Chapter 4 Flashcards
Define uninsured automobile
One for which neither the owner nor the driver has liability insurance to cover bodily injury or property damage arising out of its ownership, use, or operation, or the insurance is not collectible. This does not include an automobile owned by or registered in the name of the insured person or his or her spouse.
Define unidentified automobile
One whose owner or driver cannot be determined for example in a hit and run. It is deemed to be in fact “uninsured”
What qualifies someone to claim under uninsured automobile coverage ?
To claim under uninsured automobile coverage, insureds must be legally entitled to recover a loss from the uninsured or unidentified motorist. This means the uninsured or unidentified motorist must be at fault or partially at fault
When is the uninsured motorist coverage not liable to indemnify?
Uninsured section of the policy states that the insurer is not liable to provide uninsured motorist coverage if the insured has access to an unsatisfied judgement fund or plan in effect in any jurisdiction in Canada or USA to recover for the loss.
If the operator of the vehicle is as little as 1 percent liable for the accident their third party liability coverage will have to respond to the claim.
For own vehicle damage the insured must claim under section C ( loss or damage coverages) or pursue civil action against the uninsured driver because the fund does not pay for vehicle damage
Persons insured under uninsured motorist section of the policy
- Any occupant of the automobile as described in the policy
- the insured, and his or her spouse or adult interdependent partner, and any dependent relative of either while the occupant of any other automobile provided that
- The insured is an individual or are two spouses or interdependent partners in a household ( there is no coverage for those who do not reside in the same household )
- The person is not engaged in the business of selling, repairing, maintaining, servicing, storing, or parking automobiles
- The other automobile is not owned or regularly or frequently used by the insured or any persons residing in the same dwelling or any employer of persons residing on the dwelling
- The automobile is not used for carrying passengers for compensation or hire
- if the named insured is not an individual ex. A corporation
Uninsured and unidentified motorists coverage is limited in what ways ?
- There is no liability to anyone who can recover from an unsatisfied judgement fund or similar fund
- there is no liability to anyone attempting settlement directly, without the written consent of the insurer
- the insurer is liable for the lesser of the minimum limits where the accident occured or the minimum limits in Alberta
- payments made under this subsection are used to reduce any amount the insured may be entitled to recover from any person who is insured under section A: third party liability of the insureds policy
- if the insurance company has laid benefits to the insured under the accident benefits section of the policy, those amounts can be deducted from the settlement under uninsured automobile coverage
Define errors and commission insurance
An insurance form that protects the insured against liability for committing an error or omission in the performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury or property damage
Define the family protection endorsement why is it used ?
This endorsement applies when the insured cannot fully recover his or her damages for bodily injury or death caused by a negligent third party. it covers the difference between the value of the insureds claims and the third party’s limit of liability insurance. When a third party is at fault, it recovers the shortfall when the third party is inadequately insured to cover the insurance claims or when the third party is uninsured. The family protection coverage will respond when the insured is legally entitled to recover from the third party to the extent that the insured is free of liability and not just if the uninsured motorist is 100% at fault.
Who is considered an insured person under the family protection endorsement?
- named insureds, spouses of named insureds, and dependants of named insureds or their spouses who are
- Occupants of insured automobiles as defined under the policy ( including described, newly acquired, and temporary substitute automobiles )
- Occupants of other automobiles that are not owned or leased by the insured and are not covered by their own family protection endorsement
- Pedestrians struck by an automobile
- named insureds that are corporations, unincorporated associations, partnerships, sole proprietorships, or other entities
Define unsatisfied judgement fund
A fund used to pay losses arising out of automobile accidents in which there is no applicable insurance. The fund is financed in most instances by the government from general taxes and licence fees and in some other areas it is financed by insurance companies as a group
Why is motor vehicle accident claims fund called the layers last report?
Because they provide compensation to people injured in automobile accidents when there is no other existing automobile insurance to pay their claim
What is the facility association?
The facility association is an unincorporated not-for-profit association of insurers. It provides automobile insurance for owners and operators of motor vehicles who other wise have difficult obtaining such insurance.
Who manages fonds ? What does fonds compensate for and what province is it ran?
In quebec, the Fonds is administered and managed by SAAQ, the government automobile insurance body. The Fonds is mainly to compensate victims of property damage, since most victims of bodily injury are eligible for compensation by SAAQ. the fonds is financed by a percentage of the money collected by the registration of vehicles and delivery of renewal of drivers licenses, as well as by investment income.
How the MVACF operates in Quebec how is it different from the other provinces.
at first, the fun paid only when the victim obtained a court judgment against the responsible party. more recently, some have taken a more liberal approach and the administrative investigate and negotiate a reasonable settlement of at least some claims if they appear straightforward. In Quebec, acourt judgment is still required
