Chapter 6 Auto insurance

Question 1

What’s the minimum limit of 3rd party liability available in Alberta?

Answer 1

$200,000

Question 2

How does insured show proof of financial responsibility?

Answer 2

-pink card (AB,ON, & Atlantic provinces)
or
- certificate of vehicle registration (BC,SK,MB)

Question 3

identify the automobile coverage limits available under 3rd party liability in your province (Alberta)

Answer 3

i) auto limit-$200,000
ii) bodily injury - $190,000
iii) property damage- $10,000

Question 4

What’s the purpose of unsatisfied judgement fund?

Answer 4

when losses are caused by uninsured drivers, the innocent victim may have coverage

Question 5

What’s the rule of Facility Association for provinces that do not have government insurance plans?

Answer 5

to ensure the availability of coverage for applicants who are refused insurance by private insurers. coverage is mandatory, so need a place for those that can’t get regular coverage from normal insurers

Question 6

outline the operation of a “no fault” insurance plan

Answer 6

your insurance company will cover damages to your vehicle caused by another driver.
They will pay for your loss, not the other insurance company

Question 7

Why should the applicants full name & postal address?

Answer 7

Rating is based on the “territory” where the automobile will chiefly be used

Question 8

What are 5 particulars of the automobile required to be included in the application?

Answer 8

1.model year
2. trade name
3. model
4. body type
5. V.I.N (serial number)

Question 9

3 pieces of information about all drivers required in the application

Answer 9

i) name of all drivers (as shown on drivers license)
ii) approximate percentage of use of the automobile
iii) number of years licensed experience

Question 10

Examples of physical & mental disabilities which might affect the safe operation of a vehicle

Answer 10

1. frequent fainting spells
2. dizziness or loss of consciousness
3. heart disorder
4. epilepsy
5. diabetes
6. defective vision or hearing
7. nervous disorder
8. depression

Question 11

4 business uses of an automobile that must be disclosed to insurer because a special endorsement is required

Answer 11

1. rented or leased to others
2. used for carrying passengers for compensation or hire
3. used for carrying of explosives or radioactive material
4. used for transportation of goods for compensation

Question 12

5 situations where the right of the insured to recovery may be forfeited if is not disclosed on the application

Answer 12

1. provides a false description of the automobile being insured which is to the prejudice of the insurer
2. knowingly misrepresents the risk or fails to disclose a required fact
3. breaches a policy term
   4.commits fraud
   5.willfuly makes a false statement in respect of a claim

Question 13

3 persons insured under section A

Answer 13

i) the named insured
ii) everyone else who personally drives the automobile with the consent of the named insured
iii) everyone who operates a part of the automobile with the consent of the named insured

Question 14

5 exclusions that are general under section A

Answer 14

1.any liability imposed by any workers compensation law upon any person insured by this section
2. for loss /damage resulting from bodily injury to/death of any person insured while engaged in the operation/repair of the automobile
3.for loss/damage to property carried in or upon the automobile/any property owned/rented by/in custody or in care of anyone insured
4.

Question 15

Identify the 3 subsections of section B

Answer 15

i) medical payments & funeral expenses
ii) death benefits & loss of income payments
iii) uninsured motorist coverage

Question 16

2 agreements of insured under section A

Answer 16

i) appoints the insurer as his irrevocable attorney
ii)insured agrees to reimburse the insurer for any amounts paid under the policy by reason of provisions of any statute relating to automobile insurance which the insurer is not liable to pay for

Question 17

2 areas which might be considered reasonable expense under subsection 1 (medical payments & funeral expenses)

Answer 17

1. medical, surgical, chiropractic, dental, hospital, nursing, & ambulance service
2. other services & supplies essential to treatment or rehabilitation