Study 5 – General Provisions, Definitions, and Exclusions Flashcards
A newly acquired automobile means:
a. a brand new auto acquired a month ago as a gift for the insured wife’s birthday present
b. a pre-owned auto acquired to replace your automobile which was totaled in accident
c. a brand new auto acquired as the first automobile in your household
d. a pre-owned auto that you acquired for selling to others for profit
b. a pre-owned auto acquired to replace your automobile which was totaled in accident
An automobile policy issued in a Canadian jurisdiction provides coverage in
a. Canada and the contiguous United States
b. Canada and the continental United States
c. Canada and the contingent United States
d. Canada and the United States
d. Canada and the United States
Under which of the following would there be coverage for a temporary substitute automobile?
a. a friend lends his automobile to the insured
b. the insured borrows the company van to move a few things
c. the insured rents an automobile while his own is being repaired
d. the insured rents an automobile while on vacation in Florida
c. the insured rents an automobile while his own is being repaired
Which of the following would be covered under an automobile policy?
a. driving the automobile into Mexico
b. transporting the automobile from Halifax (Nova Scotia) to Lisbon (Portugal) by ship
c. transporting the automobile from Vancouver (British Columbia) to San Francisco (California) by ship
d. None of the above
c. transporting the automobile from Vancouver (British Columbia) to San Francisco (California) by ship
The policy period of an automobile insurance may become effective
a. at 12:00 a.m. on the policy commencement date
b. at 12:01 a.m. on the policy commencement date
c. at a particular stated time stipulated in the Insurance Act
d. at any stated time of the day but expires at 12:01 a.m. of a given date
d. at any stated time of the day but expires at 12:01 a.m. of a given date
You owned 2 vehicles, one with collision (with $300 deductible) and the other with specified perils (with $500 deductible) and you just bought an additional vehicle. Prior to notifying the insurer, your newly acquired auto has a collision in which insured is 100% at fault and incurred a damage of $10,000. How much would your auto insurer pay
a. $10,000
b. $9,700
c. $9,500
d. $0
d. $0
With respect to the Automobile insurance application, the policy period
a. expires at 12:00 a.m. on the date of the expiry
b. expires at 12:00 a.m. on the date before the date of expiry
c. expires at 12:01 a.m. on the date of the expiry
d. expires at 12:01 a.m. on the date before the date of expiry
c. expires at 12:01 a.m. on the date of the expiry
What does Direct Compensation mean as it relates to automobile insurance?
a. all automobile owners are fully reimbursed for any automobile damage claims
b. all insureds collect 50% of their claim from their own insurer and 50% from the insurer of the other person involved
c. an insured will deal only with his insurer for all automobile damage claims
d. no-fault
c. an insured will deal only with his insurer for all automobile damage claims
Which of the following statements is true of newly acquired automobile?
a. third party liability coverage is not available if the automobile is in addition to a present vehicle on the policy
b. full physical damage (own damage) coverage automatically applies to a replacement automobile
c. if the new acquired automobile if involved in a physical damage claim and the insured has more than one automobile insurance policy, the Insured can choose to claim under the policy with the lowest deductible
d. the insured is required to pay an insurance premium from the first day that the automobile is purchased
d. the insured is required to pay an insurance premium from the first day that the automobile is purchased
Which of the following coverages does NOT apply to other or borrowed automobiles as defined in the Owner’s Policy?
a. accident benefits
b. own damage
c. third party liability
d. uninsured automobile/motorist
b. own damage
