Study 9 Flashcards
What is an INSURANCE POLICY?
A LEGAL CONTRACT where the INSURER promises to INDEMNIFY the INSURED (aka “put you back where you were before the loss, but within limits—no Lamborghinis unless you had one before!”).
What does INDEMNIFY mean in insurance?
It means to put the INSURED back into the SAME FINANCIAL POSITION as before the loss. Think of it as a financial time machine, but with POLICY LIMITS. 🕰️💸
True or False: An insurance policy only applies to the insured, not the insurer.
FALSE! It’s a TWO-WAY STREET. The policy outlines the RIGHTS and DUTIES of BOTH the INSURER and the INSURED. Teamwork makes the dream work! 🤝
What do CLAUSES in an insurance policy do?
They CLARIFY the SCOPE OF COVERAGE and outline the RIGHTS and DUTIES of both parties. Think of them as the “fine print rules” of the insurance game. 📜
True or False: In British Columbia, basic coverage is provided through a policy issued by the insurer.
FALSE! In BC, BASIC COVERAGE is in the LEGISLATION, not a policy. The government’s got your back! 🏛️
What do STANDARD AUTOMOBILE INSURANCE POLICIES include?
They include CLAUSES that specify GENERAL PROVISIONS, DEFINITIONS, and EXCLUSIONS. Basically, the “rules of the road” for your car insurance. 🚗📑
True or False: Clauses in an automobile policy only apply to specific sections of the policy.
FALSE! Some clauses may apply to the ENTIRE POLICY. They’re like the “universal remote” of insurance terms. 🎮
What’s the purpose of DEFINITIONS in an auto insurance policy?
To make sure everyone’s on the SAME PAGE about what terms mean. No one wants to argue over what “accident” means after a fender bender! 🚦
True or False: Exclusions in a policy are there to give you more coverage.
FALSE! EXCLUSIONS are there to LIMIT COVERAGE. They’re like the “nope, not covering that” list. 🙅♂️
What’s the key takeaway about insurance policies?
They’re LEGAL CONTRACTS with CLAUSES that spell out who’s covered, what’s covered, and what’s NOT. Read the fine print—or at least pretend to! 📄
What’s the TERRITORY clause in an auto policy?
It means your car is covered in CANADA, the USA, or on a BOAT between them. But MEXICO? Nope—no coverage there unless you buy Mexican insurance. ¡Ay caramba! 🌮
True or False: If you drive your car into Mexico, your Canadian auto policy will cover you.
FALSE! MEXICO doesn’t recognize Canadian/US insurance. You’ll need to buy Mexican insurance or risk driving uninsured. 🚗❌
Who is considered an OCCUPANT under an auto policy?
Anyone IN, ON, or GETTING IN/OUT of the car—including the DRIVER. Even if a car DOOR smacks someone, they’re covered. Watch those swinging doors! 🚪
True or False: A passenger in a STOLEN CAR can claim compensation under the owner’s policy.
FALSE! If the car’s stolen, NO COMPENSATION for passengers. Joyriding teens, take note! 🚨
What’s the CONSENT OF OWNER clause?
If you’re in a car WITHOUT THE OWNER’S CONSENT, you’re NOT COVERED. So, no sneaky joyrides unless you want to foot the bill! 🕵️♂️
What’s a NEWLY ACQUIRED AUTOMOBILE?
A new or replacement car you buy. You get 14 DAYS of automatic coverage, but you MUST NOTIFY YOUR INSURER. Don’t forget, or you’re driving uninsured! 🚗⏰
True or False: A TEMPORARY SUBSTITUTE AUTOMOBILE (TSA) is covered for physical damage.
FALSE! A TSA is only covered for LIABILITY and ACCIDENT BENEFITS. Physical damage? That’s on the TSA owner’s policy. 🚙💥
What’s an “OTHER AUTOMOBILE” under an auto policy?
A car you BORROW (not a TSA). It’s covered if it’s a PRIVATE PASSENGER vehicle and you’re not using it for BUSINESS. So, no Uber side gigs! 🚖❌
True or False: Trailers are always covered under an auto policy.
TRUE! Trailers are covered UNLIMITEDLY, whether OWNED or BORROWED. Just don’t live in it or use it for business! 🚛
What’s the GENERAL EXCLUSIONS clause?
It lists what’s NOT COVERED, like using your car as a TAXI, carrying EXPLOSIVES, or renting it out. Want coverage? Buy an ENDORSEMENT. 💣🚕
True or False: If you’re a GARAGE WORKER fixing a car, you’re covered under the owner’s policy.
FALSE! Garage workers need their own GARAGE POLICY. The owner’s policy won’t cover you if you crash a customer’s car. 🔧🚗
What’s the WAR RISKS exclusion?
Your policy WON’T COVER losses from WAR, INVASION, or REBELLION. Because, let’s face it, insurance companies aren’t ready for World War III. 🌍💥
True or False: Carpooling is considered carrying passengers for compensation.
FALSE! CARPOOLING and sharing gas money are OK. But if you’re charging for rides, you’re in TAXI territory—and that’s excluded! 🚗💵
What’s the deal with TRAILERS in ICBC policies?
In BC, trailers need their OWN POLICY. Unlike other provinces, ICBC doesn’t extend the towing vehicle’s coverage to trailers. Trailers are high-maintenance! 🚛📑
True or False: If you’re driving a borrowed car in BC, you’re always covered.
FALSE! The car must be LICENSED, and you need the OWNER’S CONSENT. Otherwise, you’re out of luck—and coverage! 🚗❌
What’s the ICBC rule for UNLISTED DRIVERS?
If someone NOT LISTED on your policy drives your car, they’re NOT COVERED unless you buy UNLISTED DRIVER PROTECTION. Friends don’t let friends drive uninsured! 🚗👥
True or False: ICBC covers nuclear energy hazards.
FALSE! ICBC excludes NUCLEAR ENERGY HAZARDS, but they’ll cover RADIOISOTOPES for medical or research purposes. So, no nukes, but X-rays are fine! ☢️🚫
What’s the big deal with RIDESHARING and insurance?
Using your car for ridesharing (like Uber) is considered COMMERCIAL USE, which is EXCLUDED under most personal auto policies. So, if you crash while driving for Uber, you might be LEFT HANGING! 🚗💥
True or False: If you’re driving to pick up a rideshare passenger, your personal auto policy still covers you.
FALSE! Once you’re LOGGED INTO THE APP, you’re in COMMERCIAL MODE, and your personal policy is OUT THE WINDOW. 🚕❌
What are the THREE COMMERCIAL ACTIVITY PERIODS in ridesharing?
- LOGGED INTO THE APP but no ride yet. 2. DRIVING TO PICK UP a passenger. 3. DRIVING THE PASSENGER to their destination. Your personal policy? NOT COVERED during any of these! 🕒🚗
What’s the deal with RIDESHARING INSURANCE in Alberta and Atlantic Canada?
The RIDESHARING COMPANY (like Uber) provides the insurance through an SPF 9 policy. Drivers just need to NOTIFY their personal insurer. Easy peasy! 🚗📑
True or False: In BC, rideshare drivers need a COMMERCIAL DRIVER’S LICENCE.
TRUE! You need a Class 1, 2, or 4 licence to drive for Uber in BC. No commercial licence? No ridesharing for you! 🚦🚗
What’s the MANITOBA RIDESHARE INSURANCE hack?
Drivers can buy PASSENGER VEHICLE-FOR-HIRE COVERAGE from MPI. It adds 5% to 20% to your premium, depending on when you drive. Rush hour? That’ll cost ya! 🕒💸
What’s ONTARIO’S FLEET POLICY for ridesharing?
Rideshare companies (like Uber) provide a BLANKET FLEET POLICY that covers drivers while they’re on the app. Your personal policy? Only for PERSONAL USE. 🚗📱
True or False: In Quebec, rideshare drivers need a SPECIAL LICENCE PLATE.
FALSE! Quebec drivers just need the QEF 48 ENDORSEMENT to cover them during ridesharing. No special plates needed! 🚗🇨🇦
What’s the RISK of CARSHARING (like Turo)?
Renting out your car is considered COMMERCIAL USE, which is EXCLUDED under most personal policies. If you don’t tell your insurer, your policy could be VOIDED. Yikes! 🚗💥
True or False: Turo provides insurance for car owners during rentals.
TRUE! Turo’s COMMERCIAL POLICY covers your car while it’s being rented. But you still need to TELL YOUR INSURER you’re doing it. No secrets! 🤫🚗
What’s the ICBC BLANKET INSURANCE for carsharing?
ICBC offers BASIC COVERAGE for peer-to-peer carsharing, including $200K liability and accident benefits. Want more? You’ll need to buy OPTIONAL COVERAGE. 🚗📑
True or False: Food delivery drivers (like Uber Eats) are covered by their personal auto policy.
FALSE! Delivering food is COMMERCIAL USE, which is EXCLUDED. You’ll need to DISCLOSE this to your insurer or risk being UNCOVERED. 🍔🚗
What’s DOORDASH’S INSURANCE deal?
DoorDash provides EXCESS LIABILITY COVERAGE, but only AFTER your personal policy limits are exhausted. So, you better have your OWN COVERAGE first! 🚗📦
True or False: If you’re delivering food and don’t tell your insurer, they’ll never find out.
FALSE! If you don’t DISCLOSE your food delivery gig, your insurer can VOID YOUR POLICY. Honesty is the best policy! 🚗🍟
What’s the BIGGEST RISK of ridesharing and carsharing?
Using your car for COMMERCIAL PURPOSES without the right insurance can leave you UNCOVERED in an accident. Don’t risk it—get the right coverage! 🚗💥
What’s the deal with GENERAL PROVISIONS in an auto policy?
They’re the RULES, DEFINITIONS, and EXCLUSIONS that apply to the ENTIRE POLICY. Think of them as the “fine print bible” of your insurance. 📜🚗
True or False: ICBC’s Autoplan has the same general provisions as the SPF 1 policy.
TRUE! ICBC’s Autoplan is COMPARABLE to the SPF 1, but it’s all outlined in the INSURANCE (VEHICLE) REGULATION. Same rules, different paperwork! 📑🇨🇦
What’s RIDESHARING?
It’s when you use your CAR to give rides to strangers (for free or for a fee) via an APP like Uber. Just don’t forget—it’s COMMERCIAL USE, so your personal policy WON’T COVER YOU! 🚗📱
True or False: CARSHARING is the same as renting your car to a friend.
FALSE! CARSHARING is renting your car to STRANGERS through an APP like Turo. It’s PEER-TO-PEER RENTAL, and it’s EXCLUDED under most personal policies. 🚗💻
What’s the BIG RISK of ridesharing and carsharing?
Both are considered COMMERCIAL USE, which is EXCLUDED under standard auto policies. If you don’t get the right coverage, you’re DRIVING UNINSURED. Yikes! 🚗💥
True or False: If you’re delivering food (like Uber Eats), your personal auto policy covers you.
FALSE! Delivering food is COMMERCIAL USE, so you’ll need to NOTIFY YOUR INSURER and get the right coverage. Otherwise, you’re rolling the dice! 🍔🎲
What’s the KEY TAKEAWAY for ridesharing, carsharing, and food delivery?
These activities are COMMERCIAL USE, so you MUST NOTIFY YOUR INSURER and get the right coverage. Don’t risk being UNCOVERED—it’s not worth it! 🚗📑
True or False: In Manitoba and Saskatchewan, carsharing is fully covered by government insurance.
FALSE! There’s a COVERAGE GAP for carsharing in Manitoba and Saskatchewan. If you’re renting out your car, you might be EXPOSED. 🚗❌
What’s the BOTTOM LINE for sharing economy drivers?
If you’re using your car for RIDESHARING, CARSHARING, or FOOD DELIVERY, you need to TELL YOUR INSURER and get the right coverage. Otherwise, you’re playing with FIRE! 🔥🚗
What is a DESCRIBED AUTOMOBILE?
It’s the CAR or TRAILER specifically listed in your insurance policy.
Example: If you own a 2020 Honda Civic and it’s listed in your policy, that’s your DESCRIBED AUTOMOBILE. 🚗📄
What is a NEWLY ACQUIRED AUTOMOBILE?
It’s a NEW or REPLACEMENT car you buy. You get 14 DAYS of automatic coverage, but you MUST NOTIFY YOUR INSURER.
Example: You trade in your old sedan for a shiny new SUV. As long as you tell your insurer within 14 days, the SUV is covered! 🚙⏰
What is an OTHER AUTOMOBILE?
It’s a car you BORROW (not a TEMPORARY SUBSTITUTE). It’s covered if it’s a PRIVATE PASSENGER vehicle and you’re not using it for BUSINESS.
Example: Your friend lends you their Toyota Corolla for the weekend. That’s an OTHER AUTOMOBILE. 🚗👫
What is a CERTIFICATE OF INSURANCE?
It’s a DOCUMENT that shows what COVERAGES you’ve purchased for your car. It’s proof you’re insured.
Example: You get pulled over, and the officer asks for proof of insurance. You hand over your CERTIFICATE OF INSURANCE. 🚔📄
What is a PREMIUM?
It’s the AMOUNT YOU PAY for your insurance policy, usually monthly or yearly.
What is GROSS VEHICLE WEIGHT RATING (GVWR)?
It’s the MAXIMUM WEIGHT a vehicle can safely carry, including passengers, cargo, and the vehicle itself.
Example: Your pickup truck has a GVWR of 6,000 lbs. That means it can’t safely carry more than 6,000 lbs total. 🚚⚖️
What is CARSHARING?
It’s when you RENT YOUR CAR to strangers through an APP like Turo.
What is the premium?
It’s the AMOUNT YOU PAY for your insurance policy, usually monthly or yearly.
What is CARSHARING?
It’s when you RENT YOUR CAR to strangers through an APP like Turo. It’s PEER-TO-PEER RENTAL.
Example: You list your car on Turo while you’re on vacation. Someone rents it for a week. That’s CARSHARING. 🚗💻
What is RIDESHARING?
It’s when you use your CAR to give rides to strangers (for free or for a fee) via an APP like Uber or Lyft.
Example: You drive for Uber on weekends to make extra cash. That’s RIDESHARING. 🚗💰
