Chapter 9 Automobile Physical Damage Claims Flashcards

Question

What issues does the DCA driver fault chart ignore?

Answer 1

Actions of pedestrians Speed Weather conditions Road conditions Light sound or hand signals Marked or unmarked road lines

Answer 2

1) Indemnification under auto policy under first party coverages purchased by the insured 2) Application of DCA to determine fault and pay the insured under Section A-Civil Liability, according to percentage of fault assessed against third party 3) Pursuit of any opportunity to recover from third party

Answer 3

When the insured is driving a temporary substitute vehicle, the insured’s own policy may provide coverage. If the deductible under the insured’s policy is a lower amount than the deductible under the insurance carried by the owner of the temporary substitute automobile, such an additional insuring agreement covers the difference in the deductibles. If the owner of the temporary substitute automobile does not carry physical damage coverage, and if the loss is covered by the insured’s policy, then there is coverage for the damage to the temporary substitute automobile subject to the provisions of the insured’s policy. Many credit cards now offer insurance on substitute or rental vehicles, so no additional coverage is required on the insured’s own policy. For example, if the insured carries a collision deductible of $100 and the owner of the temporary substitute automobile carries a collision deductible of $250, the maximum amount payable by the insured’s policy is $150.

Answer 4

Issue a non-waiver agreement. Issue a reservation of rights letter. Alert the underwriting department of any misrepresentation and material change of risk. The insurer may be permitted to reduce the amount of insurance applicable or to charge additional premiums to reflect the risk undertaken

Answer 5

* The person last in possession of the automobile, if not the owner, must prepare the statement. * Information required in the statement includes the following: o Who last had the automobile? o When and where was it last known to be? o What are the details of all special equipment installed on the automobile? o Is there any pre-existing mechanical or body damage? * The adjuster can interview other family members or witnesses to confirm the information received. * The police investigation may be another helpful source of information.

Answer 6

If the automobile is not recovered and all appears to be in order, the actual cash value of the automobile is the basis of settlement. The ownership and keys are turned over to the insurer. The police are advised in case the automobile is later recovered. When the entire automobile is stolen and the appropriate coverages are carried, most policies cover substitute transportation beginning after a period of 72 hours and continuing for a limited period of time until a settlement is reached. The insured will want to know how long payments will continue and how much will be paid on a daily basis for a rental automobile.

Answer 7

Would pay a deductible. In Ontario, the deductible under the comprehensive own vehicle damage coverage applies in such claims. The loss adjuster must make certain that any specific equipment stolen is covered. Some policies specify that audio equipment must have been attached to the automobile for the policy to cover its theft. The loss adjuster should verify the quality of the equipment. Merchants who sell and install equipment can be very helpful in confirming how certain equipment is installed.