Auto Insurance

Question 1

What is the minimum amount for Auto Liability that one must carry in Ontario?

Answer 1

$200 000

Question 2

1) What are the mandatory coverages for auto in Ontario?
2) What is not mandatory?

Answer 2

1) Accident Benefits (AB), Uninsured Auto (UA), Direct Compensation-Property Damage (DCPD)
2) Physical Damage to vehicle

Question 3

What is the concept of “no fault” insurance?

Answer 3

Provides benefits to injured people regardless of fault
Accident victim compensated for losses through their own insurer, even if deemed not at fault

Question 4

Define a threshold injury (3)

Answer 4

1) Death
2) Permanent, serious disfigurement
3) Permanent, serious impairment of an important mental, physical, or psychological function

Question 5

Regarding the driver in an OAF 1, what 3 things do insurers need to know?
How far back?

Answer 5

1) License suspension/cancellation - within last 6 years
2) Accident or claims - within last 6 years
3) Convictions - within last 3 years

Question 6

What is the Facility Association?

Answer 6

Unincorporated non-profit organization
Risk-Sharing Pools

Question 7

1) What are Accident Benefits (AB) often referred as?
2) What does this mean?

Answer 7

1) Faultless Benefits
2) No matter the fault, these benefits will still be paid out

Question 8

What is the priority of payment for Accident Benefits? (4)

Answer 8

1) Your own policy (or that of your spouse or someone on whom you are dependent)
2) policy of the vehicle you were a passenger in
3) Policy of any other vehicle involved in the accident, regardless of fault
4) Motor Vehicle Accident Claims Fund

Question 9

What does the Motor Vehicle Accident Claims Fund (MVCAF) cover?

Answer 9

People injured in auto accidents when no auto insurance exists to respond to the claim

Question 11

What are the 3 classes of injury?
What do they entail?

Answer 11

1) Catastrophic = loss of limb, loss of eye-sight in both eyes, paraplegia, quadraplegia, certain types of brain impairment - *** Remember mostly permanent
2) Non-Catastrophic = any other type of injury not listed under catastrophic or minor
3) Minor = partial sprains, whiplash, cuts, bruises, lacerations, partial dislocations

Question 12

1) What does the Income Replacement Benefit cover?
2) How much is allowed to be collected?
3) What can you increase the limit to? What is the max?
4) How long is the waiting period?
5) How long until the benefit must be paid?

Answer 12

1) Lost income when cannot work as a result of the accident
2) 70% gross weekly income, up to $400 per week
3) $600, $800, max $1000
4) 7 days
5) 10 days, after receipt of completed application

Question 13

1) How much is covered for a Death Benefit?
2) What is the time for payment?
3) What can the limits be increased to?

Answer 13

1) $25 000 to eligible spouse on death of spouse, $10 000 to each dependent on death of insured, $10 000 to insured on death of each dependent
2) Within 30 days on receipt of completed application
3) $50 000, $20 000, $20 000

Question 14

For OPCF 5:Permission to Rent or Lease Automobiles …
1) Who is covered?
2) Who are payments made to?
3) What does it require in terms of notification, to who?

Answer 14

1) Lessee as if they were named insured
2) To the lessor
3) Insurer must notify lessor of any reduction of coverage or cancellation

Question 15

1) What is OPCF 20:Coverage for Transportation Replacement often referred to as?
2) What does it cover? When?
3) What does it allow?

Answer 15

1) Loss of Use Endorsement
2) Transportation replacement when vehicle in shop for something covered by Section 7 - Loss or Damage
3) Dispenses with 72-hour waiting period for theft, allows insured to carry higher limit than $900

Question 16

1) What does OPCF 23A: Lienholder Protection cover?
2) Who gets paid?
3) What is required by the insurer?

Answer 16

1) Protection for lienholder’s interest
2) Joint payment to named insured and lienholder
3) Send a copy of all cancellation notices to lienholder

Question 17

What does OPCF 32: Use of Recreational Vehicles by Unlicensed Operators cover?

Answer 17

Allows unlicensed people to drive recreational vehicles on private property

Question 18

For how long does OPCF43: Remaining Depreciation Deductible apply?

Answer 18

24 months

Question 19

What does OPCF 44R: Family Protection Coverage (Underinsured Motorist Coverage) provide coverage for?

Answer 19

You, eligible family member, to same liability coverage you carry when involved in an accident with an at-fault driver who carries inadequate amount of liability coverage.
Also covers any excess judgement not covered on Uninsured Auto
NOTE Will never receive more than limit from all sources

Question 20

What does SPF6: Standard Non-Owned Automobile Policy cover?

Answer 20

Employers when held responsible for damages caused by employers using their own vehicles
Ex. Pizza delivery

Question 21

1) Who does OPF 2: Ontario Driver’s Policy cover?
2) What does it cover?

Answer 21

1) Uninsured people driving other people’s vehicles
2) Backup coverage for driving uninsured vehicles or one with low liability limits
Primary coverage for excluded driver driving excluded vehicle

Question 22

What does Collision cover?

Answer 22

REMEMBER CASH
At-Fault Accident
Single-vehicle Accidents
Hit-and-Run

Question 23

What does Comprehensive cover?

Answer 23

Everything except what collision covers

Question 24

What covers you if …
1) You are being sued
2) You are hurt
3) Someone hit you
4) You hit someone

Answer 24

1) Liability
2) Accident Benefits
3) Uninsured Auto, Direct Compensation - Property Damage
4) Collision, Specified Perils, Comprehensive, All Perils

Question 25

What is Absolute Liability?

Answer 25

We may, on occasion be requested by law to make payments, even though we are not otherwise liable for them under this policy. If so, you or other insured persons will have to reimburse the insurer upon demand for those payments
i.e. IF you are doing something illegal or something the policy excludes, insurer will cover, BUT you will have to pay insurer back