Coverages for Extended Auto Insurance Flashcards
Priority of Payments
Requires that $190,000 (basic plate insurance) is available for injury payments while $10,000 available for physical damage MINIMUM AMOUNT OF PROTECTION
Automobile Liability Claims NOT covered
1 - Injury/Death covered by Workers Comp
2 - Injury/Death to employees while driving / fixing auto
3 - Damage to property you own, rent, or have in your care (necklaces, etc)
4 - Damage to property carried on or in the auto (subs)
5 - Damage/Injury/Death caused by radioactive material
6- Damage/injury/death caused by machinery including mounted on the auto
7 - Injury/Death for protection is provided under Part VIII of AAIA
8 - Damage/Injury/Death arising from cause acts or attempt to cause
Defense Costs
insurance company will investigate all claims and will defend the insured in lawsuits (pay legal costs)
students should note, this coverage is in addition to the policy limits
out of province driving
higher limits of liability coverage should be of particular concern to those who travel to other jurisdictions within Canada + The USA
Non-owned automobile coverages
policy protects the owner of a vehicle. the policy protects the people who drive your auto with permission.
Family protection + Security coverages
offered with the auto policy is first party coverage, covers for the insured after a court has rendered a decision against a responsible party and the party is underinsured or has no insurance.
matches 3rd party liability up to 2 mili
Accident benefits “TOP UP”
compensation to persons injured or to dependents of persons killed in motor vehicle accidents. injury payments, income replacement, indemnity, death benefits, education benefits, and funeral expenses
When was no fault introduced in SK?
Introduced in 1995, and right to sue was broadened in 2003.
May elect for tort coverage, less than 1% of sk does this
Injury Payments
provided to cover the insured if an auto accident causes bodily injury or death
income replacement
license insurance pays an income replacement benefit of 90% up to $86,463 while the insured is totally or partially disabled, insurers pay an additional 10% amount required to cover your loss (extended)
Indemnity Benefits
Weekly indemnity benefit of license insurance, insurers pay an additional 25% of that amount
a contract, expressed or implied, to repay in the event of a loss. Insured neither gains or loses.
“to place someone back in the same financial position that they were in immediately prior to the loss”
Death benefits
license insurance provides death benefit to surviving spouse, the insurer will pay any additional amount to bring coverage up to 50% of loss of net income
Education Benefits
license insurance makes a payment for educational benefits to a surviving spouse, insurers will pay an additional amount up to 50% of that amount, only reasonable and actual amounts
tort motorists are not entitled to education benefits
Funeral expenses
license insurance makes a payment for funeral expenses, the insurer will pay up to an additional 50% of that amount - only when insured has used up the full amount for the license plate coverage
Losses not covered
1 - deliberation to hurt or kill oneself
2 - injury or death caused by sickness
3 - people hurt or killed were occupants of an auto used for any unlawful trade or transportation
4 - auto is being used in a race or speed test
5 - death or injury caused by radioactive material
6 - entitled to receive benefits from Workers Comp
7 - BAC exceeding legal limit - or under influence of drugs
8 - people hurt or killed were occupants of motorcycle or snowmobile
Physical damage coverage
auto policies deductibles can range from $50-700
remember basic plate insurance only puts aside 10,000$ for physical damage coverage
All perils
Covers the auto from all losses.
Collison or upset
covers the auto if it hits or is hit by another object or the ground, or rolls over
Comprehensive coverage
covers your auto from all losses other than collision or upset
Specified perils
specific coverage and covers any loss caused by: fire, lightning, theft, windstorm, hail, earthquake, explosion, riot or civil unrest, falling or forced landing of aircraft or parts of aircraft, rising water, stranding, sinking, burning, derailment, or collision when vehicle is being transported
Deductible not subtracted when:
if direct damage was caused by:
hitting an animal, fire, lightning, theft of automobile
Road hazard glass
coverage for glass that encloses the passenger compartment of the automobile that has been broken by an object that was thrown up or fell from another automobile
glass must be undamaged - if damaged, proof of repair required for road hazard glass coverage
Replacement costs
available on new private passenger, private trucks, private vans, SUVs, farm trucks (no power units), motorhomes and leased vehicles, depreciation waived in partial or total loss claims
no motorcycles, trailers, or snowmobiles
to be added within 120 days of purchase - mac 36 months for coverage - perils reduced after year 3 of coverage
Limited waiver of depreciation endorsement
coverage waives deprecation on a total loss vehicle where the loss or damage occurs within a specific time period
loss of use coverage
avail. on passenger cars, private trucks, and private vans, suvs, motorhomes, farm trucks, private vehicle power units, and long term leased autos.
include the rentals of a substitute automobile of a similar type. or fares from public transportation. loss or damage must be due to a cause of loss for which you are covered
coverage limits vary (1000, 2000 limits depending)
Stated Value Coverage
method of settling a loss on a guaranteed value basis
- coverage for antique or classic
- used primarily in exhibitions clubs parades and hobby activities
- stereo equip. is limited under auto fund w/ limited cap of coverage. policy settles claims on stereo losses on a actual cash value basis
- contents of vehicle not usually covered by auto policy, can be under home policy
Physical damage - situations where no physical damage coverage is on the plate
auto is declared unlicensed and in storage
covered for actual cash value while in storage
must be declared as unlicensed and in storage on cover page, and value of vehicle must be indicated
Situations where extension policy may not provide adequate coverage
- Cabin or tent trailers unlicensed but used for sleeping
- Autos being restored
- Autos on consignment on a dealers lot
- Snowmobiles & motorcycles unlicensed but used and operated on private land
Statutory Conditions
intent to protect the rights of the insured and the insurer by stating what is expected of each in certain circumstances & specifies ways of handling situations that could arise and affect coverage
conditions must be printed as part of every automobile insurance contract
