Questions - Chapter 6, Section 3 - Endorsements applicable to SPF No.1

Question 1

Summarize the purpose of the following SEF endorsements and when coverage applies:

a) 20
b) 27
c) 43R
d) 44

Answer 1

a) Standard Endorsement Form No. 20 - Loss of Use Endorsement
- Used only when Section C - Loss of or Damage to Insured Automobile coverage is purchased. When the car results in a loss of use to the insured, the insurer agrees to pay all reasonable expenses including:
- the rental of a substitute automobile
- taxicabs or public means of transportation

b) S.E.F. no. 27 - Legal Liability for Damage to Non-Owned Automobiles Endorsement
- To provide coverage for loss or damages to certain types of non-owned automobiles leased or rented to insureds. Coverage applies to automobiles being operated, used, or stored or parked in Canada or the USA.

c) S.E.F. No. 43R - Limited Waiver of Depreciation Endorsement
- Is available under Section C - Loss of or Damage to Insured Automobile. Provides coverage against depreciation when the loss or damage occurs within 24 months of the purchase of the car by its original owner.

Question 2

By example, demonstrate your understanding of the SEF 44.

Answer 2

S.E.F. No. 44 - Family Protection Endorsement

Sarah is driving in her car and a truck runs a red light and hits the side of Sarah’s truck leaving her extensive injuries. The motorist that hit Sarah doesn’t carry liability insurance and therefore, Sarah is now protected within this endorsement she purchased. This will ensure she has the additional funds from her injuries from what she’s currently covered under her own liability insurance.

Question 3

Briefly explain the purpose of the following SEF form:

a) 2
b) 6
c) 7

Answer 3

a) S.E.F. No.2 - Standard Driver’s Automobile Policy
- Provides Third Party Liability coverages only for individuals who drive cars they do not own and are not registered in their names such as government employees or salespeople.

b) S.E.F. No. 6 - Standard Non-Owned Automobile Policy
- Insures Third Party Liability exposure of business owners from the use or operation of cars not owned in whole or in part by or licensed in the name of the insured.

c) S.E.F. No. 7 - Standard Excess Automobile Policy
- Provides Third Party Liability limits when excess coverage is required over and above those limits provided in S.P.F. No. 1 - Owner’s Form.