FSCO.Covgs

Question 1

Auto insurance affordability is a major issue. Identify a coverage that is a major contributor to these costs.

Answer 1

Accident benefits

Question 2

Identify a strategy for controlling the costs of Accident Benefits.

Answer 2

Introduce minor injury guidelines with a cap compensation of $3,500

Question 3

Define accident benefits

Answer 3

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

Question 4

How is a catastrophic injury defined for Ontario auto insurance.

Answer 4

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

Question 5

Why would a victim want to have their injury classified as catastrophic?

Answer 5

There is a higher level of benefits when the injury is catastrophic.

Question 6

Define the term tort deductible.

Answer 6

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

Question 7

What is the purpose of a tort deductible?

Answer 7

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

Question 8

Define minor injury

Answer 8

Sprains, strains, contusions, lacerations, whiplash