Term
| Explain the "priority of payment" rule when a claim is made under Section A - Third Party Liability |
|
Definition
| The Insurance Act contains a priority of payment rule which applies when the total claim for bodily injury and property damage reaches $200,000. Depending on the province, 80-90% of the minimum limit required to be carried for third party liability is reserved for bodily injury claims. |
|
|
Term
| Identify the persons insured under this coverage section. |
|
Definition
Persons insured by this Section include:
* The named insured
* Anyone else who personally drives the automobile with the consent of the Named Insured
*Anyone who personally operates a part of the automobile with the consent of the named insured |
|
|
Term
| Identify three persons entitled to receive Accident Benefits coverages. |
|
Definition
Persons entitled to collect accident benefits include:
* the insured
* insured's spouse
* dependent family members living with the insured
* occupants of the automobile
* pedestrians (limited coverage)
Benefits are provided on a no fault basis.
* |
|
|
Term
| Define "Uninsured" automobile. |
|
Definition
| An uninsured automobile is one in which neither the driver nor owner has applicable and collectible bodily injury liability. |
|
|
Term
| Define "unidentified" automobile. |
|
Definition
| An unidentified automobile is one which causes bodily injury or death to an insured person arising out of actual contact of that automobile with the automobile in which the insured is an occupant. |
|
|
Term
| Identify four physical damage coverage options available under a policy of automobile insurance. |
|
Definition
1. All Perils
2. Collision or Upset
3. Comprehensive
4. Specified Perils |
|
|
Term
| Provide three examples of claims for which the deductible would not be applied. |
|
Definition
1. Fire
2. Lightning
3. Theft of the entire vehicle
4. In some provinces, collision with wildfire |
|
|
Term
| What coverage is provided for damage caused to the automobile when the insured was intoxicated at the time of the accident? |
|
Definition
| Coverage is provided when bodily injury or property damage is caused by an insured who was under the influence or intoxicating liquor or drugs. The rationale is that the innocent victim(s) or their families should not have to bear the costs arising out of an insured's negligent actions. |
|
|
Term
Briefly summarize the intent of the following "Additional Agreements of Insurer":
Salvage |
|
Definition
| The insurer agrees to pay all costs incurred by the insured to save a vehicle from further loss after an accident. Costs normally insured under this Additional Agreement include tow truck and storage compound charges. |
|
|
Term
Briefly summarize the intent of the following "Additional Agreements of Insurer":
Customs Duties |
|
Definition
| If the vehicle is damaged in an accident in the US, costs for repairs made there are subject to the payment of customs duties. The insurer agrees to pay those expenses. |
|
|
Term
Briefly summarize the intent of the following "Additional Agreements of Insurer":
Waiver of Subrogation |
|
Definition
The insurer agrees not to subrogate when vehicle is damaged by someone who had the owner's consent to use it.
Excluding:
*Those having possession for the purposes of garaging.
* Those who have breached a policy condition
* Those drivers or operators convicted of an alcohol related offense at the time the damage was caused. |
|
|
Term
Briefly summarize the intent of the following "Additional Agreements of Insurer":
Coverage for temporary substitute automobile |
|
Definition
| The insurer agrees to cover damage to a "temporary substitute vehicle" when insured's primary vehicle is being repaired. |
|
|
Term
Briefly summarize the intent of the following "Additional Agreements of Insurer":
Loss of use by theft |
|
Definition
| When theft coverage has been purchased, the insurer agrees to extend coverage to include loss of use arising directly as a result of theft of the entire automobile. |
|
|
Term
The General Provisions, Definitions and Exclusions apply to the entire policy unless stated otherwise.
State the territorial limits insured by the policy. |
|
Definition
| Coverage is restricted to Canada, the US, and vessels plying between the ports of those countries. |
|
|
Term
The General Provisions, Definitions and Exclusions apply to the entire policy unless stated otherwise.
What coverage, if any, is provided for persons using the insured automobile without the insured's consent? |
|
Definition
| Persons operating the vehicle without the owner's consent are not entitled to any coverage under the policy. |
|
|
Term
The General Provisions, Definitions and Exclusions apply to the entire policy unless stated otherwise.
Identify the coverage provided for:
a) A newly acquired automobile
b) A temporary substitute automobile |
|
Definition
a) Automatically covered for 14 days pending insurance when:
-it replaces the automobile described on the policy
-Is in addition to others owned by the insured and which all are insured by the same insurer. |
|
|
Term
| The insured automobile cannot be used to carry passengers for compensation or hire. Provide three examples of uses of the automobile where, although economic benefit is realized, such use is not considered to be "for compensation or hire". |
|
Definition
1. Carpools
2. Sharing cost of trip
3. Carrying of domestic servants
4. Carrying of clients or customers or prospective clients or customers. |
|
|
