FSCO.Covgs Flashcards
Define the accident benefits coverage
Benefits received if insured is injured/killed in auto accident (income replacement, medical, rehab, etc.)
Define catastrophic injury
Serious, life-threatening, loss of limbs, eyesight, etc.
Define tort deductible
The amount that is deducted from a settlement or court award for pain & suffering
Minor injury
Sprains, strains, contusions, lacerations, whiplash
Benefits are capped at $3,500
Strategy for controlling accident benefit costs
Introduce minor injury guidelines with compensation cap of $3500
Identify a Canadian legal case related to minor injury guidelines
Morrow v Zhang (2004)
- Challenged Alberta’s 4000$ cap on compensation for minor injuries
- cap was upheld
Why would an auto accident victim want their injuries classified as catastrophic?
Catastrophic injuries have a higher level of benefits
Identify 2 Ontario legal cases related to catastrophic injuries
Kursnierz v Economical
Aviva v Pastore
What is the purpose of a tort deductible
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
