Statutory Conditions

Question 1

What is required by the named insured if there is a material change in the risk which is within his knowledge?

Answer 1

To notify their insurer or agent in writing of any change in risk..

Question 2

What are some examples of ‘‘change in risk’’?

Question 3

Identify five prohibited uses of the automobile by the insured.

Answer 3

1. while licence to drive or operate an automobile is suspended.
2. if prohibited under order by any court from driving.
3. while under the age of 16 without the valid learner’s permit.
4. for any illicit or prohibited trade or transportation.
5. in any race or speed test.

Question 4

Identify prohibited uses of the vehicle by others.

Answer 4

1.by any person while that person is under age of 16.
2. by any person who is a member of the household of the insured while his licence to drive is suspended

Question 5

What is required of the insured if there is loss or damage to people or property?

Answer 5

1. promptly give notice in writing to the insurer with the fullest amount of information obtainable at the time.
2. at the expense of the insurer, and as far as reasonably possible, protect the vehicle from further loss or damage.
3. deliver to the insurer within 90 days after the date of the loss or damage a statutory declaration stating to the best of knowledge and belief, the place, time and cause and the amount of loss or damage.

Question 6

What acts are prohibited on the part of the insured?

Answer 6

1. insured shall not voluntarily assume any liability or settle any claim except at his own cost
2. interfere in any negotiations for settlement or in any legal proceeding.

Question 7

How must an insured assist an insurer in a legal claim?

Answer 7

The insured must aid in his defence by gathering and protecting information, and in cooperating with he insurer.

Question 8

What are the requirements of the insured in a claim?

Question 9

Insureds must mitigate their losses. Explain this requirement.

Question 10

Are there any limitations on the amount of repairs that an insured can authorize or complete without the insurer’s approval?

Answer 10

No repairs, other than those that are immediately necessary to protect the vehicle from further loss or damage, shall be undertaken.

Question 11

What is the method for determining the amount of damage or loss caused to the vehicle?

Answer 11

it is estimated according to the ACV with proper deduction for depreciation.

Question 12

Does the insured or the insurer have the right to repair, rebuild or replace the damaged vehicle? Once that party decides on this action what steps must be completed?

Answer 12

They do have the right as long as it is with the same quality. if the insurer gives notice in writing within seven days of receiving proof of loss. the insurer must carry out these repairs, rebuilding or replacement in a reasonable time.

Question 13

Does the insurer automatically become responsible for the vehicle when there is a claim? Explain your answer.

Answer 13

No, it is only when the insurer replaces the vehicle or pay the ACV that the insurer receives the salvage value.

Question 14

What is the process for resolving disagreements about the nature or extent of the damages?

Answer 14

The questions of disagreement shall be determined by appraisal ask provided under The Insurance Act before there can be recovery.

Question 15

Can the insurer pay all automobile claims at the end of its fiscal year or are there prescribed timeframes to pay the claim?

Answer 15

There are prescribed time frames to pay the claim.

Question 16

What conditions must be met before an insured can take an action against an insurer for payment of a claim?

Question 17

Action against the insurer must commence before the expiration of what amount of time?

Question 18

Who may legally give notice and proof of claim to the insurer?

Question 19

How may an insured terminate a policy? An insurer? When and how are any refunds of excess premiums paid?

Answer 19

a. Insured can cancel anytime upon request.
b. Insurer needs to provide the insured 15 days of notice of termination by registered mail or five days written notice personally delivered.

Question 20

What addresses should the insurer and the insured use when corresponding with each other?

Question 21

A member of the household, normally covered under the automobile insurance policy, recently had his license suspended. The household members takes the insured’s vehicle and is involved in an accident. Is there any protection afforded to an insure in this case?