Chapter 3 Commercial Automobile Flashcards
3 types of commercial auto exposures
Owned automobiles
Non-owned automobiles
Garage risks
2 systems that are used to insured automobiles in Canada
Private insurers
Compulsory government insurance plans
3 types of Standard Policy Forms (SPF)
SPF 1 - Owners forms
SPF 4- Standard garage
SPF 6- Standard Non owned automobile
Define SEF
Standard Endorsement Form
used to modify coverage within a policy form
When would a Co-insurance penalty be applied (SPF 4)
loss occurs and there are more automobiles than indicated on the policy
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)
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
SEF76
adding partner, officer, employee
any persons residing in the premise
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
Endorsement added to exclude driver
SEF98
5 types of garage risks
Automobile dealers
Service stations
Repair garages
Storage garages
Parking lots
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
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
3 examples of owned automobiles used in business that would be covered
Tow trucks
Service loaners
Automobiles held for sale
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
2 uses when surcharge is added to premium per use
Dealer plates
Service vehicles
coverages under SPF 4 that are paid regardless who is at fault
Medical, rehabilitation
Funeral expenses
death benefits
loss of income
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
4 coverages under section C- loss of damage owned automobiles
Collision or upset
Comprehensive
Specified perils
Specified perils excluding theft
Deductible does not apply under section C to which perils
Fire
Lightening
Theft of an entire vehicle
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
