Study 10 Flashcards
What types of risks are excluded or have limited coverage under Autoplan?
Collector or vintage motor vehicles
What is required to properly protect collector or vintage motor vehicles?
Special coverage
Who can insureds purchase special coverages from?
ICBC or private insurers
What forms can special coverages take?
Special policies, special certificates, or endorsements
What is the purpose of automobile insurance endorsements?
To provide additional coverage options
What type of coverage is optional for loss or use?
Optional loss or use coverage
What types of coverages are available for special vehicles?
Coverages for special vehicles
What can special coverages do in relation to Autoplan?
Extend Autoplan or alter Autoplan insurance terms
Fill in the blank: Special coverages can be in the form of _______.
special policies, special certificates, or endorsements
True or False: All vehicles are fully covered under Autoplan.
False
What is the purpose of automobile insurance endorsements?
An endorsement is an amendment to a policy that changes the terms and conditions of the policy.
What can an endorsement do to a policy?
An endorsement can broaden, restrict, or alter coverage.
What must endorsements comply with in British Columbia?
Endorsements must comply with the Insurance (Vehicle) Act and Insurance (Vehicle) Regulation.
True or False: Endorsements can create coverage that is less than mandated by statutory conditions.
False
What is required for vehicle owners who do not drive their car for extended periods?
They can purchase an endorsement to suspend the coverages not needed while the car is in storage.
What is an example of a special coverage that may require an endorsement?
Collector or vintage motor vehicles.
What is the name of the vehicle storage policy in British Columbia?
APV345 and APV345C.
What are the optional coverage packages available from ICBC?
- RoadStar package
- Roadside Plus package
What must all insurers use for automobile policies and endorsements?
Standard forms approved by the provincial or territorial regulatory authority.
Fill in the blank: In Ontario, automobile endorsements are called __________.
Ontario policy change forms (OPCFs)
What happens when endorsements reduce or delete coverages?
They must be issued with extra care and implications must be carefully explained to the insured.
What is the minimum third-party liability limit in British Columbia?
$200,000
What is an endorsement for the suspension of coverage in Ontario identified as?
OPCF 16 suspension of coverage.
What type of insurance can be purchased for vehicles that are not operated or used?
Vehicle in storage policy.
List some examples of optional special coverages available in British Columbia.
- Collector motor vehicle agreed value policy
- Excess special equipment endorsement
- Limited depreciation endorsement
- Non-owned vehicle damage policy
- Non-owned vehicle liability policy
- Off-road vehicle insurance
- Rental vehicle policy
- Replacement cost endorsement
- Vehicle in storage policy
- Unlicensed vehicle policy
- Vintage motor vehicle certificate
What is the endorsement identified as in Alberta for suspension of coverage?
AB-SEF 16 suspension of coverage endorsement.
What is the endorsement identified as in Quebec for suspension of coverage?
QEF 16 suspension of coverage during vehicle storage.
What are the two forms of loss of use coverage?
- Loss of use due to theft of the entire vehicle
- Loss of use for reasons other than theft of the entire vehicle
What does the loss of use coverage due to theft include?
Reimbursement for the cost of renting a substitute vehicle, hiring a taxi, or using public transportation
When does coverage for loss of use due to theft commence?
72 hours after the theft is reported to the police
What is the maximum coverage amount for loss of use due to theft?
$40 per day up to a total limit of $800
List three exclusions for loss of use coverage due to theft.
- Taxis
- U-drive vehicles
- Limousine-use vehicles
What must an insured have purchased to apply for optional loss of use coverage?
Own damage coverage (collision, comprehensive, or specified perils)
When does eligibility for optional loss of use coverage begin?
Immediately after the claim for loss of use of the vehicle is reported
True or False: An insured must wait 72 hours for loss of use coverage if they have optional loss of use coverage.
False
What happens if an insured does not purchase optional loss of use coverage?
They have coverage for loss of use due to theft but must wait 72 hours before coverage commences
In the example of Gani, what is the impact of not purchasing optional loss of use coverage?
He must wait 72 hours after reporting the theft before loss of use coverage begins
What is the limit for John’s optional loss of use coverage?
$50 per day to a limit of $1,000
When does optional loss of use coverage terminate?
On the earlier of:
* Date repairs are substantially completed
* Date the Corporation settles or offers to settle the claim
* Once coverage limits have been exhausted
Fill in the blank: Loss of use coverage due to theft is available only after the total limits of loss of use coverage to which the insured may be entitled under other policy sections have been _______.
exhausted
What is the purpose of optional loss of use coverage?
To compensate the insured for the cost of renting a substitute vehicle, hiring a taxi, or using public transportation due to loss or damage from an insured peril
What is the requirement for loss of use coverage to apply for an accident where the insured is not at fault?
Coverage under basic vehicle damage coverage (BVDC) is available
What is the vintage motor vehicle certificate (APV44)?
Covers vehicles with vintage number plates (antique vehicles) that are 30 years or older and maintained in original condition
The certificate requires a declaration by the owner regarding the vehicle’s age, condition, and intended use.
What are the qualifications for a vehicle to obtain vintage number plates?
The vehicle must be:
* 30 years of age or older
* Maintained as closely as possible to its original condition
* Restored to conform to original specifications
* Owned and operated as a collector’s item
* Mechanically sound
* Not used for general transportation or business purposes.
What are the permitted uses for antique vehicles with a vintage motor vehicle certificate?
Antique vehicles may be used for:
* Presentation at approved vehicle inspection stations
* Obtaining repairs and servicing
* Exhibitions, club activities, parades, and similar functions.
What does the collector motor vehicle agreed value policy (APV348) cover?
Covers vehicles collected by enthusiasts that do not qualify for a vintage motor vehicle certificate, providing third-party liability limits and own damage coverage
Premiums and license plate fees are reduced for eligible vehicles.
What are the age requirements for a vehicle to qualify as a collector motor vehicle?
A vehicle must be at least:
* 25 years old
* 15 years old and no longer produced
* One of a limited number produced for a given model year.
What is the non-owned vehicle liability policy (APV29)?
Protects against liability from the use of a vehicle not owned, leased, or licensed by the named insured
The named insured must be a resident of British Columbia and use the vehicle in Canada or the U.S.
What liabilities are excluded from the non-owned vehicle liability policy?
Exclusions include:
* Liability from a vehicle driven by the named insured
* Liability imposed by workers’ compensation law
* Loss or damage to property carried in the vehicle.
What does the non-owned vehicle damage policy (APV27) cover?
Protects insureds who wish to purchase own damage coverage for vehicles and trailers belonging to others
Mostly used for commercial risks.
What is the purpose of the rental vehicle policy (APV281)?
Provides coverage for British Columbia residents who rent or borrow vehicles not owned by a member of their household
Covers private passenger cars, commercial vehicles, motor homes, trailers, and motorcycles.
What coverage does the rental vehicle policy include?
Includes:
* Third-party liability with a limit of $1 million
* Underinsured motorist protection
* Collision and comprehensive with $300 deductible
* Loss of use coverage.
What are the exclusions for coverage under the rental vehicle policy?
Excludes:
* Vehicles used for delivering goods
* Vehicles with a seating capacity of 16 or more
* Vehicles rented for exclusive use of non-BC residents.
What do the RoadStar and Roadside Plus packages cover?
Include rental vehicle coverage, loss of use coverage, vehicle travel protection, and lock re-keying
Roadside Plus also includes emergency roadside expense repayment and theft deductible waiver.
What types of recreational vehicles are included under the Off-Road Vehicle Act?
Includes:
* Snowmobiles
* Snow vehicles
* All-terrain vehicles (ATVs)
* Off-road motorcycles and dirt bikes
* Utility terrain vehicles.
What is the unlicensed vehicle policy (APV45)?
Covers certain off-road vehicles used off the highway, including those on private property or Crown land for pleasure purposes
Coverage applies only when the operator is at least 16 years old with a valid driver’s license.
Under what conditions is coverage provided under the unlicensed vehicle policy?
Coverage applies only if:
* The operator is 16 years or older
* The operator holds a valid driver’s license
* The vehicle is not operated by someone with a suspended or cancelled license.
What is the excess special equipment endorsement?
Covers vehicle equipment not supplied by the manufacturer with a combined value greater than:
* $1,000 for sound or communication equipment
* $5,000 for other equipment
Requires listing each item’s value on the endorsement.
What is the purpose of the limited depreciation endorsement?
Provides protection against the effects of depreciation for vehicles three model years old or newer in the event of a covered loss
Coverage is optional and must coincide with the underlying insurance policy.
How is the model year calculated for limited depreciation coverage?
A car’s model year is based on the year it was purchased and the year it was insured:
* Insured in the same year as purchase = Model Year 1
* Insured in the next year = Model Year 2
* Insured two years later = Model Year 3
Example: A car purchased in 2024 and insured in 2025 is Model Year 2.
What are the exclusions for limited depreciation coverage?
Exclusions include:
* Rebuilt vehicles
* Vehicles with altered status
* Replicas, replicars, replikits
* Specialty vehicles
* Commercial vehicles over 5,000 kg
Coverage is not available for total losses caused by certain perils for model year 3 vehicles.
What settlement options are available under limited depreciation coverage?
When a vehicle is declared a total loss, options include:
* Replacement vehicle (if eligible)
* Cash payment
Coverage continues until the underlying insurance is terminated or not renewed.
What does the replacement cost endorsement provide?
Provides protection against inflation and depreciation for vehicles three model years old or newer in the event of a covered loss
Coverage includes total loss settlement based on current market prices.
What are the exclusions for replacement cost coverage?
Exclusions include:
* Rebuilt vehicles
* Vehicles with altered status
* Replicas, replicars, replikits
* Specialty vehicles
* Commercial vehicles over 5,000 kg
Coverage is not available for vehicles in model year 3 insured under specific permits.
What options are available under replacement cost coverage for total loss?
Options include:
* Replacement vehicle (if eligible)
* Cash payment of the replacement cost
The timeframe for delivery of a replacement vehicle may be extended up to 90 days.
What does the vehicle in storage policy cover?
Provides:
* Third-party liability coverage
* Own damage coverage
* Accident benefits for vehicles in storage or on consignment
Covers vehicles not currently licensed and stored on private property.
Fill in the blank: The excess special equipment endorsement requires that each item’s value be listed on the _______.
[endorsement]
True or False: The limited depreciation endorsement covers all vehicles regardless of their model year.
False
It specifically covers vehicles that are three model years old or newer.
What must a vehicle have to qualify for replacement cost coverage?
Underlying corresponding physical damage coverage provided by:
* Owner’s certificate of insurance (APV250)
* Vehicle in storage policy (APV345)
* Temporary operators permit (APV16)
Not available for vehicles in model year 3 insured under APV16.
What is an endorsement in the context of automobile insurance?
An amendment to a policy that changes the terms and conditions of the policy.
In British Columbia, who can provide optional special coverages and endorsements for automobile insurance?
ICBC or private insurers.
What are common situations that require endorsements to amend automobile insurance?
- Automobile storage
- Automobile value changes
- Underinsured motorist protection
- Loss of use of the described automobile
- Driving of non-owned automobiles
What are the two forms of optional loss of use coverage available for purchase?
- Coverage for loss of use due to theft
- Optional loss of use coverage for any insured peril
What is the waiting period for loss of use coverage due to theft?
72-hour waiting period.
How does the optional loss of use coverage differ from coverage for loss of use due to theft?
Optional loss of use coverage has no waiting period and can commence once the claim is reported.
What is Basic Vehicle Damage Coverage (BVDC)?
A non-optional mandatory coverage provided by ICBC that also provides loss of use coverage following collisions where the insured is not at fault.
What types of special vehicles may require specific insurance policies that are excluded or have limited coverage under Autoplan?
- Vintage motor vehicles
- Collector motor vehicles
- Non-owned vehicles
- Rental vehicles
- Off-road vehicles
- Unlicensed vehicles
What are the names of the certain coverages ICBC offers that include rental vehicle and loss of use coverages?
- RoadStar
- Roadside Plus
Name some special coverages used to extend Autoplan coverage or alter Autoplan insurance terms.
- Excess special equipment endorsement
- Limited depreciation endorsement
- Replacement cost endorsement
- Vehicle in storage policy
