Personal Auto Insurance Flashcards
What type of liability is relevant to Auto insurance?
Absolute- you are liab regardless of intent, negligence or fault
What does the absolute liability clause state?
insured must reimburse for loss paid due to absolute liability.
What is the burden of proof of a plaintiff?
to prove that harm occurred and the defendant caused it. Also to justify the losses claimed
what is the burden of proof of a defendant?
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.
What does the priority of payment rule state?
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
Which provinces use government insurers?
SK, MB and BC
What does the unsatisfied judgement fund cover?
those injured by uninsured motorists. AKA motor vehicle accident claims fund.
How many claims in the last 5 years to be eligible for FA?
3 or more at fault
How many motoring convictions in 3 years to be eligible for FA?
more than 5
How many serious traffic convictions in 3 years to be eligible for FA?
more than 2
How many criminal code violations in 3 years to be eligible for FA?
more than 1
What types of vehicle modifications are eligible for FA?
modifies for racing with turbo/supercharge/ NSO OR has two or more mods: roll cage, ground clearance, tire mods, engine speed mods.
Define No fault insurance
when injured parties claim against their own insurer. Used in provinces that restrict litigation for auto losses.
What doe the two sections of AB reciprocal agreement cover?
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.
What reform was introduced in Alberta in 2004?
Adverse contractual action regulations AKA all comers rule.
Under the all comers rule, insurers cannot refuse you coverage unless:
- 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 $$$
what is the limit for minor injuries?
$4777 plus inflation
Define WAD
Whiplash associated disorder
Who approves the first 90 days of treatments?
The insurer
what are the 4 types of WAD related spinal injury?
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
True or false
Insurer will pay for all treatments needed for injury that have been recommended by any doctor
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
What are the three sections of a standard automobile policy SEF 1
Section A- 3rd party liability
Section B- Accident benefits
Section C- own damage coverage
What is the definition of the insured under section A of the SEF 1?
The named insured plus anyone operating the vehicle with consent
What is the definition of the insured under section B of the SEF 1?
Any passenger of the insured vehicle
named insured plus family members same house
for medical payments, anyone struck by the vehicle
What does section B under SEF cover?
Medical benefits
death benefit
uninsured motorist
What is the limit of medical benefits under section B?
$50,000 with some services limited
What is the limit for funeral expenses?
$5000 Per deceased but benefits vary based on who died
HOH or spouse =$10K
Dependant relative- $1000-$3000
when would the death benefit be increased by 20%?
if 2 or more survivors are dependant relatives plus a spouse OR are two dependent relatives
When would the death benefit increase by $15K?
if the spouse or dependent lives in the same household. DB for HOH increases by $15K for 1st survivor and $4000 for each additional
What is the weekly benefit for total disability?
$400/week or 80% of weekly earnings, whichever is lower
When would accident benefits NOT be payable
Attempting suicide covered by WCC speed racing sickness DUI Not authorized to drive aka you stole it.
What are the coverage options under section C SEF 1?
All perils
Collision/upset
Comprehensive
Specified perils
When would you have 3rd party liability coverage under a TSA?
Temporary substitute auto
- TSA is not owned by the insured. Is used because your auto has broken down, is being serviced lost or sold.
True or false
The insurer will pay ACV or cost to repair/replace
true
When must the insurer notify insured they choose to repair/replace instead of paying cash
7 days of receiving POL
