Study 12 Flashcards
Who controls automobile insurance in Canada?
Provincial and territorial governments
What are the two main types of auto insurance distribution in Canada?
Private insurers and government insurance plans
In which province is basic coverage provided by both the government and private insurers?
Quebec
What are the two systems used in different jurisdictions for settling collision losses?
- Tort systems
- Direct compensation systems
What type of insurance is available from private insurers in provinces with a government insurance plan?
Optional insurance
True or False: All provinces in Canada provide automobile insurance through private insurers only.
False
Fill in the blank: In some provinces, basic insurance is provided by a _______ insurance plan.
government
What does the study discuss regarding automobile insurance in Canada?
How and by whom it is provided and regulated in each province and territory
What is unique about Quebec’s insurance system?
It has a combined insurance system with both government and private coverage
Who regulates automobile insurance in Canada?
Provincial and territorial governments.
What are the two primary ways automobile insurance is distributed in Canada?
- By private insurance companies
- By Crown corporations or agencies set up by provincial governments.
Which provinces have private insurance systems?
- Alberta
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Nunavut
- Ontario
- Prince Edward Island
- Yukon
What is the minimum third-party liability coverage required in British Columbia?
$200,000.
True or False: In Quebec, lawsuits for injury related to automobile accidents are allowed.
False.
What is the name of the Crown agency that administers the government insurance plan in Saskatchewan?
Saskatchewan Government Insurance (SGI).
Fill in the blank: The basic compulsory coverage in Manitoba includes _______.
Third-party liability, accident benefits, all-perils physical damage coverage.
What type of insurance system does Quebec have?
A dual system with both government and private insurers.
What is Insurtech?
A combination of insurance and technology bringing innovations to the insurance sector.
List the basic compulsory coverage required in British Columbia.
- Third-party liability
- Accident benefits
- Basic vehicle damage coverage (BVDC)
- Underinsured motorist protection
What is the role of the Société de l’assurance automobile du Québec (SAAQ)?
Administers the bodily injuries compensation plan in Quebec.
What type of coverage does the government provide in Quebec?
Accident benefits.
What is the minimum third-party liability coverage required in Ontario?
$500,000.
True or False: In Saskatchewan, a policy is issued under the Automobile Accident Insurance Act.
False.
What is the basic compulsory coverage in Saskatchewan?
- Third-party liability
- Personal injury benefit
- Physical damage coverage.
Which province introduced a no-fault personal injury benefits system in 1995?
Saskatchewan.
What is the primary purpose of the direct compensation agreement (DCA) in Quebec?
Provides coverage for property damage sustained in an automobile accident.
Fill in the blank: Insurers and intermediaries are evolving their processes to meet _______.
Consumer expectations shaped by technology.
What is the significance of the Automobile Insurance Act in Quebec?
Established a no-fault compensation plan and created the SAAQ.
What are the two types of additional coverage available in British Columbia?
- Extended third-party liability limits
- Collision, comprehensive, or specified-perils physical damage.
What is the purpose of the motor vehicle liability insurance card?
Provides portable evidence of insurance.
In Manitoba, what happens if a collision involves an out-of-province vehicle?
Litigation is available to either party.
What is the maximum third-party liability coverage in Newfoundland and Labrador?
$200,000.
List the provinces with government insurance systems.
- Saskatchewan
- Manitoba
- British Columbia
What is the primary insurance plan in Manitoba called?
Autopac.
What year did the government of Quebec implement the automobile insurance plan?
1978
What is the main characteristic of the automobile insurance plan implemented in Quebec?
No-fault compensation plan
What does the Automobile Insurance Act (Bill 67) create?
Régie de l’assurance automobile (now known as SAAQ)
What are the four parts of the Automobile Insurance Act?
- Compensation for bodily injury
- Compensation for property damage
- Fonds d’indemnisation
- Groupement des assureurs automobiles
Who does the SAAQ compensate for bodily injuries resulting from automobile accidents?
All Quebecers and their dependants
What type of plan does the SAAQ operate for bodily injury compensation?
No-fault plan
What compensation is provided to non-residents injured in accidents in Quebec?
Compensation for the amount they are not at fault
In a no-fault system, how is liability considered?
Liability is still considered but who pays is different
What happens if a non-resident is 50 percent liable for an accident?
They can receive 50 percent of the scheduled benefits from SAAQ
Which provinces have reciprocal agreements with Quebec regarding automobile accident benefits?
- Alberta
- Manitoba
- Ontario
What must insured persons from other provinces do to collect SAAQ benefits?
Receive the benefits from their own insurer
What does the indemnity provided by the Automobile Insurance Act replace?
All rights, recourses, and rights of action for bodily injury caused by an automobile
Can victims sue for losses exceeding the compensation provided by the Act?
No, unless the accident occurred outside of Quebec
What type of coverage should high income earners consider purchasing?
Extra insurance to cover the difference in lost wage compensation
What does the coverage under the Act include?
- Income replacement
- Death benefits
- Medical expenses
- Sums for disfigurement, dismemberment, suffering, and loss of enjoyment of life
Who is responsible for property damage losses according to Bill 67?
Private insurers
What is the basic purpose of the ‘Fonds d’indemnisation’?
Compensation of innocent victims of automobile accidents caused by uninsured or unidentified motorists
How is the limit of compensation for the ‘Fonds d’indemnisation’ determined?
Equal to the compulsory minimum limits for third-party liability
What are the three main duties of the ‘Corporation des assureurs agréés’?
- Help every automobile owner find an insurer
- Establish a direct compensation agreement
- Certify appraisal centres for damage appraisal
What is referenced to determine liability for property damage in Quebec?
The driver’s fault chart
What is the primary function of private insurance systems in Canada regarding automobile coverage?
Coverage is provided by private insurance companies on a tort or direct compensation basis.
In a direct compensation system, who is entitled to reimbursement for property damage?
The insured who suffers property damage due to the negligence of someone else.
What factors influence how fault is determined in direct compensation systems?
Common law or fault chart/fault determination rules.
Which provinces have direct compensation systems for vehicle damage using DCPD coverage?
- Alberta
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
How is fault determined in provinces with DCPD?
According to the relevant insurance act and legislated fault determination rules.
What is the role of the insured’s own insurer under DCPD rules?
Pays for any property damage caused by a negligent third party.
True or False: Under DCPD rules, insureds can bring an action against an at-fault third party for property damage.
False.
What conditions must be met for DCPD coverage to apply in New Brunswick?
- Damage arises from the use of other automobiles
- The damaged automobile is insured under a licensed policy
- At least one other automobile involved is insured
In the DCPD example where both drivers are 50% at fault, what is Michael’s total recovery?
$500.
In a tort system, what does automobile third-party liability insurance cover?
Legal costs of being sued and damages awarded to the victim.
What happens if a driver is found to be 100% at fault in a tort system?
The victim can recover 100% of the damages.
In a tort claim involving multiple vehicles, how is vehicle damage covered?
Each driver is compensated by the other driver’s third-party liability coverage.
What are the two types of insurance options available in Saskatchewan starting in 2003?
- Tort insurance
- No-fault accident benefits
What does the basic Autoplan insurance in British Columbia cover?
- Accident benefits
- Basic vehicle damage coverage (BVDC)
- Third-party legal liability
What is the deductible in the example involving Noah and Alain’s vehicle damage in Saskatchewan?
$700.
What are personal injury benefits in Saskatchewan’s no-fault system?
Income benefits for injuries sustained in an accident.
In the vehicle damage claim example from British Columbia, how much total recovery does Theo receive?
$1,080.
Fill in the blank: The provinces with government-operated automobile insurance plans include _______.
[British Columbia, Saskatchewan, Manitoba]
What is the role of the Crown corporation in government-operated automobile insurance plans?
Operates in a manner similar to any other insurance company.
True or False: In Saskatchewan, residents can sue for special damages if they choose no-fault accident benefits.
False.
What happens to Alain’s claim for income benefits if he has a private insurer that does not provide personal injury benefits?
He may sue Noah for financial loss in excess of his income replacement coverage limit.
What benefits does Alain receive under their personal injury benefits?
Rehabilitation benefits to assist in return to employment
Alain’s rehabilitation benefits are part of their compulsory government insurance.
What happens if Alain had a policy with a private insurer not providing personal injury benefits?
Alain might sue Noah for financial loss exceeding the income replacement coverage limit
This would apply under basic licence plate insurance.
Can one insured sue another if both are covered by the same insurer?
Yes, one insured may sue another in certain circumstances
Payment will depend on the court’s award.
What is the effect of having the tort option of personal injury benefits for Alain?
Limits coverage under income replacement benefits but allows suing Noah for damages
This includes claims for non-economic loss.
What does basic compulsory coverage under Autopac in Manitoba consist of?
- Third-party liability coverage
- Accident benefits (personal injury protection)
- Physical damage coverage
Specified classes of vehicles may be excluded from physical damage coverage.
In the vehicle damage claim example, how much does Aiko recover?
$1,900
Recovery includes payments from MPI and Insurer A.
In the vehicle damage claim example, how much does Gabriel recover?
$2,800
Recovery includes payments from MPI and his extension insurance.
What happens to Aiko’s insurance premium after the accident?
Aiko will be rated for the loss, potentially affecting her future premium
She is 100 percent liable for the collision.
How does Gabriel’s income replacement benefit work under Autopac?
Paid for life or reduced if he can work part-time
He also receives rehabilitation benefits under the Personal Injury Protection Plan.
What is Quebec’s dual insurance system?
Part of the mandatory coverage is provided by the government and part by private insurers
Governed by the Société de l’assurance automobile du Québec (SAAQ).
What does the government plan in Quebec provide?
Basic coverage for bodily injury
Private insurers provide civil liability coverage.
What type of coverage does Quebec’s owner’s policy (QPF 1) include?
- Section A: Civil Liability for Property Damage and Bodily Injury (Mandatory)
- Section B: Damage to Insured Vehicles (Optional)
Section B includes increased third-party liability and optional loss or damage coverages.
In the example of drivers 50 percent liable and no collision coverage, how much does Paula recover?
$500
Recovery is based on her share of fault.
In the example where Paula is 100 percent liable, how much does she recover?
$0
She is not eligible to make a claim under her civil liability/DCA coverage.
In the example of drivers 50 percent liable with collision coverage, what is Paula’s total recovery?
$750
Recovery includes payments from both collision and civil liability/DCA coverage.
In the same example, how much does Jamal recover?
$550
Recovery includes payments from both collision and civil liability/DCA coverage.
Who regulates automobile insurance in Canada?
Provincial and territorial governments
This results in variations in coverage and distribution across jurisdictions.
Which provinces have private companies providing basic automobile insurance coverage?
Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Northwest Territories, Nunavut, Yukon
These provinces rely on private sector insurance for basic coverage.
Which provinces have government insurers providing basic automobile insurance coverage?
Manitoba, Saskatchewan, British Columbia
These provinces use government-operated plans for basic coverage.
What type of system does Quebec use for automobile insurance?
Dual distribution system
Basic coverage is provided by both private insurers and the government.
What is the term for the systems used in Alberta, British Columbia, and other provinces for vehicle damage compensation?
Direct compensation systems
These systems allow for compensation without determining fault in most cases.
How does British Columbia determine fault in automobile insurance claims?
ICBC’s fault determination process
This process outlines rules for apportioning liability in accidents.
What is the system used in Northwest Territories, Nunavut, and Yukon for automobile damage insurance?
Tort systems
These systems are operated by private-sector insurance companies and compensate based on fault.
Which provinces have no-fault government-operated automobile insurance plans?
British Columbia, Saskatchewan, Manitoba
These plans are managed by Crown corporations.
What must individuals do when applying for vehicle registration in provinces with no-fault insurance?
Automatically purchase basic insurance
This is a requirement at the time of vehicle registration.
Fill in the blank: _______ operate no-fault automobile insurance plans in certain provinces.
Crown corporations
What can individuals purchase in addition to basic insurance from the government insurer or private insurers?
Additional coverages
These may include higher limits and lower deductibles.
