C14 Automobile Insurance – Part 1 Download

1. C14 C14- Automobile Insurance Part 1 (British Columbia) Detailed Notes 35 pages.pdf View
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3. C14 Questions and answers Automobile Insurance Part 1 (British Columbia) 42 pages.pdf  View
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4. Chapter 1 - Introduction and Development of Automobile Insurance.pdf  View
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5. Chapter 2 - Legal Concepts.pdf View
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6. Chapter 3 – No-Fault Concept.pdf  View
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7. Chapter 4 – Application For Automobile Insurance.pdf View
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8. Chapter 5 – Liability Coverage; DCPD.pdf  View
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9. Chapter 6 – Accident Benefits.pdf View
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10. Chapter 7 – Loss or Damage to the Insured Automobile.pdf View
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11. Chapter 8 – Uninsured Automobile Coverage.pdf View
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12. Chapter 9 – General Provision, Definitions, Exclusion.pdf View
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13. Chapter 10 – Statutory Conditions.pdf View
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14. Chapter 11 – Endorsements for use with Owner’s Policies; the Driver’s Policy.pdf  View
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15. Chapter 12 – Regulation of Automobile Insurance in Ontario; Consumer Protection.pdf View
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16. Chapter 13 – Underwriting.pdf View
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17. Chapter 14 – Automobile Insurance Ratemaking.pdf  View
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18. Chapter 15 – Industry Programs for Insurance Availability.pdf View
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19. Chapter 16 – Quebec Plan.pdf  View
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20. Chapter 17 – Sask, Man, BC, AB, NB, Nfld, NS, and PEI.pdf View
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C14 - Chapter 11

Terms	Definitions
Identify the TWO (2) distinct legal systems used in Canada.	the common law and Quebec civil law
Why is common law also called "judge-made law?"	the principle of precedent based on previous judgments is legally binding in courts
What is the Civil Code of Quebec?	the legal system used in the Quebec, it is based on canon law and the customs of the Code Napoleon
Give an example of a law that has been enacted with respect to the operation of an automobile by each of the three levels of government in Canada.	municipal - parking bylaws provincial - speed limits federal - criminal code regarding impaired driving
What coverages were first provided by automobile insurance policies?	injury and property damage to others
Why did the provinces establish mandatory policy wordings for automobile insurance policies?	there was too much fine print in policies
How has automobile insurance developed along with the automobile?	increased traffic, more accidents and higher repair costs have led to a complex insurance product
In which province is Accident Benefits optional?	Newfoundland and Labrador
How is automobile insurance marketed in Canada?	it is sold through either private insurance companies or provincial crown corporations
In which provinces is automobile insurance operated by a Crown Corporation?	Saskatchewan, Manitoba and B.C.
Who decides on the wording of an automobile policy?	wordings are governed by each province
What does SPF, OAP and QPF stand for in automobile policy forms?	SPF - standard automobile policy OAP - Ontario Auto Policy QPF - Quebec Policy Form
To what extent, if any, are automobile policies in Canada subject to standard policy forms and standard endorsement forms?	some provinces use different prefixes to identify their policies while government plans require endorsements to be standard and approved form
Where crown corporations provide automobile insurance, what takes the place of the insurance policy?	a motor vehicle certificate of registration is issued and serves as the owner's certificate of insurance
What are the SIX (6) main automobile policies?	SPF1 - standard auto policy, OAP1 - Ontario Auto Policy (owners policy) SPF2 - coverage for drivers who are driving vehicles they do not own, OAP2 - drivers policy. SPF4 - standard garage auto policy, OAP4 - garage policy
Who decides what the rules for the operation of automobiles should be?	Provincial governments
What provincial legislation embodies the majority of rules relating to the operation of automobiles?	Ontario highway traffic act
Name the THREE (3) distinct types of automobile coverages available.	first party - protected by policy second party - provides the insurance third party - anyone else involved in a motor vehicle accident
What is "financial responsibility" as it relates to the operation of automobiles?	it is the ability to pay if responsible for injury
How do you file proof of financial responsibility?	an insurer files a certificate with the Registrar of Motor Vehicles showing that a motor vehicle liability policy has been issued
What constitutes proof of financial responsibility?	a pink card is a proof of liability policy
What is another term for "own damage" coverage?	no-fault is another term for own damage coverage.

C14 - Chapter 2

Terms	Definitions
What is "negligence"?	negligence is an act that a reasonable and prudent person would not do or an omission to do something said person would do.
What are the consequences of negligence in the operation of a motor vehicle?	a negligent person would be liable for damages caused by their actions
What is "onus of proof?	the burden of responsibility to prove
How is onus of proof determined?	the plaintiff has the responsibility to prove guilt
In most cases, on whom is the onus of proof?	the plaintiff has the onus of proof
Explain "subrogation."	it is the right to recover from a responsible party through the transfer of legal rights
Who has the right of subrogation?	the party that pays for damages has the right to subrogation.
What gives the right of subrogation its validity? How can provisions be made to account for exceptions?	it allows the insurer to recover funds from the at-fault party.
What is "absolute liability"?	the insurer is responsible to pay third party claims even though the insured has breached policy condition
Why are the absolute liability provisions of the law necessary?	it is necessary so that third party rights are not prejudiced by insured's actions
Who derives the greatest benefit from the absolute liability provisions?	innocent third parties are protected under the absolute liability provisions
What does an insurer pay to a third party under the absolute liability provisions?	the insurance money under a policy is paid directly to the third party
When an insurer pays a third party judgment under the absolute liability provisions of a policy, is that the end of the matter as far as the insured is concerned? Explain	no, the insurer has a legal right to recover from its own insured any amount paid by reason of absolute liability
What precautions can an insurer take to minimize its exposure to claims arising out of the absolute liability provisions?	the insurer is only obligated to pay up to the minimum limits of insurance in effect in the jurisdiction involved, even if the policy has a higher limit

C14 - Chapter 3

Terms	Definitions
Why is there often confusion with respect to how consumers and insurers define no-fault?	insurers define no-fault as the insured recovers from them after a loss whereas consumers think it relates to whether their premiums increase
What TWO (2) distinctions must be made when considering no-fault concepts?	vehicle damage and injuries must be considered separately.
What early agreements used the original concept of no-fault automobile insurance?	"knock for knock" agreements. each insurer paid for repairs to its own policyholders regardless of who was at fault.
What are the aims of no-fault automobile insurance?	1. less investigation 2. less subrogation activity. 3. less litigation 4. speedier settlements for insureds 5. insureds deal only with their own insurer 6. costs savings which result in lower premiums.
How is fault determined for premium chargeability in Quebec? In Ontario? In New Brunswick?	Quebec - driver's fault chart Ontario/NB - fault determination rules
To which type of automobile insurance coverage was the no-fault concept first applied in Canada?	no-fault concepts were first applied towards injuries.
What auto policy coverages are the forerunners of present day no-fault plans?	accidents benefits coverage evolved from medical expense coverage from the 1940s.
What is a "threshold" as it relates to auto insurance?	it is the degree of injury a claimant must establish before being allowed to commence a legal action against the responsible party
What provinces presently have no-fault plans?	Quebec, Manitoba and Saskatchwan. Ontario has a threshold no-fault plan
What provinces allow no suits for injury?	Quebec and Manitoba have completely banned lawsuits
What provinces allow suits in certain circumstances only?	Ontario allows conditionally lawsuits for injured parties.

C14 - Chapter 4

Terms	Definitions
What is the purpose of an automobile insurance application?	the gathering of information used to formulate a policy
Who regulates automobile insurance forms and under what authority?	The superintendent regulates auto insurance forms under the Insurance Act of Ontario
Where can one find the rules regarding automobile applications and policies?	The insurance act of Ontario.
Is it mandatory to obtain a signed application before an automobile policy is issued? Explain.	no it is not required but a signed application must be returned to the insurer after it is sent
What are the disadvantages of an oral application?	an oral application is harder to prove in cases of misrepresentation
If an insurer issues a policy with a lower limit than the insured asked for in the written application, what must the insurer do?	the insurer must point out what ways the policy differs from the application in writing.
If an insured receives a policy that does not correspond to the written application, what are the insured's options?	the insured has 7 days to object to changes by writing to the insurer or he can accept the policy by not responding
On whom is the onus of proof if a misrepresentation is suspected?	the onus is on the insurer to prove misrepresentation
List the TWELVE (12) information sections found in an application for automobile insurance.	1. applicant's name and postal address 2. policy period 3. described automobile(s) 4. driver information 5. previous accidents and insurance claims 6. convictions 7. rating information 8. insurance coverages applied for 9. remarks 10. method of payment 11. declaration of applicant 12. report of broker/agent
When does an automobile policy commence and expire?	it commences and expires at 12:01 am, local time at the postal address stated.
Why is it important that the application contain an accurate description of the automobile to be insured?	it is important for rating purposes as well as identification in the event of a claim
What information is required regarding past convictions?	automobile related convictions of the past 3 years. the date and description for each conviction.
Why does the application ask for past insurance experience of the applicant and other drivers?	it is used to confirm any material misrepresentations.
Why is it important to the insurer that information regarding the use of the vehicle is provided?	different vehicle uses have higher risks of loss.
What is the difference between the registered owner of a vehicle and the actual owner?	registered owner may be a user of the vehicle but an owner actually paid for the vehicle
Who has an insurable interest in the vehicle?	the owner of the vehicle has an insurable interest not to have it damaged or destroyed.
Is there an insurance benefit to registering your vehicle in your parents' name if you are underage? Explain. What problems could arise?	it may result in lower premiums but the issue of ownership and absolute liability may arise down the road
Who is not an insured under an automobile policy, according to the Insurance Act?	anyone who is not named on the application as a driver of the automobile.
What does the application say with respect to the misrepresentation of facts on an automobile insurance application?	the insured must "knowingly" misrepresent or fail to disclose any fact required to be stated in the application.
What types of problems can arise when an application contains incorrect information, even though there was no intent to defraud or mislead?	it could give rise to legal implications when a claim is made.
Summarize the rating information requested in an automobile application.	the summary of information from sections 1-6 in the application is used to calculate the premium.
Why is it necessary for insurers to include the item regarding obtaining personal information about the applicant?	it allows the insurer to obtain relevant information e.g. past records
What coverages are mandatory, and which ones are optional?	liability, accident benefits, uninsured automobile and direction compensation - property damage is mandatory. loss or damage coverage and family protection is optional.
Why is it important that applicants sign applications?	it demonstrates that they have declared on information on the application to be true.
What are the insurer's obligations with respect to providing a "policy" to an insured? Explain.	the insurer has an obligation to make sure that all information o the application is correct and true.
Are insurers permitted to issue a policy that differs from a written application? Explain.	insurers are permitted to issue a policy that differs and the insured has the option to accept or reject it
Discuss how a misrepresentation can occur with an OAP1?	agents/brokers fill out most applications and an omission or error in the application could lead to a misrepresentation.

C14 - Chapter 5

Terms	Definitions
Who has an insurable interest in an automobile policy?	the named insured has an insurable interest in the auto policy as he/she is the registered owner.
Distinguish between a "named insured" and an "insured" under an automobile policy.	a "named insured" is the registered owner whereas "insured" can be an person who is insured to use the automobile.
Where is the legal basis for liability arising out of motor vehicle accidents stated?	it is stated in the Highway Traffic Act.
What does Liability coverage include?	provides protection for injury to others (Bodily Injury) and damages to the property of others (Property Damage)
Who is insured under the Liability coverage section of a policy?	the named insureds and persons insured in the policy are covered
Why is having an adequate amount of liability insurance important?	the average cost of injuries and property damage is constantly increasing. without adequate insurance, financial ruin is a possibility.
What types of losses are not covered under the Liability section of a policy?	other property carried in the vehicle, contamination of property carried in vehicle are all excluded
What coverage is provided for nuclear hazards under an automobile policy?	the policy will cover up to $200,000 where loss or damage caused directly or indirectly by a nuclear hazard.
What is Direct Compensation Property Damage (DCPD)?	insureds only deal with their own insurer in the case of a loss and cannot claim against third parties or their insurers
When does DCPD apply?	when there is damage to a vehicle in which the party is not at-fault of the loss.
To what extent does an insured recover under DCPD?	an insured can only claim if they are 100% not at-fault of the accident.
How is fault determined for the purposes of DCPD?	the fault determination rules are used in Ontario to determine fault.
What can an insured do if he or she is unsatisfied with the degree of fault apportioned to him or her as a result of an automobile accident?	an insured can sue their own insurer. they must provide evidence of "special circumstances" that caused the damage.
When may an insured sue a third party for damage to an insured vehicle?	they can only sue if the negligent party is insured outside of Ontario and are not subscribed to DCPD.
Can an insurer subrogate against a garage if a mechanic test-drives an insured vehicle and it is damaged in an accident?	the insurer can subrogate against automobile businesses as stated under section 7 of regulation 664.
On what authority did you base your answer to the preceding question?	the authority of the Ontario Insurance Act.
Who is responsible for damages to an insured automobile when it is towed by a third party?	the insurer pays for damages but may subrogate the amount from the tower if they are negligent.
What recovery provisions exist for insurers with respect to contents losses?	if the contents loss is > $20k, the insurer may recover from the at-fault party. there must be at least 2 automobiles.
How is damage to property other than automobiles dealt with when caused by an automobile?	the fault determination rules do not apply, ordinary rules of tort will apply.
What is the standard deductible applicable to all physical damage claims? Can it be altered?	the standard deductible is $500. the insured can select a higher or lower amount.
What is a "threshold"?	it is the defined conditions under which a person can sue.
What is SABS?	it is Bill 164 introduced in 1994. stands for Statutory Accident Benefits. "psychological and mental impairments" were added to the threshold.
Under what circumstances could a claimant sue for injury claims under OMPP?	it allowed the right to sue a third party in the event that the injury met the severity "threshold".
Under what circumstances could a claimant sue for injury claims under Bill 164?	it allowed suits on the grounds of death or serious disfigurement or serious impairment of an important physical or psychological function.
Under what circumstances may a claimant sue for injury claims under the new Statutory Accident Benefits Schedule?	claimants can sue for injury claims if a threshold is met.
How will a policy respond when action is brought against an Ontario insured in another province?	the policy must respond with a defence without any qualifications.
What is the main difference between economic and non-economic loss with respect to the right to sue?	a threshold is not neccesary to meet when suing for an economic loss while a non-economic loss requires it.
How are the deductibles for non-economic losses applied, and to whom are they applied?	deductibles are on a per person basis. they apply in respect of each person who is entitled to damages for non-pecuniary loss.
Who is protected against liability for injury claims involving an insured automobile?	the owner of an automobile, the occupants of an automobile and any person present at the incident are protected.

C14 - Chapter 6

Terms	Definitions
What is a verbal threshold?	the words or language describing the nature and type of injury that must be suffered in order to sue.
What was the significant feature of the Ontario Motorist Protection Plan that made it different from earlier policies?	it removed the right to sue in all cases except when the injury exceeded a "verbal threshold".
How was the threshold defined under OMPP?	suit can only be brought if the injured person had a. died, b. permanent serious disfigurement c. permanent serious impairment of an important bodily function caused by continuing injury which is physical in nature.
What did Bill 164 create and what effect did it have on Accident Benefits claims?	it created the Statutory Accident Benefits Schedule (SABS) and allowed lawsuits for pain and suffering only.
How does the definition of threshold under OMPP compare to that under Bill 164?	Bill 164 makes no mention of "permanent" injuries and included impairment of mental or psychological functions.
What major changes did Bill 59 bring to Accident Benefits?	SABS was modified and suits for economic losses without meeting a threshold was introduced.
What changes did Bill 198 bring to Accident Benefits?	the right to recover medical expenses from an at-fault third party was included to the verbal threshold.
What rules currently apply with respect to recovery for economic loss?	recovery of loss income suffered 7 days after the accident was limited to 80% of net income.
What rules currently apply with respect to recovery for health care expenses?	legal actions for health care expenses were permitted if they met the verbal threshold.
What rules currently apply with respect to recovery for non-economic loss?	must be verbal threshold of a. death b. permanent serious disfigurement c. permanent serious impairment or an important physical, mental or psychological function.
What is the definition of impairment?	the loss or abnormality of a psychological, physiological or anatomical structure or function.
For the purposes of Accident Benefits coverage, who is an "insured person"?	a. any person listed in the policy as a driver of the insured auto b. spouse of named insured c. any dependent of name insured or spouse. d. involved in an accident involving he insured auto
Who, or what, determines from whom an injured person will collect no-fault benefits?	section 268 (2) of the Insurance Act sets out the rules that determine from whom an injured person will collect no-fault benefits.
State the priority of payments of no-fault benefits.	1. claim accident benefits from own insurer 2. if person does not own vehicle, will collect from insurer of occupied vehicle 3. if auto had no insurance, recovery from the insurer of any vehicle in the accident 4. if all options used, will collect from the Ontario Motor Vehicle Accident Claims Fund
What is the function of a case manager?	they provide the coordination of goods or services provided by a medical, rehab or attendant care benefit.
What is the Minor Injury Guideline?	it sets out the treatment framework for minor injuries.
What is a "treatment and assessment plan" and who prepares it?	a document by a member of a health profession that outlines the impairment and the treatment details required.
How do Ontario Accident Benefits interact with those in other provinces?	Ont. residents injured have a choice between Ont. level of benefits or no-fault benefits in jurisdiction where accident occurred.
How do the benefits under the Statutory Accident Benefits Schedule (SABS) interact with social assistance payments?	auto insurer are the first payer of benefits to insured person who is also entitled to receive social assistance
What are collateral benefits?	are sources of entitlement outside of the auto policy.
How do collateral benefits affect payments under the SABS?	the insurer ay deduct amounts when calculating the amount of weekly income replacement or non-earner benefits.
How do Workers' Compensation and the no-fault benefits affect each other?	the insurer is not required to pay benefits to any person who is entitled to receive benefits from the workers compensation.
What document contains the rules for, and gives legal force to, the no-fault benefits?	the Workplace Safety and Insurance Act, 1997
What no-fault benefits must every automobile policy provide?	1. income replacement benefit 2. non-earner benefit 3. caregiver benefit 4. medical, rehab, attendant care benefits 5. payment of other expenses 6. death and funeral benefits 7. optional benefits
Who is eligible for income replacement benefits (IRBs)?	an insured person who is disabled as a result of an auto accident and meets the employment requirements.
Who is eligible for the Non-Earner Benefit?	payable to three classes: 1. do not qualify for an IRB 2. ceases to receive a caregiver benefit 3. were enrolled on a full-time basis in elementary, secondary or post-secondary education less than one year before accident.
For the purposes of Accident Benefits coverage, who is a "caregiver" ?	a person who incapable of providing caregiving activities to themselves or to dependents that they were engaged in prior to the accident.
Who is eligible for the Caregiver Benefit?	- person residing with a person in need of care - insured person was the pimary caregiver for the person in need of care
What optional coverage is available under Caregiver Benefit?	the ability to extend the caregiver benefit coverage to apply to situations where the claimant sustains non-catastrophic injuries
What expenses are covered by Medical Benefits?	medical, surgical, dental, optometric, medication, rehab etc.

C14 - Chapter 7

Terms	Definitions
Under Physical Damage automobile coverage (Section 7), who does the insurer agree to indemnify and for what?	it indemnifies the insured for direct and accidental loss of or damage to the vehicle and its equipment.
What are the FOUR (4) subsections under Section 7 of the automobile policy?	A. Specified Perils, B. Comprehensive C. Collision or Upset D. All Perils
Distinguish between Collision coverage and Comprehensive coverage.	comprehensive protects against perils other than collision whereas collision covers damage to vehicle caused by collision.
What perils are covered under Specified Perils?	fire, theft, lightning, windstorm hail, earthquake, explosion, riot, falling or forced landing of aircraft, stranding sinking burning derailment or collision of any conveyance on land or water
To what types of losses under section 7 does a deductible NOT apply?	no deductibles apply to fore or lightning losses
Under what circumstances is damage to tires covered?	tires are covered if damage is caused by a covered peril or caused by fire, theft, or malicious mischief.
Under which subsections would collision damage be covered?	it will be covered under collision coverage.
Under which subsections would damage caused by a flock of seagulls flying directly into the automobile windshield be covered?	it would be under comprehensive coverage.
You advertise your automobile in the local paper and sell it to the first person that responds to the ad. The buyer gives you a cheque and you hand over the car keys. The cheque comes back NSF; you cannot find the buyer, so you report the vehicle stolen. Will you recover the money owed to you under the Comprehensive subsection of your policy? Explain.	no, voluntary parting with title is a type of theft exclusion in the comprehensive coverage.
What are the Additional Benefits under section 7 of the policy?	the policy also covers some related expenses which often arise as a result of an auto accident.
What are salvage charges?	they are any expense involved in recovering property to prevent loss from an insured peril.

C14 - Chapter 8

Terms	Definitions
Who do Highway Victims Indemnity Funds protect?	they protect victims of "hit and run" accidents.
Define the terms "uninsured automobile" and "unidentified automobile."	uninsured vehicle - neither the owner or driver has liability insurance to cover bodily injury or property damage loss unidentified automobile - the owner or driver cannot be determined
Who are considered insured persons under Section 5 of the policy?	persons who already have their own insurer.
In Ontario, under what circumstances may an insured claim under Section 5 of the policy?	the insured must be legally entitled to recover from the uninsured/unidentified motorist who are at fault.
To what TWO (2) situations would Uninsured Motorist Coverage typically apply?	insureds who are indemnified by an unsatisfied judgment fund will not be indemnified again for the same loss by their policy's Uninsured Motorist coverage.
What limits apply to payments under Section 5 of the policy?	an insured's policy will not pay if a fund exists in the jurisdiction where the accident happened which would respond to the claim
How are payments apportioned between bodily injury and property damage when the total amount claimed is more than the coverage limit?	bodily injury or death have priority of payment to 95% of the amount and damage to the auto and its contents, a priority of 5%.
What limitations and exclusions apply to Section 5?	the insurer will pay no more than the minimum liability limit.
How are legal liability and the amount of damages determined for the purpose of claiming under Section 5?	the amount of damages is negotiated between the insured and insurer.
Under Section 5, what procedures must a claimant follow when presenting a claim for vehicle damage? And when presenting a claim for injuries?	must determine whether the third party is unidentified, uninsured or both and then follow procedure.
Why is property damage caused by an unidentified automobile not covered under Section 5?	property damaged coverage under section 5 states that the third party must be uninsured and identified.
In what respects is a Highway Victims Indemnity Fund (the correct name varies, depending on the province or state) different from Uninsured Motorist Cover?	the Highway Fund compensates victims who are not covered by the "all perils" of their auto policy.
Which provinces have Highway Victims Indemnity Funds?	all Canadian provinces have setup the highway victims indemnity funds.
Who operates Highway Victims Indemnity Funds in Canada?	some funds are financed by the provincial governments others by the insurance industry.
What action is taken against an uninsured motorist on whose behalf a Highway Victims Indemnity Fund pays a claim?	an application can be made to have the license of the driver suspended until judgment amount is repaid back to the fund.
What procedure must be followed when an uninsured motorist denies liability for an accident and the resulting claim?	the victim may be required to sue and a judgment rendered before making payment.
Where would a pedestrian, who does not own an automobile and is struck in a hit-and-run, turn for help to cover the cost of his or her injuries?	the highway victims indemnity funds.

C14 - Chapter 9

Terms	Definitions
what are the territorial limitations of an automobile policy?	there is no coverage outside of Canada or the U.S.A.
To avoid a gap in coverage, how long does an insured have to report a newly acquired automobile?	an insured has 14 days to notify insurer.
What does the term "occupant of a motor vehicle"mean in relation to automobile insurance?	it is defined as a person, including the driver, in or on an automobile, getting into, on, out of, or off an automobile.
How is coverage affected when a driver of an automobile does not have the consent of the owner?	there is no coverage for a driver who does not have consent.
Why are garage personnel excluded from coverage?	garage personnel is excluded due to it being covered under a Garage Policy (OPF 4)
Is the definition for "the automobile" the same for all sections of the policy? Explain why it is or is not.	no, there is a difference between a described automobile and the automobile. a described automobile is one specifically shown on the certificate of automobile insurance.
Under what conditions does coverage apply to a newly acquired automobile before the owner advises his or her insurer?	coverage is automatically extended to automobile and the insurer has 14 days to notify insurer. the coverage is automatic but not free.
What is a temporary substitute automobile?	Its an automobile not owned by the insured or anyone living in the insured's dwelling premises and is being used as a temporary substitute for a auto that is out of service.
What coverage does the policy provide for a temporary substitute automobile?	legal liability for physical damage is extended to a temporary substitute automobile.
Under what circumstances does the policy of a driver of a temporary substitute automobile vehicle respond rather than the policy of the owner?	in instances where there is legal liability for physical damage.
Under what circumstances can the policy of a driver of a temporary substitute automobile vehicle respond in addition to the policy of the owner?	-where the temporary substitute vehicle is uninsured -where the owner's limit of liability under Liability is insufficient to pay a judgment or settlement
What types of vehicles could be referred to as "non-owned automobiles" as they relate to coverage under the policy?	- auto must not have weight of more than 4,500 kg. - named insured is an individual or if insured by two people. named insureds are spouses of each other - neither you or spouse is in business of selling, repairing, maintaining, storing, servicing or parking autos. - auto is not being used to carry paying passengers or make commercial deliveries at time of loss - other vehicle cannot be one owned by anyone living in your dwelling or regularly uses, cannot be owned, hired or leased by your employer
What coverage applies to trailers being pulled by an automobile?	liability coverage, accident benefits, and uninsured automobile coverage
What insurance options does an individual who owns several vehicles have?	can have them under one policy or separate policies issued by different insurers for each automobile.
What uses of the automobile are excluded under the policy?	carrying explosive/radioactive materials, carrying passengers for hire, war risks
Why are the uses of the automobile referred to in question15 above excluded from coverage?	including them would mean higher premiums for all insurers which would be unfair as many do not have these exposures.
Can any of these excluded uses be covered? If so, how?	the excluded uses can be "bought back" if coverage is needed.
What uses of an automobile are NOT considered to be the carrying of passengers for compensation or hire?	giving a ride to someone in return for one, sharing cost of trip with others, carrying domestic worker hired by you or spouse, carrying children to or from school activities, carrying current or prospective clients or customers, reimbursing volunteer drivers for reasonable driving expenses
John Jolly is loaned an automobile by a garage while his own automobile is in for repair. Would this be considered a temporary substitute automobile? Explain why or why not.	it is not covered as a temporary substitute automobile cannot be owned by a person who sells, repairs, maintains, stores, services or parks automobiles.
When you borrow a friend's 5-ton truck, would you have any coverage under the "other automobiles" section of your owner's policy? Explain why or why not.	no, as the other type of vehicles is limited to vehicles with a weight of 4500 kg or less.

C14 - Chapter 10

Terms	Definitions
What functions do the Statutory Conditions perform?	they are the definitions, rules and regulations. the intent to protect the rights of the insured and insurer by stating responsibilities of each.
Where do the Statutory Conditions get their authority?	from provincial insurance acts.
To what automobile policies do the Statutory Conditions apply?	they must be part of every automobile insurance contract.
What types of changes to an automobile policy are considered "material changes"?	they are changes that would influence a reasonable and prudent insurer to decide whether the stay on risk and/or the terms on which the risk is retained.
What must an insurer do when it discovers it has incorrectly classified an insured automobile and has overcharged the insured?	the insurer must refund premium overpayment with interest.
Can an insurer go back to the insured for additional premium if it has undercharged because of incorrect classification? Explain.	the insurer has 60 days to get the additional premium from insured, no interest is payable by the insured.
What are the prohibited uses of an automobile by an insured?	- in any race or speed test - for any illicit or prohibited trade or transportation
Is there a difference between the "prohibited use by the insured" and "prohibited use by others"? Explain.	there is no difference. in either case, there is no coverage.
Who is "authorized by law" to drive?	a person who has the physical qualifications and legal permission to drive.
What must an insured do after being involved in an accident where there is loss or damage to persons or property?	- must give written notice - verify auto claim (all available particulars of accident) - must forward writs, claims immediately to insurer
Why is it so important for an insured to forward all documents received with respect to a claim to the insurer immediately?	the insurer has 20 days from the time the statement of claim is issued to enter an appearance. if this is not taken, the plaintiff can apply to court for default judgment.
Why should an insured not assume liability or settle a claim on his or her own?	the action may negate a defense being set up by the insurer. if insured voluntarily assumes liability, they do so at their own cost.
Who pays for the cost of investigating and securing information with respect to an automobile accident?	the cost is paid by the insurer.
Why should an insured not have his or her vehicle repaired before the insurer has inspected it?	it allows the insurer to inspect the full extent of damage.
Whose responsibility is it to protect an automobile after an accident? Who pays if certain expenses are incurred?	it is the responsibility of the insured to protect the automobile. the cost of protecting the vehicle is paid by the insurer.
What are the "proof of loss" requirements?	- give written notice - submit proof of loss form within 90 days - no repairs without permission - examination of insured under oath
How is the value of an automobile determined for the purpose of a loss settlement?	a guideline on what acv helps one to understand the theory of determining the amount of a given loss.
How is "actual cash value" determined?	it is the replacement cost less depreciation.
Who has the option of deciding whether a damaged automobile will be repaired or replaced?	the insurer has the option
If the decision is made to repair or replace, what rules apply?	insurer must carry out repairs within a reasonable amount of time
What are the rules with respect to abandonment of a damaged vehicle?	insured cannot abandon vehicle without the consent of the insurer.
Who is entitled to the salvage when an insurer replaces or pays for a damaged vehicle?	the insurer is entitled to salvage.
How much time does the insured have to give notice of a loss to the insurer?	within 7 days.
Who may give notice and proofs of a claim?	other than insured, notice and proofs of claim can be given by an agent of the insured (legal rep) or a person whom part of the insurance money is payable (lessors)
How much time does the insurer have to pay the claim?	must pay within 60 days of receiving a proof of loss.
What must an insurer do if it denies a claim?	-must promptly notify insurer of refusal and indicate in writing why it claims it is not liable.
How does an insurer cancel an automobile policy?	-reason must be valid within the auto insurance act and insurance act - give 15 days notice after the insurer gives written notice by mail or - 5 days if personally delivered by insurer - refund premium on pro rata basis

C14 - Chapter 11

Terms	Definitions
What is an endorsement?	they are attachments to a policy which vary the terms of the contract. It overrides policy provisions.
When might an endorsement that gives permission to drive other automobiles be required?	the endorsement Driver Other Automobiles (OPCF 2) is used to expand the definition of insured person for the purpose of third party liability when operating a non owned or other automobile.
What coverage is available to an individual who drives government-owned automobiles, and how is it effected?	the endorsement Government Owned Automobiles (OPCF 3). It provides a form of non-owned coverage for particular circumstances when the insured drives government automobiles.
Give an example of a situation that requires an endorsement that gives permission to use an automobile for a particular purpose.	situations where the carriage of explosives and radioactive material.
How can you insure a vehicle that is leased or rented to someone else?	the endorsement "rented or leased automobiles (OPCF 5 series). The lessee applies for an Owner's Policy. it amends the policy conditions granting permission for the auto to be leased on a long-term basis.
What coverage can be acquired for a loss resulting from conversion by someone in lawful possession of an automobile?	the conversion (OPCF 5D) covers lessee theft coverage.
When is a school bus endorsement necessary, and what functions does it perform?	Passenger Risks (OPCF 6 Series), it sets a liability limit on a per person basis rather than aggregate basis. it gives permission to use the auto to carry passengers for compensation or hire for school purposes only.
You wish to operate your automobile as a taxi. How do you ensure that you have proper coverage?	the endorsement Passenger Risks (OPCF 6 Series) allows for permission to carry passengers for compensation or hire.
How does the standard automobile policy deal with vehicles used for carrying explosives?	it is under the general exclusions of the auto policy which restricts carrying explosives.
As an underwriter, what exposure would you want to exclude when insuring an amphibious vehicle?	the water risk would be excluded and covered under another form of policy. only the automobile risk is insured.
What is the purpose of the Property Damage Reimbursement endorsement, and how does it operate?	it is used to minimize small property damage claims for which the named insured may be responsible. when attached to policy, insured agrees to reimburse the insurer the sum stated in the endorsement. mainly used when heavy vehicles such as trucks are insured.
When might you need to restrict glass coverage on your All Risk automobile policy?	when gravel roads are common, the incidence of glass claims is high. insurers offer reduced premiums with this endorsement.
How should you deal with the insurance on an automobile that you do not drive between October and May?	the suspension and reinstatement of coverage (OPCF 16 and 17) allows suspension of coverage for a given period of time.
How do you insure a 1930 Packard that you have restored and drive only in special parades?	the OPCF 19a Valued Automobile Endorsement to enhance value of vehicle.
What coverage does an owner's policy provide for damage to the property of passengers? How can this coverage be extended?	the endorsement OPCF 22 (Damage to Property of Passengers) is available with a specified limit of liability for property of passengers.
Compare the TWO (2) types of mortgage endorsements available for use with an automobile policy.	standard mortgage - lienholder protection endorsement protects the interest of the lienholder, mortgagee, or assignee broad form - additional premium is charged. protection for lienholder in breach of condition by insured.
What are the provisions of the Suspension of Coverage endorsement, and when is this endorsement used?	it maintains coverage in full force for liabilities arising from the "ownership" of a described automobile while auto is parked and struck by another insured auto and also maintains coverage for operations of other autos as well as accident benefits coverage.
How can the deductibles under an automobile policy be amended?	the OPCF 48 - added coverage to offset tort deductibles.
What are the provisions of the endorsement used to add coverage against liability for damage to a non-owned automobile in your care, custody, or control?	-the insured is legally liable or has agreed under a contract or agreement to be responsible - an insured peril cased the damage.
How can you restrict the amount of coverage that applies to your son when he drives your vehicle instead of his own?	the endorsement "excluding, reducing or increasing coverage for named persons" (OPCF 28 and OPCF 29)
What endorsement is necessary when insuring motorized recreational vehicles under an automobile policy?	OPCF 32 - motorized recreational vehicles.
What coverage does the Transportation Replacement endorsement provide?	loss of auto use by theft.
What endorsement would you want on a new automobile, and what coverage does it provide?	Removing depreciation deduction (OPCF 43). in the event of a partial insured loss, no depreciation is applied to the replacement cost of required parts.

C14 - Chapter 12

Terms	Definitions
Who is responsible for the administration of insurance law in Ontario?	the Financial Services Commission of Ontario (FSCO)
What THREE (3) elements are included in the government regulatory structure for insurance?	the Commission (Board), the Financial Services Tribunal, and the Superintendent of Financial Services and staff
Who is responsible for the automobile insurance dispute resolution system?	the director of arbitrations is responsible for automobile insurance dispute resolution system.
What is the function of the Superintendent of Financial Services?	he/she is responsible for administering and enforcing the Act.
What legislation contains provisions for consumer protection?	the insurance act contains provisions for consumer protection.
What powers exist under the Insurance Act with respect to obtaining insurance-related information from persons licensed under the Act?	the superintendent's powers to investigate.
What possible practices of insurers are included in the definition of unfair or deceptive practices of insurers within the Insurance Act?	prohibited acts under the insurance act, discrimination between individuals of same class and expectancy of life, unfair discrimination in any rate or schedule, misrepresentation, bribes, unreasonable delay, misclassification.
What remedies are available to the Superintendent of Financial Services with respect to unfair or deceptive practices of insurers?	they can cease action, cease business of insurance or perform acts necessary to remedy the situation
Who regulates brokers and under what authority?	RIBO (registered insurance brokers of Ontario) regulates brokers under the Registered Insurance Brokers Act.
What possible practices of brokers constitute "misconduct" or, in other words, unfair or deceptive acts or practices?	inducing insured to end contract, bribing prospective insured to insure, changing premium terms, coercion into buying insurance through business relationship,
What are brokers required to do to protect consumers?	section 20 - outlines a broker's own insurance requirements section 22 - states the penalties that may be levied against a member for misconduct.
What does the Insurance Act have to say with respect to reasons for which an insurer may refuse to accept automobile business or may cancel or refuse to renew a policy?	- superintendant has the authority to establish requirements that must be met before an insurer declines to issue, terminate, or refuse to renew a contract - prescribe grounds for which an insurer cannot decline to issue, terminate, or refuse to renew a contract of auto insurance.
What grounds for non-acceptance would not be valid?	it would not be valid if the grounds for non-acceptance is subjective, arbitrary, bears little or no relationship to the risk borne to the insurer in respect of an insured, is contrary to public policy.
What procedure must an insurer follow when it does not wish to renew an automobile policy?	- give the named insured not less than 30 days notice in writing of insurer's intention or proposal or - give the broker 45 days notice in writing of insurer's intention or proposal.
What procedure must a broker follow whose insurance company has advised that it does not wish to renew a particular client's automobile insurance?	broker must gave named insured not less than 30 days notice in writing of the insurer's intention or proposal.

C14 - Chapter 13

Terms	Definitions
What are the THREE (3) functions of underwriting?	i. consideration of the acceptance or rejection of a risk. ii. if the risk is accepted, the terms of the policy iii. premium for the policy.
Where is underwriting carried out?	normally carried out at the head office.
What are some of the different marketing philosophies among insurers?	broad range of auto insurance business - rely on underwriting and rating to earn profit niche writers - selected classes of expertise
What information does an automobile underwriting manual contain?	- acceptance or rejection list - "senior underwriter only" acceptance list - limit table (max liability limits which can be accepted) - classification guide - other instructional material
What are limit tables?	it is the liability coverage limits of the business. this is based on the insurer's reinsurance treaties and extent of exposure of own net account.
How and by whom are limit tables used?	limited tables are used by underwriters to determine the amount of risk an insurer keeps for own account. it restricts different classes.
What are "intelligent underwriting" computer programs?	They are computer programs that handle risk selection process by point allocation or by "flagging" the underwriter on the computer screen.
What are the functions of an automobile underwriter?	classifying risks, rating drivers according to driving records, placing risks in the correct rate groups, using endorsements correctly.
What tools are available to assist underwriters?	claims history systems, driving records, "flagging" systems used to assess risks for renewal, codes from claims handlers.
What TWO (2) general classes of endorsements are available?	extensions - used for additional coverages agreements or restrictions - limitation of amount or value endorsements
To whom are underwriters responsible?	responsible for the insurer's image and duty to insurance buying public and employers to avoid mistakes.
Identify sensitive areas that can affect an insurer's image to the public or result in penalties from industry regulators.	- policy cancellation for underwriting reasons, insurer's refusal to renew, premium surcharges, premiums appropriate for risk, lowest applicable rate, improper use of credit information.
How is underwriting carried out in provinces that have government automobile insurance plans? And by whom?	they are carried out by a government body responsible for auto insurance and private insurers.
How does underwriting differ between government insurers and the private sector insurers?	they cannot deny basic coverages and main underwriting function is to determine correct rate group.
How does underwriting differ between private sector insurers in provinces that have government automobile insurance plans and those in provinces where only the private sector provides the insurance?	Private companies in government insurer provinces are confined to requirements regarding accident-free status and driving experience. mostly provide coverage for private passenger vehicles and recreational vehicles.

C14 - Chapter 14

Terms	Definitions
What are the major classes of automobile risks?	-private passenger, -commercial vehicles (trucks and delivery autos), -public automobiles (buses and taxicabs), -recreational automobiles (motorcycles, atvs, snowmobiles) -garage risks (road hazard and dealership risks) - non-owned automobiles
Name the FOUR (4) aspects of each risk that must be considered in rating. How does each one affect the rate?	location used, class of auto and its uses, drivers, automobile itself
What are the components of a rate?	i) pure premium - amount required to pay only the anticipated losses ii) expense loading - added to pure premium for overhead.
Where does the data used in automobile ratemaking come from, and how is it collected?	all private auto insurers in Canada must record and file auto experience date to comply with the requirements of the auto stats plans. the work is undertaken by the IBC.
Compare data based on a policy year to data based on an accident year.	policy year uses data from claims that occur in the duration of a policy. a weakness is that it does not use the most up to date information to discern current loss cost trends. accident year captures data from claims in the given year regardless of policy years. gives the most recent indicator of what future losses will be.
What are the component loss costs?	i) paid losses - known amounts ii) outstanding losses - provision for reported, not yet paid, claims iii) incurred but not reported losses (IBNR) - liability for future payments on losses that have occurred but yet reported to insurer.
What are IBNR losses?	using accident year data, actuaries calculate the IBNR using historically demonstrated factors and add it to incurred losses (paid and outstanding).
What is trending?	it is the process in which actuaries forecast the trend of increase or decrease in loss costs for the period for which premiums are calculated.
How can different types of automobiles affect a policy's different coverages?	a vehicle is assigned to a rate group based on its expected claims costs. this is based on a number of factors. the higher the rate group, the higher the premium charged.
How does investment income affect automobile rates?	the use of investment income to modify premiums is under close scrutiny of regulators who determine what is considered permitted rate levels.
How is the earned loss ratio determined?	it is the ratio of the loss costs to the earned premiums.
What different types of control exist on automobile insurance rates?	- prior approval - companies file their proposed rates and wait for approval. - file and use - companies file proposed rates and use them but face enquiries by the board - file and use following a "deemer" period - file proposed files and law allows period of time during which board can challenge - prior setting of rates by the board with variations from "benchmark".
What is the Green Book?	the green book shows the Actual Loss Ratio exhibit (a ratio of the loss costs to the earned premiums) and Pure Premium Exhibits.
What is VICC, and what is its function?	it is the vehicle information centre of Canada. its function is to record the cost of claims relative to factors such as wheelbase, boyd style, weight to horsepower ratio, price and the theft record of models.

C14 - Chapter 15

Terms	Definitions
Why must automobile insurance be available to any vehicle owner?	insurance for all vehicle owners ensures indemnity in cases of liability and collision damage.
What is another name for regular markets?	"voluntary markets"
What are residual markets?	special programs to ensure insurance availability for risks that are less desirable and more hazardous.
Give an example of a risk that might need to be insured through residual markets?	In "tight" market conditions, a risk that has poor claims history may need to be insured through residual markets.
Identify TWO (2) objectives of residual market programs.	- immediate availability of a market to agents and brokers and the public - equitable sharing of the residual market by all insurers.
What is the Facility Association?	it is an unincorporated association of insurers created on January 28, 1977.
What is the purpose of the Facility Association?	it provides automobile insurance to owners and operators of motor vehicles who may have difficulty obtaining insurance through the voluntary market.
List the provinces where the Facility Association operates.	Alberta, New Brunswick, Newfoundland, NWT and Nunavut, Nova Scotia, Ontario, PEI, Yukon.
Define "car year."	it is the measurement of an insurer's exposure. it means an automobile insured for a period of 12 months.
What are servicing carriers?	Insurers share in the operations of the Association based on their market share of automobile business in the jurisdictions where the Association operates. The underwriting and claims functions are provided by a limited number of designated members, called servicing carriers.
How are servicing carriers compensated?	they receive expense allowances agreed to by the membership to compensate them for the cost of acting on behalf of the Association.
What are risk sharing pools?	these pools allow automobile insurance underwriters to transfer certain private passenger automobile exposures that may meet the companies underwriting guidelines.
Which provinces have risk sharing pools?	Alberta, NB, NS & Ontario.
When a risk is transferred to the Ontario Risk Sharing Pool, who is responsible for servicing the	the company that issues the initial policy (primary writer) remains responsible.
policy", including settling any claims that may arise from the policy?	The PRR allows an insurer to transfer any risk that does not meet its underwriting criteria into a shared pool.
How does the Plan de repartition des risques (PRR) in Quebec differ from the Facility Association in the other provinces?	The PRR allows an insurer to transfer any risk that does not meet its underwriting criteria into a shared pool.
Who belongs to the PRR?	all automobile insurers licensed in Quebec participate in the PRR except those who do not write any automobile third party liability insurance.
Who makes the decision to transfer a risk to the PRR?	the decision to transfer a risk to the PRR is made solely by the insurer. almost unknown to the public.
Who subsidizes the Facility Association or the PRR when premiums are not enough to cover claim costs?	the operations are subsidized the insurance industry.
Why are there no such industry or government programs for insurance availability in British Columbia?	it is not necessary as the ICBC is a crown corporation with a mandate to provide basic insurance to all drivers in a non-discriminatory manner.
Why are there no such industry or government programs for insurance availability in Manitoba or Saskatchewan?	it is not necessary as the governments must provide basic coverage to all residents who drive registered vehicles that fall within the jurisdiction of the acts government auto insurance.

C14 - Chapter 16

Terms	Definitions
What do we mean when we say that Quebec has a "split" system of automobile insurance?	the Automobile insurance act created a new system where government and private insurers each have separate responsibilities, coverages and do not compete for delivery of auto insurance
What is the role of the Societe de I'assurance automobile du Quebec (SAAQ)?	it provides basic coverage for bodily injury.
How are the Quebec government automobile insurance plan and all of its functions financed?	it is mainly financed by automobile owners when they register their vehilces, when drivers obtain or renew their driving license and by investment income.
What categories of persons are entitled to compensation under the no-fault bodily injury plan administered by the SAAQ?	all residents of Quebec (and their dependents) who suffer bodily injury caused by an automobile in or outside Quebec are entitled to compensation.
Are Quebec motorists allowed to sue for bodily injury caused by an automobile in Quebec? Explain.	Quebec was the first jurisdiction in North America to totally ban lawsuits for bodily injury caused by an automobile.
What alternatives are available to challenge decisions rendered by the SAAQ?	i) the bureau de revision - victim completes an application for review and submits to SAAQ within 60 days of decision. ii) an appeal before the commission des affaires sociales - an appeal may be filed within 90 days of the date the bereau de revision rendered its decision. commision's decision is final.
Which provinces have made reciprocal agreements with the SAAQ?	Alberta, Manitoba and Ontario have reciprocal agreements with the SAAQ.
What bodily injury benefits are provided for in the Automobile Insurance Act?	- income replacement and other indemnities - death benefits - compensation for non-pecuniary damage - reimbursement of certain expenses and rehab.
What categories of victims are entitled to receive income replacement benefits?	• Full-time employees • Temporary or part-time employees • Persons unemployed but able to work • Persons under age 16 • Students aged 16 or over attending a secondary or post-secondary educational institution on a full-time basis, and students who have employment earnings • Persons aged 64 or over • Persons unable to hold any employment
What benefits are available to cover funeral expenses?	The SAAQ pays a lump sum indemnity for funeral expenses to the beneficiaries of the deceased victim, up to a prescribed limit.
What is the purpose of the Fonds d'indemnisation (Indemnity Fund)?	used mainly to compensate innocent victims of property damage
Give an example of situation where bodily injury suffered by a motorist would not be covered by the SAAQ plan.	An insured Quebecer hits a pedestrian in Florida.
What are the main duties of the Groupement des assureurs automobiles (GAA)?	i) establish a mechanism to enable every automobile owner to find an authorized insurer with whom he or she may purchase liability insurance. ii) To oversee collision repair appraisal iii) To establish and publish a standardized accident report form. iv) To establish and administer a direct compensation agreement.
How is Civil Liability coverage provided?	insurers pay for damage to an insured's vehicle to the extent that the insured is not-at-fault.
What is the Direct Compensation Agreement for the settlement of automobile insurance claims?	-all automobile insurers are bound by the Direct Compensation Agreement for the settlement of automobile insurance claims.
What is the Driver's Fault Chart?	- liability is determined by the Driver's Fault Chart.
Is there a difference in the amount a motorist recovers for damage to an owned vehicle when the motorist is partially responsible for the accident and has collision coverage versus when there is no collision coverage? Explain.	with collision coverage, the amount recovered would be higher due to the insurer covering collision damage.
Are automobile insurance application forms regulated in Quebec? Explain.	application forms are not regulated in Quebec and can vary from one insurer to another. declarations are derived from it are standard for all insurers.
What must an insurer do if there is a difference between the application submitted by the motorist and the policy issued by the insurer?	the insurer must draw special attention to these differences in a separate written document to the client.
What is the major difference between the Quebec Policy Form 1 (QPF 1) and the standard automobile policy used in other provinces?	the QPF does not have a section relating to Accidents Benefits.

C14 - Chapter 17

Terms	Definitions
What is a major difference between a Crown corporation and a private insurer?	crown corporations are government operated and are the sole providers of certain basic coverages within the province of operation.
How does the main objective of a Crown corporation compare to that of a private insurer in Alberta?	the main objective is the same in that they both aim to protect automobile owners and drivers as well as innocent third parties against losses arising from auto accidents.
What is an extension policy?	it is when additional coverages, including higher limits and lower deductibles, may be purchased from the government insurer or from private insurers.
What legislation usually governs automobile insurance in a given province?	provincial insurance acts and motor vehicle acts.
What provides the evidence of automobile insurance in those provinces having government plans?	vehicle registration normally serves as evidence of automobile insurance.
Why would an insured purchase extension insurance?	to increase limits or reduce deductibles.
How is extension/optional insurance provided in each of Saskatchewan, Manitoba and British Columbia?	they can be purchased through SGI Canada called an autopak or through private insurers by means of extension policies.
Which province introduced the first government automobile insurance plan?	Saskatchewan was the first province to develop a government insurance plan when the Automobile Accident Insurance Act was introduced in 1946.
When is the premium paid?	An insurance premium is payable on every motor vehicle licence at the time the licence plate is purchased.
What is the compulsory automobile insurance plan called in BC, Sask and Manitoba?	BC - autoplan Sask - Auto Fund Manitoba - Autopac
What are the basic mandatory coverages in BC, Sask and Manitoba?	BC - third party liability, accident benefits, uninsured motorist Sask - third party liability, personal injury, comprehensive Manitoba - third party liability, personal injury, all perils
What limitations or requirements are there on the right to sue a third party motorist for expenses arising out of injuries suffered in an automobile accident?	BC - lawsuits are permitted but all coverage must be exhausted first under accident benefits Sask - if they had tort option of personal injury benefits, then they could sue for damages Manitoba - can sue person outside of province or vehicles not covered under Autopac e.g. snowmobile
What is the Personal Injury Protection Plan (PIPP)?	it is no-fault personal injury benefits plan now referred to as the No-Fault Plan, came into effect on January 1, 1995. it provides substantial limits on personal injury benefits.
What is the difference in function between SGI and SGI CANADA?	SGI Canada is the competitive arm of SGI selling property and casualty insurance products from private insurers where as SGI (Sask Gov Insurance) is the crown agency.
What does comprehensive coverage include?	Comprehensive insurance includes collision and upset, thus making it similar to All Perils coverage under a Standard Automobile Policy.
What is licence plate insurance?	An insurance premium is payable on every motor vehicle licence at the time the licence plate is purchased.
What is the difference between the no-fault Accident Benefits and the tort Accident Benefits?	The tort option provides a lower level of defined benefits regardless of fault,
When do the tort Accident Benefits apply?	provides access to the courts for actual financial losses above the level of defined benefits (economic losses) and for non-economic losses, including pain and suffering.
What is the Personal Injury Protection Plan (PIPP)?	In March 1994, Manitoba implemented a no-fault system of automobile insurance called the Personal Injury Protection Plan (PIPP).
What is MPI, and what is its mandate?	Manitoba Public Insurance (MPI) is a Crown agency and its mandate is to provide basic compulsory coverage.
Is it possible to increase limits under the PIPP? Why?	Extension insurance to increase limits or reduce deductibles may be purchased from autopac or private insurers.
What is ICBC, and what is its mandate?	the Insurance Corporation of British Columbia (ICBC or Corporation) is the sole provider of the mandated basic automobile insurance coverage known as basic Autoplan.
The liability of vehicle owners or operators is based upon what in British Columbia?	liability of vehicle owners or operators to their passengers is based on ordinary negligence - whether the passenger is carried for compensation or gratuitously.
How does a vehicle owner in British Columbia insure the vehicle against physical damage?	Optional insurance to increase limits, cover physical damage to the vehicle, or cover additional perils and exposures may be purchased from Autoplan or from private insurers.
What serves as proof of insurance in British Columbia?	Vehicle owners are charged a basic premium when they register their vehicle.