OAS Study 1-6

Question 1

Why is automobile insurance in Canada regulated?

Select one:

a.
To manage the evolving uses of the automobiles in society

b.
To protect the insurers

c.
To reflect the differences within the three levels of government

d.
To create a revenue stream for government

Answer 1

Reference: OAS - Study 1 - LO1

The correct answer is: To manage the evolving uses of the automobiles in society

Question 2

What is Common Law based on?

Select one:

a.
Federal government

b.
A code book

c.
Automobile contracts

d.
Prior court decisions

Answer 2

Reference: OAS - Study 1 - LO1

The correct answer is: Prior court decisions

Question 3

Municipal governments have jurisdiction to make laws relating to which areas?

Select one:

a.
Telecommunications, fisheries, and impaired driving

b.
Zoning, construction permits, parking

c.
Fisheries, education, parking

d.
Health services, education, and driving speed

Answer 3

Reference: OAS - Study 1 - LO1

The correct answer is: Zoning, construction permits, parking

Question 4

Which Canadian legal system is based on a written code?

Select one:

a.
Municipal Law

b.
Civil Code of Quebec

c.
Common Law

d.
Federal Law

Answer 4

Reference: OAS - Study 1 - LO1

The correct answer is: Civil Code of Quebec

Question 5

In a legal action, which party is the one being sued?

Select one:

a.
Defendant

b.
Insured

c.
Insurer

d.
Plaintiff

Answer 5

Reference: OAS - Study 1 - LO1

The correct answer is: Defendant

Question 6

In Ontario, what is the name of the mandatory automobile policy?

Select one:

a.
OAP 2

b.
OAF 1

c.
OAP 1

d.
SPF 1

Answer 6

Reference: OAS - Study 1 - LO1

The correct answer is: OAP 1

Question 7

What is a legal decision that serves as a basis to resolve subsequent disputes in similar cases?

Select one:

a.
Subrogation

b.
Judgment

c.
Prescription

d.
Precedent

Answer 7

Reference: OAS - Study 1 - LO1

The correct answer is: Precedent

Precedent is a legal decision that serves as a basis to resolve subsequent disputes in similar cases.

Question 8

How are insurance products sold by private insurers?

Select one:

a.
Through agents/brokers representing one company or through direct writers

b.
Directly to the public or through agents/brokers representing many insurance companies

c.
Through agents/brokers representing multiple companies or through direct writers

d.
Directly to the public, or through brokers/agents selling on behalf of several private companies, or through independent brokers or agents

Answer 8

Reference: OAS - Study 1 - LO2

The correct answer is: Directly to the public, or through brokers/agents selling on behalf of several private companies, or through independent brokers or agents

Question 9

Which regulation deals with the registration and licensing of vehicles and drivers?

Select one:

a.
The Insurance Companies Act

b.
The Compulsory Automobile Insurance Act

c.
The Highway Traffic Act

d.
The Insurance Act of the provinces

Answer 9

Reference: OAS - Study 1 - LO2

The correct answer is: The Highway Traffic Act

Question 10

What is the purpose of the Compulsory Automobile Act?

Select one:

a.
Requires all vehicles to be insured

b.
Requires all vehicles to be properly maintained

c.
Requires all vehicles to be licensed

d.
Requires all drivers to be licensed

Answer 10

Reference: OAS - Study 1 - LO2

The correct answer is: Requires all vehicles to be insured

Question 11

What is the main purpose of the automobile application?

Select one:

a.
To ensure all relevant information is collected from the insured to process a claim

b.
To ensure that all automobile applications are written and signed

c.
To collect information needed to underwrite, rate and issue the policy

d.
To collect the applicant’s information and submit to regulators for approval

Answer 11

Reference: OAS - Study 2 - LO1

The correct answer is: To collect information needed to underwrite, rate and issue the policy

Question 12

What term refers to when an insured gives false information about the described automobile during the application process?

Select one:

a.
Fraud

b.
Misrepresentation

c.
Void

d.
Violation of Condition

Answer 12

Reference: OAS - Study 2 - LO1

The correct answer is: Misrepresentation

Question 13

If a policy is issued that is different in any way from the application, are the changes valid?

Select one:

a.
No, the Insurance Act stipulates that the policy issued must match the information on the application.

b.
Yes, if the change(s) is (are) clearly marked and the insured does not object to the insurer in writing within 7 days.

c.
No, to do so would be misrepresentation and violate the doctrine of utmost good faith.

d.
Yes, if the change(s) is(are) clearly marked and the insured does not object to the insurer in writing within 14 days.

Answer 13

Reference: OAS - Study 2 - LO1

The correct answer is: Yes, if the change(s) is (are) clearly marked and the insured does not object to the insurer in writing within 7 days.

Question 14

Why is a written application preferred over an oral application?

Select one:

a.
Reduction of coverages

b.
Prevention of fraud

c.
Reduction in premium

d.
Prevention of claims

Answer 14

Reference: OAS - Study 2 - LO1

The correct answer is: Prevention of fraud

Question 15

What warning to the insured is included in the Declaration of Applicant on the OAF 1 and in every automobile policy?

Select one:

a.
A statement that a lapse in coverage will impact future rates

b.
A statement about the seriousness of misrepresentation

c.
A statement about the seriousness of driving without coverage

d.
A statement that non-payment will impact future rates

Answer 15

Reference: OAS - Study 2 - LO1

The correct answer is: A statement about the seriousness of misrepresentation

The Insurance Act (Section 233(1)) requires that a warning must be stamped or printed in conspicuous type on every application and policy to inform applicants of the seriousness of misrepresentation. In the Ontario’s OAF 1, this warning is included in a section called the Declaration of Applicant.

Question 16

The automobile application asks about any driving convictions for each driver. What is the time period that is requested?

Select one:

a.
2 years

b.
6 years

c.
3 years

d.
5 years

Answer 16

Reference: OAS - Study 2 - LO2

The correct answer is: 3 years

Question 17

What is included under Mandatory Automobile Coverage?

Select one:

a.
Accident benefits; direct compensation—property damage; liability; uninsured automobile

b.
Accident Benefits; comprehensive; liability; uninsured automobile

c.
Accident benefits; bodily injury; direct compensation—property damage; liability

d.
Accident benefits; bodily injury; direct compensation—property damage; uninsured automobile

Answer 17

Reference: OAS - Study 2 - LO2

The correct answer is: Accident benefits; direct compensation—property damage; liability; uninsured automobile

Some coverages are mandatory, and some are optional, as determined by the OAP owners form. The mandatory coverages include: accident benefits, direct compensation—property damage; liability; uninsured automobile.

Question 18

Why does the automobile application ask about both the registered owner and actual owner of the automobile?

Select one:

a.
To establish insurable interest, and custody and control of the automobile.

b.
To establish that the registered owner is the only person who will drive the automobile.

c.
To determine if more than one person will drive the automobile.

d.
To determine insurable interest and potential lien holders of the automobile.

Answer 18

Reference: OAS - Study 2 - LO2

The correct answer is: To establish insurable interest, and custody and control of the automobile.

Question 19

At what time do all polices typically expire?

Select one:

a.
12:01 a.m., standard time

b.
12:01p.m., standard time

c.
12:01 a.m., local time

d.
12:01 p.m., local time

Answer 19

Reference: OAS - Study 2 - LO2

The correct answer is: 12:01 a.m., local time

Question 20

How many sections does the application for automobile insurance contain?

Select one:

a.
11

b.
8

c.
9

d.
12

Answer 20

Reference: OAS - Study 2 - LO2

The correct answer is: 12

There are 12 sections on an automobile application: 1. Applicant’s name; 2. Policy period; 3. Described automobile; 4. Driver information; 5. Previous accidents and insurance claims; 6. Convictions; 7. Rating information; 8. Insurance coverages applied for; 9. Remarks; 10. Method of payment; 11. Declaration of applicant; 12. Report of broker/agent

Question 21

What information is requested in the section—Described Automobile—of the automobile application (OAP1)?

Select one:

a.
Year, make, model, manufacturer’s net weight, and serial number

b.
Year, make, model, transmission, type of tires, and serial number

c.
Year, make, model, body type, number of cylinders, manufacturers gross weight, and serial number

d.
Year, make, model, manufacturers weight rating, and serial number

Answer 21

Reference: OAS - Study 2 - LO2

The correct answer is: Year, make, model, body type, number of cylinders, manufacturers gross weight, and serial number

It is necessary to obtain particulars of the described automobile: the year, make, model, body type, number of cylinders, manufacturer’s gross weight, and serial number (also called vehicle identification number or VIN). This information is necessary for rating purposes and identification in the event of a claim.

Question 22

Driving experience; driving record; and vehicle usage are factors commonly used for what purpose related to automobile insurance?

Select one:

a.
Ratemaking

b.
Endorsements

c.
Risk selection

d.
Subrogating

Answer 22

Reference: OAS - Study 2 - LO3

The correct answer is: Ratemaking

Question 23

What does rating mean?

Select one:

a.
Calculating the cost of a claim

b.
Calculating the probability of a loss

c.
Determining the safety of a vehicle

d.
Determining the correct cost to insure a risk

Answer 23

Reference: OAS - Study 2 - LO3

The correct answer is: Determining the correct cost to insure a risk

Question 24

What permits a newly licensed driver to be credited with three years’ driving experience?

Select one:

a.
Completing an approved driver training course

b.
Being 25 years old

c.
Completing the first 12 months of driving ticket and claim free

d.
Being insured under his/her parent’s policy

Answer 24

Reference: OAS - Study 2 - LO3

The correct answer is: Completing an approved driver training course

Newly licensed drivers are allowed credit for three years’ driving experience if they can show they completed an approved driver training course.

Question 25

For what automobile insurance purpose are usage-based insurance (UBI) devices used?

Select one:

a.
Tracking driving records for all drivers

b.
Tracking which drivers are using the vehicle most

c.
Tracking mileage and driving habits

d.
Tracking what the vehicle is being used for

Answer 25

Reference: OAS - Study 2 - LO3

The correct answer is: Tracking mileage and driving habits

UBI programs feature a telematics device that can be plugged into a vehicle’s diagnostic on-board computer to track mileage and driving habits, a smart phone app that tracks driving habits, or a combination of both devices.

Question 26

Underwriters are typically responsible for risk selection, rating, and which other function related to automobile insurance?

Select one:

a.
Setting insurance rates.

b.
The correct use of endorsements.

c.
Creating the application and approving any changes.

d.
Subrogation against a responsible third party.

Answer 26

Reference: OAS - Study 2 - LO3

The correct answer is: The correct use of endorsements.

Question 27

For rating purposes, how many years of driving suspensions or cancellations of drivers’ licences does an insurer request from an applicant?

Select one:

a.
3

b.
5

c.
1

d.
6

Answer 27

Reference: OAS - Study 2 - LO3

The correct answer is: 6

Question 28

The automobile insurance application asks about accident and claim details from the applicant. What time period is requested?

Select one:

a.
6 years

b.
10 years

c.
Since the insured started driving

d.
3 Years

Answer 28

Reference: OAS - Study 2 - LO2

The correct answer is: 6 years

Details are required about all accidents or claims arising from the ownership, use, or operation of any automobile by the applicant or any listed driver during the past six years.

Question 29

In which section of the automobile application (OAF 1) does the applicant confirm that statements in the application are true and correct?

Select one:

a.
Driver information

b.
Remarks

c.
Previous accidents and insurance claims

d.
Declaration of applicant

Answer 29

Reference: OAS - Study 2 - LO2

The correct answer is: Declaration of applicant

The final part of the Declaration of Applicant section of the OAF 1 is where the applicant, by signing and dating the application, warrants that the statements made in the application are true and correct.

Question 30

What geographical limit is specified in the OAP 1 for automobiles being operated, used, stored, or parked in?

Select one:

a.
Within Canada, the USA, and Mexico only

b.
Within the USA, Mexico and Canada, and on a vessel travelling between these ports

c.
Within Canada, the USA, and on a vessel travelling between these ports

d.
Within Canada and the USA only

Answer 30

Reference: OAS - Study 3 - LO1

The correct answer is: Within Canada, the USA, and on a vessel travelling between these ports

Question 31

What is the definition of an occupant in the OAP 1?

Select one:

a.
A person, in or on an automobile, which includes when they are getting into, on, out of, or off an automobile.

b.
A driver of an automobile whether the vehicle is in motion, stopped, or parked.

c.
The driver of an automobile, which includes when they are getting into, on, out of, or off an automobile.

d.
A person, including the driver, in or on an automobile, which includes getting into, on, out of, or off an automobile.

Answer 31

Reference: OAS - Study 3 - LO1

The correct answer is: A person, including the driver, in or on an automobile, which includes getting into, on, out of, or off an automobile.

Occupant under the OAP 1 is defined as a person, including the driver, in or on an automobile, getting into, on, or out of, or off an automobile.

Question 32

How is a described automobile defined in the OAP 1?

Select one:

a.
Any vehicle that the insured is driving and also has an insurable interest in.

b.
Any vehicle, or trailer, owned by the named insured whether the vehicle is listed on the certificate of automobile Insurance or not.

c.
Any automobile that is registered in the name of the policy holder.

d.
Any automobile, or trailer registered in the name of the policy holder and specifically described on the certificate of automobile insurance.

Answer 32

Reference: OAS - Study 3 - LO1

The correct answer is: Any automobile, or trailer registered in the name of the policy holder and specifically described on the certificate of automobile insurance.

There is a difference between a ‘described’ automobile and an automobile under the OAP 1. It is important to understand this differentiation as this will impact the coverages afforded to the vehicle if an accident occurs.

Question 33

In addition to providing coverage for the specifically described automobile, which other categories of automobiles does the OAP 1 extend coverage to?

Select one:

a.
Described automobile, newly acquired automobile, and temporary substitute automobile

b.
Vehicles driven by the insured, vehicles driven by other persons with the insured’s consent, and vehicles driven by other persons without the insured’s consent

c.
Newly acquired automobile, temporary substitute automobile, trailer, and other non-owned vehicles

d.
Vehicles driven by the named insureds, other drivers in the household, described automobile, and newly acquired vehicle

Answer 33

Reference: OAS - Study 3 - LO1

The correct answer is: Newly acquired automobile, temporary substitute automobile, trailer, and other non-owned vehicles

It is important to understand the definition and application of the various categories of vehicles that fall within the scope of coverage under OAP 1. There are provisions that define the described automobile and the other automobiles that are covered: * Newly acquired automobiles; * Temporary substitute automobiles (TSAs); * Other automobiles or “borrowed” automobiles; * Trailers

Question 34

Under OAP 1, which coverages will automatically extend to a trailer that is NOT listed on the automobile policy?

Select one:

a.
Third-Party Liability, Accident Benefits, and Uninsured Automobile

b.
Accident Benefits, Uninsured Automobile, and Collision

c.
Third Party Liability, Accident Benefits, and Direct Compensation-Property Damage

d.
Third-party Liability, Uninsured Automobile, and Loss of Use

Answer 34

Reference: OAS - Study 3 - LO1

The correct answer is: Third-Party Liability, Accident Benefits, and Uninsured Automobile

Question 35

What general term is used in the insurance industry to refer to when an arrangement for transportation is set up through a mobile application?

Select one:

a.
Turo

b.
Carsharing

c.
Ridesharing

d.
Uber

Answer 35

Reference: OAS - Study 3 - LO2

The correct answer is: Ridesharing

Question 36

Is there insurance coverage under OAP 1 when the ridesharing driver has accepted a ride and is driving to the rider’s pick-up location?

Select one:

a.
Yes, it is similar to commuting to work

b.
No, it is insured by the rider

c.
Yes, it is not part of the commercial transaction

d.
No, It is considered a part of the excluded commercial transaction

Answer 36

Reference: OAS - Study 3 - LO2

The correct answer is: No, It is considered a part of the excluded commercial transaction

Question 37

Which statement best describes a ridesharing endorsement?

Select one:

a.
Includes comprehensive coverage only that covers all drivers regardless of experience level

b.
Provides coverage but only for fulltime ridesharing drivers

c.
Added to the standard owner’s policy; vehicle owner must meet the eligibility requirement and be insured with the insurer who offer this coverage

d.
Included as part of the ridesharing agreement and offered by all insurers in Ontario

Answer 37

Reference: OAS - Study 3 - LO2

The correct answer is: Added to the standard owner’s policy; vehicle owner must meet the eligibility requirement and be insured with the insurer who offer this coverage

Question 38

What temporary solution did Ontario establish to insure ridesharing activities?

Select one:

a.
Removed the exclusion for commercial use under the OAP 1

b.
Allowed ridesharing companies to establish their own blanket policies by self-insuring

c.
Developed a standardized endorsement for an extra premium to add ridesharing coverage

d.
Changed the definition of “fleet” which allows ridesharing companies to insure all driver vehicles under a fleet policy

Answer 38

Reference: OAS - Study 3 - LO2

The correct answer is: Changed the definition of “fleet” which allows ridesharing companies to insure all driver vehicles under a fleet policy

Question 39

Which coverages are included under the carsharing commercial insurance policy?

Select one:

a.
Third-party Liability, Accident Benefits, Named Perils, and Direct Compensation-Property Damage (DCPD)

b.
Accident Benefits, Third-party Liability, Direct Compensation-Property Damage (DCPD), and Uninsured Motorist

c.
Third-Party Liability, Accident Benefits, Uninsured Automobile, and Physical Damage

d.
Accident Benefits, Direct Compensation-Property Damage, Uninsured Automobile, and Physical damage

Answer 39

Reference: OAS - Study 3 - LO2

The correct answer is: Third-Party Liability, Accident Benefits, Uninsured Automobile, and Physical Damage

Carsharing commercial insurance policy includes third-party liability, accident benefits, physical damage, and uninsured automobile coverages. For example: carsharing commercial coverage provided by Intact to the service Turo.

Question 40

Whose negligent actions that arise from operating a vehicle are covered by third party liability coverage of the OAP 1?

Select one:

a.
The named insured and all the members of his/her household.

b.
Anyone involved in the accident.

c.
Anyone who drives the automobile.

d.
The named insured; others who with consent of the named insured, drive or operate the automobile.

Answer 40

Reference: OAS - Study 4 - LO1

The correct answer is: The named insured; others who with consent of the named insured, drive or operate the automobile.

Question 41

What type of loss is covered under third-party liability coverage of an automobile policy?

Select one:

a.
Damage to the insured’s property carried in or upon the automobile.

b.
Damage to a third party’s property caused by the insured.

c.
Damage to other property owned or rented by the named insured.

d.
Damage to property in the care, custody and control of the named insured.

Answer 41

Reference: OAS - Study 4 - LO1

The correct answer is: Damage to a third party’s property caused by the insured.

Question 42

Damages of $600,000 have been made against Anita resulting from an automobile accident for which she was at fault. Anita has $500,000 in liability coverage. How will the additional $100,000 in damages be covered?

Select one:

a.
Anita can purchase coverage for the additional $100,000 in damages she is responsible to pay.

b.
The injured party will only receive the $500,000 maximum coverage of Anita’s policy

c.
The injured party must go to their insurance policy to collect the $100,000 balance

d.
Anita is personally responsible for paying the additional $100,000 in damages.

Answer 42

Reference: OAS - Study 4 - LO1

The correct answer is: Anita is personally responsible for paying the additional $100,000 in damages.

Question 43

How is negligence explained?

Select one:

a.
As the failure to do something a reasonable person would do

b.
As doing something a reasonable person would not do

c.
As permitting another licenced driver who is not a named insured to operate an automobile

d.
As the failure to do something a reasonable person would do or doing something that a reasonable person would not do

Answer 43

Reference: OAS - Study 4 - LO1

The correct answer is: As the failure to do something a reasonable person would do or doing something that a reasonable person would not do

Negligence is failure to use the degree of care expected from a reasonable and prudent person. This means failing to do something that a reasonable person would do or doing something that a reasonable person would not do.

Question 44

Who is the third party on an insurance policy?

Select one:

a.
A party to the insurance contract

b.
The insured

c.
The insurer

d.
A claimant under a liability policy

Answer 44

Reference: OAS - Study 4 - LO1

The correct answer is: A claimant under a liability policy

The third party is a claimant under a liability policy, so called because she is not one of the two parties (insured and insurer) who has entered into the insurance contract.

Question 45

In Ontario what are the priority of payment minimum limits for bodily injury and property damage?

Select one:

a.
Bodily injury is $90,000; property damage is $110,000

b.
Bodily injury is $120,000; property damage is $80,000

c.
Bodily injury is $190,000; property damage is $10,000

d.
Bodily injury is $10,000; property damage is $190,000

Answer 45

Reference: OAS - Study 4 - LO1

The correct answer is: Bodily injury is $190,000; property damage is $10,000

The priorities of payment minimum limits in Ontario are set at $190,000 for bodily injury and $10,000 for property damage.

Question 46

When two insureds listed on the same policy have made a liability claim against each other, how does the insurer respond?

Select one:

a.
As one policy and take their concern to the Supreme Court.

b.
As if a separate policy was issued to each named insured, but only up to the policy limit plus legal costs.

c.
As if a separate policy was issued to each named insured with the policy limit applying separately to each insured.

d.
As if there is only one policy which means multiple insureds cannot sue each other.

Answer 46

Reference: OAS - Study 4 - LO2

The correct answer is: As if a separate policy was issued to each named insured, but only up to the policy limit plus legal costs.

The additional agreements of the insurer state that the insurer will protect the named insured and other named insureds by this policy for claims against one another, to the maximum amount stated on the policy.

Question 47

Which cost would be covered by the additional agreements of the insurer of the OAP 1?

Select one:

a.
The full judgement amount against the insured

b.
Defense and investigation costs for the insured’s own lawyer

c.
Immediate medical care for the insured and anyone in their household

d.
Immediate medical care for the third party at the time of the accident

Answer 47

Reference: OAS - Study 4 - LO2

The correct answer is: Immediate medical care for the third party at the time of the accident

Insurers will also reimburse for costs involved in providing immediate medical aid needed by someone hurt in an automobile accident.

Question 48

What do the additional agreements of the insured state an insured is required to refrain from doing in the event of an automobile accident?

Select one:

a.
Refrain from speaking with the other motorist

b.
Refrain from assuming liability

c.
Refrain from notifying the insurer

d.
Refrain from providing insurance information to the other motorist

Answer 48

Reference: OAS - Study 4 - LO2

The correct answer is: Refrain from assuming liability

Question 49

Greta lives in Ontario and has $300,000 third-party liability coverage. She is at-fault for an accident in Nova Scotia where the minimum coverage limit is $500,000. If applicable, which limit would Greta’s insurer be bound to pay?

Select one:

a.
The policy’s $300,000 limit.

b.
Nova Scotia’s $500,000 minimum limit.

c.
Ontario’s $200,000 minimum limit.

d.
An average of the Ontario and Nova Scotia minimum limits which is $350,000.

Answer 49

Reference: OAS - Study 4 - LO2

The correct answer is: Nova Scotia’s $500,000 minimum limit.

Question 50

If a rented or leased automobile is damaged in an accident, in what order would different policies coverage apply?

Select one:

a.
The driver’s policy is first. The renter’s policy is second. The owner’s policy is last to respond.

b.
The renter’s policy is first. The driver’s policy is second. The owner’s policy is last to respond.

c.
The renter’s policy is first. The owner’s policy is second. The driver’s policy is last to respond.

d.
The owner’s policy is first. The renter’s policy is second. The driver’s policy is last to respond.

Answer 50

Reference: OAS - Study 4 - LO2

The correct answer is: The renter’s policy is first. The driver’s policy is second. The owner’s policy is last to respond.

If a rented or leased automobile is involved in an accident, coverage may be available under more than one policy. Special rules stipulate this as the order of coverage response, the: 1. Renter’s policy; 2. Driver’s policy; 3. Owner’s policy.

Question 51

What is verbal threshold?

Select one:

a.
The degree of injury required for a claimant to sue for economic loss.

b.
The coverage limit provided by the Statutory Accident Benefits (SABs) for non-economic losses.

c.
The description of the degree of injury required for a claimant to sue for non-economic loss.

d.
The liability coverage limit available on a policy.

Answer 51

Reference: OAS - Study 4 - LO3

The correct answer is: The description of the degree of injury required for a claimant to sue for non-economic loss.

The Ontario Motorist Protection Plan (OMPP) legislation passed in 1990 limits the right to sue a third party by establishing that the injury must meet a severity threshold. The verbal threshold is the description of the degree of the injury required to sue for non-economic loss.

Question 52

When an action is brought in another province or state, where lawsuits are permitted, how would the OAP 1 respond?

Select one:

a.
With a defence as required in the policy

b.
With a defence if the insured is not responsible

c.
The OAP 1 must respond if there is a judgement

d.
The OAP 1 must respond only if the insured was a passenger

Answer 52

Reference: OAS - Study 4 - LO3

The correct answer is: With a defence as required in the policy

When an action is brought in another province or state where lawsuits are permitted, the Ontario owner’s policy (OAP 1) must respond with a defence as outlined in the automobile contract.

Question 53

Which provision requires an insurance company to pay a third-party claimant even if the insured has contravened a condition of the automobile insurance policy?

Select one:

a.
Requirements after loss

b.
Absolute liability

c.
Accident benefits

d.
Material change in risk

Answer 53

Reference: OAS - Study 4 - LO4

The correct answer is: Absolute liability

Question 54

If Bob has a suspended licence, drives and causes an accident injuring another person, would Bob’s insurer be responsible to pay the third-party liability claim?

Select one:

a.
No, because driving with a suspended licence nullifies insurance coverage.

b.
Yes, because the absolute liability provision requires an insurer to pay a third-party claim even if a policy condition is violated by the insured.

c.
No, because the injured person will make a claim to their own insurance policy.

d.
Yes, because the absolute liability provision requires an insurer to pay a third-party liability claim as a policy existed at the time of the accident.

Answer 54

Reference: OAS - Study 4 - LO4

The correct answer is: Yes, because the absolute liability provision requires an insurer to pay a third-party claim even if a policy condition is violated by the insured.

Driving with a suspended licence is a violation of a policy condition and the insurer would not normally be liable under the policy. But because of the absolute liability provision, the insurer is obligated to pay the innocent third party.

Question 55

According to Ontario’s Statutory Accident Benefits Schedule (SABS) for accidents occurring in or outside Ontario, who is an insured person?

Select one:

a.
The named insured and anyone listed in the policy as a driver of the insured automobile.

b.
Occupants of two public transit vehicles that collided with one another.

c.
Bystanders who were witnesses to the accident.

d.
Pedestrians involved in the accident.

Answer 55

Reference: OAS - Study 5 - LO1

The correct answer is: The named insured and anyone listed in the policy as a driver of the insured automobile.

Ontario’s SABS defines insured person in the following ways for accidents in or outside Ontario the insured is: the named insured and any person specified in the policy as a driver of the insured automobile; the spouse of the named insured; any dependant of the named insured or spouse; or persons who were not actually involved in the accident, but who suffer psychological or mental injuries because of an accident that injures certain relatives or dependants.

Question 56

When are passengers of public transit vehicles eligible to receive statutory accident benefits?

Select one:

a.
When two or more public transit vehicles collide with one another.

b.
When the public transit vehicle has collided with another automobile or object.

c.
When the public transit vehicle driver is convicted of negligence.

d.
When injuries to passengers of the public transit vehicle are serious in nature.

Answer 56

Reference: OAS - Study 5 - LO1

The correct answer is: When the public transit vehicle has collided with another automobile or object.

Occupants of public transit vehicles are not entitled to statutory accident benefits from any source, except when the public transit vehicle has collided with another automobile or object.

Question 57

Priorities of payment for statutory accident benefits are set out in which legislation/ regulation?

Select one:

a.
The Statutory Conditions

b.
The Highway Traffic Act

c.
The Insurance Companies Act

d.
The Insurance Act

Answer 57

Reference: OAS - Study 5 - LO1

The correct answer is: The Insurance Act

The SABS priority of payments are covered in the Insurance Act (Ontario).

Question 58

Every owner’s policy in Ontario must provide which accident benefit?

Select one:

a.
Payment of other expenses

b.
Third-party coverage

c.
Payment of property damage

d.
Voluntary medical payment

Answer 58

Reference: OAS - Study 5 - LO2

The correct answer is: Payment of other expenses

Every owner’s policy in Ontario must provide the following accident benefits: 1. Income replacement benefit; 2. Non-earner benefit; 3. Caregiver benefit; 4. Medical, rehabilitation, and attendant care benefits; 5. Payment of other expenses; 6. Death and funeral benefits; and 7. Optional benefits.

Question 59

What is the purpose of the Minor Injury Guideline?

Select one:

a.
It establishes the accident benefit available for certain injuries

b.
It lists the minor injuries that will not be covered under accident benefits

c.
To provide a treatment framework for minor injuries

d.
To assists medical personnel with diagnosis of minor injuries

Answer 59

Reference: OAS - Study 5 - LO2

The correct answer is: To provide a treatment framework for minor injuries

The Minor Injury Guideline (MIG) sets out the treatment framework for minor injuries. It provides a format to efficiently process predefined injuries such as sprain, strain or whiplash.

Question 60

Who would qualify for non-earner benefits?

Select one:

a.
Anyone waiting for an income replacement benefit during the deductible period

b.
Anyone collecting the caregiver benefit qualifies to collect non-earner benefits

c.
Anyone that does not qualify for an income replacement benefit or the caregiver benefit or is a fulltime student

d.
Anyone collecting an income replacement benefit qualifies to collect non-earner benefits

Answer 60

Reference: OAS - Study 5 - LO2

The correct answer is: Anyone that does not qualify for an income replacement benefit or the caregiver benefit or is a fulltime student

Non-earner benefit is payable to those who someone is unable to carry on a normal life and does not qualify for an income replacement benefit or the caregiver benefit or is a fulltime student. There is a four-week waiting period that must pass before the insured can receive non-earner benefits.

Question 61

Is there a maximum limit for medical, rehabilitation and attendant care benefits?

Select one:

a.
Yes, there is an aggregate limit which is based on the type of injury (catastrophic or non-catastrophic)

b.
No, there is no maximum limit applied regardless of type of injury

c.
No, there is no maximum limit for catastrophic injuries but there is a $60,000 limit for non-catastrophic injuries

d.
Yes, there is a $3 million aggregate limit ($1 million each for medical, rehabilitation, and attendant care)

Answer 61

Reference: OAS - Study 5 - LO2

The correct answer is: Yes, there is an aggregate limit which is based on the type of injury (catastrophic or non-catastrophic)

Ontario’s OAP1 has an aggregate limit for medical, rehabilitation, and attendant care benefits. However, that limit varies based on the type of injury. The standard limit for non-catastrophic injuries, is $65,000. The standard limit for catastrophic injuries is $1 million.

Question 62

What is the income replacement benefit deductible?

Select one:

a.
$185

b.
104 weeks

c.
One week

d.
$400

Answer 62

Reference: OAS - Study 5 - LO2

The correct answer is: One week

The IRB is not payable for the first week of the disability. This is considered the deductible.

Question 63

Costs for vocational and academic training would be covered by which accident benefits coverage?

Select one:

a.
Income replacement benefit

b.
Medical benefit

c.
Rehabilitation benefit

d.
Payment of other expenses

Answer 63

Reference: OAS - Study 5 - LO2

The correct answer is: Rehabilitation benefit

The rehabilitation benefit pays to reduce the effects of a disability. Some examples of reasonable measures used include: home modifications and vocational and academic training.

Question 64

What is the caregiver benefit limit?

Select one:

a.
$250 per week, per family

b.
$250 per week and an additional $50 for each dependent

c.
$250 per week, per person

d.
$500 per week, per person

Answer 64

Reference: OAS - Study 5 - LO2

The correct answer is: $250 per week and an additional $50 for each dependent

The caregiver benefit pays a maximum of $250, per week with another $50 for each additional dependent.

Question 65

What is the standard death benefit paid to a surviving dependant?

Select one:

a.
$5,000

b.
$10,000

c.
$7,000

d.
$8,000

Answer 65

Reference: OAS - Study 5 - LO2

The correct answer is: $10,000

$10,000 is the standard paid to each surviving dependant and to any person to whom the insured person has an obligation to support under a domestic contract or a court order. This can be increased with the purchase of optional benefits.

Question 66

Optional benefits allow the standard $400 weekly income replacement amount to be increased to which amounts?

Select one:

a.
$600, $800, or $1,000 weekly gross earnings

b.
$600, $800, or $1,000 weekly net earnings

c.
$600, $800, or $1,000 monthly net earnings

d.
$600, $800, or $1,000 monthly gross earnings

Answer 66

Reference: OAS - Study 5 - LO2

The correct answer is: $600, $800, or $1,000 weekly gross earnings

The standard Income Replacement Benefit amount is 70% of gross income up to $400 per week with the option to increase the weekly limit to $600, $800 or $1,000.

Question 67

Which accident benefit coverage is excluded when a driver has an accident while under the influence of drugs or alcohol?

Select one:

a.
Death benefits

b.
Attendant care benefit

c.
Income replacement benefit

d.
Funeral benefits

Answer 67

Reference: OAS - Study 5 - LO3

The correct answer is: Income replacement benefit

Under the exclusions to accident benefits, some benefits are not available when the insured has breached a policy condition or committed a criminal act. Insurers are not required to pay income replacement or non-earner benefits, educational expenses, expenses of visitors, and housekeeping and home maintenance expenses. However, funeral, death, and attendant care benefits are payable.

Question 68

Sally is driving home from a party when she rear-ends a car. She refuses to provide a breath sample to police and is later convicted of this offence. Which accident benefits would Sally still be eligible to receive?

Select one:

a.
Housekeeping expenses

b.
Medical benefit

c.
Income replacement benefit

d.
Non-earner benefit

Answer 68

Reference: OAS - Study 5 - LO3

The correct answer is: Medical benefit

Insurers are not required to pay income replacement or non-earner benefits, educational expenses, expenses of visitors, and housekeeping and home maintenance expenses to a person who, as a result of the accident, is asked to provide a breath sample and is convicted of failure to provide the sample.

Question 69

shmael has a G1 licence (that requires him to drive with a qualified driver) and he decides to drive to the mall by himself. If he is injured in an accident would he receive accident benefits?

Select one:

a.
No. Insurers are not obligated to pay any accident benefits when the insured is convicted of driving without a valid licence.

b.
Yes. Insurers are obligated to pay Expenses of visitors when the insured is convicted of driving without a valid licence.

c.
Maybe. Insurers are obligated to pay some accident benefits when the insured is convicted of driving without a valid licence.

d.
Yes. Insurers are obligated to pay educational expenses when the insured is convicted of driving without a valid licence.

Answer 69

Reference: OAS - Study 5 - LO3

The correct answer is: Maybe. Insurers are obligated to pay some accident benefits when the insured is convicted of driving without a valid licence.

Insurers are not required to pay income replacement or non-earner benefits, educational expenses, expenses of visitors, and housekeeping and home maintenance expenses to a person who was driving the automobile without a valid driver’s licence.

Question 70

If an insured has an accident outside of Ontario would they still go to their own policy for their accident benefit coverage?

Select one:

a.
In Canada yes, but not necessarily in the United States, depending on location.

b.
The insured would have a choice of two types of benefits, either Ontario, or the jurisdiction where the loss occurred.

c.
The insured would be able to collect accident benefits coverage up to the limits available in the jurisdiction where the loss occurred.

d.
Yes, the insured would still use the accident benefits coverage from their Ontario policy.

Answer 70

Reference: OAS - Study 5 - LO4

The correct answer is: The insured would have a choice of two types of benefits, either Ontario, or the jurisdiction where the loss occurred.

Ontario residents injured in automobile accidents outside Ontario, anywhere in the United States or Canada have a choice of which accident benefits that they access,

Question 71

Under collateral benefits, the insurer is required to top up loss of income payments to which of the following dollar amounts?

Select one:

a.
$470

b.
$700

c.
$740

d.
$400

Answer 71

Reference: OAS - Study 5 - LO4

The correct answer is: $400

Although collateral sources for loss of income pay first, insurers are required to top up the loss of income paid by these sources to 70 percent of gross income to a maximum top up of $400 per week, unless optional benefits are purchased.

Question 72

Mohamad is injured while driving an automobile in the course of his employment. From which type of insurance would he collect benefits?

Select one:

a.
Mohamad can select either workers compensation or the accident benefits of his policy regardless of the severity of the injury.

b.
Mohamad can select either workers compensation or the accident benefits of his policy if his tort claim meets the verbal threshold.

c.
A judge is required to determine which insurer will pay accident benefits to Mohamad—worker’s compensation or his policy.

d.
Mohamad will be required to collect benefits from workers compensation.

Answer 72

Reference: OAS - Study 5 - LO4

The correct answer is: Mohamad can select either workers compensation or the accident benefits of his policy if his tort claim meets the verbal threshold.

Workers who believe they have a tort claim that meets the threshold may elect not to claim compensation under the Workplace Safety and Insurance Act, 1997, but rather to proceed with their tort claim.

Question 73

Subrogation is available to insurers that pay out accident benefit claims from other provinces, except when what is in place?

Select one:

a.
Proxy Agreement

b.
Restitution Agreement

c.
Reciprocal Agreement

d.
Provincial Agreement

Answer 73

Reference: OAS - Study 5 - LO4

The correct answer is: Reciprocal Agreement

Some provinces with government insurance schemes, such as Quebec, have agreements in place (Ontario/Quebec Agreement) where the government will not subrogate against the Ontario resident for accidents in that province.

Question 74

How do collateral benefits interact with benefits available from an automobile policy?

Select one:

a.
The collateral benefits will no longer be received.

b.
They may be deducted depending on the collateral benefit.

c.
The insurer pays them back when they are recovered.

d.
The insured will receive both benefits.

Answer 74

Reference: OAS - Study 5 - LO4

The correct answer is: They may be deducted depending on the collateral benefit.

Collateral benefits are sources of entitlement outside of the automobile policy. SABS addresses benefits that may be available from other sources to an insured person following an accident. For example, social assistance or employment insurance or employee medical benefits.

Question 75

What do the motor vehicle accident claims funds (MVACFs); uninsured motorist coverage; and underinsured motorist coverage, have in common?

Select one:

a.
They are funded by the federal government.

b.
They are optional coverages that insureds can purchase.

c.
They intend to provide coverage to victims of automobile accidents who otherwise have no coverage or not enough coverage.

d.
The intend to provide coverage to an insured driver if the limits of his/her existing policy are insufficient to cover injuries from an accident.

Answer 75

Reference: OAS - Study 6 - LO1

The correct answer is: They intend to provide coverage to victims of automobile accidents who otherwise have no coverage or not enough coverage.

The motor vehicle accident claims funds (MVACFs), uninsured motorist coverage, and underinsured motorist coverage all exist to provide coverage to victims of automobile accidents if there is no other automobile insurance available.

Question 76

What is the maximum amount a motorist can recover for bodily injury if they are injured by a hit-and-run driver?

Select one:

a.
The maximum coverage available is the provincial minimum limit.

b.
The courts will determine the maximum coverage available.

c.
The injured party’s own policy limits are the maximums available.

d.
The national minimum limit is the maximum coverage available.

Answer 76

Reference: OAS - Study 6 - LO1

The correct answer is: The maximum coverage available is the provincial minimum limit.

The victims of uninsured motorists and unidentified motorists (hit-and-run drivers) may recover indemnity for their losses up to the amount of the provincial or territorial minimum limits.

Question 77

If a Canadian driver is injured in an accident in the US and is unable to recover losses from the uninsured responsible third party, from whom can the Canadian driver recover losses?

Select one:

a.
The Canadian driver’s own policy can step in to provide coverage in these instances.

b.
The Canadian driver will have to sue the US federal government for the losses.

c.
Each state has Motor Vehicle Accident Claims Fund from which the Canadian driver can recover losses.

d.
The Canadian driver will have to sue the US state where the accident occurred for the losses.

Answer 77

Reference: OAS - Study 6 - LO1

The correct answer is: The Canadian driver’s own policy can step in to provide coverage in these instances.

Question 78

Pam carries $500,000 in third party liability coverage. If she causes an accident, catastrophically injures a third party and is successfully sued for $2 million dollars in damages, how would her insurance coverage be described?

Select one:

a.
Unsatisfied

b.
Underinsured

c.
Unidentified

d.
Uninsured

Answer 78

Reference: OAS - Study 6 - LO1

The correct answer is: Underinsured

Question 79

Sandra, a pedestrian, is seriously injured by a hit-and-run driver who is unidentified. Sandra is an Ontario resident but is not a licensed driver. Which plan would provide coverage for her injuries?

Select one:

a.
The motor vehicle accident claims funds (MVACFs) provides coverage for bodily injuries caused by unidentified drivers.

b.
The Compulsory Automobile Insurance Act will provide the coverage for bodily injuries caused by unidentified drivers.

c.
The facility association provides coverage for bodily injuries caused by high risk drivers.

d.
The statutory accident benefits provide coverage and will later subrogate against the MVACFs.

Answer 79

Reference: OAS - Study 6 - LO1

The correct answer is: The motor vehicle accident claims funds (MVACFs) provides coverage for bodily injuries caused by unidentified drivers.

In Ontario, the motor vehicle accident claims fund (MVACFs) exists to provide bodily injury and physical damage coverage in situations where there is no other insurance policy to pay the claim, such as with unidentified (hit-and-run) drivers.

Question 80

Why is the motor vehicle accident claim fund (MVACF) called the payor of last resort?

Select one:

a.
The fund will not pay out until a judgement has been made confirming there has been an injury.

b.
The fund only provides monies to those that are catastrophically injured.

c.
The fund provides compensation when there is no other option for the injured victim.

d.
The fund will not pay out until the victim has exhausted all funds trying to prove their claim.

Answer 80

Reference: OAS - Study 6 - LO1

The correct answer is: The fund provides compensation when there is no other option for the injured victim.

Question 81

What is the purpose of the Family Protection endorsement (OPCF 44)?

Select one:

a.
To provide additional limits to the named insured who has a claim brought against them if they are at-fault for injuries to another person.

b.
To provide additional benefits to the insured with a claim against an at-fault motorist for injuries if that motorist has insufficient insurance coverage.

c.
To provide legal costs to protect the insured and their family if a claim is brought against them for more than their policy limits.

d.
It provides additional accident benefits coverage to protect the insured and their family if their limits are insufficient.

Answer 81

Reference: OAS - Study 6 - LO1

The correct answer is: To provide additional benefits to the insured with a claim against an at-fault motorist for injuries if that motorist has insufficient insurance coverage.

It may be used to provide additional benefits to the named insured and other insured persons, as defined in the policy, who have a claim against another at-fault motorist for injuries or death, if that motorist has insufficient insurance to pay the claim or is uninsured.

Question 82

Charlotte is seriously injured while crossing the street by an automobile that flees the scene. What would the driver be considered?

Select one:

a.
Underinsured

b.
Uninsurable

c.
Unidentified

d.
Uninsured

Answer 82

Reference: OAS - Study 6 - LO1

The correct answer is: Unidentified

Question 83

Which section of the OAP 1 responds when an insured has a legal right to recover damages from an uninsured or unidentified driver?

Select one:

a.
Legal liability

b.
Unidentified automobile

c.
Accident benefits

d.
Uninsured automobile

Answer 83

Reference: OAS - Study 6 - LO2

The correct answer is: Uninsured automobile

The uninsured automobile coverage (Section 5) of the OAP 1 enables insureds to recover from their own insurer for damages arising from accidents caused by uninsured automobiles or unidentified automobiles.

Question 84

What is the OAP 1—Uninsured Automobile Coverage limit for physical damage?

Select one:

a.
$30,000

b.
$35,000

c.
$25,000

d.
$50,000

Answer 84

Reference: OAS - Study 6 - LO2

The correct answer is: $25,000

Question 85

Lacey was at fault in a collision with Karen who is an uninsured driver. Can Karen seek compensation from Lacey’s third-party liability coverage for the damage to her vehicle?

Select one:

a.
Yes, if Karen successfully sues Lacey, her insurance company would provide coverage.

b.
No, Karen would go to the Highway Victims Indemnity Fund for coverage for her automobile.

c.
No, because Karen is uninsured she has no right to recover for damages to her automobile.

d.
Yes, because Lacey is the at-fault driver in the accident.

Answer 85

Reference: OAS - Study 6 - LO2

The correct answer is: No, because Karen is uninsured she has no right to recover for damages to her automobile.

Question 85

What is the applicable deductible for the physical damage coverage provided by the OAP 1—Uninsured Automobile?

Select one:

a.
$500

b.
$300

c.
$250

d.
$350

Answer 85

Reference: OAS - Study 6 - LO2

The correct answer is: $300

Question 86

Brenda is in an accident in Ontario with a driver that is identified but uninsured. The accident causes $25,000 in property damage and $250,000 in bodily injuries. What maximum amounts will be paid under the priority of payments in Ontario?

Select one:

a.
A maximum of $10,000 for property damage, and a maximum of $190,000 for bodily injury

b.
A maximum of $20,000 for property damage, and a maximum of $180,000 for bodily injury

c.
Nothing for the property damage and a maximum of $200,000 for bodily injury

d.
A maximum of $30,000 for property damage, and a maximum of $170,000 for bodily injury

Answer 86

Reference: OAS - Study 6 - LO2

The correct answer is: A maximum of $10,000 for property damage, and a maximum of $190,000 for bodily injury

Question 87

Generally, what does the family protection endorsement (OPCF 44R) cover?

Select one:

a.
The total cost of a claim with an uninsured and unidentified driver if the accident occurred in Ontario.

b.
The shortfall created if an at-fault driver carries inadequate insurance to pay for the physical damages s/he caused to a third party.

c.
The total cost of a claim with an uninsured but identified driver if the accident occurred in Ontario.

d.
The shortfall created if an at-fault driver carries inadequate insurance to pay for the bodily injury or death damages s/he caused to a third party.

Answer 87

Reference: OAS - Study 6 - LO3

The correct answer is: The shortfall created if an at-fault driver carries inadequate insurance to pay for the bodily injury or death damages s/he caused to a third party.

Question 88

If an insured has multiple family protection endorsements, how would coverage limits be applied in the case of a valid accident?

Select one:

a.
Coverage is not available from more than one policy’s family protection plan coverage limits.

b.
Coverage is not available from more than two policies family protection plan coverage limits.

c.
The various plans can be added together to increase the coverage limits to their combined total limit.

d.
The various plans can be added together but cannot exceed the absolute maximum of $2,000,000.

Answer 88

Reference: OAS - Study 6 - LO3

The correct answer is: Coverage is not available from more than one policy’s family protection plan coverage limits.

Question 89

Provincial and territorial governments have jurisdiction to make laws relating to which areas?

Select one:

a.
Health services, education, and driving speed

b.
Telecommunications, fisheries, and impaired driving

c.
Fisheries, education, parking

d.
Zoning, construction permits, parking

Answer 89

Reference: OAS - Study 1 - LO1

The correct answer is: Health services, education, and driving speed

Question 90

The federal government has jurisdiction to make laws relating to which areas?

Select one:

a.
Fisheries, education, parking

b.
Zoning, construction permits, parking

c.
Health services, education, and driving speed

d.
Telecommunications, fisheries, and impaired driving

Answer 90

Reference: OAS - Study 1 - LO1

The correct answer is: Telecommunications, fisheries, and impaired driving

Question 91

What penalties does government impose to deter citizens from breaking laws related to automobile ownership, use, or operation?

Select one:

a.
Fines, demerit points, or imprisonment

b.
Demerit points, imprisonment, or voiding of the insurance policy

c.
Fines, demerit points, or cancellation of insurance

d.
Demerit points, cancellation of insurance, or imprisonment

Answer 91

Reference: OAS - Study 1 - LO1

The correct answer is: Fines, demerit points, or imprisonment

Question 92

What are the two ways that automobile insurance is distributed in Canada?

Select one:

a.
Reinsurers and mutual companies

b.
Online platforms and in-person offices

c.
Private insurers and government insurers

d.
Government insurers and crown corporations

Answer 92

Reference: OAS - Study 1 - LO2

The correct answer is: Private insurers and government insurers

Question 93

Which provinces provide automobile insurance through crown corporations (government)?

Select one:

a.
Saskatchewan, Quebec, and Nova Scotia

b.
Nova Scotia, New Brunswick, and PEI

c.
Saskatchewan, Manitoba, and British Columbia

d.
Nova Scotia, Quebec, and Manitoba

Answer 93

Reference: OAS - Study 1 - LO2

The correct answer is: Saskatchewan, Manitoba, and British Columbia

Question 94

What does the Insurance Act state about requiring a signed application prior to issuing an automobile policy?

Select one:

a.
It requires the application to be signed if optional benefits are being purchased.

b.
It requires the application to be signed before the policy is issued.

c.
It does not require the application to be signed prior to the policy being issued.

d.
It does not require the application to be signed prior to the policy being issued if completed online.

Answer 94

Reference: OAS - Study 2 - LO1

The correct answer is: It does not require the application to be signed prior to the policy being issued.

Question 95

If a policy is issued and it is different from the written application, what can the insured demand?

Select one:

a.
The policy is rewritten with coverage that matches the written application

b.
The policy is cancelled with no penalty

c.
A reduction of the policy premium

d.
The policy be rewritten with extra coverage that the insured wants

Answer 95

Reference: OAS - Study 2 - LO1

The correct answer is: The policy is rewritten with coverage that matches the written application

Question 95

Which fact would be considered material to a contract of automobile insurance?

Select one:

a.
The number of accidents in the last 6 years

b.
If the automobile is parked in a garage

c.
The colour of the insured automobile

d.
The number of times someone else’s automobile is driven

Answer 95

Reference: OAS - Study 2 - LO1

The correct answer is: The number of accidents in the last 6 years

Question 96

The automobile application asks about any driving convictions for each driver. What is the time period that is requested?

Select one:

a.
6 years

b.
3 years

c.
2 years

d.
5 years

Answer 96

Reference: OAS - Study 2 - LO2

The correct answer is: 3 years

Question 97

Which of the following is an example of when the insured is the registered and the actual owner of the vehicle?

Select one:

a.
Lee drives a company vehicle; the registration is in the business name, but it is parked at his home and he is the only driver of the vehicle.

b.
Lee owns a vehicle; his name is listed on the registration and he is the only driver of the vehicle.

c.
Lee is a business owner and his business is the registered owner of a vehicle, but it is parked at Lee’s employee’s home and the employee drives the vehicle.

d.
Lee owns a vehicle; his mothers name is listed on the registration, but he is the only driver of the vehicle.

Answer 97

Reference: OAS - Study 2 - LO2

The correct answer is: Lee owns a vehicle; his name is listed on the registration and he is the only driver of the vehicle.

Question 98

The automobile insurance application asks about accident and claim details from the applicant. What time period is requested?

Select one:

a.
3 Years

b.
10 years

c.
6 years

d.
Since the insured started driving

Answer 98

Reference: OAS - Study 2 - LO2

The correct answer is: 6 years

Question 99

In Ontario, what is the gender-neutral indicator used by someone who does not identify as male or female?

Select one:

a.
P

b.
X

c.
O

d.
Y

Answer 99

Reference: OAS - Study 2 - LO3

The correct answer is: X

Question 100

If people other than the applicant will be regularly driving the automobile does the insurer need to know?

Select one:

a.
Only if they do not live with you

b.
Yes

c.
Only if they are younger than you

d.
No

Answer 100

Reference: OAS - Study 2 - LO3

The correct answer is: Yes

Question 101

What coverages are provided by the automobile policy for a temporary substitute vehicle, when the insured’s own automobile is temporarily out of service?

Select one:

a.
Direct Compensation-Property Damage and Accident Benefits

b.
Own Damage Coverage and Direct Compensation-Property Damage

c.
Third-Party Liability and Accident Benefits

d.
Own Damage Coverage and Third-party Liability

Answer 101

Reference: OAS - Study 3 - LO1

The correct answer is: Third-Party Liability and Accident Benefits

Question 102

Under the OAP 1, what example would be considered an EXCLUSION for carrying passengers for hire?

Select one:

a.
Volunteer drivers who are reimbursed for expenses, including gas and wear and tear on their vehicles

b.
Taxicab, bus, or sightseeing tour

c.
Sharing the cost of an occasional trip with others in the vehicle

d.
Carrying current or prospective clients and customers

Answer 102

Reference: OAS - Study 3 - LO1

The correct answer is: Taxicab, bus, or sightseeing tour

Question 103

Who is excluded from the OAP 1 while driving a customer’s car as part of their business?

Select one:

a.
A mechanic who repairs, maintains, and stores automobiles in his backyard.

b.
Anyone who sells, repairs, maintains, stores, or parks automobiles as part of a business.

c.
A car dealer who sells used automobile parts.

d.
A restaurant owner who provides valet parking service.

Answer 103

Reference: OAS - Study 3 - LO1

The correct answer is: Anyone who sells, repairs, maintains, stores, or parks automobiles as part of a business.

Question 104

What is the risk when operating a ridesharing service?

Select one:

a.
Owners polices include commercial coverage for personal vehicles

b.
The owner does not live in a province where DCPD is available

c.
The owner has not purchased optional coverages for their vehicle

d.
Owners policies generally exclude business use of personal vehicles

Answer 104

Reference: OAS - Study 3 - LO2

The correct answer is: Owners policies generally exclude business use of personal vehicles

Question 105

What is carsharing?

Select one:

a.
An arrangement using a mobile app that links drivers with riders.

b.
An arrangement where a business owner has a fleet of cars that are shared among the employees.

c.
An arrangement made between family members to purchase and then share a vehicle.

d.
An arrangement set up through a mobile app that links car renters with car owners.

Answer 105

Reference: OAS - Study 3 - LO2

The correct answer is: An arrangement set up through a mobile app that links car renters with car owners.

Question 106

Which Act outlines a person’s legal liability as a driver?

Select one:

a.
Common Law

b.
The Highway Traffic Act

c.
Fault Determination Rules

d.
Insurance Act of Ontario

Answer 106

Reference: OAS - Study 4 - LO1

The correct answer is: The Highway Traffic Act

Question 107

Provincial Insurance Acts outline the maximum amount of liability coverage for bodily injury versus property damage. What is this known as?

Select one:

a.
Pecuniary Loss

b.
Priority of Payments

c.
Absolute Liability

d.
Minimum Liability Limits

Answer 107

Reference: OAS - Study 4 - LO1

The correct answer is: Priority of Payments

Question 108

What is the minimum liability insurance limit required in Ontario for automobile insurance?

Select one:

a.
$500,000

b.
$200,000

c.
$50,000

d.
$1,000,000

Answer 108

Reference: OAS - Study 4 - LO1

The correct answer is: $200,000

Question 109

What are the responsibilities of the insured if there is loss or damage to people or property as a result of an automobile related accident?

Select one:

a.
Notify the insurer in writing with complete details within ten days of the incident

b.
Notify the insurer verbally with complete details within seven days of the incident

c.
Notify the insurer in writing with complete details within seven days of the incident

d.
Notify the insurer verbally with complete details within ten days of the incident

Answer 109

Reference: OAS - Study 4 - LO2

The correct answer is: Notify the insurer in writing with complete details within seven days of the incident

Question 110

Injured parties can sue for non-economic loss if an impairment they suffer due to an automobile accident meets which threshold?

Select one:

a.
The impairment requires at least 6 months of treatment to improve.

b.
The impairment requires at least 12 months of treatment to improve.

c.
The impairment is any form of bodily injury.

d.
The impairment is a permanent serious disfigurement.

Answer 110

Reference: OAS - Study 4 - LO3

The correct answer is: The impairment is a permanent serious disfigurement.

Question 111

Does an injury need to meet verbal threshold requirements to sue for economic loss?

Select one:

a.
No, it is not required to sue for economic loss.

b.
Yes, it is required to sue for both economic and non-economic loss.

c.
No, the OMPP prevents people from suing for economic loss.

d.
Yes, it is required to sue for economic loss.

Answer 111

Reference: OAS - Study 4 - LO3

The correct answer is: No, it is not required to sue for economic loss.

Question 112

What maximum coverage limits would apply in an absolute liability claim in Ontario?

Select one:

a.
$300,000

b.
$200,000

c.
$500,000

d.
$1,000,000

Answer 112

Reference: OAS - Study 4 - LO4

The correct answer is: $200,000

Question 113

According to Ontario’s Statutory Accident Benefits Schedule (SABS) for accidents occurring outside of Ontario, who is an insured person?

Select one:

a.
A person who is an occupant of the insured automobile and who is a resident of Ontario or was a resident sometime during the 60 days prior to the accident.

b.
A person who is not an occupant of the insured automobile and is a resident of Ontario.

c.
A person who is an occupant of the insured automobile and who does not reside in Ontario.

d.
A person who is an occupant of the insured automobile and who is a resident of Ontario or was a resident sometime during the 90 days prior to the accident.

Answer 113

Reference: OAS - Study 5 - LO1

The correct answer is: A person who is an occupant of the insured automobile and who is a resident of Ontario or was a resident sometime during the 60 days prior to the accident.

Question 114

Who is the first payor of accident benefits as outlined by the SABS priority of payments?

Select one:

a.
The driver’s insurer.

b.
The injured person’s own insurer.

c.
The at-fault party’s insurer.

d.
All insurers of those involved in the accident will provide benefits equally.

Answer 114

Reference: OAS - Study 5 - LO1

The correct answer is: The injured person’s own insurer.

Question 115

What is SABS an acronym for?

Select one:

a.
Statutory Accident Benefits System

b.
Standard Accident Benefits Schedule

c.
Statutory Accident Benefits Schedule

d.
Standard Accident Benefits System

Answer 115

Reference: OAS - Study 5 - LO1

The correct answer is: Statutory Accident Benefits Schedule

Question 116

Which section of the accident benefits coverage would reimburse an insured for the damage to their dentures and prescription glasses due to an accident?

Select one:

a.
Optional increase

b.
Other expenses

c.
Prescription benefit

d.
Rehabilitation benefit

Answer 116

Reference: OAS - Study 5 - LO2

The correct answer is: Other expenses

Question 117

Who is the caregiver benefit intended to support?

Select one:

a.
An insured who experiences a significant inability to engage in their caregiving activities due to an accident.

b.
An insured injured in an accident who needs care in a hospital setting to recuperate.

c.
A caregiver to an injured person so that s/he can be relieved from duties for a brief vacation.

d.
An insured injured in an accident who needs care in a home setting to recuperate.

Answer 117

Reference: OAS - Study 5 - LO2

The correct answer is: An insured who experiences a significant inability to engage in their caregiving activities due to an accident.

Question 118

What is the standard death benefit paid to a spouse?

Select one:

a.
$5,000

b.
$50,000

c.
$25,000

d.
$10,000

Answer 118

Reference: OAS - Study 5 - LO2

The correct answer is: $25,000

Question 119

Under SABS, what type of benefits outside the automobile policy are allowed without a deduction?

Select one:

a.
Net payments for loss of income that have been received by the insured person as a result of the accident

b.
Temporary disability benefits that were being received by the insured for a period following the accident and for an impairment that occurred before the accident

c.
Periodic benefit for an impairment that occurred before the accident

d.
Employment insurance or sick leave plan

Answer 119

Reference: OAS - Study 5 - LO4

The correct answer is: Employment insurance or sick leave plan

Question 120

What is the standard maximum funeral benefit?

Select one:

a.
$6,000

b.
$5,000

c.
$9,000

d.
$8,000

Answer 120

Reference: OAS - Study 5 - LO2

The correct answer is: $6,000

Question 121

What happens to funds that are not paid to an insured due to the criminal offence exclusion of the automobile policy when the insured is later found not guilty of the offence?

Select one:

a.
The funds are withheld from the person for twelve months without interest before being paid

b.
The funds must be paid to the person

c.
The funds are not paid to the person

d.
The funds are added to the maximum limits available for future claims

Answer 121

Reference: OAS - Study 5 - LO3

The correct answer is: The funds must be paid to the person

Question 122

What is the purpose of the Family Protection endorsement (OPCF 44)?

Select one:

a.
It provides additional accident benefits coverage to protect the insured and their family if their limits are insufficient.

b.
To provide legal costs to protect the insured and their family if a claim is brought against them for more than their policy limits.

c.
To provide additional benefits to the insured with a claim against an at-fault motorist for injuries if that motorist has insufficient insurance coverage.

d.
To provide additional limits to the named insured who has a claim brought against them if they are at-fault for injuries to another person.

Answer 122

Reference: OAS - Study 6 - LO1

The correct answer is: To provide additional benefits to the insured with a claim against an at-fault motorist for injuries if that motorist has insufficient insurance coverage.

Question 122

How does the motor vehicle accident claim fund (MVACF) respond if a claim arises from a driver that is identified and admits liability but is uninsured?

Select one:

a.
The victim is required to sue the driver and if courts deem the driver at-fault the fund will pay the claim.

b.
The fund will pay the claim on behalf of the uninsured driver and files a judgement to have him/her repay the fund.

c.
The victim is required to sue the fund and the uninsured driver. If a judge deems the driver is responsible the fund will pay.

d.
The fund sues the driver. Once he/she is found responsible by the courts the fund will pay the claim.

Answer 122

Reference: OAS - Study 6 - LO1

The correct answer is: The fund will pay the claim on behalf of the uninsured driver and files a judgement to have him/her repay the fund.

Question 123

In Ontario, uninsured automobile coverage applies when two vehicles are in a collision and one of the vehicles does not have insurance. To access the funds who must be at fault for the accident?

Select one:

a.
The insured motorist is at fault

b.
The uninsured motorist is at fault

c.
Either party can be at fault

d.
Either party can be not at fault

Answer 123

Reference: OAS - Study 6 - LO2

The correct answer is: The uninsured motorist is at fault

Question 124

Peter is injured in an accident with an uninsured driver outside of Ontario. The minimum liability where the accident occurs is $100,000. He carries a $1 million limit and the loss is $300,000. Which liability limit would apply to this loss?

Select one:

a.
$1,000,000

b.
$200,000

c.
$300,000

d.
$100,000

Answer 124

Reference: OAS - Study 6 - LO2

The correct answer is: $100,000

Question 125

Within which time period must an insured provide a written statement regarding bodily injury if the third party is unidentified or uninsured?

Select one:

a.
Within 7 days of the accident being reported to police

b.
Within 90 days of the accident

c.
Within 24 hours of the accident

d.
Within 30 days of the accident

Answer 125

Reference: OAS - Study 6 - LO2

The correct answer is: Within 30 days of the accident

Question 126

If the at-fault driver of a vehicle that caused an accident is unidentified, what is required for the OPCF 44R to apply?

Select one:

a.
The injured party must sign an affidavit stating the true facts of the accident.

b.
Any occupant in the automobile of the not at fault driver can corroborate the accident.

c.
A judge must be the arbitrator and side with either the insured or insurer.

d.
Material evidence of the unidentified automobile or an independent witness must corroborate the accident.

Answer 126

Reference: OAS - Study 6 - LO3

The correct answer is: Material evidence of the unidentified automobile or an independent witness must corroborate the accident.