OAS Study 7-12 Flashcards
What recourse (if any) does an insured have if they are unhappy with the degree of fault established by their insurer?
Select one:
a.
There is no recourse because the decision by the insurance company is final.
b.
There is no recourse because fault determination rules are not open to interpretation.
c.
An insured can sue their insurer.
d.
An insured can sue the other driver.
Reference: OAS - Study 7 - LO1
The correct answer is: An insured can sue their insurer.
Following an accident involving two drivers, who has the onus of proof during a lawsuit?
Select one:
a.
The person being sued (the defendant).
b.
Each party’s insurer in the lawsuit (plaintiff and defendant) must prove their respective sides.
c.
The person suing (plaintiff).
d.
Each party’s lawyer in the lawsuit (plaintiff and defendant) must prove their respective sides.
Reference: OAS - Study 7 - LO1
The correct answer is: The person suing (plaintiff).
Who has the onus of proof in an accident involving a motorist and a cyclist?
Select one:
a.
The cyclist
b.
Both the motorist and cyclist in the accident
c.
The person suing (the plaintiff)
d.
The motorist
Reference: OAS - Study 7 - LO1
The correct answer is: The motorist
In automobile insurance, what does no-fault mean?
Select one:
a.
No one involved in the accident is determined to be at fault.
b.
Claimants are compensated by their own insurer only if they are NOT at fault for the accident.
c.
Drivers found at fault for an accident will not see an increase in insurance premiums.
d.
Claimants are compensated by their own insurer regardless of who was at fault.
Reference: OAS - Study 7 - LO1
The correct answer is: Claimants are compensated by their own insurer regardless of who was at fault.
What are two disadvantages of the tort system of compensation?
Select one:
a.
There is no appeal process if a party disagrees with the settlement, and parties are not able to choose their own lawyers.
b.
It is usually adversarial, and injured parties often wait years to be compensated.
c.
It delays the injured person’s right of recovery, and the courts always favour the uninjured party.
d.
It is usually adversarial, and the plaintiff lawyer is entitled to a large portion of the settlement.
Reference: OAS - Study 7 - LO1
The correct answer is: It is usually adversarial, and injured parties often wait years to be compensated.
When does Direct Compensation-Property Damage (DCPD) apply to an accident?
Select one:
a.
Accident occurred in Ontario and both vehicles are insured in Ontario or by an insurer from outside Ontario with an agreement to be bound by this section.
b.
Accident occurred in Canada and both vehicles are insured in Canada.
c.
Accident occurred within North America and both vehicles are registered in Ontario.
d.
Accident occurred between two vehicles insured in Ontario and both vehicles must be registered in Ontario.
Reference: OAS - Study 7 - LO2
The correct answer is: Accident occurred in Ontario and both vehicles are insured in Ontario or by an insurer from outside Ontario with an agreement to be bound by this section.
Which statement describes the coverage provided by Section 6 – Direct Compensation Property Damage (DCPD) of the OAP 1 Owner’s form?
Select one:
a.
It covers damage to the other driver’s vehicle to the extent that the insured was at fault for the accident
b.
It covers the cost of medical and rehabilitative care for the treatment and recovery of injuries related to an automobile accident
c.
It covers damage to the insured’s own vehicle for which the insured is at fault
d.
It covers damage to the insured automobile, its contents and for its loss of use to the extent that the insured is not at fault for the accident
Reference: OAS - Study 7 - LO2
The correct answer is: It covers damage to the insured automobile, its contents and for its loss of use to the extent that the insured is not at fault for the accident
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 her own policy.
c.
Coverage will come from the DCPD section of the at-fault driver’s policy.
d.
Coverage will come from the Own Loss or Damage section of her own policy.
Reference: OAS - Study 7 - LO2
The correct answer is: Coverage will come from the DCPD section of her own policy.
Would an insured’s third-party liability coverage respond to damage caused to the insured’s automobile by a third-party?
Select one:
a.
No, the insured will be compensated directly by the third party’s insurer.
b.
Yes, the insured’s third-party liability coverage responds to damage a third party caused to the insured’s automobile.
c.
No, Third-Party Liability Coverage responds to damage the insured is responsible for causing to someone else’s automobile.
d.
Yes, if the third party, who is responsible for the accident, does not have adequate third-party liability coverage.
Reference: OAS - Study 7 - LO2
The correct answer is: No, Third-Party Liability Coverage responds to damage the insured is responsible for causing to someone else’s automobile.
Nate has DCPD coverage with a $300 deductible. He has an accident that causes $1,000 damage to his automobile and is deemed 50% at fault. How much will he recover from his DCPD coverage?
Select one:
a.
$350
b.
$700
c.
$1,000
d.
$0
The correct answer is: $350
Which optional coverage is offered under Section 7—Loss or Damage Coverage?
Select one:
a.
Liability
b.
Comprehensive
c.
Uninsured automobile
d.
Accident benefits
Reference: OAS - Study 8 - LO1
The correct answer is: Comprehensive
When the insured has comprehensive added to their mandatory coverages, which scenario would be covered?
Select one:
a.
Hit by another car in a mall parking lot
b.
Collision with a deer that runs in front of their car on the highway
c.
Theft by a person who is renting a room in the insured’s home
d.
Driving into their own garage door
Reference: OAS - Study 8 - LO1
The correct answer is: Collision with a deer that runs in front of their car on the highway
Which coverage would apply when an automobile collides with a moose?
Select one:
a.
Specified perils
b.
Third-party liability
c.
Comprehensive
d.
Uninsured motorist
Reference: OAS - Study 8 - LO1
The correct answer is: Comprehensive
Which loss or damage coverage indemnifies the insured for damage to the vehicle caused by collision with another vehicle, person, object or the surface of the road”?
Select one:
a.
All perils
b.
Specified perils
c.
Comprehensive
d.
Collision or upset
Reference: OAS - Study 8 - LO1
The correct answer is: Collision or upset
Which item is considered ‘equipment’ under section 7—Loss or Damage Coverage?
Select one:
a.
Housekeepers vacuum cleaner
b.
Plumber’s tools
c.
Hockey equipment
d.
The car jack
Reference: OAS - Study 8 - LO1
The correct answer is: The car jack
Alan’s roommate took Alan’s car without permission and was involved in an accident that damaged Alan’s car. If Alan has collision and comprehensive would coverage apply ?
Select one:
a.
No, because it would be covered under the roommate’s insurance
b.
No, because his roommate did not have permission to use the car
c.
Yes, as it was not Alan’s fault that the roommate took the car
d.
Maybe, it depends on a possible theft charge
Reference: OAS - Study 8 - LO1
The correct answer is: No, because his roommate did not have permission to use the car
Samara carries mandatory coverages plus collision and comprehensive, each with a $500 deductible. How much would the insurer pay for $3,000 fire damage to Samara’s vehicle?
Select one:
a.
$3,000 under comprehensive
b.
$2,500 under comprehensive
c.
$3,000 under collision
d.
$2,500 under collision
Reference: OAS - Study 8 - LO1
The correct answer is: $3,000 under comprehensive
Blake purchases and installs a $2500 stereo for his automobile. Is the full amount of his new stereo covered?
Select one:
a.
No, the stereo would be subject to a limit of $1,500.
b.
Yes, as the equipment is now part of the vehicle, it would be fully covered up to $2,500.
c.
No, the stereo would not be covered as it is not part of the original car.
d.
Yes, the stereo is covered with no limitations.
Reference: OAS - Study 8 - LO2
The correct answer is: No, the stereo would be subject to a limit of $1,500.
Lily’s roommate sometimes use’s Lily’s car without permission. What should Lily know about the comprehensive coverage that she purchased?
Select one:
a.
That damage from wear and tear and lack of maintenance is excluded.
b.
That loss or damage caused by theft by any persons living in the same premises is excluded.
c.
About the voluntary parting with title ownership exclusion.
d.
That theft of personal effects from the vehicle is excluded.
Reference: OAS - Study 8 - LO2
The correct answer is: That loss or damage caused by theft by any persons living in the same premises is excluded.
Which term under Section 7—Loss or Damage Coverage is described as ‘Coverage for related expenses that often arise as a result of an automobile accident’?
Select one:
a.
Loss of use
b.
Payment of charges
c.
Temporary substitute vehicle
d.
Additional benefits
Reference: OAS - Study 8 - LO3
The correct answer is: Additional benefits
June is receiving replacement transportation coverage because her vehicle has been stolen. She is concerned about her policy expiring. What should the agent tell her?
Select one:
a.
The insured needs to have purchased a loss of use endorsement for coverage to continue after expiry.
b.
Replacement transportation coverage will end when her vehicle is replaced, recovered, or when a settlement is delivered to the insured.
c.
The insurer will provide the full limit of $900 before the policy expires.
d.
Replacement transportation coverage will end with the expiry of the policy unless the policy is renewed.
Reference: OAS - Study 8 - LO3
The correct answer is: Replacement transportation coverage will end when her vehicle is replaced, recovered, or when a settlement is delivered to the insured
Nicole borrowed her neighbour’s car while hers was undergoing major repairs. When using it, the car got scratched. How will Nicole pay to repair the scratch considering the neighbour does NOT carry physical damage coverage?
Select one:
a.
Use her own vehicle’s collision coverage since the neighbour’s car is considered as newly acquired
b.
Use her own vehicle’s collision coverage since the neighbour’s car was a temporary substitute
c.
Pay out of her own savings to have the scratch repaired as quickly as possible
d.
Ignore the scratch and assume the neighbour will not mind as he does not have physical damage coverage
Reference: OAS - Study 8 - LO3
The correct answer is: Use her own vehicle’s collision coverage since the neighbour’s car was a temporary substitute
Saddar received an invoice from the fire department when his automobile caught fire on the side of the highway. How did his insurance company respond when he presented the bill with fire department charges?
Select one:
a.
The insurance company returned the invoice as there is only coverage for the actual automobile.
b.
The insurance company returned the invoice as the insured had not purchased the additional Fire Department Coverages.
c.
The insurance company paid the invoice as general average charges under additional benefits.
d.
The insurance company paid the invoice as fire department charges under additional benefits.
Reference: OAS - Study 8 - LO3
The correct answer is: The insurance company paid the invoice as fire department charges under additional benefits.
What is a statutory declaration?
Select one:
a.
A promise or affirmation asserting knowledge of any circumstance, event, or fact.
b.
An oath asserting knowledge of a circumstance, event or fact, made before an officer.
c.
A declaration made under authority before a justice of peace asserting knowledge of a circumstance, event, or fact.
d.
A statement of one of the statutory conditions about an event or fact.
Reference: OAS - Study 8 - LO4
The correct answer is: A declaration made under authority before a justice of peace asserting knowledge of a circumstance, event, or fact.
Which of the following is NOT an agreement of insureds under loss or damage coverage?
Select one:
a.
Allow the insurer to copy all documents in their possession that relate to the incident.
b.
Not leave the insurer to dispose of the automobile unless they have agreed to it.
c.
Require the insured to get an inspection of the vehicle.
d.
Notify the insurer within 7 days of the incident or if unable, as soon as possible after that.
Reference: OAS - Study 8 - LO4
The correct answer is: Require the insured to get an inspection of the vehicle.
What is the name of the amount of premium that the insurer keeps when a policy is cancelled?
Select one:
a.
Premium quotation
b.
Pure Premium
c.
Minimum retained premium
d.
Cancellation fee
Reference: OAS - Study 9 - LO1
The correct answer is: Minimum retained premium
Patrick was in a multi-vehicle accident. After making a claim, what should Patrick do?
Select one:
a.
Do nothing, as the claim investigation is the responsibility of the insurer.
b.
Help the insurer obtain information and evidence about the incident, including witnesses.
c.
Hire a public adjuster to advocate and investigate the claim on his behalf
d.
Attempt to settle the claim with the other accident victims.
Reference: OAS - Study 9 - LO1
The correct answer is: Help the insurer obtain information and evidence about the incident, including witnesses.
What is the purpose of the automobile Statutory Conditions?
Select one:
a.
Provides clear language automobile wordings.
b.
Establishes clear rules and regulations that the insured and the insurer must follow.
c.
Provides guidelines that help the insurer and insured handle situations that may arise under the contract.
d.
Provides guidelines that help the insurer and the broker handle situations that may arise under the contract.
Reference: OAS - Study 9 - LO1
The correct answer is: Establishes clear rules and regulations that the insured and the insurer must follow.
To which policy would the automobile Statutory Conditions NOT apply?
Select one:
a.
Commercial Property Policy
b.
Non-owned Automobile Policy
c.
Owners Automobile Policy
d.
Garage Automobile Policy
Reference: OAS - Study 9 - LO1
The correct answer is: Commercial Property Policy
If an insurer incorrectly classifies a risk, what correction is required under the automobile statutory conditions?
Select one:
a.
Correction of the risk, however a refund is not required.
b.
Correction of the risk and waiving of the additional premium, if required.
c.
Correction of the risk and a request for additional premium from the insured, if required.
d.
Correction of the risk and a refund if required.
Reference: OAS - Study 9 - LO1
The correct answer is: Correction of the risk and a refund if required.
The automobile statutory condition—Monthly Payment allows insureds to pay their insurance premium in equal monthly instalments. What other amounts may be included on the monthly instalment?
Select one:
a.
Interest payable at the governed rate
b.
A penalty
c.
A service fee
d.
Interest payable at the insurers chosen rate
Reference: OAS - Study 9 - LO1
The correct answer is: Interest payable at the governed rate
Under the automobile statutory condition—Authority to Drive and Prohibited Use what does it mean to be ‘authorized’ to drive?
Select one:
a.
To have the physical ability and mental capacity to drive
b.
To have the mental capacity and be the right age
c.
To have legal permission to drive and be the right age
d.
To have the physical ability and legal permission to drive
Reference: OAS - Study 9 - LO1
The correct answer is: To have the physical ability and legal permission to drive
Under the automobile Statutory Condition—Time and Manner of Payment what must the insurer do if a claim is denied?
Select one:
a.
File a dispute resolution request with the Insurance Tribunal.
b.
Promptly inform the insured of the denied claim and refund a portion of their premium.
c.
Promptly inform the insured in writing of the reasons the insurer is not liable to pay the claim.
d.
Inform the insured that the insurer is not liable to pay the claim; there is no specified time for format requirement for the notification to the insured.
Reference: OAS - Study 9 - LO1
The correct answer is: Promptly inform the insured in writing of the reasons the insurer is not liable to pay the claim.
How much notice must an insurer give to an insured when terminating an automobile contract of insurance that has been in effect for at least 60 days for the reason of non payment of premium?
Select one:
a.
30 days by registered mail or 10 days if hand delivered
b.
10 days by registered mail or 30 days if hand delivered
c.
15 days by registered mail or 5 days if hand delivered
d.
5 days by registered mail or 15 days if hand delivered
Reference: OAS - Study 9 - LO1
The correct answer is: 30 days by registered mail or 10 days if hand delivered
When can an insured cancel a contract of automobile insurance?
Select one:
a.
Within the first 10 days of the policy period
b.
At the end of the contract
c.
Any time during the contract period
d.
Within the first 60 days of the policy period
Reference: OAS - Study 9 - LO1
The correct answer is: Any time during the contract period
What is an example of an endorsement that is Providing Permission?
Select one:
a.
OPCF 19A Agreed Value of Automobiles
b.
OPCF 6D Driving Training School
c.
OPCF 35 Coverage for Emergency Road Service
d.
OPCF 23A Lienholders
Reference: OAS - Study 10 - LO1
The correct answer is: OPCF 6D Driving Training School
What is an example of an endorsement used to Alter Policy Terms?
Select one:
a.
OPCF 13C Restricting Glass Coverage
b.
OPCF 6B School Bus
c.
OPCF 43 Removing Depreciation Deduction
d.
OPCF 32 Use of Recreational Vehicles by Unlicensed Operators
Reference: OAS - Study 10 - LO1
The correct answer is: OPCF 32 Use of Recreational Vehicles by Unlicensed Operators
What does OPCF stand for?
Select one:
a.
Ontario Policy Coverage File
b.
Owner’s Policy Coverage Form
c.
Ontario Policy Change Forms
d.
Owner’s Permission Change Form
Reference: OAS - Study 10 - LO1
The correct answer is: Ontario Policy Change Forms
Which situation is covered under the OAP 1 WITHOUT the addition of an endorsement?
Select one:
a.
Insured drives a neighbour for groceries because the neighbour’s vehicle is out for repairs.
b.
Insured uses the vehicle to shuttle employees to and from work.
c.
Insured is a school bus driver and uses a private passenger vehicle to transport students to and from school.
d.
Insured uses their vehicle to teach driver training to new drivers.
Reference: OAS - Study 10 - LO2
The correct answer is: Insured drives a neighbour for groceries because the neighbour’s vehicle is out for repairs.
Which endorsement series is NOT considered a buyback endorsement?
Select one:
a.
OPCF 5 Series: Rented or Leased Automobile
b.
OPCF 19 Series: Amount Paid
c.
OPCF 6 Series: Passenger Risks
d.
OPCF 4 Series: Permission
Reference: OAS - Study 10 - LO2
The correct answer is: OPCF 19 Series: Amount Paid
Amir will lease a new vehicle. What endorsement must be added to his OAP 1?
Select one:
a.
OPCF 5C Permission to Rent or Lease
b.
OPCF 6A Permission to Carry Paying Passengers
c.
OPCF 5 Permission to Rent or Lease Automobiles & Extending Coverage to Specified Lessee(s)
d.
OPCF 6F Public Passenger Vehicles
Reference: OAS - Study 10 - LO2
The correct answer is: OPCF 5 Permission to Rent or Lease Automobiles & Extending Coverage to Specified Lessee(s)
Which party holds real or personal property under a lease?
Select one:
a.
Mortgagor
b.
Lessor
c.
Lessee
d.
Mortgagee
Reference: OAS - Study 10 - LO2
The correct answer is: Lessee
What is NOT a function of the OPCF 6C and 6F Public Transportation?
Select one:
a.
Give the option of a single limit coverage, including passenger hazard and property damage
b.
Give permission for the automobile to be used for driver training schools
c.
Give permission for the automobile to carry passengers for hire
d.
Give coverage for bodily injury to passengers and damage to their property
Reference: OAS - Study 10 - LO2
The correct answer is: Give permission for the automobile to be used for driver training schools
Which endorsement is applied when a vehicle is rated on a predetermined value that limits the total amount payable in a claim?
Select one:
a.
OPCF 7 Separate Limits Liability
b.
There is no endorsement that can be applied to rate based on value of an automobile.
c.
OPCF 19A Agreed Value of Automobiles
d.
OPCF 19 Limiting the Amount Paid for Loss or Damage Coverages
Reference: OAS - Study 10 - LO3
The correct answer is: OPCF 19 Limiting the Amount Paid for Loss or Damage Coverages
Why might an insurer want to add an endorsement that RESTRICTS or EXCLUDES coverage?
Select one:
a.
To lower the likelihood of a loss occurring and reduce their exposure
b.
To restrict certain automobiles due to high repair costs
c.
To lower premium costs and have fewer claims
d.
To manage the expectations of the insured prior to any claims
Reference: OAS - Study 10 - LO3
The correct answer is: To lower the likelihood of a loss occurring and reduce their exposure
Why does an insurer require an OPCF 19—Limiting the Amount Paid endorsement for a 20-year-old Honda civic that has recently received an expensive custom paint job?
Select one:
a.
The Actual Cash Value (ACV) of the car now exceeds the values used when establishing the rate groups
b.
To discourage depreciation claims when the custom paint fades or is subject to wear and tear
c.
The replacement cost of the car now exceeds the values used when establishing the rate groups
d.
To minimize their exposure because Honda’s are considered a high theft risk
Reference: OAS - Study 10 - LO3
The correct answer is: The Actual Cash Value (ACV) of the car now exceeds the values used when establishing the rate groups
Anne and her sisters rent a vehicle while on vacation. Anne, who will mainly drive the rental car, has an OAP 1 with an OPCF 27 added. Does Anne’s insurance extend to her sisters if they drive the rental car?
Select one:
a.
Yes, if each of her sisters have their own OAP 1 with an OPCF 27.
b.
No, because they do not have valid driver’s licences in the country that they are vacationing in.
c.
Yes, if her sisters have been specifically listed on Anne’s OPCF 27 endorsement.
d.
No, because they did not declare their intention to the rental company.
Reference: OAS - Study 10 - LO4
The correct answer is: Yes, if her sisters have been specifically listed on Anne’s OPCF 27 endorsement.
Hunter becomes a paraplegic as after an accident where he was not at-fault. A judge awards him $1,200,000 for his lifelong care. The at-fault driver carries the legal minimum of $200,000 liability. Hunter’s OAP 1 has liability up to $1,000,000 with OPCF 44R. How will Hunter collect what he is entitled to?
Select one:
a.
$1,200,000 from the third party’s insurer
b.
$200,000 from the third party’s policy, $1,000,000 from the Unsatisfied Judgement Fund
c.
$200,000 from the third party’s policy; $800,000 from his own policy; $200,000 from the third party directly
d.
$200,000 from the third party’s policy; $1,000,000 from his own policy
Reference: OAS - Study 10 - LO4
The correct answer is: $200,000 from the third party’s policy; $800,000 from his own policy; $200,000 from the third party directly
For which situation does the OPCF 2—Drive Other Automobiles endorsement expand the definition of insured person?
Select one:
a.
For third-party liability when operating a non-owned or other automobile
b.
For all coverages to include the insureds spouse
c.
For third-party liability to include everyone within the insured’s household
d.
For all coverages when operating a rental car
Reference: OAS - Study 10 - LO4
The correct answer is: For third-party liability when operating a non-owned or other automobile
How should an insurance broker react when his insured purchases an ATV for her 13-year-old son to use at the cottage?
Select one:
a.
Recommend the insured add an OPCF 32—Use of Recreational Vehicles endorsement to her OAP 1
b.
Abeyance his file to follow up on the son’s 16th birthday to ensure he is pursuing a driver’s licence
c.
Recommend purchasing an OAP 2—Driver’s Automobile Policy for the son
d.
Advise the insured to keep her son off road and on the designated trails
Reference: OAS - Study 10 - LO5
The correct answer is: Recommend the insured add an OPCF 32—Use of Recreational Vehicles endorsement to her OAP 1
What documentation do lienholders receive under the OPCF 23 endorsements?
Select one:
a.
Proof of insurance as their evidence of insurable interest
b.
Certificate of insurance as evidence of coverage
c.
Copy of the endorsement as evidence of coverage
d.
Copy of the policy as evidence of their insurable interest
Reference: OAS - Study 10 - LO5
The correct answer is: Copy of the endorsement as evidence of coverage
What charge upon property is required to be disclosed on an application for automobile insurance?
Select one:
a.
Lien
b.
Duty
c.
Debt
d.
Security
Reference: OAS - Study 10 - LO5
The correct answer is: Lien
Under the OAP 2, which of the following is NOT included in the definition of non-owned automobile?
Select one:
a.
An insured who is both the driver and owner of the vehicle.
b.
One that is in the care, custody, or control of the insured, but is not operated by the insured.
c.
A trailer or semi-trailer, an automobile and attached trailer are considered one vehicle with respect to the limits of liability under this policy.
d.
One which the insured is in control of personally as driver or occupant, and that vehicle is neither owned by, nor registered to the insured.
Reference: OAS - Study 10 - LO6
The correct answer is: An insured who is both the driver and owner of the vehicle.
What is the rating for the OAP 2—Driver’s Automobile Policy based on?
Select one:
a.
Minimum premium for standard limits
b.
Similar rating to that of garage personnel
c.
Relative to other drivers on the fleet
d.
Exposure of the vehicle most likely to be driven
Reference: OAS - Study 10 - LO6
The correct answer is: Exposure of the vehicle most likely to be driven
What is a financial responsibility law?
Select one:
a.
A law establishing the Highway Victims Fund
b.
A statute that requires motorists to be able to establish their financial responsibility
c.
A statute establishing the extent of financial responsibility for an at-fault driver
d.
A law that requires an insured to carry liability limits above the mandatory minimum
Reference: OAS - Study 10 - LO6
A statute that requires motorists to be able to establish their financial responsibility
Who is responsible for the regulation of automobile insurance in Ontario?
Select one:
a.
The financial Services Regulatory Authority of Ontario (FSRA)
b.
Financial Services Commission of Ontario (FSCO)
c.
Financial Services Tribunal
d.
Director of Arbitrations
Reference: OAS - Study 11 - LO1
The correct answer is: The financial Services Regulatory Authority of Ontario (FSRA)
What actions are included in the definition of unfair or deceptive acts or practices of the Ontario Regulation 7/00?
Select one:
a.
Using the approved application for automobile insurance form
b.
Not giving a potential new client a gift in exchange for their business
c.
Providing details with respect to a policies benefits, terms and advantages
d.
Causing unreasonable delay or resistance to the fair adjustment and settlement of claims due to any conduct
Reference: OAS - Study 11 - LO1
The correct answer is: Causing unreasonable delay or resistance to the fair adjustment and settlement of claims due to any conduct
Ontario Regulation 7/00 includes the following actions (in addition to others) in the definition of unfair or deceptive acts and practices in the business of insurance: Causing unreasonable delay or resistance to the fair adjustment and settlement of claims due to any conduct.
When an applicant requests an automobile insurance quotation and the agent/broker approached is affiliated with more than one insurer, which rate must be provided?
Select one:
a.
The highest rate available from any affiliated insurer.
b.
The rate from the affiliated insurer providing the highest commission.
c.
The rate from the affiliated insurer providing the lowest commission.
d.
The lowest rate available from any affiliated insurer.
Reference: OAS - Study 11 - LO1
The correct answer is: The lowest rate available from any affiliated insurer.
Upon renewal of their automobile policy the insured’s collision deductible was increased. How many days’ written notice must be given to the insured?
Select one:
a.
45 days’ notice to the insured and 30 days to the broker or agent
b.
30 days’ notice to both the insured and the agent or broker
c.
45 days to the insured and 60 days to the broker or agent
d.
30 days to insured, 45 days to agent or broker
Reference: OAS - Study 11 - LO1
The correct answer is: 30 days to insured, 45 days to agent or broker
In automobile insurance, what does a residual market ensure?
Select one:
a.
Drivers can obtain insurance coverage at a discounted rate
b.
Automobiles that carry hazardous materials can obtain automobile insurance
c.
Risks that are more hazardous or less desirable can obtain insurance coverage
d.
Drivers that carry livestock can obtain automobile insurance
Reference: OAS - Study 11 - LO2
The correct answer is: Risks that are more hazardous or less desirable can obtain insurance coverage
In Ontario, who are the members of the Facility Association?
Select one:
a.
Every unlicensed insurer
b.
Every licensed brokerage selling automobile insurance
c.
Every driver licensing body
d.
Every licensed automobile insurer
Reference: OAS - Study 11 - LO2
The correct answer is: Every licensed automobile insurer
Who performs the day to day tasks for the Facility Association?
Select one:
a.
Ministry of Transportation
b.
Servicing Carriers
c.
Every member of the association
d.
Broker Association
Reference: OAS - Study 11 - LO2
The correct answer is: Servicing Carriers
Which statement describes how the Facility Association rates treat commission for agents and brokers?
Select one:
a.
The commission is reduced
b.
The commission is increased
c.
Standard commission rates apply
d.
There is no commission
Reference: OAS - Study 11 - LO2
The correct answer is: There is no commission
What is the purpose of a risk sharing pool?
Select one:
a.
A way for insurers to take on the responsibility of higher exposure risks that still qualify for the regular market from the members of the association.
b.
A way for the government to ensure that insurance companies are adhering to codes of conduct.
c.
A way for the government to gather statistical analysis for different risk across Ontario.
d.
A way for insurers to transfer some of the responsibility for higher exposure risks that still qualify for the regular market, among all the members of the association.
Reference: OAS - Study 11 - LO3
The correct answer is: A way for insurers to transfer some of the responsibility for higher exposure risks that still qualify for the regular market, among all the members of the association.
Who is responsible for servicing a policy, including settling claims, once it has been transferred into the risk sharing pool?
Select one:
a.
The Superintendent of Insurance
b.
The Facility Association
c.
The company who issues the initial policy
d.
The company who has the highest number of policies in the risk sharing pool
Reference: OAS - Study 11 - LO3
The correct answer is: The company who issues the initial policy
