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C14- Auto INS Ontario > Multiple Choice > Flashcards

Multiple Choice Flashcards

1
Q 
Dangerous driving is an example of which of the following types of offences?
A. Federal offence
B. Provincial offence
C. Municipal offence
D. Civil offence
A

A. Federal offence

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2
Q 
Which of the following would be municipal bylaws?
A. Dangerous driving
B. Zoning
C. Rules of the road
D. Trade between provinces
A

B. Zoning

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3
Q

Who is the defendant in a civil matter?
A. The person or organization that is being sued
B. The lawyer defending a person being charged with a crime
C. The lawyer prosecuting a person being charged with a crime
D. The person or organization that brings a legal action against another

A

A. The person or organization that is being sued

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4
Q

Who stands to incur costs if a vehicle is damaged or destroyed in an accident?
A. The owner of the vehicle
B. The garage making repairs to the vehicle
C. The tow truck driver who towed the vehicle to the garage
D. The bystander who saw the accident that damaged the vehicle

A

A. The owner of the vehicle

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5
Q

Who is the plaintiff in a civil matter?
A. The person or organization that is being sued
B. The party who brings legal action against another
C. The lawyer defending a person being charged with a crime
D. The lawyer prosecuting a person being charged with a crime

A

B. The party who brings a legal action against another

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6
Q

What is the purpose of the standard drivers automobile policy?
A.Provides coverage for drivers who are driving vehicles they do not own
B.Provides coverage for garages for customers vehicles
C. Provides coverage for businesses that could be held liable for damages caused by vehicles that they do not own
D. Provides coverage for vehicle owners if their car is damaged

A

A.Provides coverage for drivers who are driving vehicles they do not own

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7
Q

Which of the following statements best describes contingent insurance?
A. Begins penguin all other similar insurance on the same subject is exhausted
B. Applies if there is no other policy providing coverage
C. Is the first policy to respond to the loss
D. Drops down and cover is when the total limit of the underlying policy has been used up by paying claims

A

B. Applies if there is no other policy providing coverage

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8
Q

What is the purpose of motor vehicle liability cards?
A. They are proof of insurance
B. They are proof of a valid drivers license
C.They are proof of a membership in an automobile club
D. They provide a discount for gasoline purchases

A

A. They are proof of insurance

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9
Q 
Which cars require motor vehicle liability cards?
A. Only rental cars
B. Only commercial use vehicles
C. All cars
D. All trucks but not cars
A

C. All cars

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10
Q

Which type of information is included on a motor vehicle liability card?
A.Name and address of insurer
B. Age of principle driver
C.Insurance premium charged for the policy
D. Telephone number of the named insured

A

A.Name and address of insurer

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11
Q

What is a tort?
A. A criminal charges against a person
B. A legal punishment for committing a civil wrong
C. A civil wrong or harm committed against another person
D. A fine a person must pay for committing crime

A

C. A civil wrong or harm committed against another person

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12
Q

Which of the following statements about direct compensation systems is true?
A.Injured parties have access to civil justice system to recover damages
B. Injured parties access to civil justice system to recover damages is strictly limited or banned
C. Insurance always claim against third parties or third parties ensures to recover damages
D. Insurance can choose whether to recover damages from their own insurers or from third parties insurers

A

B. Injured parties access to civil justice system to recover damages is strictly limited or banned

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13
Q

Tim borrows his friends bike to go mountain biking. He secures the bike to his car on a rooftop bike rack but does not lock it in properly. As he is driving, the bike falls off the car and is damaged. Tim’s friend wants Tim to pay for the loss under his liability coverage. Which of the following statements describes how the liability coverage will respond?
A.Tim’s liability coverage will pay for the damaged bike, but Tim will have to pay the standard $300 property damage deductible
B.Tim’s liability coverage will pay for the damage bike and him will not have to pay deductible
C. Tim’s liability coverage will not pay for the losses because it excludes damage to property in the care, custody or control of the named insured
D. Tim’s liability coverage will not pay for the loss because it was Tim’s fault the property is damaged because he did not lock it in properly

A

C.Tim’s liability coverage will not pay for the loss because it excludes damage to property in the care, custody or control of the named insured

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14
Q 
What is Ontario is mandated minimum limit of third-party liability coverage?
A. $100,000
B. $200,000
C. $300,000
D. $500,000
A

B.$200,000

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15
Q

Hannah is involved in an incident which she is held legally liable. She carries a liability limit on her motor vehicle policy of 1 million liability, but she is sued for 2 million liability. Which of the following statements is accurate according to the coverage provided under the section?
A. Insurer will provide defense, negotiation, and settlement for 2 million liability
B. Insurer will pay up to 2 million for the settlement, as well as defence and negotiation costs
C.Insurer will not provide coverage because the lawsuit is more than the policy limit
D. Insurer will only provide up to 1 million for the settlement, plus the defence and negotiation costs for that amount

A

D.Insurance will only pay up to 1 million for the settlement plus defence and negotiation for that amount

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16
Q

Which of the following is an example of an economic loss?
A. Pain and suffering due to an injury
B. Payment for becoming disabled due to an injury
C. Estimated cost of future care due to a disability arising from an injury
D. Rehabilitation cost for treatment of an injury

A

D. Rehabilitation cost for treatment of an injury

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17
Q

What is a verbal threshold?
A. The words or language describing the nature and type of injury that must be suffered in order to be able to commence a legal action against the responsible party
B. The words or language describing the nature in type of injury that must be suffered in order to be able to claim under accident benefits coverage
C. The words or language describing the nature and type of injury that must be suffered in order to be able to claim under direct compensation property damage coverage (DCPD)
D. The words or language describing the nature in type of injury that must be suffered in order to be able to commence an action under uninsured automobile coverage

A

A. The words or language to describing The nature in type of injury that must be suffered in order to be able to commence a legal action against the responsible party

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18
Q

Under what circumstances with a third-party liability section of the policy have to respond due to the absolute liability provision?
A. The insured is legally liable for bodily injury to a third-party when operating her automobile while impaired
B. The insured is legally liable for bodily injury to a third-party when operating her automobile as authorized under law
C. The insured is legally liable for property damage to municipal property
D. The insured is legally liable for property damage to her own garage door

A

A. The insured is legally liable for bodily injury to a third-party when operating the automobile while impaired

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19
Q

Which statement is true about direct compensation property damage coverage (DCPD)?
A. Insureds deal with their own insurers for claims for damage to their own vehicles
B. Insureds can claim against third parties or third parties insurance companies for damages
C. Insureds will identify their own insurance to the extent that they were at fault for the loss
D. Insureds Must obtain a quart judgement to be paid by direct compensation property damage coverage

A

A. Insureds deal with her own insurers for claims for damage to their own vehicles

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20
Q 
Thomas has direct compensation property damage coverage with a $500 deductible. What amount of the deductible will he pay if he has 50% not at fault for a collision?
A.$0
B.$100
C.$250
D.$500
A

C.$250

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21
Q

Which of the following people would be considered the named insured under an automobile insurance policy?
A. The person or party designated In the policy as the insured
B. A pedestrian who has hit by an insured automobile
C. The automobile insurance company
D. Someone who is covered by the policy but it’s not specifically named

A

A. The person or party designated in the policy as the insured

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22
Q

How is a dependent defined in relation to accident benefits insurance?
A. A person who supports her entire family financially
B. A person who is not able to exist or sustain himself without the power or aid if someone else
C. A persons pet
D. A person or party designated in the policy as the insured

A

B. A person who is not able to exist work sustain himself without the power or aid of someone else

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23
Q

In Ontario, where are accident benefits explained?
A. In the accident insurance act
B. Statutory accident benefits schedule or SABS
C. In the highway traffic act
D. The insurance companies act

A

B. Statutory accident benefits schedule or SABS

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24
Q

In Ontario, which of the following must be provided as part of an accident benefit?
A. Direct compensation property damage coverage
B. Third-party liability coverage
C. Medical, rehabilitation, and attendant care benefits
D. Uninsured automobile coverage

A

C. Medical, rehabilitation, and attendant care benefits

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25
Q

In which of the following situations are insurers required to pay income replacement or non-earner benefits, Educational expenses, expenses of visitors, and housekeeping and home maintenance expenses?
A. When a person is injured in a car accident, and as the driver, is an excluded driver under the policy
B. When a person is injured in a car accident, and as a driver, new or ought to have known that he or she was operating the automobile at the time of the accident without the owners consent
C. When a person who is the driver of a car has an accident but refuses to provide a breath sample and is convicted of failure to provide the sample
D. When a production who does not have her own insurance policy is hit by a car while crossing the street

A

D. When a pedestrian who does not have her own insurance policy is hit by a car while crossing the street

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26
Q

Which of the following statements is true?
A. Insurers Are required to pay income replacement or non-earner Benefits, educational expenses, expenses of visitors, and Housekeeping at home maintenance expenses to a person who, as the driver, was driving the automobile without a valid drivers license
B. Insurer’s are required to pay income replacement or non-owner benefits, educational expenses, expenses of visitors, and housekeeping and home maintenance expenses to any person who has made, or who knows of, immaterial misrepresentation which induced the insurer to enter into a contract of insurance for who intentionally failed to notify the insurer of a change in the risk material to the contract
C. Excluded persons are eligible for benefits other than income replacement or non-owner benefits, educational expenses, expenses of visitors, and housekeeping and home maintenance expenses
D. Insurance are required to pay income replacement or non-owner benefits, educational expenses, expenses of visitors, and housekeeping and how maintenance expenses to a person who is injured in a car accident, and as the driver, is an excluded driver under the policy

A

C. Excluded persons are eligible for benefits Other than income replacement or non-owner benefits, educational expenses, expenses of visitors, and housekeeping and hold maintenance expenses

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27
Q

What accident benefit options do Ontario residents have when they are injured in Automobile accidents outside Ontario (anywhere in Canada or the United States)?
A. Ontario residents can choose between the Ontario level benefits and the non-faults benefits available in the jurisdiction where are the accident occurred
B. Ontario residents do not have a choice. They must claim the Ontario level benefits
C. Ontario residents injured in an accident outside Ontario are not entitled to any accident benefits coverage at all
D. Ontario residents are only eligible for the level of non-faults benefits available in the jurisdiction where the accident occurred, even if it is less than Ontario level

A

A. Ontario residents can choose between the Ontario level benefits and the non-faults benefits available in the jurisdiction where the accident occurred

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28
Q

Which of the following amounts may an insurer deduct when calculating the amount of weekly income replacement or non-earner benefits payable to an insured person?
A. Money insured received back from the government by claiming medical expenses on their tax returns
B. Money insureds receive as gifts from relatives to help with medical expenses following an automobile accident
C. Net payments for loss of income that have been received by the insured person as a result of the accident under the laws of any jurisdiction or under any income continuation plan
D. Funds for prescription drugs that insureds have claimed from their employer-Sponsored benefit plan

A

C. Net payments for loss of income that have been received by the insured person as a result of the accident under the laws of any jurisdiction or under any income Continuation plan

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29
Q

What are some examples of service providers’ billing practises that might indicate a possibility of fraudulent activity?
A. Services that are billed only once
B. The listing therapist is no longer employed by the firm
C. Patterns for services that are within acceptable provincial standards
D. Treatments are delivered by licensed therapists

A

B. The listed Therapist is no longer employed by the firm

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30
Q

Which of the following is a potential indicator of a staged accident?
A. The accident occurred in a busy intersection
B. The driver is the only passenger in the car at the time of the collision
C. Vehicle damage from the collision is minimal, yet all passengers claim soft tissue injuries
D. Vehicle damage from the collision is severe and but the only passenger reported no injuries

A

C. Vehicle damage from the collision is minimal, yet all passengers claim soft tissue injuries

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31
Q 
In Ontario, what is the maximum payable amount for property damage to automobile and contents with uninsured automobile coverage?
A. $15,000
B. $25,000
C. $50,000
D.$100,000
A

B.$25,000

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32
Q 
What priority payment percentage is attributed to bodily injury payments under uninsured automobile coverage?
A.5%
B.10%
C.90%
D.95%
A

D.95%

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33
Q 
What is the deductible applied to property damage and contents in section 5 - Uninsured automobile coverage of the OAP1?
A.$300
B.$500
C.$750
D.$1000
A

A.$300

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34
Q 
Which Ontario supreme court decision set the precedent that a victim does not have to be struck directly by a vehicle in order to be eligible for damages?
A. Talbot v. GAN general insurance co
B. Lewis v. Economical insurance group
C. Seeman v. Dominion insurance 
D. Schmidt v. Hal well mutual insurance
A

A. Talbot v. GAN General insurance Co

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35
Q

What amount of coverage does the family protection endorsement provide in Ontario?
A. It provides primary coverage for loss is caused by uninsured driver is up to $200,000
B. Tops tops up the limit of uninsured automobile coverage from the provincial minimum limit of $200,000 to the endorsement limit
C. It doubles up the limit of uninsured automobile coverage from the provincial minimum limit of $100,000-$200,000
D. It provides primary coverage for loss is caused by uninsured driver is up to $1 million

A

B. The tops of the limit of uninsured automobile coverage from the provincial minimum limit of $200,000 to the endorsement limit

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36
Q 
Which of the following would compensate an insured Who is awarded a court judgement against a driver who has identified but does not have enough insurance to cover the loss?
A. Accident benefits
B. Third-party liability
C. Uninsured motorist
D. Family protection
A

D. Family protection

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37
Q

Which of the following statements is true regarding the stacking a family protection endorsement limits?
A. Stacking of limits is not permitted
B. An insured can stack limits for up to two policies that have the family protection endorsement
C. An Insured can stack limits for up to three policies’ Family protection endorsement
D. Stacking of limits is permitted for amounts up to the total damages suffered by the insured

A

A. Stacking of limits is not permitted

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38
Q

When might a motor vehicle accident claims fund cover a property damage loss?
A. If the owner or driver of the car responsible for causing the loss is identified
B. If the owner or driver of the car responsible for causing the loss is unidentified
C. Property damage is never covered by any motor vehicle accident claims fund
D. Property damage is always covered by any motor vehicle accident claims fund

A

A. If the owner or driver of the car responsible for causing the loss is identified

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39
Q

How can a victim receive payment under a motor vehicle accident claims fund (MVACF) if an uninsured owner and /or driver denies liability?
A. The MVACF may require the victim submit a statutory declaration about the details of the accident
B. The MVACF may require the victim to pay $1000 deductible before reimbursing any property damage loss
C. The MVACF may require the victim to any judgement be rendered before making a payment
D. The MVACF may require the victim complete a statement of loss and provide evidence to support it

A

C. The MVACF they require that the victim Sue and a judgement be rented before making payment

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40
Q 
What is another name for motor vehicle accident claims fund?
A. Unsatisfied judgement fund
B. Satisfied judgement fund
C. Automobile insurance fund
D. Automobile fund
A

A. Unsatisfied judgement fund

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41
Q 
Which of the following types of theft is covered under all perils but not comprehensive coverage?
A. Theft by conversion
B. Theft by insurance fraud
C. Theft by household member
D. Theft by a voluntary parting of title
A

C. Theft by household member

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42
Q

Which of the following losses will be covered under specified perils coverage?
A. Theft by a person who has legal possession of the car under written agreement
B. Theft due to a voluntary fraudulent change in ownership
C. Damage caused by impact with an animal
D. Damage caused by earthquake

A

D. Damage caused by earthquake

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43
Q

Which of the following types of damage is excluded under the owners policy?
A. Mechanical breakdown of the vehicle
B. Damage caused by impact with an object
C. Vandalism damage to the vehicle
D. Earthquake damage to the vehicle

A

A. Mechanical breakdown of the vehicle

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44
Q

Which of the following statements correctly describes the outcome If the insured operates the vehicle under the influence of intoxicating liquor or drugs?
A. The policy will not cover loss or damage to the vehicle
B. The policy will not cover the damage to vehicle of the vehicle is owned by a family member
C. The policy will only cover the vehicle if this is the drivers first offence
D. The policy will only cover the percentage of the damage for which the Driver is at fault

A

A. The policy will not cover loss or damage to the vehicle

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45
Q 
Lightning strikes Denise car, blowing out all the windows and causing $1800 worth of damage. Denise has specified pearls with a $300 deductible. What would her insurer pay?
A. Zero dollars
B.$300
C.$1500
D.$1800
A

D.$1800

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46
Q

Which of the following is an example of salvage charges that would be covered as an additional benefit under loss or damage coverage?
A. Expenses involved in recovering property to prevent loss from an insured peril
B. Expenses that arise when the automobile is being transported Bywater and cargo must be jettisoned
C. Expenses that arise from fire department charges for attending the scene of a loss
D. Expenses for customs duties Levied when the automobile suffered a loss in the United States

A

A. Expenses involved in recovering property to prevent loss from an insured peril

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47
Q

What is salvage?
A. The remaining value of property after severe damage by fire or other peril
B. The remaining value of property after the Deductible is paid by an insured
C. The amount paid to repair the damaged vehicle
D. The amount of premium charged for the insurance

A

A. The remaining value of property after severe damage by fire or other peril

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48
Q 
What time period Do insureds have for notifying the insurer in writing of a loss involving the car
A. 1 day
B. 2 days
C. 7 days
D.14 days
A

C.7 days

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49
Q

What is a phantom vehicle?
A. A vehicle that does not exist or is already wrecked
B. A vehicle that has been purchased but not yet delivered to the buyer
C. A vehicle that is insured but has a suspension of coverage endorsement attached to the policy
D. A vehicle that is owned by a garage

A

A. A vehicle that does not exist or is already wrecked

50
Q

What is CANATICS an example of?
A. Insurance companies working together to stop the spread of fraud
B. Police forces coordinating efforts to stop the spread of fraud
C. And insurance companies internal efforts to start spread of fraud
D. Government collaborating in order to stop the spread of fraud

A

A. Insurance companies working together to stop the spread of fraud

51
Q

How does an insurer benefit by using a written application signed by the applicant?
A. The application confirms the broker an agent acted in utmost good faith
B. The application is not required to disclose all information because of the privacy act
C. If the application was made orally, The signed applicant must be received within seven days
D. If there exist within the application a misrepresentation, the signed application may be used to establish misrepresentation

A

If there exists within the application a misrepresentation, the signed application may be used to establish misrepresentation

52
Q

What is an insurer required to do any policies issued that differs in anyway from the written application?
A. The insurer must notify the insured, in writing, in what ways the policy differs from the application
B. The insurer must give the insured a 25% premium decrease
C. The insurer must file a report with the insurance Bureau of Canada
D. The insurer must allow the insured to object to the changes by advising the insurer in writing within 14 days or the policy is deemed to cover as it is written

A

A. The insurer must notify the insured, in writing, in what way is the policy difference from the application

53
Q

Which of the following would an insurer consider as a misrepresentation on an automobile application?
A. Underestimating the size of the engine and mileage on ones car
B. Intentionally not reporting details of a claim
C. Forgetting to disclose a ticket recently received
D. Guessing the year and make of the car

A

B. Intentionally not reporting details of a claim

54
Q 
Which of the following coverages listed in Section 8 of the OAF 1 is not mandatory coverage?
A. Accident Benefits
B. Loss or damage
C. Liability
D. Uninsured automobile
A

B. Loss or damage

55
Q

What type of coverage apply under the owners policy (OAP 1) in Ontario when another motorist is responsible for personal injuries to the insured, injuries to a pedestrian, and damage to the insured’s automobile?
A. Liability, uninsured automobile coverage, and comprehensive
B. Liability, direct compensation, and uninsured automobile coverage
C. Liability, direct compensation, and collision
D. Liability, direct compensation, and accident benefits

A

D. Liability, direct compensation, and accident benefits

56
Q 
Which section of the application contains a warning of a penalty when the application gives false particulars of a described automobile to be insured, and these particulars are to the prejudice of the insurer?
A. Driver information
B. Rating information 
C. Insurance coverages applied for
D. Declaration of applicant
A

D. Declaration of applicant

57
Q

What is underwriting?
A. The consideration of the acceptance or rejection of a risk
B. Solely the pricing mechanism of insurance
C. The terms of the policy of the risk is declined
D. The settlement of claims under the policy

A

A. The consideration of the acceptance or rejection of a risk

58
Q

Which of the following is a function of underwriting?
A. Establishing the terms of the application
B. Determining the purchase price of the automobile
C. Using actuarial methodology to determine rates for insuring an automobile
D. Determining the amount to be paid for a claim

A

C. Using actuarial methodology to determine rates for insuring an automobile

59
Q

Which of the following is accomplished using an endorsement?
A. Terminating a policy mid-term
B. Lapsing a policy on renewal
C. Limiting insurers’ exposures under the policy for certain risks
D. Changing statutory conditions under the policy

A

C. Limiting insurers’ exposures under the policy for certain risks

60
Q 
What usual function of underwriting is considered illegal for government insurers in British Columbia, Manitoba, Saskatchewan?
A. Selling endorsements coverage
B. Selling coverage extensions
C. Declining basic insurance coverage
D. Lowering insurance rates
A

C. Declining basic insurance coverage

61
Q

Which of the following does NOT affect the premium of an automobile insurance policy?
A. The type and model of automobile
B. The Existence of a lien on the automobile
C. The drivers of the automobile
D. Past accidents and claims

A

B. The existence of a lien on the automobile

62
Q

Some automobile are more attractive to thieves than others, but the incidence of theft is also influenced by which of the following factors?
A. Principal driver
B. Territory in which the automobile is normally operated
C. Registered owner of the automobile
D. Number of occasional drivers

A

B. Territory in which the automobile is normally operated

63
Q 
What is driving experience?
A. Number of years licensed
B. Number of cars owned in a lifetime
C. Vehicle usage
D. Territory and distance driven annually
A

A. Number of years licensed

64
Q 
According to law of large numbers, the degree of uncertainty is reduced as which of the following increases?
A. Frequency of the  events
B. Cost of the type of risk
C. Size of the type of risk
D. Location where the events occur
A

A. Frequency of events

65
Q 
What do we call the forecasting of the increase or decrease of loss costs for the period for which premiums are calculated?
A. Actuary forecasting 
B. Projected loss forecasting
C. Rating forecasting 
D. Trending
A

D. Trending

66
Q

CLEAR (Canadian Loss Experience Automobile Rating) is based on which of the following factors?
A. Likelihood of the vehicle being involved in a claim and how much repair would it cost
B. Purchase price of the vehicle and the amount it would cost to replace or repair it
C. Manufacturers suggested retail price of the vehicle if in an accident
D. Territory the vehicle is in and the how attractive the vehicle is to thieves

A

A. Likelihood of the vehicle being involved in a claim and how much it would cost to repair

67
Q 
Which of the following provinces has not established a great board to control automobile insurance rates?
A. New Brunswick
B. Newfoundland
C. Nova Scotia
D. Saskatchewan
A

D. Saskatchewan

68
Q

Which of the following is true about file and use following adjudication period?
A. The board cannot challenge the rates
B. The board can challenge the rates within a period of time, usually 90 to 120 days
C. Following the period of time the insurer can use the rates as they are deemed to be approved
D. The insurer always try to file rate increases with the rate board

A

C. Following the period of time, the insurer can use the rates as they are deemed to be approved

69
Q

What is the difference between usage-based insurance rating and traditional rating?
A. In usage based insurance, driving behaviours and mileage are tracked so that the mileage can become a variable factor and used in combination with other factors to calculate the premium
B. Traditional reading makes premium prices more individualized because it uses Actuarial studies Aggregated historical data (law of large numbers to produce rating factors?
C. Usage based insurance rating results in higher premiums because there are less discounts available for the drivers
D. Traditional rating results in lower premiums

A

A. In usage based insurance, driving behaviours and mileage I tracked so that the mileage can become a variable factor and used in combination with other factors to calculate the premium

70
Q 
Usage-based insurance will monitor which of the following driving behaviours?
A. Driving record
B. Vehicle type
C. Rapid acceleration
D. Credit based insurance score
A

C. Rapid acceleration

71
Q 
After uninsured automobile has been damaged in an accident, who’s responsibility is it to protect the automobile from further damage?
A. The adjuster
B. The insured
C. The insurer
D. The person who caused the damage
A

B. Insured

72
Q

Which type of vehicle use is prohibited under the statutory conditions?
A. A parent using The car to drive members of her daughter sports team to a game
B. A driver using the automobile for street racing
C. A driver speeding 10 km/h over the speed limit on the highway
D. A driver using the car while she is qualified and authorized to drive

A

B. A driver using the automobile for street racing

73
Q

The statutory conditions require an insured to pay insurance money for which it is liable within which of the following time periods?
A. Within 60 days after the date of accident
B. Within 60 days after the date of the accident was reported by the insured
C. Within 60 days after it receives The proof of loss submitted by the insured
D. Within 60 days after the date of the accident or within 60 days after the repairs are started If the insurer chooses to repair the damage Automobile

A

C. Within 60 days after it receives the proof of loss submitted by the insured

74
Q

Which statement is correct regarding the termination of an automobile policy according to the statutory conditions?
A. Only the insurer may terminate the policy midterm
B. The policy may be terminated by either the insured or the insurer, provided certain conditions are met
C. Once the policy has been issued, it can be terminated only if the insured gets rid of the automobile or gives up his or her drivers license
D. Only the insured may terminate the policy after it has been issued

A

B. The policy may be terminated by either the insured or the insurer, provided certain conditions are met

75
Q 
What are statutory conditions called in Nova Scotia? 
A. Prescribes conditions
B. Mandatory conditions
C. General conditions
D. Civil conditions
A

B. Mandatory conditions

76
Q 
Which of the following types of conditions apply to a garage automobile policy in Ontario?
A. Prescribed conditions
B. Garage conditions
C. Civil conditions
D. Statutory conditions
A

D. Statutory conditions

77
Q

Anton he’s driving his car in an illegal street race when he loses control and collides with the pole, Which causes $5000 of damage to his car. Which statement below describes how Anton‘s automobile policy will respond to the loss?
A. The policy will pay the loss in full
B. The policy will pay the loss but will deduct $1000 penalty charge for the racing conviction
C. The policy will pay the loss but will subrogate against Anton
D. The policy will not pay the loss because racing is prohibited use under the statutory conditions

A

D. The policy will not pay the loss because racing is prohibited use under the statutory conditions

78
Q

Which of the following actions would an insurer consider to be a material change in risk?
A. The insured installed a bicycle rack on the car
B. The insured borrowed a friends car
C. The insured paid off her car loan
D. The insured began using her car to drive for Uber

A

D. The insured began using her car to drive for Uber

79
Q

What happens if the insured has overpaid his insurance premium based on being incorrectly classified under the insurers risk classification system?
A. The insurer must refund the premium in full
B. The insurer must refund the overpayment with interest
C. The insurer can keep the overpayment
D. The insurer must renew the policy with a premium discount

A

B. The insurer must refund the overpayment with interest

80
Q

Michael is driving home from work. As he stopped at an intersection for a red light, the motor is behind him fails to stop in time and collides with his rear bumper. Michael’s car is drivable, but it has damage that will need to be repaired. Which of the following actions should Michael take?
A. Give prompt written notice to the ensure of the accident and or resulting claim
B. Attempt to set an a loss directly with the other driver without involving his insurance
C. Assume liability for the collision
D. Except the other drivers apology for Causing the loss and his offer to pay to repair Michael’s damage himself

A

A. Give prompt written notice to the insurer of the accident and or resulting claim

81
Q 
Within what period of time should the insured notify the insurer of the possession of a newly acquired Automobile?
A. 14 hours
B. 14 days
C. 24 days
D. 24 hours
A

B. 14 days

82
Q

Why is it a mistake to remove a vehicle from a policy immediately after it has been destroyed or stolen?
A.Because it also eliminates the extended benefits provided for the temporary substitute automobile that the insured maybe operating at the time
B. Because this invalidates accident benefits under the policy
C. Because this means the insured will have to immediately cancel the policy and pay short term penalty for early cancellation
D. Because this invalidates the claim for the described automobile

A

A. Because this also eliminates The extended benefits provided for the temporary substitute automobile that the insured maybe operating at the time

83
Q 
Sam’s automobile policy has liability coverage on two automobiles: $300,000 on one vehicle and $400,000 on the other. If she is driving a friends vehicle and is involved in an accident, what is the most her insurance will pay?
A. $100,000
B. $400,000
C. $700,000
D. $750,000
A

B. $400,000

84
Q 
Which of the following is not considered a a war risk activity under a war risk exclusion?
A. Bombardment
B. Invasion
C. Insurrection
D. Vandalism
A

D. Vandalism

85
Q

What is ridesharing?
A. An arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee
B. An arrangement where a driver leases a car on a short term basis from a car rental company
C. And arrangement set up by means of a website or mobile app that links renters and car owners to arrange peer to peer car rental
D. And arrangement where in insured uses a temporary substitute Automobile while the described Automobile is in the shop for repair

A

A. An arrangement Set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee

86
Q

Which of the following is an example of vicarious liability?
A. And employer is responsible for the action of its employees
B. A restaurant patron is responsible for the actions of the other patrons
C. An insurer is responsible for the action of its insured‘s
D. A wife is responsible for the actions of her spouse

A

A. And employer is responsible for the action of its employee

87
Q

What is car sharing?
A. An arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner for free or for a fee
B. An arrangement where a driver lease is a car on a short-term basis from a car rental company
C. And arrangement set up by means of a website or mobile app that links renters and car owners to arrange peer to peer car rental
D. And arrangement wearing insured use as a temporary substitute automobile well they described automobile is in the shop for repair

A

C. And arrangement set up by means of a website or mobile app that links renters in car owners to range peer to peer car rental

88
Q

Which of the following is an eligible criterion for drivers to get coverage under a ridesharing endorsement?
A. The passenger must have a standard owners policy with the additional of a permission to carry paying passengers endorsement (OPCF 6 in Ontario or SEF 6 in Alberta)
B. They must be contracted with a transportation network company
C. They must file proof of financial responsibility with a superintendent of insurance (or comparable provincial insurance regulator) For 2 million
D. They must have an umbrella liability policy with a limit of $2 million

A

B. They must be contracted with a transportation network company

89
Q

If there is an accident while a car is being rented and a car sharing arrangement which of the following policies will cover the loss?
A. The commercial insurance policy attached to the car
B. The garage policy attached to the car
C. The owners policy attached to the car
D. The non-owned automobile policy of the renter

A

A. The commercial insurance policy attached to the car

90
Q

Amelia is considering ways to supplement her income using her car. which of the following statements correctly describes Are use of her car that would be covered?
A. She can drive for a taxi company using her own car but must notify Her insurer
B. She can make deliveries using her own car and will be covered under her regular auto owners policy
C. She can drive for a transportation network company but must have permission from her insurer and have a ridesharing endorsement
D. She can make deliveries using her own car and will be covered under her couriers companies garage policy

A

C. She can drive for a transportation network company but must have permission from the insurer and have a ride sharing endorsement

91
Q

Which statement about automobile insurance endorsements is true?
A. The insured must sign all endorsements enhancing or out coverage for them to be valid
B. The insured my sign all endorsements reducing or restricting coverage for them to be valid
C. The insured must sign all endorsements relating to loss of use and non-owned automobiles for them to be valid
D. The insured my sign all endorsements for them to be valid

A

B. The insured my sign all endorsements reducing or restricting coverage for them to be valid

92
Q

Which of the following statements about school bus coverage is true?
A. Gives permission to use the automobile to carry any type of passengers for compensation or hire
B. Provide specific coverage for passenger hazard but not liability coverage
C. Excepted liability limit on and aggregate basis rather than on a per person basis
D. Provides coverage for the insurance legal liability for loss or damage to property of passengers in the school bus

A

D. Provides coverage for the insured’s legal liability for loss of or damage to property of passengers in the school bus

93
Q

Which of the following examples would constitute a commercial exposure??
A. Automobiles used on behalf of volunteer organizations, driven by volunteer drivers to transport individuals
B. A taxi used to transport passengers for compensation
C. A private car used by one employee to drive other employees from the parking lot to their workplace in a carpooling arrangement
D. A volunteer driver delivering hot meals to people in their homes

A

B. A taxi used to transport passengers for compensation

94
Q

What is the purpose of the OPCF9 marine use excluded endorsement?
A. To remove the exclusion of marine use of the vehicle
B. To extend coverage for the marine use of the vehicle
C. To exclude coverage for the marine use of the vehicle
D. To exclude coverage for the marine use of the vehicle only one transporting passengers

A

C. To exclude coverage for the marine use of the vehicle

95
Q

In which instance would an insurer consider the OPCF 13 C restricting glass endorsement?
A. The insured drives frequently on gravel roads
B. The insured’s windshield has unrepaired damage
C. The insured has a history of collision claims
D. The insured has an expensive windshield

A

B. The insured’s windshield has unrepaired damage

96
Q

Coverage for an emergency road service endorsement will typically include which of the following coverages?
A. Mechanical labour at the garage the vehicle is towed to (up to a specific time limit)
B. Costs to repair the disabled vehicle and make it roadworthy (up to a specified limit)
C. Delivery of gas, oil, a battery, or a replacement tire ( but not the cost of these or similar items)
D. Maintenance costs for the car such as oil changes and brake pad replacement(up to a specified limit)

A

C. Delivery of gas, oil, a battery or a replacement tire (but not the cost of these or similar items)

97
Q

Which of the following statements about liability for damage to nine and automobiles OPCF 27 it’s true?
A. This endorsement provided direct damage coverage for physical damage to the rental vehicle
B. This endorsement provide a legal liability protection for the driver if the driver is responsible for the damages were assumes responsibility for the damage to a rented vehicle
C. this endorsement is only available in Ontario
D. This endorsement extends direct compensation property damage coverage from the normal named insured and spouse offered under the basic policy wordings to those individuals listed on this endorsement

A

B. This endorsement provide a legal liability protection for the driver if the driver is responsible for the damages or assumes responsibility for the damage to rented vehicle

98
Q 
Eva has pass legal troubles from driving without insurance. As a result, she must file proof of financial responsibility to obtain a drivers license for commercial purposes, but she does not own a car. Which type of policy can she purchase?
A. Non-owned automobile policy
B. Drivers policy
C. Garage policy
D. Excess liability policy
A

B. Drivers policy

99
Q

Which of the following statements is true regarding reading the drivers automobile policy?
A. Bodily injury is rated on the lowest exposure
B. Garage personnel are charged a higher rate than others
C. Property damages read it on the lowest exposure
D. There’s no minimum premium for standard limits

A

B. Garage personnel are charged a higher rate than others

100
Q 
Which of the following is not one of the changes that can be made under the alteration endorsement OPCF 25 a? 
A. Addition of an automobile
B. Change of name
C. Change of ownership
D. Deletion of an automobile
A

C. Change of ownership

101
Q

Who oversees agent and broker licensing pursuant to the provincial insurance acts?
A. Superintendent of banks
B. Provincial or territorial superintendent of insurance
C. Premier of the province
D. Prime Minister of Canada

A

B. Provincial or territorial superintendent of insurance

102
Q

Which statement is correct?
A. Each province has its own superintendent of financial institutions
B. The highway traffic acts deals with insurance agent and broker licensing
C. The superintendent of insurance overseas agent and broker licensing pursuant to the provincial insurance acts
D. The insurance companies act deals with provincial licensing and supervision of insurance companies as solvency standard for insurers

A

C. The superintendent of insurance overseas agent and broker licensing pursuant to the provincial insurance acts

103
Q 
How many days notice must the insurer provide the named insured if it does not intend to renew a contract or intends to renew a contract on varied terms? 
A. 7
B.30
C. 45
D.60
A

B.30

104
Q

Which of the following is considered an unfair or deceptive act according to Ontario regulation 7/00 unfair or deceptive acts or practices?
A. Insurer makes any incomplete comparison of any policy or contract of insurance with that of any other insurer for the purpose of inducing or intending to induce and insured to lapse forfeit or surrender a policy or contract
B. An insurer providing the named insured with 45 days notice that it does not intend to renew a policy
C. An insurer filing with the FSCO a list of grounds for which the insurer declines to issue or terminate or refuses to renew an automobile insurance contract
D. An insurer classifying a person or vehicle and are at risk classification system when reading a person or a vehicle as an insurance risk for the purpose of determining the premium payable for a policy of automobile insurance

A

A. An Insurer making any incomplete comparison of any policy or contract of insurance with that of any other insurance for the purpose of inducing or intending to induce and insured two laps or forfeit or surrender a policy or contract

105
Q

Residual markets, from an underwriting standpoint, refer to which of the following?
A. Special programs to ensure insurance availability for all uninsured drivers
B. A market that is immediately available to brokers or agents and the public
C. Special programs to ensure insurance availability for less desirable or more hazardous risks
D. Special programs to encourage insurance for the more desirable or less hazardous risks

A

C. Special programs to ensure insurance availability for less desirable or more hazardous risks

106
Q 
What does a car year measure?
A. An insurers exposure
B. The year the insured vehicle was made
C. The condition of the insured vehicle
D. The mileage on the insured vehicle
A

A. An Insurers exposure

107
Q 
What is the name of the Alberta risk sharing pool that allows automobile insurance to transfer private passenger exposures up to a pre-defined maximum?
A. Grid pool
B. Non-grid pool
C. Gray pool
D. Mobile pool
A

B. Non-grid pool

108
Q 
Which of the following provinces has a risk sharing pool that is designed to provide affordable automobile insurance to operators with less than six years of driving experience and clean driving records?
A. Alberta
B. British Columbia
C. New Brunswick
D. Nova Scotia
A

D. Nova Scotia

109
Q

How is the decision to transfer a risk to the Plan de repartition des risques made?
A. Solely by the insurer
B. Solely by the insured
C. Solely by the broker
D. Solely by the groupement des assureeurs automobile

A

A. Solely by the insurer

110
Q

Which of the following organizations administers the Quebec risk sharing program?
A. Societe l’assurance automobile du Quebec
B. Facility association
C. Insurance bureau of Canada
D. Groupement does assureurs automobile

A

D. Groupement does assureurs automobiles

111
Q

Identify the two ways that automobile insurance is distributed in Canada?
A. By direct writers and direct response companies
B. By private insurance companies and crown corporations
C. By direct riders and brokers or agents
D. By brokers and agents

A

B. By private insurance companies and crown corporations

112
Q

In which provinces in basic compulsory automobile insurance provided by the government?
A. Alberta, New Brunswick, and Newfoundland and Labrador
B. Saskatchewan, Nova Scotia, and Quebec
C. British Columbia, Saskatchewan, and Manitoba
D. Manitoba, Ontario, and Prince Edward Island

A

C. British Columbia, Saskatchewan, and Manitoba

113
Q

Which of the following statements about automobile insurance in Quebec is true?
A. Both bodily injury and property damage claims are covered by the Quebec government compensation plan
B. Bodily injury claims are covered by a government compensation plan, and the property damage claims are covered by standard automobile policy is issued by private insurance companies
C. Both bottle he injury and probably damage coverages could be purchased by the insured from either the Quebec government Insurer or a private company
D. Both bodily injury and property damage claims are covered by private insurance companies

A

B. Bodily injury claims are covered by a government compensation plan, and property damage claims are covered by a standard automobile policy is issued by private insurance companies

114
Q 
In which Canadian province or accident benefits an optional automobile insurance coverage?
A. Ontario
B. Newfoundland and Labrador
C. Alberta
D. Nova Scotia
A

B. Newfoundland and labrador

115
Q 
In which of the following province or territory is uninsured motorist coverage is standalone coverage
A. Alberta 
B. Yukon
C. Nunavut 
D. Ontario
A

D. Ontario

116
Q 
How many sections does the Quebec owners policy have (QPF 1)
A.1
B.2
C.3
D.5
A

B.2

117
Q 
Which of the following provinces has a private insurance scheme with direct compensation?
A. Alberta 
B. British Columbia
C. Ontario 
D. Saskatchewan
A

C. Ontario

118
Q 
Which of the following provinces has a private insurance scheme with tort coverage?
A. Alberta
B. British Columbia
C. Ontario
D. Nova Scotia
A

A. Alberta

119
Q 
What is the name for the government automobile insurance plan in Manitoba?
A. Autoplan 
B. Autopac 
C. Auto fund
D. SAAQ
A

B. Autopac

120
Q 
What deductible will apply under direct compensation property damage coverage if an insured is 50% at fault and the policy shows a $500 deductible under the DCPD coverage?
A.$0
B.$250
C.$500
D.$1000
A

B.$250

C14- Auto INS Ontario (3 decks)

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