FSCO.Covgs

Question 1

Define the accident benefits coverage

Answer 1

Benefits received if insured is injured/killed in auto accident (income replacement, medical, rehab, etc.)

Question 2

Define catastrophic injury

Answer 2

Serious, life-threatening, loss of limbs, eyesight, etc.

Question 3

Define tort deductible

Answer 3

The amount that is deducted from a settlement or court award for pain & suffering

Question 4

Minor injury

Answer 4

Sprains, strains, contusions, lacerations, whiplash

Benefits are capped at 3500$

Question 5

Strategy for controlling accident benefit costs

Answer 5

Introduce minor injury guidelines with compensation cap of 3500$

Question 6

Identify a Canadian legal case related to minor injury guidelines

Answer 6

Morrow v Zhang (2004)
- Challenged Alberta’s 4000$ cap on compensation for minor injuries
- cap was upheld

Question 7

Why would an auto accident victim want their injuries classified as catastrophic?

Answer 7

Catastrophic injuries have a higher level of benefits

Question 8

Identify 2 Ontario legal cases related to catastrophic injuries

Answer 8

Kursnierz v Economical
Aviva v Pastore

Question 9

What is the purpose of a tort deductible

Answer 9

To reduce litigation of minor claims
- because if the awards is less than the deductible, the net amount received by the victim would be zero anyway