Endorsements Flashcards
The standard policy wording restricts liability coverage to named insured and their spouse only.
This endorsement expands the definition of insured person for third party liability when operating a non-owned or other automobile, allowing drivers that are listed on the Endorsement to have the benefit of Liability coverage.
It amends the definition of automobile in Section 2 of the policy.
OPCF 2 – DRIVE OTHER AUTOS
Government of Canada is not required to carry auto insurance.
When an insured drives a government-owned automobile, this endorsement will provide coverage under the OAP1 against liability or a peril insured for.
The person protected by this endorsement is the insured (including spouse and any other person who personally drives the automobile) – not the government.
Conditions:
No more than one automobile owned by the
government is allowed in the care of insured at one time
Coverage is subject to a limit per occurrence
under the physical damage section
OPCF 3 – GOVERNMENT OWNED AUTOS
There are a number of Endorsements available to be applied to the OAP1 to grant permission to the insured to use the automobile for purposes that are otherwise excluded under the policy.
Permission can be granted to carry Radioactive Material with the vehicle, or carry Explosives with the vehicle.
OPCF 4 – PERMISSION
Under the standard OAP1, coverage is excluded if the vehicle is rented or leased to another person.
This endorsement, when added, can remove the exclusion on the policy.
When an automobile is leased on a long-term basis (think a 4 year lease), the lessee applies for an OAP1 with an OPCF5 to allow the person who is leasing the vehicle (lessee) to be able to act as the named insured on the policy, even though they are not the registered owner of the vehicle (the leasing company is the Registered Owner).
Remember that you cannot insure something that you do not own – this endorsement allows an exception to this rule.
OPCF 5 – RENTED OR LEASED
The OAP1 does permit the carrying of passengers in specific circumstances, but carrying passengers for compensation is excluded.
These Endorsements are available to add coverage to OAP1 to allow for carrying of passengers, where it was otherwise excluded under OAP1.
Taxis; private buses used to transport employees; hotel, golf and country club buses
School buses – sets liability limit per person and for loss or damage to property of passengers. MUST BE USED for school purposes only.
Public buses- can either give coverage for BI and PD or give the option of one single limit coverage which includes both
Driver Training School – special limits are specified for BI to a student driver or observer and amends coverage under Liability section to include student driver and observer
OPCF 6 – PASSENGER RISKS
Insured may choose or it may be imposed by insurer to minimize small property damage claims for which the named insured is responsible.
When OPCF8 is applied to the OAP1, the insured agrees to reimburse the insurer the sum stated in the Endorsement or the amount of loss, whichever is less.
This Endorsement does not authorize insureds to settle claims on their own; the insurer will investigate and settle and pay the
loss in the usual way and then collect
reimbursement from the insured.
This Endorsement is mainly used when Heavy
Trucks are insured.
OPCF 8 – PROPERTY DAMAGE REIMBURSEMENT
Amphibious Vehicles are those that can travel on land as a car and on water as a boat.
This Endorsement restricts any water use of the vehicle, since it is strictly prohibited under an automobile policy.
OPCF 9 AMPHIBIOUS VEHICLES
When applied to the auto policy, this endorsement restricts the glass coverage that is available under the policy to what is available for glass coverage under Specified Perils.
By applying this endorsement, no coverage
would be available for damage caused by
gravel and stones.
This may be applied by the insurer where there
have been many glass claims or where gravel
roads are common.
OPCF 13 – RESTRICTING GLASS COVERAGE
This Endorsement is available to suspend coverage at any time of the year while maintaining coverage for liabilities arising from the ownership of a described automobile.
For example, if you are planning on parking your summer vehicle during the winter, you can apply OPCF__to suspend coverage – you will pay less, as there is less coverage available under the policy, but if your vehicle gets struck while it is parked, DC-PD will still respond. You will also maintain coverage if you operate “Other Automobiles” as well as Accident Benefits coverage under your policy (remember you always “go-home” for AB coverage.
OPCF__ is available to reinstate the coverage that was suspended when the insured wishes to have full coverage on the vehicle again, in order to operate it on the road.
OPCF 16/17 – SUSPENSION AND REINSTATEMENT OF COVERAGE
This Endorsement can be used to limit the amount payable where ACV exceeds the rating values used in auto rating manuals – for example, when there is expensive attached equipment on the vehicle.
The purpose of this is to guard against paying claims on vehicles that have been customized.
For example a vehicle that’s year, make and model value the vehicle at $400 ACV but it has a $5,000 stereo system. Under the standard OAP1, we are charging premium for a $400 vehicle but are exposed to a $5,400 potential loss. Applying the OPCF19 would limit out exposure to $400.
On the other hand, if the client would like to pay premium on $5,400 to ensure that they are covered in the event of a total loss, an appraisal would be required
The endorsement restricts settlement under Section 7 to lesser of ACV and amount listed on the endorsement.
OPCF 19 – AMOUNT PAID
The standard OAP1 provides coverage for loss of use of the automobile by theft up to a maximum daily limit and overall maximum.
If a higher limit per day or per occurrence is desired, this Endorsement can be applied for additional premium.
This Endorsement is also available if the client wants to ensure that they have protection against loss of use arising from other perils such as collision or vandalism.
Insured can usually choose limits, but insurer may have standard limits and the Endorsement is subject to a deductible, as stated in the policy.
OPCF 20 – COVERAGE FOR TRANSPORTATION REPLACEMENT
Under the standard OAP1, an exclusion is damage to property of passengers.
Some risks, such as taxis and public buses may require coverage for responsibility for property of passengers.
By applying this Endorsement, a specified limit of liability for property of passengers would be provided under the policy.
OPCF 22 – DAMAGE FOR PROPERTY OF PASSENGERS
This Endorsement is designed to protect the financial interest of the lienholder, mortgagee or assignee if the damage and can work in 2 different ways:
Protect the lienholder if the damage to the automobile covered by the physical damage section of the policy is not repaired, or lost or damaged parts are not replaced, the loss will be payable to both the insured and mortgagee and the insurer agrees to notify the mortgagee in writing of cancellation of the policy, giving 15 days notice. The insurer would provide a letter to lienholder describing the coverages purchased.
Alternatively, the protection under the Endorsement can be broader, and as a result, additional premium would be charged. This option will also provide protection for the lienholder in the breach of a condition by the insured, or misrepresentation in the application or fraud
This is similar to the Mortgagee Clause in home insurance
There are certain conditions that the lienholder must agree to
OPCF 23 – MORTGAGE AND LIENHOLDERS
By issuing an OPCF ___ – Alteration Endorsement, you are able to complete some of the following amendments to the policy:
Change of name or address of insured Substitution of an automobile Addition of an automobile Deletion of an automobile Change in coverage or limits Addition of coverage Deletion of coverage Change in rating classification
OPCF 25A – ALTERATION
This Endorsement is designed to provide Physical Damage protection for a non-owned vehicle, when the insured is responsible (or liable) for the damage to it.
Do not mistake this for direct damage coverage for physical damage to the rented vehicle, as the rented vehicle is not described under the policy.
Conditions:
Coverage applies to one vehicle only
Applicable to light vehicles only (4,500 kg or less gross vehicle weight)
Covers insured, his or her spouse, and all drivers listed on the policy
If policy is in the name of a corporation, person named in Endorsement and their spouse is covered
Does not cover if auto is owned or licensed to insured or a resident of same HH
Covered to a specific dollar amount per occurrence
Coverage only applies when being used with the owner’s or lessee’s consent
OPCF 27 – LIABILITY FOR DAMAGE TO NON-OWNED VEHICLES
