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Caib 3 > Chapter 3 Commercial Automobile > Flashcards

Chapter 3 Commercial Automobile Flashcards

1
Q

3 types of commercial auto exposures

A

Owned automobiles
Non-owned automobiles
Garage risks

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2
Q

2 systems that are used to insured automobiles in Canada

A

Private insurers
Compulsory government insurance plans

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3
Q

3 types of Standard Policy Forms (SPF)

A

SPF 1 - Owners forms
SPF 4- Standard garage
SPF 6- Standard Non owned automobile

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4
Q

Define SEF

A

Standard Endorsement Form
used to modify coverage within a policy form

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5
Q

When would a Co-insurance penalty be applied (SPF 4)

A

loss occurs and there are more automobiles than indicated on the policy

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6
Q

Which SEF Endorsement can be added to broaden coverage under subsections E2 (specified perils)

A

SEF 77- Legal liability to comprehensive damage to customers vehicles ( including open lot pilferage)

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7
Q

2 miscellaneous endorsements under section E legal liability to a customers automobile while being in the care, custody and control of the insured

A

SEF 71- excluding owned automobiles
SEF 76 - additional Insured endorsement

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8
Q

SEF76

A

adding partner, officer, employee
any persons residing in the premise

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9
Q

5 Endorsements that restrict full blanket coverage of SP6

A

SEF 90 - limited operation of automobile by partner, officer and employee
SEF91- Limitation to operation automobiles named person
SEF92 - limitation to hired automobiles under contract
SEF93- limitation to owned by named person
SEF99-Excluding long term lease

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10
Q

Endorsement added to exclude driver

A

SEF98

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11
Q

5 types of garage risks

A

Automobile dealers
Service stations
Repair garages
Storage garages
Parking lots

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12
Q

2 garage risks excluded by other liability policies

A

Does not extend to bodily injury or property damage
Coverage of personal property in care, custody and control of the insured

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13
Q

5 sections of coverage SPF 4

A

TPL
Accident Benefits
Loss of or damage to owned automobile
Uninsured motorist
Legal liability for damage of customer vehicle while being in care, custody or control of insured

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14
Q

3 examples of owned automobiles used in business that would be covered

A

Tow trucks
Service loaners
Automobiles held for sale

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15
Q

2 rate tables for Liability under SPF 4

A

No road testing pick up or delivery of customer automobile
testing pick up or delivery of customer automobile

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16
Q

2 uses when surcharge is added to premium per use

A

Dealer plates
Service vehicles

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17
Q

coverages under SPF 4 that are paid regardless who is at fault

A

Medical, rehabilitation
Funeral expenses
death benefits
loss of income

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18
Q

2 factors considered when premium is determined for accident benefits under SPF4

A

Active owned automobiles - standard owners rate
Drive customer automobiles flat rate per employee

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19
Q

4 coverages under section C- loss of damage owned automobiles

A

Collision or upset
Comprehensive
Specified perils
Specified perils excluding theft

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20
Q

Deductible does not apply under section C to which perils

A

Fire
Lightening
Theft of an entire vehicle

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21
Q

2 basis owned vehicles can be insured

A

Monthly average basis - max values of vehicles owned
Co insurance basis- DID x Loss = Indemnity

22
Q

2 Endorsements could be added when vehicles driven by designated employee

A

SEF70 - Named chauffer Endorsement - reduces premium
SEF79- Fire and theft Endorsement

23
Q

SEF73

A

Excluding Financed automobile endorsement
Removes physical damage coverage provided is insured elsewhere

24
Q

3 exclusions under SPF4

A

loss caused by conversion, embezzlement or theft
loss by voluntary parting of title ownership
loss by theft in open lot or unroofed space

25
Q

Underinsured Motorist protection

A

Max amount payable is minimum statutory limits in jurisdiction
only available if other party is legally liable for accident

26
Q

Garage need to show in event of loss to avoid being liable

A

All doors and windows were locked
doors were equipped with dead bolts
All keys were locked in cabinet

27
Q
A
28
Q

2 exclusions subsection loss or damage where the insurer would not be liable

A

Theft from any open lot or unroofed space rented or controlled by insured
Amendment adding SEF 75 open lot pilferage endorsement
Contents of automobiles or trailers

29
Q

3 types of vehicles insured by SPF1

A

Passenger
Commercial
Public automobiles

30
Q

Key benefit of Accident Benefits

A

Paid regardless of who is at fault

31
Q

4 coverage options found under Physical Damage

A

All Perils
Collision or Upset
Comprehensive
Specified Perils

32
Q

2 types of expenses paid under SEF20 In lou Loss of Use endorsement

A

Rental of a substitute Automobile
Taxi or public transportation

33
Q

3 sections of coverage under SPF1

A

Third Party Liability
Accident Benefits
Physical Damage

34
Q

SEF44 - Family protection endorsement

A

coverage for injury or death caused by
underinsured motorist
uninsured motorist

35
Q

Types of coverages under Accident Benefits

A

Reimbursement of medical expenses
Rehabilitation and funeral costs
Death benefit
Loss of income

36
Q

Purpose of SPF6 - Standard Non-owned Automobile

A

Insures Third Party Liability exposures for business owners

37
Q

2 ways coverage can be provided under SPF6

A

Endorsement
Separate policy

38
Q

Who is covered under SPF6

A

The insured

39
Q

Endorsement required when individual required legal liability for damage to non-owned automobile

A

SEF27 - legal liability for damage to non-owned automobiles

40
Q

Limitations of SEF27

A

coverage restricted to insured and spouse
Same perils as SPF1
Limited to certain automobiles
Coverage provided to max amount in any one occurrence

41
Q

2 coverages that need to be added when vehicle rented on short term basis in name of the business

A

SPF6 - standard non-owned automobile policy
SEF94- Legal Liability for damage to hired automobile
provides liability for physical damage

42
Q

SEF4A

A

permission to carry explosives

43
Q

SEF4B

A

Permission to carry radioactive material

44
Q

5 vehicles considered used for compensation

A

Taxi cabs
public omnibus - freight +passengers
Livery
Jitney or sightseeing conveyance

45
Q

5 uses not deemed carrying passengers for compensation for hire

A

Carpooling but must be reciprocated
Carriage of another person who shares the cost of the trip
Carriage of a temp or permanent domestic servant
Carriage of clients
Occasional transportation of children to or from educational program

46
Q

2 miscellaneous endorsements

A

SEF30-Excluding operation of attached machinery
SEF31- Non-owned equipment
extends liability and physical damage to equipment attached

47
Q

2 ways to write commercial insurance

A

Scheduled basis - each vehicle identified
Fleet basis - minimum numbers of vehicles under common ownership

48
Q

2 methods of writing fleet insurance

A

SEF21A - Monthly reporting basis
premium calculated by receipts and mileage reported to insurer
SEF21B- Blanket fleet
schedule of listed vehicles requested at time of insurance
flat premium paid

49
Q

2 endorsements that can be added to SPF1 to extend rented automobiles

A

SEF5- Permission for rental or lease that extends 30 days
SEF5c- permission to rent or lease

50
Q

2 additional coverages that can be purchased for long term leases

A

SPF8 - Standard contingent automobile
Indemnifies lessor from loss incurred by lessee failing to maintain adequate insurance
SEF5d- Conversion coverage endorsement
covers dishonest acts of a lessee which result in loss of automobile

Caib 3 (6 decks)

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