Study 1 Flashcards
What are the THREE LEVELS of LEGAL JURISDICTIONS in Canada?
FEDERAL, PROVINCIAL (or TERRITORIAL), and MUNICIPAL—like a legal sandwich with different layers of rules!
What does the FEDERAL GOVERNMENT handle?
Big stuff affecting ALL of Canada—like CRIMINAL LAW, TRADE, TELECOMMUNICATIONS, CUSTOMS, IMMIGRATION, and FISHERIES.
Yes, even fish laws!
What are some VEHICLE-RELATED OFFENCES under the CRIMINAL CODE?
IMPAIRED DRIVING, REFUSING A BREATH SAMPLE, VEHICLE THEFT, DANGEROUS DRIVING, and HIT-AND-RUN. Basically, don’t be a menace on the road.
What’s the FEDERAL BLOOD ALCOHOL LIMIT (BAC) for driving?
0.08%—but in B.C., they tighten the belt at 0.05%!
What happens if you’re convicted of a CRIMINAL DRIVING OFFENCE and have INSURANCE?
Your INSURANCE COMPANY might DENY COVERAGE. Bad choices = big consequences.
What does PROVINCIAL and TERRITORIAL LEGISLATION cover?
EDUCATION, PROPERTY, HEALTH, and—most importantly for drivers—ROAD RULES and AUTOMOBILE INSURANCE.
What are some PROVINCIAL ROAD RULES?
SPEED LIMITS, TRAFFIC LIGHTS, STOP SIGNS, and RIGHT-OF-WAY RULES. Ignore them, and you’ll meet the ticket fairy.
Can your insurance company DENY COVERAGE for PROVINCIAL DRIVING OFFENCES?
Not usually—unless there’s a POLICY EXCLUSION. Read the fine print!
What do MUNICIPAL GOVERNMENTS handle?
LOCAL MATTERS like ZONING, SMOKING LAWS, ANIMAL CONTROL, and CONSTRUCTION PERMITS. Also, PARKING, SPEED LIMITS, and CROSSWALKS.
Can you lose INSURANCE COVERAGE for breaking a MUNICIPAL BYLAW?
Not unless there’s a POLICY EXCLUSION. Your bad parking won’t cancel your coverage, but it will annoy your neighbors.
What are possible PENALTIES for breaking AUTO LAWS?
FINES, DEMERIT POINTS, TEMPORARY LICENSE LOSS, IMPRISONMENT, or ALL OF THE ABOVE. Choose your adventure wisely.
Why should you care about AUTO LAWS?
To avoid FINANCIAL RUIN, JAIL, or just the embarrassment of losing your license and begging for rides.
Why was AUTOMOBILE INSURANCE created?
To PROTECT drivers from FINANCIAL RUIN caused by accidents, theft, or lawsuits.
Because car crashes and lawsuits are expensive hobbies.
How does INSURANCE work?
Everyone PAYS INTO A POOL, and the unlucky few who suffer LOSSES get compensated. It’s like a group project where only some people take the hit.
Why did AUTO INSURANCE evolve over time?
More CARS → Better ROADS → FASTER CARS → MORE ACCIDENTS → More NEED for INSURANCE. A never-ending cycle!
What are the MAIN EXPOSURES that car owners face?
ACCIDENTS, THEFT, FIRE, and LAWSUITS.
Basically, everything that makes owning a car stressful.
What’s WORSE than your car being wrecked?
LIFE-CHANGING INJURIES that stop you from WORKING and supporting your family.
What if the person who CAUSED the accident is BROKE?
You might SUE them, but if they have NO MONEY, good luck collecting anything. That’s where insurance steps in!
What happens if YOU cause an accident that injures or kills someone?
You could be SUED for MILLIONS, ruining your finances forever.
Goodbye house, hello debt!
Why is the THREAT of a LAWSUIT a big deal?
Society is LITIGIOUS—people SUE even when liability isn’t clear. Even if you WIN, legal fees can be massive!
How does insurance help in LAWSUITS?
It COVERS LEGAL DEFENCE COSTS and any JUDGMENTS against you.
Because lawyers don’t work for free!
What happens if you don’t have insurance and get sued?
You PAY for your own DEFENSE and JUDGMENTS.
Hope you like working forever.
What is the PENALTY for driving WITHOUT INSURANCE in Ontario?
FINES from $5,000 to $50,000, plus possible LICENSE SUSPENSION and VEHICLE IMPOUNDMENT.
Basically, a very expensive mistake.
Why do some INSURANCE COMPANIES charge HIGHER PREMIUMS for uninsured drivers?
If you’re caught driving UNINSURED, you’re seen as HIGH-RISK.
Like a gambler, but with cars instead of poker chips.
What happens if you’re INJURED while driving an UNINSURED vehicle?
You may get NO ACCIDENT BENEFITS and NO RIGHT to SUE for compensation.
Ouch—twice.
What happens if YOU cause an accident while UNINSURED?
You could be held PERSONALLY RESPONSIBLE for all medical and damage costs.
Say hello to lifelong debt.
How did MANDATORY INSURANCE LAWS lead to STANDARDIZED POLICY FORMS?
They forced insurers to use the SAME WORDING and TERMS across provinces, ensuring consistency.
No sneaky fine print surprises.
What is SPF 1?
STANDARD OWNER’S AUTO POLICY—covers VEHICLE OWNERS for personal or commercial use.
What is SPF 2?
STANDARD DRIVER’S AUTO POLICY—covers DRIVERS using vehicles THEY DON’T OWN.
What is SPF 4?
STANDARD GARAGE POLICY—covers AUTO BUSINESSES like dealerships, repair shops, and parking lots.
What is SPF 6?
STANDARD NON-OWNED AUTO POLICY—covers LIABILITY when using a vehicle YOU DON’T OWN.
What is SPF 7?
EXCESS AUTO POLICY—provides EXTRA LIABILITY COVERAGE beyond a standard policy.
What is SPF 8?
LESSOR’S CONTINGENT POLICY—covers businesses that LEASE vehicles long-term.
What is SPF 9?
TRANSPORTATION NETWORK POLICY—covers RIDESHARE VEHICLES (like Uber).
What is QPF 5, and where is it used?
REPLACEMENT INSURANCE for NEW VEHICLES, sold in QUEBEC ONLY.
How do GOVERNMENT INSURANCE plans work?
In provinces like BC and Manitoba, the VEHICLE REGISTRATION or DRIVER’S LICENSE serves as PROOF of BASIC INSURANCE.
What’s the difference between CONTINGENT and EXCESS INSURANCE?
CONTINGENT applies ONLY IF NO OTHER INSURANCE EXISTS, while EXCESS kicks in AFTER other coverage is EXHAUSTED.
What is the POLICY FORM PREFIX used in Ontario?
OAP (Ontario Automobile Policy).
What provinces DO NOT ISSUE a basic insurance policy because of government plans?
BC, Manitoba, and Saskatchewan.
Which provinces use SPF 1 as their standard auto policy?
Alberta, Northwest Territories, Nunavut, Yukon, Nova Scotia, Newfoundland & Labrador, and PEI.
What is the Quebec equivalent of SPF 1?
QPF 1 (Quebec Policy Form 1).
What LAW requires vehicle owners to have insurance in Ontario?
The COMPULSORY AUTOMOBILE INSURANCE ACT.
Basically, no insurance = no legal driving.
What is the primary PROOF of insurance in most provinces?
MOTOR VEHICLE LIABILITY CARDS, also known as ‘PINK CARDS.’
What serves as PROOF OF INSURANCE in provinces with GOVERNMENT insurance?
VEHICLE REGISTRATION.
No separate insurance card needed.
Why are MOTOR VEHICLE LIABILITY CARDS called “PINK CARDS”?
They were traditionally printed on PINK PAPER.
Classic, but now often digital.
What is an ELECTRONIC PROOF OF AUTO INSURANCE (EPAI)?
A DIGITAL version of an insurance card, also called an ‘eSlip.’
What province was the FIRST in Canada to allow ELECTRONIC INSURANCE PROOF?
NOVA SCOTIA (in 2018).
What is the ONLY Canadian jurisdiction that has NOT approved ELECTRONIC PROOF OF INSURANCE?
NUNAVUT.
What are some CONCERNS about switching to ELECTRONIC INSURANCE CARDS?
PRIVACY (handing a phone to police), FRAUD, and TECHNICAL ISSUES.
What INFO does a MOTOR VEHICLE LIABILITY CARD display?
Insured’s NAME & ADDRESS, Insurer’s DETAILS, Agent/Broker INFO, Vehicle DESCRIPTION, POLICY NUMBER, and POLICY TERM.
What are the THREE TYPES of INSURANCE CARDS?
TEMPORARY (valid for 30 days, 21 in Quebec), PERMANENT (valid until policy expiry), ENDORSEMENT (for changes in vehicle or address).
What happens if you USE an INVALID insurance card?
You may face FINES, IMPRISONMENT, or a LICENSE SUSPENSION.
Not worth it!
What is PROOF OF FINANCIAL RESPONSIBILITY?
A certificate filed by an INSURER proving a person meets MINIMUM INSURANCE REQUIREMENTS.
When might someone be required to file PROOF OF FINANCIAL RESPONSIBILITY?
After a CRIMINAL CODE conviction, an ACCIDENT while UNINSURED, or if they are a HIGH-RISK driver (e.g., underage or elderly).
How can someone file PROOF OF FINANCIAL RESPONSIBILITY without owning a vehicle?
By purchasing a DRIVER’S POLICY (non-owned automobile coverage).
What are ALTERNATIVE WAYS to prove financial responsibility?
Surety Bonds (filed by a licensed surety company) or Cash/Securities Deposits equal to the minimum required insurance.
Who typically uses CASH or SURETY BONDS as proof of financial responsibility?
CORPORATIONS, not individual drivers.
Who has the authority to make AUTOMOBILE LAWS in Canada?
The FEDERAL, PROVINCIAL/TERRITORIAL, and MUNICIPAL governments.
What does the FEDERAL GOVERNMENT regulate in relation to automobiles?
It oversees CANADA-WIDE matters, including the CRIMINAL CODE, which covers driving offenses.
What do the PROVINCIAL and TERRITORIAL governments regulate?
They set RULES OF THE ROAD and govern AUTOMOBILE INSURANCE policies.
What can MUNICIPAL governments regulate regarding automobiles?
LOCAL BYLAWS, including SPEED LIMITS within their jurisdiction.
What are the TWO MAIN financial risks for VEHICLE OWNERS?
PHYSICAL DAMAGE losses to their vehicle and LIABILITY if they cause an accident.
How does AUTOMOBILE INSURANCE help vehicle owners?
It COVERS some financial losses in exchange for a PREMIUM.
Who regulates AUTOMOBILE INSURANCE in Canada?
PROVINCIAL and TERRITORIAL governments.
What is the SPF 1 BASIC AUTOMOBILE POLICY?
The STANDARD POLICY FORM used in all provinces and territories for both PERSONAL and COMMERCIAL vehicles.
How many STANDARD POLICY FORMS exist for different insurance needs?
SEVEN, each covering different situations like garage businesses, non-owned vehicles, and excess liability.
Do provinces with MANDATORY GOVERNMENT INSURANCE issue a standard policy?
No, instead, vehicle registration serves as proof of insurance.
What is a MOTOR VEHICLE LIABILITY CARD used for?
PROOF of THIRD-PARTY LIABILITY insurance.
Where should a MOTOR VEHICLE LIABILITY CARD be kept?
Inside the insured vehicle, so it can be shown to police if requested.
What details are shown on a MOTOR VEHICLE LIABILITY CARD?
Insured’s NAME & ADDRESS, Insurer’s INFO, Agent/Broker INFO, Vehicle DESCRIPTION, Policy NUMBER, and Policy TERM.
Can drivers use ELECTRONIC PROOF of insurance?
Yes, in most provinces/territories that allow eSlips on smartphones.
