chp 1- intro to auto insurance Flashcards
Describe the 3 levels of legal jurisdiction in Canada
Federal Jurisdiction- Deals with matters that affect all of Canada, such as criminal law, trade, telecommunications and customs and immigration. The criminal code is federal legislation and applies to all provinces. It has several sections on driving offences such as impaired driving, negligent operation of motor vehicle, and refusing to give breath sample
Provincial and Territorial Jurisdiction- Make laws in areas such as education, property and health services. Set out rules of the road, including speed limits, traffic light and stop sign rules. Auto insurance falls under provincial jurisdiction
Municipal bylaws- deals with local matters such as zoning, smoking, animal control, parking bylaws, crosswalks and speed limits within borders
Why was auto insurance created?
As better roads were built, better vehicles capable of higher speeds were developed, which increased potential for loss and insurance involved to provide protection.
Owners of vehicles stand to incur costs if vehicle is damaged or destroyed
Threat of possible lawsuits- defendants are sued by plaintiffs in situations where there is no clear liability, with insurance, the defendants costs can get covered and without it, they would have to deal with costs by themselves
Mandatory automobile coverage
Laws across Canada require all motorists have auto insurance. There are fines for drivers who do not carry coverage (license suspensions, vehicle impounded)
Driver injured in an accident while driving an uninsured vehicle may be prevented from recovering the loss, receiving accident benefits, may not be allowed to sue at fault driver.
Accident benefits
Indemnity provided to an insured on a first party basis towards the cost of medical and rehabilitative care for the treatment and recovery of injuries.
What are the Standard Policy Forms? (SPF)
SPF 1 Owners Automobile Policy- provides coverage for owners of vehicles
SPF 2 Standard Drivers Automobile Policy- provides coverage for drivers who are driving vehicles they do not own
SPF 4 Standard Garage Auto Policy- Provide auto related businesses coverage for owned, non owned, and customer automobiles. (Garage, Repair shops, dealerships)
SPF 6 Standard non owned auto policy- Provides non owned auto insurance- policy that protects insured against TP claims arising out of some other person using his own vehicle
What are the Standard Policy Forms? (SPF) continued…
SPF 7 Excess Auto Policy- Provides excess insurance - Insurance that does not participate until all similar insurance on subject is exhausted or loss exceeds previously agreed upon amount
SPF 8 Lessors Contingent Auto Policy- Provides contingent insurance for businesses that lease vehicles on long term basis (Replacement insurance policy)
SPF 9 Transportation Network Policy-covers accidents arising from use or operation of automobile as transportation network-online enable app used by persons to prearrange transport of passengers for compensation
Proof of Insurance
In most of Canada, Motor vehicle liability cards are used for proof of insurance. In provinces with government insurance, Vehicle registration is used.
What provinces have government insurance?
British Columbia
Manitoba
Saskatchewan
Motor vehicle liability insurance cards
Designed to serve as proof of automobile third party liability insurance
Commonly called pink cards
In Canada, you are required to have physical copy, but initiatives are in place to bring electronic cards in use. Variety of reasons for delay in switching to electronic such as privacy concerns, fraud concerns and government insurers who have combined both cards
What goes on a motor vehicle liability insurance card? and the types of cards?
name and address of insured name and address of insurer name and address of broker/agent Description of insured vehicle Policy number Effective date and term of policy Three types of cards include: Temporary cards- valid for 30 days, used in binding risks Permanent cards Endorsement cards- used when endorsement is required, such as change in address
Proof of Financial Responsibility
Proof may be required to be filed either because of a conviction under the criminal code or highway traffic act, or because of involvement in an accident while uninsured.
Filing is accomplished by insured filing a certificate with the registrar of motor vehicles showing that a motor vehicle liability policy has been issued in the name of the person involved
