Chapter 3 Commercial Automobile Flashcards by Chandra Marchand

3 types of commercial auto exposures

Owned automobiles
Non-owned automobiles
Garage risks

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2 systems that are used to insured automobiles in Canada

Private insurers
Compulsory government insurance plans

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3 types of Standard Policy Forms (SPF)

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

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Define SEF

Standard Endorsement Form
used to modify coverage within a policy form

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

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

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

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

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

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

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SEF76

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

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5 Endorsements that restrict full blanket coverage of SP6

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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Endorsement added to exclude driver

SEF98

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5 types of garage risks

Automobile dealers
Service stations
Repair garages
Storage garages
Parking lots

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2 garage risks excluded by other liability policies

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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5 sections of coverage SPF 4

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

Tow trucks
Service loaners
Automobiles held for sale

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2 rate tables for Liability under SPF 4

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

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2 uses when surcharge is added to premium per use

Dealer plates
Service vehicles

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

Medical, rehabilitation
Funeral expenses
death benefits
loss of income

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

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

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4 coverages under section C- loss of damage owned automobiles

Collision or upset
Comprehensive
Specified perils
Specified perils excluding theft

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Deductible does not apply under section C to which perils

Fire
Lightening
Theft of an entire vehicle

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2 basis owned vehicles can be insured

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

2 Endorsements could be added when vehicles driven by designated employee

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

SEF73

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

3 exclusions under SPF4

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

Underinsured Motorist protection

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

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

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

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

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

3 types of vehicles insured by SPF1

Passenger Commercial Public automobiles

Key benefit of Accident Benefits

Paid regardless of who is at fault

4 coverage options found under Physical Damage

All Perils Collision or Upset Comprehensive Specified Perils

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

Rental of a substitute Automobile Taxi or public transportation

3 sections of coverage under SPF1

Third Party Liability Accident Benefits Physical Damage

SEF44 - Family protection endorsement

coverage for injury or death caused by underinsured motorist uninsured motorist

Types of coverages under Accident Benefits

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

Purpose of SPF6 - Standard Non-owned Automobile

Insures Third Party Liability exposures for business owners

2 ways coverage can be provided under SPF6

Endorsement Separate policy

Who is covered under SPF6

The insured

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

SEF27 - legal liability for damage to non-owned automobiles

Limitations of SEF27

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

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

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

SEF4A

permission to carry explosives

SEF4B

Permission to carry radioactive material

5 vehicles considered used for compensation

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

5 uses not deemed carrying passengers for compensation for hire

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

2 miscellaneous endorsements

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

2 ways to write commercial insurance

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

2 methods of writing fleet insurance

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

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

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

2 additional coverages that can be purchased for long term leases

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