Day 7 quiz

Question 1

The smallest amount of third party liability insurance that may be purchased in any Canadian jurisdiction.

Answer 1

Minimum Limits

Question 2

What is the minimum liability limit for Ontario?

Answer 2

$200,000

Question 3

It exists to protect third parties, so that even if the insured broke the terms of insurance on purpose, that third party will still get a payout.

Answer 3

Absolute Liability

Question 4

Type of damage that is specific – needs proof or invoice. (e.g. medical expenses)

Answer 4

Special Damages

Question 5

Less definite type of damage (e.g., pain & suffering, disability)

Answer 5

General

Question 6

These are collectively Special and General damages. These are a sum of money to which a plaintiff is entitled that makes amends for an actual loss.

Answer 6

Compensatory

Question 7

Insurance won’t pay these damages; there’s no indemnity so it can’t be made whole again

Answer 7

Punitive

Question 8

A degree of injury that must be sustained to allow civil action against an at-fault motorist for non-economic loss.

Answer 8

Verbal Threshold

Question 9

Refers to the words or language describing the nature and type of injury that must be suffered in order to be able to commence legal action against the responsible party for non-economic losses.

Answer 9

Verbal Threshold

Question 10

Ontario’s Verbal Threshold for Non Economic Loss (DPP)

Answer 10

Death, or

Permanent serious disfigurement, or

Permanent serious impairment of an important physical, mental, or psychological function

Question 11

What will Accident benefits pay for?

Answer 11

Income replacement benefit

Non-earner benefit

Caregiver benefit

Medical, rehabilitation, and attendant care benefits

Payment of other expenses

Death and funeral benefits

Optional benefits

Question 12

What will accidents benefit NOT pay for?

Answer 12

Income Replacement, Non Earner, or Compensation for Other Expenses will not be paid if:

• person knew or reasonably should have known they were driving without insurance
  -they were driving while not authorized by law to drive
  -they were driving while excluded from the policy
  -knowingly or should have reasonably known they were driving a vehicle without owner’s consent
  -material misrepresentation was present in setting up policy
  -intentionally did not notify insurance company of significant changes
  -they were convicted of a criminal offence involving the operation of an automobile

Question 13

This benefit may compensate you and other insured persons for lost income.

Answer 13

Income Replacement Benefit (keyword - lost income)

Limit: 70% of gross income, up to $400 per week.

Question 14

Provides compensation for some expenses incurred if an insured person has been catastrophically injured and cannot continue as the main caregiver for a member of the household who is in need of care

Answer 14

Caregiver benefit (keyword - catastrophic; main caregiver)

Limit: Available only for catastrophic injuries; up to $250 per week for first dependant, $50 each for additional dependants

Question 15

Provides compensation if you and other insured persons are completely unable to carry on a normal life and do not qualify for an Income Replacement of Caregiver benefit.

Answer 15

Non-Earner benefit

Question 16

May pay for some medical expenses incurred when you or other insured persons are injured. These are expenses that are NOT covered by any other medical coverage plan.

Answer 16

Medical Benefit

Limits: Non cat - $65,000 over five years

Cat - $1,000,000 total

Question 17

May pay some REHABILITATION EXPENSES incurred.

Answer 17

Rehabilitation Benefit

Limits: Non cat - $65,000 over five years

Cat - $1,000,000 total

Question 18

May compensate for some of the expense of an AIDE OR ATTENDANT, including transportation for an aide or attendant to accompany the insured person to and from medical and rehabilitation treatments

Answer 18

Attendant Care Benefit

Limits: Non cat - $65,000 over five years

Cat - $1,000,000 total

Question 19

This benefit may pay for some other expenses such as the cost of visiting an insured person during treatment or recovery, repair or replacement of some items lost or damaged in the accident and some lost educational expenses.

Includes housekeeping and home maintenance expenses if insured suffered catastrophic injuries.

Answer 19

Payment for other expenses

Up to $100 per week for housekeeping and maintenance costs

Question 20

Pays money to some members of a family who is KILLED

Answer 20

Death Benefit

Limits: $25,000 lump sum to an eligible spouse; $10,000 lump sum to each dependant

Question 21

pays for FUNERAL expenses

Answer 21

Funeral Benefit

Limit: $6,000 maximum

Question 22

What are the optional benefits an insured can purchase?

Answer 22

1. Medical and Rehab (non catastrophic) - increase to $130K total for 5 years or $1M total
2. Medical and Rehab (catastrophic) - increase to $2M total

3.Income Replacement - increase the weekly limit to $600, $800, or $1,000

4. Death - increase to $50K lump sum for an eligible spouse and $20K for each dependant
5. Funeral - increase limit to $8,000
6. Dependant Care - can be purchased
7. Indexation - add an annual adjustment for inflation
8. Tort deductible - reduce the deductible by 10,000

Question 24

The amount that is deducted for your non pecuniary settlement.

Answer 24

Tort deductible

Standard limit: $37,983.33

Question 25

If a person who is riding a bike who has auto insurance themselves if struck by an insured car and injured, where does this person claim for medical payments?

Answer 25

Their own policy (Accident benefits)

Question 26

Can you purchase an upgrade to the threshold definition, for Accident benefits? Can the verbal threshold change or is it what it is and can’t be changed?

Answer 26

No - the threshold cannot be changed, you cannot purchase and upgrade to its definition.

you have to meet the verbal threshold to sue for non-economic loss.

Question 27

When does unidentified motorist coverage come into effect? At fault or not at fault

Answer 27

When insured is in an accident with a vehicle whose driver or owner cannot be determined.

Hit and run - usually NAF.

Question 28

You are insured under an OAP1 but as a pedestrian you are stuck by an unidentified third party. Where can you collect compensation for your injuries and loss wages? What section and under what conditions?

Answer 28

You can collect compensation for loss wages from your auto policy under accident benefits - income replacement.

Conditions - notify insurer within 7 days of the accident
-send completed application within 30 days of receiving it
-insurer must pay within q0 business days of receiving the application