OAS Section Quiz 7-10

Question 1

What is a tort?

Select one:

a.
A criminal harm committed against another person.

b.
A civil wrong committed against another person.

c.
A declaration made under statutory authority before a commissioner of oaths, asserting knowledge of facts.

d.
The legal process where the insurer can recover the amount of a loss from those found legally liable.

Answer 1

Reference: OAS - Study 7 - LO1

The correct answer is: A civil wrong committed against another person.

Question 2

Who has the onus of proof in an accident involving a motorist and a pedestrian?

Select one:

a.
Both the motorist and pedestrian in the accident

b.
The pedestrian

c.
The person suing (the plaintiff)

d.
The motorist

Answer 2

Reference: OAS - Study 7 - LO1

The correct answer is: The motorist

Question 3

In which automobile insurance system are insureds compensated by their own insurer regardless of responsibility?

Select one:

a.
No-fault insurance

b.
Private insurance

c.
Government insurance

d.
Collateral insurance

Answer 3

Reference: OAS - Study 7 - LO1

The correct answer is: No-fault insurance

Question 4

What is verbal threshold?

Select one:

a.
The extent of injury required for a civil action to be allowed for non-economic loss against an at-fault motorist.

b.
The extent of injury required for an insured to receive accident benefits.

c.
The extent of injury required for a criminal action to be allowed against an at-fault motorist.

d.
The extent of injury required for the injury to be considered catastrophic.

Answer 4

Reference: OAS - Study 7 - LO1

The correct answer is: The extent of injury required for a civil action to be allowed for non-economic loss against an at-fault motorist.

Question 5

Anne’s car is parked on the street in front of her home. Her neighbour backs into it. How will she be compensated for her loss?

Select one:

a.
Coverage will come from the Comprehensive section of the at-fault driver’s policy.

b.
Coverage will come from the DCPD section of the at-fault driver’s policy.

c.
Coverage will come from the DCPD section of her own policy.

d.
Coverage will come from the Own Loss or Damage section of her own policy.

Answer 5

Reference: OAS - Study 7 - LO2

The correct answer is: Coverage will come from the DCPD section of her own policy.

Question 6

Mario was involved in an accident for which he was not at fault and the contents in his vehicle (valued at $30,000) were damaged. Is Mario’s insurer able to subrogate for the damaged contents?

Select one:

a.
No, subrogation is not permitted as the content’s loss is over $20,000.

b.
No, subrogation for contents carried in or on the automobile is excluded.

c.
Yes, subrogation is permitted for all damaged contents following an automobile accident.

d.
Yes, subrogation is permitted as the content’s loss is over $20,000.

Answer 6

Reference: OAS - Study 7 - LO2

The correct answer is: Yes, subrogation is permitted as the content’s loss is over $20,000.

Question 7

A valet driver is negligent and caused damage to the insured’s vehicle while parking it. Once the insured is compensated by his/her insurer, does DCPD permit the insurer to subrogate against the responsible party?

Select one:

a.
Yes, because the insured gave permission to the valet to operate the automobile.

b.
No, because under DCPD rules, subrogation is NOT permitted.

c.
Yes, because the damage was caused by someone in the business relating to automobiles.

d.
No, because the OAP 1 excludes coverage for garage employees.

Answer 7

Reference: OAS - Study 7 - LO2

The correct answer is: Yes, because the damage was caused by someone in the business relating to automobiles.

In Ontario, there are three cases in which subrogation related to a DCPD claim is permitted. One case is if someone in the business of parking vehicles is negligent and damages the insured’s vehicle, then the insurer can subrogate against the responsible party.

Question 8

In Ontario, what are the four optional own damage coverages?

Select one:

a.
Specified perils, named perils, collision and upset, and all perils

b.
All perils, comprehensive, collision and upset and named perils

c.
All perils, comprehensive, collision and upset, and accident benefits

d.
Collision or upset, specified perils, comprehensive, and all perils

Answer 8

Reference: OAS - Study 8 - LO1

The correct answer is: Collision or upset, specified perils, comprehensive, and all perils

Question 9

Which situation is ONLY covered when the insured has all perils coverage?

Select one:

a.
An employee who uses your car, with your consent, damages it while going to the bank.

b.
A friend who lives in your home, damages your car after taking It without consent.

c.
The tenant who is renting a room in your home damages your car after taking it with consent.

d.
Damage caused to the car by a valet parking attendant.

Answer 9

Reference: OAS - Study 8 - LO1

The correct answer is: A friend who lives in your home, damages your car after taking It without consent.

All perils are the broadest form of coverage, including certain types of theft that are excluded under comprehensive.

Question 10

Under OAP 1, Section 7—Loss or Damage Coverage, which coverage(s) would indemnify for the peril of rising water?

Select one:

a.
Comprehensive only

b.
Comprehensive but not specified perils

c.
All Perils, comprehensive, and specified perils

d.
All perils only

Answer 10

Reference: OAS - Study 8 - LO1

The correct answer is: All Perils, comprehensive, and specified perils

All perils combine collision or upset and comprehensive coverage. Comprehensive coverage includes all specified perils plus falling or flying objects, missiles and vandalism. Specified perils include windstorm, hail or rising water. In short, if the insured has purchased either or all three i.e. specified perils, comprehensive, and/or all perils they would be covered for the rising water peril.

Question 11

Which example of theft would be covered if the insured purchased all perils coverage?

Select one:

a.
Vehicle lost in a wager

b.
Missing from airport parking lot

c.
Employee borrows without consent

d.
Teenagers joyriding

Answer 11

Reference: OAS - Study 8 - LO1

The correct answer is: Employee borrows without consent

Question 12

What is the term for the amount that the insured must pay on each loss?

Select one:

a.
Deductible

b.
Self-Insurance

c.
Premium

d.
Subrogation

Answer 12

Reference: OAS - Study 8 - LO1

The correct answer is: Deductible

Question 13

Steve has all perils coverage with a $1,000 deductible. How will his $700 windshield repair be paid?

Select one:

a.
The insurer will pay $300 towards the repair of the windshield.

b.
Steve will pay $700 to repair the windshield.

c.
Steve will pay $300 towards the repair of the windshield.

d.
The insurer will pay $700 to repair the windshield.

Answer 13

Reference: OAS - Study 8 - LO1

The correct answer is: Steve will pay $700 to repair the windshield.

Question 14

Phoebe is a medical equipment sales representative and sometimes carries medical supplies that are radioactive in her car to customer appointments. If the supplies contaminate her vehicle, will this damage be covered under her OAP 1 Section 7—Loss or Damage Coverage?

Select one:

a.
Yes, damage caused by radioactive contamination is covered.

b.
No, carrying business equipment is excluded.

c.
Yes, if it is shown she was not negligent in storing the supplies.

d.
No, Damage caused by radioactive contamination is excluded.

Answer 14

Reference: OAS - Study 8 - LO2

The correct answer is: No, Damage caused by radioactive contamination is excluded.

Question 15

Why are losses from certain perils excluded under the loss or damages section of the owner’s policy?

Select one:

a.
Because there is no actuarial data available

b.
Because they are inherent to the risk

c.
Because premiums would be too high

d.
Because they are better insured elsewhere

Answer 15

Reference: OAS - Study 8 - LO2

The correct answer is: Because they are better insured elsewhere

Losses from certain perils are excluded under Section 7—Loss or Damage Coverage of the owner’s policy because they are considered uninsurable, better insured elsewhere, or might encourage carelessness.

Question 15

Which situation could have coverage under ‘temporary substitute automobile’?

Select one:

a.
The insured rents an automobile while on vacation in Florida.

b.
The insured borrows the company van to move a few pieces of furniture.

c.
The insured borrows a friend’s vehicle while the insured’s car is being repaired.

d.
The insured rents an automobile while on vacation in Alberta.

Answer 15

Reference: OAS - Study 8 - LO3

The correct answer is: The insured borrows a friend’s vehicle while the insured’s car is being repaired.

Question 15

Will Christine’s insurer ask for remuneration from her cousin when he gets into an accident while using her car with her consent?

Select one:

a.
The car will be repaired under the cousin’s insurance policy as he is responsible.

b.
The right to subrogate is waived in this scenario because consent was given.

c.
It is Christine’s right to be reimbursed by her cousin, the negligent driver.

d.
The insurer will ask the cousin for reimbursement on Christine’s behalf.

Answer 15

Reference: OAS - Study 8 - LO3

The correct answer is: The right to subrogate is waived in this scenario because consent was given.

Question 15

Under Section 7—Loss or Damage Coverage, sub-section Payment of Charges, which two types of additional benefits charges does the insurer agree to cover?

Select one:

a.
Salvage and fire department charges

b.
Fire department and transportation charges

c.
Salvage and transportation charges

d.
Fire department and Payment charges

Answer 15

Reference: OAS - Study 8 - LO3

The correct answer is: Salvage and fire department charges

Question 15

What is the correct term that describes when the insured is required to protect the automobile from any further damage after a loss occurs?

Select one:

a.
General average

b.
General salvage

c.
Salvage

d.
Repairable

Answer 15

Reference: OAS - Study 8 - LO3

The correct answer is: Salvage

Under statutory conditions requirements “where loss or damage to automobile requires the insured to protect the automobile from any further loss or damage’. Salvage is the remaining value of property after severe damage by fire or another peril. The overall loss is reduced by the salvage value.

Question 16

Greg was severely injured in an automobile accident and was unable to notify his insurance company until 3 weeks after the incident. How would his insurer respond regarding repairs to his vehicle?

Select one:

a.
Decline to pay for the repairs to the vehicle as he did not notify them within the fourteen-day period required

b.
Decline to pay for the repairs to the vehicle as he did not notify them within the seven-day period required

c.
Investigate and pay the claim appropriately as he notified them within the thirty-day period required

d.
Investigate and pay the claim appropriately as he notified them as soon as he was ‘able’

Answer 16

Reference: OAS - Study 8 - LO4

The correct answer is: Investigate and pay the claim appropriately as he notified them as soon as he was ‘able’

Question 17

When a loss is presented as a claim, the insurer has the right to investigate. How is this protected in the agreements of insureds under Section 7—Loss or Damage Coverage?

Select one:

a.
Permit the insured to inspect the automobile at any reasonable time as determined by the insurer.

b.
Insured agrees to make no repairs beyond those needed to protect the automobile, or remove evidence of the damage, without the insurer’s written consent.

c.
Not leave the insured to dispose of the automobile unless they agree to do so, or the insurer tells them to

d.
Allow insured to copy all documents in their possession that relate to the incident before turning them over to the insurer.

Answer 17

Reference: OAS - Study 8 - LO4

The correct answer is: Insured agrees to make no repairs beyond those needed to protect the automobile, or remove evidence of the damage, without the insurer’s written consent.

Question 18

What is defined as fair market value, taking into account factors that might augment or reduce the value of the property in question’?

Select one:

a.
Actual Cash Value

b.
Replacement Cost

c.
Consideration

d.
Depreciation Cost

Answer 18

Reference: OAS - Study 8 - LO4

The correct answer is: Actual Cash Value

Question 19

What should Bryce do when he receives legal documents regarding an automobile claim?

Select one:

a.
Hire a lawyer right away

b.
Send everything to his insurer immediately

c.
Send everything to his insurer in writing within seven days

d.
Gather witness statements

Answer 19

Reference: OAS - Study 9 - LO1

The correct answer is: Send everything to his insurer immediately

Question 20

Which of the following examples would be considered a ‘material change in risk’ as it relates to the automobile policy?

Select one:

a.
Change in the type of tires on the automobile insured.

b.
Sale of the insured’s vehicle to another person.

c.
Change to the windshield of the automobile insured.

d.
Sale of the insured’s winter tires to another person.

Answer 20

Reference: OAS - Study 9 - LO1

The correct answer is: Sale of the insured’s vehicle to another person.

Question 21

Under the automobile statutory condition—Who may give notice and proof of a claim who is allowed to give notice or proof?

Select one:

a.
A bystander that witnessed the accident

b.
A person to whom any part of the insurance money is payable

c.
The insured’s insurance broker

d.
The insured’s friend who witnessed the accident

Answer 21

Reference: OAS - Study 9 - LO1

The correct answer is: A person to whom any part of the insurance money is payable

If an insured is unable to give notice or proof of loss, the statutory condition allows notice or proof to be given by the agent of the insured, or by a person to whom any part of the insurance money is payable. In either situation the insured’s inability to give notice or proof must be explained.

Question 22

If an insurer cancels an automobile policy, how is the amount owing or refund calculated?

Select one:

a.
On a pro rata basis

b.
Based on market insurance rate

c.
On a short rate basis

d.
Based on daily interest rates

Answer 22

Reference: OAS - Study 9 - LO1

The correct answer is: On a pro rata basis

Question 23

In Ontario, who is responsible for approving the standard automobile policy and related forms?

Select one:

a.
The Federal Superintendent of Insurance

b.
The insurance company who issues the policy

c.
The Provincial Government

d.
The Provincial Superintendent of insurance

Answer 23

Reference: OAS - Study 10 - LO1

The correct answer is: The Provincial Superintendent of insurance

Linked to FSRA

Question 24

What is an example of an endorsement that is Restricting or Excluding Coverage?

Select one:

a.
OPCF 4B Permission to Carry Radioactive Material

b.
OPCF 16 Suspension of Coverage

c.
OPCF 3 Government-Owned Automobiles

d.
OPCF 47 Agreement Not to Rely on SABS Priority of Payment Rules

Answer 24

Reference: OAS - Study 10 - LO1

The correct answer is: OPCF 16 Suspension of Coverage

Endorsements restricting or excluding coverage are: OPCFs 9, 13C, 16, 17, 19, 19A, 28, 28A, and 29.

Question 25

Which category of endorsement must include the signature of the insured?

Select one:

a.
Extending Coverage

b.
Restricting or Excluding Coverage

c.
Altering Policy Terms

d.
Providing Permission

Answer 25

Reference: OAS - Study 10 - LO1

The correct answer is: Restricting or Excluding Coverage

The implications of reducing or deleting coverages is significant, so a copy of the endorsement reducing or restricting coverage must be signed by the insured to indicate they understand and agree.

Question 26

Why are some OPCFs sometimes called buy back endorsements?

Select one:

a.
They allow insurers to buy increased coverage.

b.
They allow insured to permit others to “buy” or rent their vehicle.

c.
They allow the insured to have others “buy” a ride.

d.
They remove an exclusion in exchange for an increase in premium.

Answer 26

Reference: OAS - Study 10 - LO2

The correct answer is: They remove an exclusion in exchange for an increase in premium.

OAP 1 contains rules, definitions, and exclusions. Some exclusions state no coverage for certain purposes unless the coverage has been “bought back”.

Question 27

Amanda delivers goods, including fireworks, to customers. What coverage can she purchase to ensure that her automobile is fully insured in this situation?

Select one:

a.
OPCF 4B Permission to Carry Radioactive Material

b.
OPCF 4A Permission to Carry Explosives

c.
No coverage is available to insure this situation

d.
OAP 1 with no endorsements

Answer 27

Reference: OAS - Study 10 - LO2

The correct answer is: OPCF 4A Permission to Carry Explosives

Question 28

What is NOT a function of the OPCF 6B—School Bus Coverage?

Select one:

a.
Provides coverage for the insured’s legal liability for loss of or damage to property of passengers

b.
Gives permission to use the automobile to carry passengers for compensation for school purposes only

c.
Gives specific coverage for bodily injury to passengers and damage to their property

d.
Provides specific coverage and separate limits for passenger hazard in addition to liability limits

Answer 28

Reference: OAS - Study 10 - LO2

The correct answer is: Gives specific coverage for bodily injury to passengers and damage to their property

OPCF 6B has three key functions: 1. Permission to carry passengers 2. Separate limits for specific coverage 3. Legal liability coverage to property of passengers.

Question 29

What coverage remains in effect when the insured adds the OPCF 16—Suspension of Coverage endorsement?

Select one:

a.
Third Party Liability; Fire, Theft & Vandalism; Uninsured Motorist; and Specified Perils

b.
DCPD; Accident Benefits; Third Party Liability; and Fire, Theft and Vandalism

c.
Third Party Liability; DCPD; Uninsured Motorist; and Specified Perils

d.
DCPD; Accident Benefits; Third Party Liability; and Specified Perils

Answer 29

Reference: OAS - Study 10 - LO3

The correct answer is: DCPD; Accident Benefits; Third Party Liability; and Fire, Theft and Vandalism

Suspension of coverage endorsement, OPCF 16 removes the ‘moving coverages’ but continues to cover 1. the insured if they are in another vehicle, and 2. the car while it is standing still.

Question 30

What is the best way to insure the 1985 Dodge Viper that Paul has restored to its original condition?

Select one:

a.
OPCF 19, Limiting the Amount Paid for Loss or Damage Coverages

b.
OPCF 29, Additional Coverage for Named Persons

c.
OPCF 28, Reducing Coverage for Named Persons

d.
OPCF 19A, Agreed Value of Automobile

Answer 30

Reference: OAS - Study 10 - LO3

The correct answer is: OPCF 19A, Agreed Value of Automobile

Endorsements in the OPC 19—Amount Paid Series are applicable to three common situations: 1. Increased value of classic automobiles, 2. Limit amount of coverage to less than appraisal amount, 3. Protection for difference between new vehicle cost and depreciated value.

Question 31

What is NOT a provision of the OPCF 27 endorsement?

Select one:

a.
Coverage only applies if the automobile is being used with the owner’s consent

b.
Coverage is limited to protect the insured only

c.
Coverage only applies if the automobile weighs 4,500 kilograms or less

d.
Coverage is limited to a specified dollar amount per occurrence

Answer 31

Reference: OAS - Study 10 - LO4

The correct answer is: Coverage is limited to protect the insured only

OPCF 27 provides legal liability protection for the driver, if the driver is responsible for the damages or assumes responsibility for the damages to the rented vehicle.

Question 32

What coverage does the OPCF 44R—Family Protection endorsement provide?

Select one:

a.
Protection when the insured is at-fault and is inadequately insured to cover the third party’s claims

b.
Protection when a third party is at-fault and is inadequately insured to cover the insured’s claims

c.
Protection when insured is not at-fault and is inadequately insured to cover the third party’s claims

d.
Protection when a third party is not at-fault and the insured has inadequate insurance to cover the insured’s claims

Answer 32

Reference: OAS - Study 10 - LO4

The correct answer is: Protection when a third party is at-fault and is inadequately insured to cover the insured’s claims

Question 33

Under what circumstance would OPCF 43—Removing Depreciation Deduction endorsement be added to an automobile policy?

Select one:

a.
Insured purchases a used vehicle and wants to confirm that in the event of a total loss there would be no depreciation applied to the claim.

b.
Insured purchases a new vehicle and wants to protect the full value of the vehicle for a prescribed period of time.

c.
Insured purchases an ATV and wants to confirm that, in the event of a total loss, there would be no depreciation applied to the claim.

d.
Insured inherits a classic vehicle and adds this endorsement to the policy to protect the appreciation value of this automobile.

Answer 33

Reference: OAS - Study 10 - LO4

The correct answer is: Insured purchases a new vehicle and wants to protect the full value of the vehicle for a prescribed period of time.

When the endorsement OPCF 43 is purchased, the insurer waives the application of depreciation for the repair or total loss of the insured vehicle should it be damaged by an insured peril. The waiver applies for a specified time after purchase, when the vehicle is purchased new, and the insured is the original owner.

Question 34

What endorsement should an individual purchase if they operate a government-owned vehicle as part of their employment?

Select one:

a.
OPCF 25A—Alteration

b.
OPCF 2—Drive Other Automobiles

c.
OPCF 3—Government Owned Automobile

d.
OPCF 29—Additional Coverage for Named Persons

Answer 34

Reference: OAS - Study 10 - LO4

The correct answer is: OPCF 3—Government Owned Automobile

Question 35

Which endorsement applies any time changes are made to an existing automobile policy?

Select one:

a.
OPCF 22—Damage to Property Passengers

b.
OPCF 31—Non-owned Equipment

c.
OPCF 24—Fire Apparatus

d.
OPCF 25A—Alteration

Answer 35

Reference: OAS - Study 10 - LO5

The correct answer is: OPCF 25A—Alteration

Question 36

Gary has had two car fires in the last three years and is concerned about rising rates. Which endorsement would his broker add to reduce the severity of future fire claims?

Select one:

a.
OPCF 25—Coverage for Emergency Road Service

b.
OPCF 16—Suspension of Coverage

c.
OPCF 29—Reducing Coverage for Named Persons

d.
OPCF 40—Fire Deductible

Answer 36

Reference: OAS - Study 10 - LO5

The correct answer is: OPCF 40—Fire Deductible

Question 37

When Angelo is injured in an automobile accident, he first seeks the cost of his medical expenses from the benefits that are provided by his employer. What are these benefits called?

Select one:

a.
Statutory Benefits

b.
Collateral benefits

c.
Accident Benefits

d.
Social Assistance Benefits

Answer 37

Reference: OAS - Study 10 - LO5

The correct answer is: Collateral benefits

(outside auto policy) is always collateral benefits

Question 38

What is the OPCF 2, and what is the OAP 2?

Select one:

a.
OPCF 2—Drive Other Automobiles is an endorsement; OAP 2—Driver’s Automobile Policy is a policy.

b.
OAP 2—Drive Other Automobiles is an endorsement; OPCF 2—Driver’s Automobile Policy is a policy.

c.
OPCF 2—Government Owned Automobiles is an endorsement; OAP 2—Driver’s Automobile Policy is a policy.

d.
OAP 2—Government Owned Automobiles is a Policy; OPCF 2—Driver’s Automobile Policy is an endorsement.

Answer 38

Reference: OAS - Study 10 - LO6

The correct answer is: OPCF 2—Drive Other Automobiles is an endorsement; OAP 2—Driver’s Automobile Policy is a policy.

Question 39

Can the OAP 2—Driver’s Automobile Policy cover the insured when they drive a commercial vehicle?

Select one:

a.
No, as there is too much increased exposure

b.
Yes, and rates will reflect the added exposure

c.
No, as this is the responsibility of the business owner

d.
Yes, as the business owner is not required to insure fleet vehicles

Answer 39

Reference: OAS - Study 10 - LO6

The correct answer is: Yes, and rates will reflect the added exposure

Question 40

What is the most frequent use of the OAP 2—Driver’s Automobile Policy?

Select one:

a.
To satisfy financial responsibility laws

b.
To purchase a commercial vehicle

c.
To secure a lien on a truck

d.
To insure a government vehicle

Answer 40

Reference: OAS - Study 10 - LO6

The correct answer is: To satisfy financial responsibility laws

Question 40

What document is commonly used as proof of financial responsibility?

Select one:

a.
An OPCF 2—Drive Other Automobiles

b.
An OAP 2—Driver’s Automobile Policy

c.
An OPCF 3—Government Owned Automobiles

d.
An OAP 1—Owner’s Policy

Answer 40

Reference: OAS - Study 10 - LO6

The correct answer is: An OAP 2—Driver’s Automobile Policy