Personal Auto Insurance

Question 1

What type of liability is relevant to Auto insurance?

Answer 1

Absolute- you are liab regardless of intent, negligence or fault

Question 2

What does the absolute liability clause state?

Answer 2

insured must reimburse for loss paid due to absolute liability.

Question 3

What is the burden of proof of a plaintiff?

Answer 3

to prove that harm occurred and the defendant caused it. Also to justify the losses claimed

Question 4

what is the burden of proof of a defendant?

Answer 4

prove either they didn’t do it or it wasn’t due to negligence ie there was nothing they could have done to prevent it.

Question 5

What does the priority of payment rule state?

Answer 5

payments for property damage are capped so that most go to injury. example: you have $200K liab only. $10K of that goes to PD the rest to injury

Question 6

Which provinces use government insurers?

Answer 6

SK, MB and BC

Question 7

What does the unsatisfied judgement fund cover?

Answer 7

those injured by uninsured motorists. AKA motor vehicle accident claims fund.

Question 8

How many claims in the last 5 years to be eligible for FA?

Answer 8

3 or more at fault

Question 9

How many motoring convictions in 3 years to be eligible for FA?

Answer 9

more than 5

Question 10

How many serious traffic convictions in 3 years to be eligible for FA?

Answer 10

more than 2

Question 11

How many criminal code violations in 3 years to be eligible for FA?

Answer 11

more than 1

Question 12

What types of vehicle modifications are eligible for FA?

Answer 12

modifies for racing with turbo/supercharge/ NSO OR has two or more mods: roll cage, ground clearance, tire mods, engine speed mods.

Question 13

Define No fault insurance

Answer 13

when injured parties claim against their own insurer. Used in provinces that restrict litigation for auto losses.

Question 14

What doe the two sections of AB reciprocal agreement cover?

Answer 14

Section A- if accident happens in a province with higher limit, insurer pays that limit

Section B- Accident benefits. BI in a no fault jurisdiction must follow the rules of that province.

Question 15

What reform was introduced in Alberta in 2004?

Answer 15

Adverse contractual action regulations AKA all comers rule.

Question 16

Under the all comers rule, insurers cannot refuse you coverage unless:

Answer 16

• false info on application
• no inspections for salvage car or > 12 yrs
• proof safety repairs made within 30 days
• no valid Canadian license
• owe insurance company $$$

Question 17

what is the limit for minor injuries?

Answer 17

$4777 plus inflation

Question 18

Define WAD

Answer 18

Whiplash associated disorder

Question 19

Who approves the first 90 days of treatments?

Answer 19

The insurer

Question 20

what are the 4 types of WAD related spinal injury?

Answer 20

WAD 1 & 2- defined by the minor injury regulation
- non economic damages only. Treatment follows the DTP
WAD 3&4- not subject to caps or DTP

Question 21

True or false

Insurer will pay for all treatments needed for injury that have been recommended by any doctor

Answer 21

False
The insurer will only pay for treatments listed on the first AB-2 form. It must be submitted within 10 days of the first DR appointment

Question 22

What are the three sections of a standard automobile policy SEF 1

Answer 22

Section A- 3rd party liability
Section B- Accident benefits
Section C- own damage coverage

Question 23

What is the definition of the insured under section A of the SEF 1?

Answer 23

The named insured plus anyone operating the vehicle with consent

Question 24

What is the definition of the insured under section B of the SEF 1?

Answer 24

Any passenger of the insured vehicle
named insured plus family members same house
for medical payments, anyone struck by the vehicle

Question 25

What does section B under SEF cover?

Answer 25

Medical benefits
death benefit
uninsured motorist

Question 26

What is the limit of medical benefits under section B?

Answer 26

$50,000 with some services limited

Question 27

What is the limit for funeral expenses?

Answer 27

$5000 Per deceased but benefits vary based on who died
HOH or spouse =$10K
Dependant relative- $1000-$3000

Question 28

when would the death benefit be increased by 20%?

Answer 28

if 2 or more survivors are dependant relatives plus a spouse OR are two dependent relatives

Question 29

When would the death benefit increase by $15K?

Answer 29

if the spouse or dependent lives in the same household. DB for HOH increases by $15K for 1st survivor and $4000 for each additional

Question 30

What is the weekly benefit for total disability?

Answer 30

$400/week or 80% of weekly earnings, whichever is lower

Question 31

When would accident benefits NOT be payable

Answer 31

Attempting suicide
covered by WCC
speed racing
sickness
DUI
Not authorized to drive aka you stole it.

Question 32

What are the coverage options under section C SEF 1?

Answer 32

All perils
Collision/upset
Comprehensive
Specified perils

Question 33

When would you have 3rd party liability coverage under a TSA?

Answer 33

Temporary substitute auto

- TSA is not owned by the insured. Is used because your auto has broken down, is being serviced lost or sold.

Question 34

True or false

The insurer will pay ACV or cost to repair/replace

Answer 34

true

Question 35

When must the insurer notify insured they choose to repair/replace instead of paying cash

Answer 35

7 days of receiving POL