Chapter 9 Flashcards
Define ridesharing
An arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee
Explain how BC, SK, and Manitoba auto insurance works
Government insurers provide the minimum compulsory insurance
Both private and government insurers compete to sell additional coverage
Explain how Quebec auto insurance works
Bodily injury claims are covered by the government through the Societe de l’assurance automobile du Quebec
Whereas damage to property is covered by private insurers
Explain how automobile insurance works for the rest of Canada
Automobile insurance is provided by private insurers
Define Direct Compensation-Property Damage (DCPD)
Covers damage to, or the loss of use of, an automobile or its contents, to the extent that the driver of another vehicle was at fault for the accident. It is called “direct compensation” because even though someone else caused the damage, the insured person collects directly from the his or her insurer instead of from the person who caused the accident
When is coverage for an automobile excluded
-The insured is convicted under the criminal code of causing death or bodily injury by criminal negligence in relation to the accident
-Dangerously operating a motor vehicle; failing to stop at the scene of an accident
-Driving while impaired (alcohol or drugs)
-refusing to comply with a demand for a breath sample or operating an automobile when disqualified from doing so
What are some automobile endorsements used to limit or broaden coverage under standard policy provisions?
SEF 20-entitles the insured to be reimbursed for reasonable amounts incurred for transportation up to a certain limit
SEF 19- limits the claim settlement for the value of the insured automobile to its actual cash value or amount specified in the endorsement, whichever is less
SEF 43R- provides that no deduction will be made for depreciation of the vehicle in the event of a loss within a stated period of time
SEF 27- extends coverage in situation when the insured is driving a vehicle other than the one insured under the policy
SEF 21B-provides that all automobiles owned by the named insured during the term of the policy are insured without being identified specifically
Explain absolute liability for third parties (automobile insurance wise)
-Protect innocent third parties against injury and damage
-Prohibits insurers from denying a claim to a third party based on the insureds cancelling the policy after the event that gave rise to the claims or contravening a policy condition
-The insurer has the right to pursue recovery against the insured for any sums it is required to pay to a third party because of the absolute liability provisions
Explain what happens when there is a discrepancy between the application and the policy
When there is a discrepancy between the application and the policy, the application will prevail unless the insurer, under a separate document, clearly pointed out the differences to the insured
Explain IBC role with automobile claims
Provides data, collection, compilation, and reporting services to the governments to General Insurance Statistical Agency
Maintains a database of stolen automobiles
What are ways to appraise automobile damage in a claim?
Appraisers
Appraisal centres
Photo or virtual appraisal
Drones- the use of drones for automobile accidents is steadily increasing
Explain notice of automobile loss
-Must include the fullest information available so they can be effectively utilized by the loss adjuster
-The automobile should be identified, and a precise description of the damaged noted
-This includes the year, make, mode, serial number of the automobile, the point of impact, and the description of the area of the actual damage sustained
-A narrative report outlining how the loss occurred and the circumstances surrounding the loss provides valuable information
What does the scope of an investigation depend on (automobile insurance)?
-The seriousness of the claim and whether a direct compensation scheme operates in the province or territory
-Whether a fault chart will be used to determine fault or
-Whether the ordinary rules of law apply to fault determination
What must the adjusters establish with an automobile claim?
-Who was at fault for the accident (or who shared in the fault)
-The extent of the damage and
-Whether anyone was injured in the accident and to what extend
Explain fault determination
-Most insurance companies have chosen to use intercompany settlement charts that provide an organized and predictable method of determining fault as a starting point
-The fault determination rules DO NOT apply to personal injury litigation when someone is suing for their damages
-For property damage, claimants are compensated by their own insurer according to how much fault is assessed using the fault chart
Explain fault determination for each province
Alberta, Ontario, Quebec, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, direct compensation agreements are provincially legislated for automobile property damage claims and provide fault charts that are similar
BC, which has a similar direct compensation plan called basic vehicle, damage coverage, fault determined by Insurance Corporation of British Columbia’s fault determination process
Most insurers prefer to pay for an insureds automobile repairs because of what reasons
-The safety of the automobile could be impaired if the insured fails to have the damage repaired immediately
-If the insured has another accident, overlapping damage could be paid twice, increasing claim costs
-Psychologically, there may be a tendency for people to exercise less care with a damaged automobile
-The repair is considered to be a return to the pre-loss condition, thus discouraging fraud
What is the difference between an obvious total loss and a constructive total loss?
Obvious loss-when the cost of the repairs exceeds the value of the automobile
Constructive total loss- when substantial damage to the automobile produces an estimate that is close to the value of the automobile
When the theft of an entire automobile happens what questions should be asked?
Who last had the automobile?
When and where was it last known to be?
What are the details of all special equipment installed on the automobile?
Is there any pre-existing mechanical or body damage?
What are the steps to an automobile fire investigation?
Obtain statements from the owner and the person last in possession of the automobile
Interview firefighters, police, the tow truck driver, and any other witnesses
Hire an expert to determine the cause if required
Check maintenance records of the automobile
Review the insureds finances
If privacy guidelines permit, examine social networking sites in relation to the insured
Determine whether the insured had any other insurance losses
Check for any recent changes in policy
Check for any automobile recalls by manufacturer
Explain how Ontario Insurance Act establishes the direct compensation property damage
An insured has no right of action against any person involved in the incident other than the insureds own insurer for physical damage
Uninsured motorists are not permitted to initiate recovery actions against insured motorist
