Chapter 6 - Section 1 Flashcards
The Need For Automobile Insurance
What is the minimum limit of Third Party Liability available in your province (SK)?
Maximum of $200,000 Third Party Liability coverage
How does an insured show proof of financial responsibility in your province
SK - certificate of vehicle registration
Identify the Automobile coverages that are available in your province and indicate which are compulsory
- Third Party Liability
- Accident Benefits
- Physical Damage
All compulsory
Identify a province where Automobile insurance is provided by:
Government Insurance
Saskatchewan
Identify a province where Automobile insurance is provided by:
Private Insurance
Alberta
Explain the purpose of the “Unsatisfied Judgement Fund” or similar
When losses are caused by uninsured drivers, the innocent victim(s) may be left with no compensation for their losses. Funds have been established in all provinces to ensure that the victims of these accidents are provided with some level of compensation
Explain the role of Facility Association in those provinces that do not have government insurance plans
The Facility Association was established to ensure the availability of coverage for applicants who are refused insurance by private insurers
Briefly outline the operation of any “no fault” insurance plan of the province of your choice
Primary purpose: Provide benefits to persons injured in automobile accidents, regardless of who is at fault
In SK, motorists (including visitors from other provinces) are automatically in a modified no fault plan, As of January 2003 SK residents have had the choice of changing into a tort plan, although fewer than 1% have done so
In the modified no fault plan, claimants are entitled to claim compensation for injury or death from their own insurer. When the amounts paid are inadequate and the claimant is able to demonstrate economic loss, legal action may be taken against the responsible party
Explain why the SAF No. 1 requires the applicant’s full name and postal address including the county or district
- All parties to the contract need to be properly identified
- Having both the applicants name and address reduced the potential for error that might occur if only the name is know
Identify five particulars of the “Described Automobile” required to be included in the application
- Model Year
- Trade Name
- Model or C.C.
- Body Type
- V.I.N. (serial number)
Identify three items of information about all drivers required in the application
- Name of all drivers (as shown on driver’s license”
- Approximate percentage of use of the automobile
- Number of years licensed
Identify six physical and mental disabilities which might affect the safe operation of a vehicle
- Frequent fainting spells
- Heart disorder
- Epilepsy
- Defective vision or hearing
- Nervous disorder
- Depression
Identify four business uses of the automobile that must be disclosed to the insurer because a special endorsement is required
- Rented or leased to others
- Used for carrying passengers for compensation or hire
- Used for the carrying of explosives or radioactive material
- Used for the transportation of goods for compensation
Identify five situations where the right of the insured to recovery may be forfeited if not disclosed on the application
- Provides a false description of the automobile being insured which is to the prejudice of the insurer
- Knowingly misrepresents the risk or fails to disclose a required fact
- Breaches a policy term
- Commits a fraud
- Willfully makes a false statement in respect of a claim
