Mod 5 Study 1, 2 + 3

Question 1

Owner’s Policy (SPF1) Includes what 4 benefits

Answer 1

TPL
Accident Benefit
Direct Compensation Property Damage
Loss of or Damage to

Question 2

T/F Accident Benefit covers bodily & property damage

Answer 2

F

Only bodily injury and death

Question 3

Loss of or Damage to is an optional addition in most provinces. What are the four available coverages

Answer 3

1. All perils
2. Collision or upset
3. Comprehensive
4. Specified perils

Question 4

What are the Specified Perils under Loss of or Damage to coverage

Answer 4

L ightening
E arthquake
F alling or forced landing
T heft

H ail
E xplosion
R iot

C onveyance (AB)
A ir (wind)
R ising water

on fire

NOT COVERED Missiles, vandalism & flying objects like rocks

Question 5

What is the difference between Collision and Comprehensive coverage under Loss of or Damage to

Answer 5

Collision - either two cars or one car striking a tree, guard rail, etc.
Comprehensive - covers all-perils other than collision and upset and the exclusions

Question 6

Y/N Is Highway Victims Indemnity Fund included in an SPF1

Answer 6

Yes

As part of the Uninsured Motorist coverage

Question 7

How would an insured’s claim be indemnified with a motorist who is underinsured.

Answer 7

The limit of insurance under ‘underinsured motorist’ paid is the difference between the liability insurance limit of the insured’s policy and the limit carried by the underinsured motorist at fault.

Question 8

In an automobile policy what follows the included coverage like TPL, Accident Benefits, and DCPD?

Answer 8

General provisions, definitions and exclusions

ex occupant defined, territory, two or more automobiles

Question 9

Y/N

Are Statutory Conditions included in an auto policy?

Answer 9

Yes

They are there to outline specific ways of dealing with various situations that may arise.

Question 10

What is an endorsement?

Answer 10

An amendment to a policy that changes the terms and conditions of the policy.

Question 11

What 3 thing does an Agreed Value of Automobile Endorsement do?

Answer 11

1. provide additional limits for the increased value of classic or antique automobiles
2. To limit the amount of coverage on appraised vehicles to less than the appraisal amount
3. To provide protection for the difference between the cost of a new vehicle and its depreciated value

Question 12

Y/N

Is underinsured motorist included in SPF1 or not

Answer 12

No

It is an endorsement that can be added to the auto plan

Question 13

In an auto application under past license and insurance experience, how many past years of driving experience do they want and how many years of past insurance applications.

Answer 13

6 years of driving history

3 years of past insurance applications