 Standard Lessor’s Contingent Automobile Policy.
This policy will provide coverage on automobiles when lessee fails to maintain coverage on automobile required in lease agreement
ii) S.E.F. No. 5d Conversion Coverage Endorsement
This endorsement provides coverage when automobile is lost or damaged resulting from dishonest acts of lessee
When renting automobiles on the short-term basis in their name, insureds with an S.P.F. No.1 Owners Form have two coverages which will automatically apply to the short-term rental automobiles. What are these two coverages?
i) Third Party Liability
ii) Accident Benefits
Physical damage coverage on S.P.F. No.1 will NOT extend to cover short-term rented automobiles. What options are available to insureds to receive this coverage?
i) Purchase coverage from the rental car company
ii) Purchase an endorsement on their S.P.F. No.1 Owners Form
Which S.E.F. will provide physical damage coverage to certain short-term rented automobiles?
S.E.F. No.27 Legal Liability for Damage to Non-Owned Automobile Endorsement
S.E.F. No.27 Legal Liability for Damage to Non-Owned Automobile Endorsement
What are the five conditions of coverage found in the S.E.F. mentioned above?
i) Coverage is restricted to insured and spouse
ii) Coverage is for the same perils as are insured on client’s own policy
iii) No more than one automobile may be rented or leased by client’s or spouses at any time
iv) Coverage is restricted to certain types of automobiles
v) Coverage is restricted as to amount . . . ($15,000)
When transporting people or goods for compensation, an unendorsed S.P.F. No.1 Owners Form will not provide coverage. Indicate if the following automobiles would be covered or not covered:
Automobiles rented to others
Not Covered
When transporting people or goods for compensation, an unendorsed S.P.F. No.1 Owners Form will not provide coverage. Indicate if the following automobiles would be covered or not covered:
Double Decker tour bus
Not Covered
When transporting people or goods for compensation, an unendorsed S.P.F. No.1 Owners Form will not provide coverage. Indicate if the following automobiles would be covered or not covered:
Taxis
Not Covered
Certain uses of automobiles are allowed when covered by an S.P.F. No.1 Owners Form, even when some “compensation” is provided. Indicate if the following uses are allowed:
Car pooling where all participants share driving responsibilities
Yes
