Chapter 5 Flashcards
Under government insurance plans which provinces is is own damage coverage mandatory and which government province is it optional ?
Saskatchewan - mandatory
Manitoba - mandatory
British Columbia - optional
What does loss or damage coverages indemnify for ?
Loss or damage coverages indemnify the insured for direct and accidental loss of or damage to the vehicle and its equipment.
Define equipment in loss or damage coverages
Equipment generally excludes anything that is not permanently attached to the vehicle, unless it is specifically designed for the use with the vehicle such as a car jack or spare tire
List specified perils
Fire Theft or attempted theft Lightning Windstorm, hail, or rising water Earthquake Explosion Riot or civil disturbance Falling or forced landing of aircraft or of parts thereof The stranding, sinking, burning, derailment, or collision of any conveyance in or upon which a described automobile is being carried on land or water
Define comprehensive insurance
An item of coverage in an automobile physical damage policy ensuring against loss or damage resulting from numerous malicious causes such as fire, theft, windstorm, flood or vandalism period usually does not include loss by collision or upset.
Perils listed under specified perils Falling or flying objects Missiles Vandalism Most insurers pay claims of hitting animals under comprehensive coverage
Define deductible
and agreed specified amount that the insured must pay on a claim before the insurance company will cover the rest of the claim. This amount is agreed upon by both the insurer and insured. And inters obligation to pay a deductible is not based on whether the insured is at fault.
What does Collision or upset coverage cover?
collision or upset coverage and dignifies the insured for damage to the vehicle caused by collision with another vehicle, person, object, or surface of the road, or by upset. It is usually sold in combination with comprehensive coverage.collision coverage also includes a one vehicle accident where the vehicle strikes a tree, guard rail, or any other object.
What does all perils coverage cover?
As the name implies, this is the broadest of the loss or damage coverages. all perils combines collision or upset coverage and comprehensive coverage. it also covers certain types of theft that are excluded under comprehensive, including theft of an automobile by a person residing in the insurance household and theft of a vehicle if stolen by an employee who drives or uses services or repairs to described automobile. If this coverage is selected, none of the others are required
Exclusions under loss or damage coverages
- the type of damage usually associated with general wear and tear or lack of maintenance
- damage caused by theft but any person who is in lawful possession
- damage caused by voluntary parting with title of ownership
- damage directly or indirectly caused by contamination of radio active materials
- damage to contents of trailers or to personal effects such as clothing
- damage to media and equipment( detached )
- the insurer is not liable if the operator was under the influence of alcohol or drugs
- damage or theft by any person living in the same dwelling
What perils in Alberta do not have a deductible ?
Fire
Lightning
Or theft of entire automobile
Define general average
A term used in marine insurance for a loss that is shared by interests such as the owner of the ship, owners of the cargo, receivers of the freight charges ect. That arises from the voluntary sacrifice for the benefit of all. For example a part of the cargo may be jettisoned to save the ship and the rest of the cargo from sinking
What does the additional benefits include ?
Patent of charges
Forgoing the right to recover
Coverage for temporary substitute automobiles
Coverage for loss of use due to theft
Under additional benefits subsection the insurer agrees to pay certian additional charges that may arise such as?
General average charges
Salvage charges
Fire department charges
Canadian or US Customs duties for which one is legally responsible as a result of an insured peril
Under which two circumstances is the insurer able to forgo the right to recover under additional benefits subsection?
- When a person has the automobile in connection with a garage business, including seeking, repairing, maintaining, storing, servicing, or parking automobiles
- When the person using the automobile violates any condition of the policy or operates it for an illegal use as described under the policy under the exclusions for loss or damage coverages
Define TSA
An automobile that is used by an insured temporarily because the described automobile is out of service because of a breakdown, repairs, servicing, that, sale, or destruction. The TSA cannot be owned by the insured or by anyone living in the same dwelling with the insurance period the coverage of the described automobile applies to the TSA even though it may have insurance.
