midterm Flashcards
Dangerous driving is a Federal offence Provincial offence Municipal offence Civil offence
Federal offence
no fault accident benefits provide financial assistance to parties injured in an accident regardless of fault. They are not a mandatory coverage in: Saskatchewan BC Manitoba Newfoundland
Newfoundland
Crown corporations provide automobile insurance in which provinces? BC and Alberta Manitoba and Ontario Saskatchewan and Manitoba Saskatchewan and Alberta
Saskatchewan and Manitoba
Which province or territory has a 'dual system' of automobile insurance in which the province covers bodily injury claims while private insurers cover property damage claims? Yukon Ontario New Brunswick Quebec
Quebec
Carlton needs a car to get to his new job in Toronto. If he purchases a used car, what type of insurance will he need to get before he can drive it? OAP 1 OAP 2 OAP 3 SPF 6
OAP 1
Sarah asked her cousin Jeff if she could borrow his car to visit a friend in Hamilton. Jeff agreed, but while using his car Sarah got into an accident involving two other cars, causing injuries and damages to the vehicles and the drivers involved. Sarah was determined to be 100% at fault for the accident. in this scenario, with whom does the legal liability rest?
Sarah, because she caused the accident
Jeff, because it was his car
No one until the burden of proof is established
Sarah and Jeff would be jointly liable
Sarah and Jeff would be jointly liable
Melinda was driving to work on a bright day and the sun was shining in her eyes. as she approached a street corner she struck an elderly man who was crossing the street. Which of the following statements is true?
Melinda is legally liable according to the absolute liability provisions of the law.
Melinda’s negligence will be determined using a fault chart
The burden of proof lies with Melinda
The burden of proof lies with the elderly man
The burden of proof lies with Melinda
Subrogation is the transfer of legal rights to the Insurer Insured Third party injured Crown
Insurer
An insurer’s best defence against absolute liability claims is to
Hire an effective legal representation
Use the defence of misrepresentation
Ensure you prove onus probandi
Do research before using binding coverage
Do research before using binding coverage
What is Ontarios mandated minimum limit of coverage ? $100,000 $200,000 $300,000 $500,000
$200,000
The Knock for Knock concept laid the ground work for modern Accident Benefits Direct Compensation Own damage coverage Physical damage coverage
Direct Compensation
When is fault established in provinces that have direct compensation plans? When claims are reported Fault is not determined When claims are settled During litigation
When claims are settled
Accident benefits in Canada evolved from which type of optional coverage? Third party liability coverage Medical expense coverage Medicare Healthcare
Medicare
Which two Canadian provinces have totally banned law suits for injuries related to automobile accidents?
Ontario and Quebec
Manitoba and Saskatchewan
Quebec and Manitoba
Law suites related to auto accidents are not banned in Canada
Quebec and Manitoba
Albert was injuried in a car accident in Ontario. He broke both wrists and suffered serious head and neck trauma. The at fault party also suffered severe injuries. Both vehicles in the accident were seriously damaged.
What benefits would Don be eligible for?
Accident Benefits and Direct Compensation
when a certificate of insurance is issued by an insurer, it is as effective as the policy when the form of the certificate has been approved. by the Superintendent by the Ontario gazette with Statutory conditions with Mandatory conditions
By the superintendent
which of the following would an underwriter consider a misrepresentation on an auto application?
underestimating the size of your engine and mileage on your car
Intentionally not reporting details of a claim
Forgetting to disclose a ticket you recently received
Guessing at the year and make of your car
Intentionally not reporting details of a claim
What type of insurance provides coverage in Ontario, under certain conditions, where another motorist is responsible for damage caused to the insured's automobile and to the property it is carrying? Accident Benefits Loss or damage Direct Compensation Liability
Direct Compensation
Estimated driving distance is often included in what section of the auto application Described automobile Driver information Rating information Remarks
Described Automobile
Which of the following coverage listed in section 8 of the OAF 1 is not mandatory coverage? Accident Benefits Loss or damage Liability Uninsured automobile
Loss or damage
Define threshold
threshold denotes a degree of injury that must be sustained to allow a civil action against an at fault motorist.
Liability for Injury claims
some losses are pecuniary and some losses are non pecuniary
pecuniary are economical and can be quantified / non pecuniary are non economical and must meet the definition of threshold but are intangible.
Legal liability arises out of:
the ownership use or operation of a described automobile and or use or operation of certain other autos.
Liability coverage is designed to provide financial protection for the named insured's legal liability for not which of the following Injury to other people Damage to property of others Contents of the described automobile Loss of use for the TP
Contents of the described automobile
DCPD the insureds deal only with their own insurers. what can they not claim?
Cost of the repairs
Damage to contents carried in the vehicle
loss of use
they can claim all of the above
they can claim all of the above, but they do not claim against the third parties or their insurance company.
What are the situations that subrogation is allowed under DCPD?
Automobile business – if the at fault party uses their vehicle who is in a business relating to automobiles.
Towing – if a tower is negligent
Contents losses– if contents are over $20,000 then TP can be subrogated.
Priority of payment , if there is both third party BI and TP PD in the same occurrence a certain amount must be set aside for bodily injury claims and a certain amount for property claims. What is the correct amount for Ontario broken down?
$200,000 = $190,000 for BI and $10,000 for PD
Accident benefits have been changed over the years, when was the most recent change and what was it?
2016 – some reduced, some options eliminated providing more standard benefits.
Accident definition: stripper pole bus case
An accident resulting from the use or operation of an automobile directly causing an impairment or causing damage to prescription glasses, dentures, hearing aids or other medical/dental devices
Outline the priority of payment in regards to accident benefits
First: Owned automobile insurer
then insurer of auto he/she was an occupant
then insurer of any auto involved in accident
then Ontario Motor vehicle Accident Claims Fund
For accident benefits coverage the non catastrophic limits is $65,000 and for catastrophic it is $1,000,000. Medical, rehabilitation and attendant care benefits are all paid out under the same limit.
Optional insurance can be purchased to increase these limits and even double them.
Summary of all other optional accident benefits:
increased income replacement
extension of caregiver to non cat claims
increased and extend Med, Rehab, & attendant care
Addition of dependent care benefit
extension of house keeping & home maintenance to none cat claims
increased funeral and death
Addition of Indexation benefit
List the exclusions which would withhold certain accident benefits
Impairment alcohol and drugs Fail to provide sample knowingly not insured without a valid drivers licence excluded driver without consent (driver) material misrepresentation occupant of vehicle (who knew driver did not have consent) Criminal charges
What are the four loss or damage coverages that an insured can choose from?
Specified Perils
Comprehensive
Collision or Upset
All Perils
There is no coverage for loss or damage to the insured automobile caused by an exclusion except if they result from which perils?
fire, theft or vandalism.
The standard deductible for collision and comprehensive claims is $500 as deductibles are useful tools in keeping premium costs down. When is there no deductible applied?
Fire or lightening has no deductible.
Leased or financed agreements may require insured to purchase loss or damage to insured vehicle coverage but generally Own damage coverage is optional. True or false?
True
what is the deductible applied to property damage and contents in Section 5 Uninsured Automobile coverage of the OAP 1? $300 $500 $750 $1,000
$300
In Ontario, what is the maximum payable amount for property damage to automobile and contents with Uninsured Automobile coverage? $15,000 $25,000 $50,000 $100,000
$25,000
What priority payment percentage is attributed to bodily injury payments by the Fund? 5% 10% 90% 95%
95%
In Quebec, the Fonds d’Indemnisation is administered by the Societe de l’assurance du Quebec. How is the Fonds d’indemnisation funded?
by the Societe de l’assurance du Quebec and insurance premiums
by the Societe de l’assurance du Quebec and at fault parties
by funds from motor vehicle registrations
by the government and private insurance plans
by the Societe de l’assurance du Quebec and at fault parties
Payments of the highway Victims indemnity Fund are based on
The amount of damage done to the automobile
The extent of the uninsured driver’s legal liability
The amounts needed for bodily injury payments
All of the above
The extent of the uninsured driver’s legal liability
In regards to a temporary substitute automobile the legal liability protection for the physical damage to the vehicle is provided if:
Driver of TSA was negligent or driver assumed liability orally or in writing.
Other wise the owner of the TSA policy is the primary to respond as liable. the drivers policy will respond for third party liability coverage if TSA is uninsured or owners limit of liability is insufficient.
other Automobiles, not owned and cannot fit under TSA definition, list the coverages provided by the policy.
Liability
Accident Benefits
Uninsured motorist
Direct compensation physical damage
If an automobile is pulling one or more trailers, will it they be treated as a single automobile when determining how much to pay under Liability, AB and Uninsured motorist coverage?
True or False
True
Except for certain accident benefits coverage, there is no coverage under this policy if :
The auto is used to carry explosives or radioactive material
The auto is used as a taxi, bus, sight seeing or carrying paying passengers
The auto is being driven by a person without the owners consent
The auto is driven by a person named as an excluded driver for the automobile
What are the exclusions for rented or leased automobiles and garage workers?
There is no coverage under this policy except for certain AB coverage when the vehicle is rented or leased to another and while it is involved in the business of selling, repairing, maintaining, stores or services automobiles.
Define material changes
those changes which would influence a reasonable and prudent insurer to decide whether to stay on risk and/or the terms on which the risk is retained.
When a loss occurs, what are some of the responsibilities of the insured?
inform the insurer of the claim
provide the insurer with any claims documents
do not assume or admit liability
do not interfere with the claims proceedings
co operate with the insurer
When considering the automobile after a loss, what is another responsibility of the insured?
to prevent further damages to the vehicle
cannot abandon the automobile to the insurer without consent
If the insured wishes to cancel their policy, they may do so at any time and they are refunded the premium on short rate basis subject to a minimum retained premium. What is the process for an insurer to terminate the policy?
Insured must be provided with written notice; insured has 15 days after notice by registered mail and 5 days after for personally delivered notices. (30 days and 10 days for non payment cancellations)
What are the four kinds of automobiles and their definitions a policy can cover.
Described auto
Newly acquired
Temporary substitution
non owned
