Chp 9: General provisions, definitions, and exclusions Flashcards
What are the general provisions under an automobile policy? (6)
- Territory
- Occupant defined
- Consent of owner
- Automobile defined
- Two or more automobiles
- General exclusions
Territory- Difference between SPF 1 and ICBC autoplan
SPF 1- specifies that policy applies when vehicle is being operated, used, stored or parked within Canada, the US, or any other jurisdiction designated in statutory accident benefits schedule (SABS, for Ontario policies), and on a vessel between ports of those countries. All dollar limits described in policy are in Canadian funds
ICBC- similar, covers losses occurring in Canada, US, or vessel travelling between them
Occupant Defined - SPF 1
- Provision defines who is considered an occupant of the insured vehicle
- Occupant is defined to include a person, including the driver. in or on an automobile or getting into, on, out of, or off an automobile
Occupant defined - ICBC autoplan
ICBC regulation defines occupant as a person operating or riding in or on a vehicle or camper and includes
- A person entering or alighting from a vehicle or camper
- A person, other than garage service operator, who is working in or on a vehicle or camper owned by them.
Consent of owner- Difference between SPF 1 and ICBC autoplan
SPF 1- If your an occupant of a vehicle that is being used without owners consent, you will not be entitled to compensation under the owners policy.
ICBC- No need for a specific exclusions to deny TPL coverage to an occupant or driver of a vehicle driven without consent, because insured person under TPL is deemed to be a person who, with the consent of the owner, operates the vehicle described in the owners certificate. Therefore if your not considered an insured, your not insured under policy.
-AB are unavailable to both drivers and occupants of vehicle driven without consent
Automobile Defined - what is a described automobile and what other automobiles are covered under this provision?
Described automobile - The vehicle identified in an insurance policy
Other vehicles covered under this provision include:
- Newly acquired automobiles
- Temporary substitute vehicles (TSA)
- Other automobiles or “burrowed” automobiles
- Trailers
Automobile defined under ICBC
No similar definition of vehicle in regulations for ICBC, however they do outline coverage available when insured is driving other vehicles in addition to vehicle described in policy.
With autoplan, every vehicle has its own insurance, and license plate is policy number
Described automobile under SPF 1 and ICBC
SPF 1: This is any automobile or trailer registered in the name of the policyholder and specifically described in the policy. The certificate of insurance shows which coverages the insured has purchased for each described vehicle.
Coverages include:
-TPL
-Accident benefits
-Uninsured automobile
-DCPD
-Loss or damage to described vehicle if coverage is purchased
ICBC: no similar legislation exists as each vehicle is insured under a separate policy
Newly acquired automobiles - SPF 1
When an insured purchases an additional or replacement vehicle, coverage is automatically extended to it, subject to certain conditions:
- Insured must notify insurer within 14 days of taking possession of new vehicle
- Insurer has right to inspect new vehicle at any reasonable time
- Replacement vehicle is insured for same coverages as the described vehicle, however the insured must not be engaged in the business of selling vehicles
*14 days of coverage are automatic but not free and if insured has more than one vehicle, only coverages that are on all the vehicles extend to the new vehicle (Ex: insured has two vehicles, one with collision, and one without, the new vehicle will not get collision)
Newly acquired automobiles - ICBC
- Covered differently under auto-plan
- Provides 10 days of coverage from the date the substitute vehicle was acquired only if insured no longer has insurable interest in the vehicle it is replacing
- New vehicle must be same type as one its replacing
- coverage applies only if license plates are current and compatible (Ex. Private passenger plates from old vehicle must be installed on new private passenger vehicle)
Temporary Substitute Automobiles - SPF 1
- Provision defines a TSA as a vehicle that is used by an insured temporarily because the described automobile is out of service due to breakdown, repairs, servicing, theft, sale, or destruction.
- Coverage under TPL and AB is extended to TSA’s. Coverage is not provided for physical damage to a TSA, expect for limited coverage provided under loss or damage coverage. (Which is difference of deductibles between own policy and TSA policy)
Temporary substitute automobiles under SPF 1 - what happens when the insured is legally liable for damage to TSA?
- If insured is liable, the TSA policy responds first as it is primary cover, but if no cover/insufficient cover, the drivers policy will respond to physical damage of TSA
- If there is no negligence on behalf of driver of TSA, no reimbursement will be made to owner of TSA, unless a tort action is started by the owner against the driver.
Temporary Substitute automobiles under SPF 1 - under what situations will the liability coverage for the driver respond rather than the TSA’s owners policy? (2)
- The TSA is uninsured
- The limit of liability under the TSA’s policy is insufficient to pay a judgement or settlement
Temporary Substitute vehicle under ICBC
-For TSA coverage to apply. the insured must have limits in excess of the minimum provincial limit
-If insured has increased liability limits, or own damage coverage, both will apply to TSA
-Basic autoplan only covers insureds legal liability for loss or damage to TSA
Accident benefits are available from TSA if registered in BC, or if its not registered in BC, are available BC driver license.
Other automobiles under SPF 1 - what are the coverages available?
Under the owners policy, other automobiles are covered if they are private passenger vehicles owned by another person and loaned to the insured.
The coverages available for other automobiles include:
- Liability
- Accident Benefits
- Uninsured automobile
- DCPD