Chapter 9 Flashcards
Described automobile
The vehicle identified in an insurance policy
Newly acquired automobile
an automobile or trailer and insured newly owns that is not covered by any other insurance policy. It must be a replacement or an additional automobile they insured will be covered automatically for a specified number of days after the delivery for the same coverage under the existing policy if the insurer is informed of the new automobile and is paid the required premium
Other automobile
A non-owned automobile that is, not owned by anybody in the household and does not have insurance coverage
Describe territory provision
this provision specifies that the policy applies only while the automobile is being operated, used, stored, or parked within canada, the United states, or on a vessel traveling between ports of those countries. There is no coverage if an automobile is used or stored in mexico.
Describe occupant defined provision
this provision defines who is considered an occupant of the insured vehicle. In the owner’s policy, occupant is defined to include a person, including the driver, in or on an automobile or getting into, on, out of, or off and on mobile. the exact wording of this definition varies between the provincial territorial variations of the automobile owners policy. Coverage is not just for accidents that occur while driving - it applies if a door or trunk injures somebody
What does consent of owner mean?
no person is entitled to compensation under the owner’s policy who is an occupant of any automobile being used without the consent of the owner
List Automobile that are covered under the owner’s policy SPF 1
Newly acquired automobiles
Temporary substitute automobiles
Other automobiles or borrowed automobiles
Trailers
Certificate of Insurance
Written documents stating that insurance is in effect. Includes general statement of policies coverage
List the 5 types of coverages
Liability Accident benefits Uninsured automobiles DCPD Loss or damage to the described automobile if coverage is purchased
True or false when an insured purchases an additional or replacement automobile, the coverage is automatically extended to it, subject to certain conditions
True
What is the time frame the insured has to notify the insurer of taking possession of a newly acquired automobile?
14 days
True or false 14 days coverage for a newly acquired automobile are automatically covered and are free of cost?
False: the 14 days of coverage are automatic but not free. once notified, the insurer will issue an endorsement charging of premium from the date then church took possession of the new automobile. similarly, if the existing insured automobiles have different deductibles, than the higher deductible applies to the newly acquired automobile
What 2 kinds of insurance coverages are extended to temporary substitute automobiles?
Third party liability and accident benefits.
Note: coverage is not provided for physical damage to a tsa, except for the limited coverage provided under additional agreements of the loss or damage coverage of section of the policy. under that section, the only physical damage coverage provided is for any difference between the deductible levels on the insurance own vehicle and the deductible on the TSA
What is the biggest mistake made by brokers, insurers and agents regarding TSA and a loss?
a mistake made by insurers, brokers, and agents is to remove a vehicle from a policy immediately after it’s been destroyed or stolen. By doing so there are also eliminating the extended benefit provided for the TSA that the insured may be operating at the time.
What is the primary responsibility for providing liability coverage for TSA?
the primary responsibility for providing liability coverage for a TSA is through the registered owners insurance policy. A person operating the temporary substitute with permission from the owner becomes an insured under the owner’s policy. The owner of the temporary substitute vehicle can only relinquish responsibility for physical damage to the vehicle. Regulations under the accident benefits specify the primary source of no-fault benefits
Define gross vehicle weight rating
The maximum operating weight - Mass of a vehicle as specified by the manufacturer including the vehicles chassis, body, engine, engine fluids, fuel, accessories, driver, passengers, and cargo carried, but excluding that of any trailers. Also referred to as gross vehicle Mass
List the two situations in which the liability coverage of a driver of a TSA will respond rather than, or in addition to, the TSA owner policy
- The temporary substitute vehicle is uninsured
2. the limit of liability under the TSA’s policy is insufficient to pay a judgment or settlement
What is classified as an other automobile?
automobiles not owned by the insurance and not fitting the definition of a temporary substitute automobile are classified as other automobiles.
In what situation is another automobile covered by the owners policy?
under the owner’s policy, these other automobiles are covered if they are private passenger automobiles owned by another person and loaned to the insured
List following conditions that must be met for coverage to extend to other automobiles
- the other automobile must be a private passenger or station wagon type
- the other automobile must be personally driven by the insured or by the insurance spouse who lives in the same household
- the other automobile must not have a manufacturer’s gross vehicle weight rating of more than 4500 kg
- the named insured under the owner’s policy extending coverage to other automobile must be an individual, or the named insured must be spouses of each other
- the insured or spouse must not be driving the other automobile in connection with the business of selling, repairing, maintaining, storing, servicing, or parking automobiles
- the other automobile must not be used to carry passengers or to make commercial deliveries at the time of any loss
- for all coverages, except accident benefits, the other automobile cannot be an automobile that the insured or anyone living in the insurance household owns or regularly uses
- the other automobile can’t be owned, hired, or least by the insurance employer or the employer of anyone living in the insurance household
True or false the other automobile coverage does not apply to an employee or partner, or to dispose of such persons, for whose regular use of a described automobile is supplied.
False, if the insured under the owner’s policy extending coverage is a corporation, unincorporated association, partnership, sole proprietorship, business, or other entity, the other automobile coverage applies to an employee or partner, or to the spouse of such persons, for whose regular use a describe automobile is supplied
Under legal liability losses for lease or rented vehicles that are covered under other automobiles which policy responds first under general provisions, definitions, and exclusions provisions for any other automobile?
The insurance owners policy response first under the general provisions, definitions, and exclusions provision for any other automobile. This means that the insurance policy response first to any loss. Prior to this, the rental / leasing company responded for any third party claims as the actual owner of the vehicle
What kind of permission under owners policy gives to an insured to pull trailers?
the owners policy gives unlimited permission to the insured to pull trailers, it does not differentiate between owned or non-owned trailers
What three coverages automatically apply to any trailer used in connection with the automobile?
Third party liability coverage, accident benefits, and uninsured automobile coverage
List 2 conditions a trailer needs to meet in order for direct compensation property damage will apply to owned trailers not described on the policy
- Is attached to, or normally used with, an automobile with manufacturer GVWR of not more than 4500 kg
- Is not designed or used for living in, to carry passengers, or for commercial purposes
What happens when a trailer is described on a policy?
when a trailer is described on a policy, it loses its status as a trailer and becomes a described automobile if the premium is charged under the corresponding sections of coverage
What happens when two or more automobiles are entered under the same policy? How is each one treated? And how does this avoid confusion ?
when two or more automobiles are insured under the same policy, each one will be treated as if they are insured by a separate policy for claims resulting from its use or operation. This avoids confusion about limits and coverage that could arise when two of the insured on automobiles are involved in accidents
If an accident occurs while a TSA or other automobile is being used when happens with the loss between the two policies?
The loss is pro-rated between the two policies
True or false an automobile pulling one or more trailers will be treated as a single automobile when determining how much an insurer will pay under liability ?
True!
True or false trailers will be treated as one with the automobile when determining deductible, the amount to be paid under DCPD and the amount to be paid by optional loss or damage coverages
False: trailers will be treated as separate automobiles for the purposes of determining the deductible
Can an insurer inspect your automobile at any reasonable time?
Yes, the automobile may be inspected at any reasonable time. If the insured does not cooperate with any reasonable arrangement for inspection, his or her optional loss or damage coverage may be canceled and any claims under that section may be denied
What are 3 of the general exclusions?
Excluded uses
Garage workers
War risks
Why is excluded uses in the general exclusion section?
Except for certain accident benefits coverage, there is no coverage under this policy if the automobile is used
To carry explosives or radioactive material
Used as a taxi cab, bus, a sightseeing convenience, or to carry paying passengers
Why is garage workers excluded?
no person who sells, repairs, maintains, stores, services, or Parks automobiles as part of a business is covered by this policy well involved in conducting that business, unless that person in fact owns the automobile involved in an incident.
There is other insurance to mitigate these losses that involve garage workers. Such as garage policy coverage while working on customers vehicles
Why are wear activities not covered?
this provision states that insurer will not be liable and under any coverages except third-party liability for loss, damage, injury, or death caused by war activities. Were activities are defined as including bombardment, invasion, civil war, insurrection, rebellion, revolution, coup, or actions of armed forces while engaged in a war
Define car sharing
an engagement setup by means of a website or mobile app that links renters and car owners. Sometimes called vehicle sharing or peer-to-peer car rental services
What are the 3 distinct commercial activities during a ride sharing process ?
Period 1- driver accessing the app in the vehicle, but has not yet scheduled a ride
Period 2- driver has accepted a ride and is driving to pick up the passenger
Period 3- driver is carrying the passenger from pickup to drop off
True or false the financial services commission of Ontario refers to the use of private vehicles for higher that use an online enabled application or system as ride sharing services.
True
List four solutions insurers and regulators have been working to develop solutions to the growing risk of uninsured drivers
- A rating structure that charges rideshare drivers a fair rate based on their use
- Premium that cover claims so that personal use policyholders do not subsidize right during drivers
- Market availability for riding drivers
- Premiums that are reasonably affordable
List three requirements for eligibility to get a ride sharing endorsement
They must be contracted with a TNC
They must not exceed the maximum number of driving hours
They must meet minimum licensing and driver experience guidelines
