Chapter 6 - Section 3 Flashcards
Endorsements Applicable to SPF No. 1
Summarize the purpose of the following SEF endorsements and when coverage applies:
20
Loss of Use
When there is loss to the automobile which results in its loss of use to the insured, the insurer agrees to pay all reasonable expenses incurred for:
- the rental of a substitute automobile
- coverage starts immediately there’s so much damage that the automobile cannot be operated
- When automobile stolen, coverage begins on day following report of theft
- All other instances, coverage commences at time automobile is delivered for repair due to loss or damage
- Taxicabs or public means of transportation
Summarize the purpose of the following SEF endorsements and when coverage applies:
27
Legal Liability for Damage to Non-Owned Automobiles
- Purpose is to provide coverage for loss or damage to certain types of non-owned automobiles which are leased or rented to insureds in their own name
- Coverage applies to automobiles being operated, used, stored or parked in Canada or the United States, and only if:
The insured is legally liable for the damage; or
The insured has agreed under a contract or agreement to be responsible for the damage
Summarize the purpose of the following SEF endorsements and when coverage applies:
43R
Limited Waiver of Depreciation
-Provides coverage against depreciation when the loss or damage to the automobile occurs within 24 months of the purchase of the automobile by its original owner
- Coverage limited to the lesser of:
The actual purchases price of the automobile and its equipment; or
The manufacturers suggested list price at the original date of purchase of the automobile and its equipment
Summarize the purpose of the following SEF endorsements and when coverage applies:
44
Family Protection
- When a motorist responsible for bodily injury or death to persons insured by this endorsement (i) does not have enough insurance, or (ii) is uninsured, this endorsement increases Third Party Liability limits available to those insured’s to the same limits as purchased under their own policy. Persons qualifying as insured under this endorsement include:
The Named Insured and his or her spouse while residing in the same dwelling
Dependent relatives
Outline three limitations of the SEF No. 27
- Coverage is limited to the insured and spouse only
- Coverage is normally restricted to certain types of automobiles
- Coverage is subject to a maximum amount in any one occurrence
By use of an example, demonstrate your understanding of the SEF No. 44
It is a Family Protection Endorsement designed to provide insurance coverage to Named Insureds, as well as their family, for injuries or death resulting from motor vehicle accidents, involving uninsured or inadequately insured motorists. Insured’s first make claim under the unsatisfied judgement fund, which will cover minimum statutory limits only. This endorsement responds to pay the difference
Briefly explain the purpose of the following SPF forms:
2
Standard Drivers Automobile Policy
This policy covers individuals who drive automobiles which they do not own and which are not registered in their name. This policy provides Third Party Liability coverages only
Briefly explain the purpose of the following SPF forms:
6
Standard Non-Owned Automobile Policy
- This policy insures the Third Party Liability exposure of business owners arising from the use or operation of automobiles not owned in whole or in part by or licensed in the name of the insured
- Coverage is provided for liability arising out of:
Automobiles owned by employees
Hired automobiles
Automobiles operated under contract for the insured
Briefly explain the purpose of the following SPF forms:
7
Standard Excess Automobile Policy
This policy provides Third Party Liability limits when excess coverage is required over and above those limits provided by the S.P.F. No. 1 - Owner’s Form. This is the policy form that would be added to an umbrella policy
