Chapter 12, 13 and 14 Quizlet

Question 1

List the 3 duties owed to insurers by brokers/brokerages

Answer 1

1. Follow Agency Agreement-binder authorities
2. Deal with monies in trust for insurer
3. Disclose to insurer all material facts about a risk even if it jeopardizes a sale

Question 2

Name the 3 PARTIES ELIGIBLE TO PURCHASE AUTO INSURANCE

Answer 2

1. Automobile owners
2. Parties who drive automobiles they don’t own
3. Parties without a vehicle OR drivers’ license

Question 3

List the 3 provinces with compulsory government regulated auto insurance

Answer 3

BC, MB, SK

Question 4

Explain A PURE NO FAULT PLAN

Answer 4

A plan that removes the right of legal action against drivers who cause injury of death to others. Accident victims may claim compensation from their OWN insurers.

Question 5

What is the minimum compulsory liability limit of BC auto policies

Answer 5

$200,00

Question 6

List the provinces with private auto insurers

Answer 6

Alberta, Ontario, Atlantic provinces

Question 7

Explain Inverse Liability

Answer 7

covers you in parts of Canada or the US where local laws don’t let you claim against the person who caused your crash.

Question 8

List the 5 compulsory coverages for ICBCs Autoplan

Answer 8

1. Third party liability
2. Accident benefits
3. Underinsured motorist protection
4. Hit and run uninsured motorist protection
5. Inverse liability coverage

Question 9

Vehicles brought in from outside of Canada have to have which 2 inspections

Answer 9

“Federal and provincial inspections

Question 10

List the 3 factors AFFECTING PREMIUM TO BE CHARGED

Answer 10

1. Rate Class
2. Territory
3. Claim record

Question 11

AIRCARE must be completed……on vehicles built before 1992

Answer 11

Annually

Question 12

Explain the Recovery Rule

Answer 12

“IF The CRS level before the MORE RECENT LIABLE claim was a level -1 or better AND the policy has been claims-free for 3 consecutive years THEN the system reverts the CRS level BACK to the level BEFORE the most recent claim BASE RATE RULE IF The CRS level before the most recent CHARGEABLE claim was a Base Rate OR surcharge THEN AFTER 2 consecutive years of remaining claims free CRS level will move DOWN to the Base Rate Level 0 (0)%) AT CERTAIN LEVELS OF SURCHARGE Collision coverage is limited OR might not be available”

Question 13

CRS Stands for

Answer 13

Calim Rated SCale

Question 14

If insured has more than one policy, a CHARGEABLE CLAIM only affects ONE policy at a time - true or false

Answer 14

TRUE

Question 15

Define PRINCIPAL OPERATOR

Answer 15

The person operating the vehicle the majority of the time during term of policy

Question 16

Explain Variable Sanctions

Answer 16

Is the predetermined number of levels an owner’s certificate moves up the Claim Rated Scale as a result of a chargeable claim. The number of additional levels for each chargeable claim is based on the CRS.

Question 17

List the 2 occasions ICBC can refuse insurance

Answer 17

“1. Applicant has an outstanding amount(debt) with ICBC a Motor Vehicle debt OR an outstanding liquor fine,
2. Applicant’s vehicle has failed A required test An inspection (Air-Care or mechanical vehicle inspection).

Question 18

Explain the 90/10 RULE

Answer 18

“When there’s a claim for BOTH bodily injury
and property damage equals OR exceeds
third party liability limit that the Autoplan pro-
vides THEN Bodily injury claims have PRI-
ORITY Bodily Injury ’ 90% of third party legal
liability limit Property Damage ’ 10% of third
party liability limit.

Question 19

List the 2 types of physical damage coverage or Own Damage coverage available

Answer 19

1. Collision.
2. Comprehensive.
3. Specified perils.

Question 20

List the 2 OWN DAMAGE rating categories based on vehicle type

Answer 20

1. Vehicles which have an assigned rate
   group,
2. Declared value vehicles

Question 21

Underinsured Motorist Protection (UMP) will pay when Insured operates a vehicle
without owner’s consent T or F

Answer 21

FALSE

Question 22

IF claim is for an auto as
a result of damage DUE TO
unidentified OR hit-and-run
driver, How much deductible
is applied?

Answer 22

“$750, Amount of collision deductible carried
on claimant’s automobile, WHICHEVER IS
LESS

Question 23

NO COVERAGE under Au-
toplan when insured vehi-
cles used in countries out-
side Canada or the USA -

True or False?

Answer 23

TRUE

Question 24

Define Collision

Answer 24

Covers insured auto when it is damaged due
to upset or collision with another vehicle, person, or object

Question 25

List 6 coverages of Comprehensive coverage

Answer 25

1.Fire, 2. theft, 3. attempted theft, 4. vandalism, 5. impact with domestic/wild animal either living or dead, 6. windshields, other glass from falling/flying objects/other sources

Question 26

IF courts award compensation that is over the TPL limits the insured is NOT personally responsible to pay the balance - T or F

Answer 26

FALSE

Question 27

Explain NO FAULT BASIS

Answer 27

Insured doesn't have to provide that anyone was at fault for the accident

Question 28

Accident Benefit will pay up to a minimum for loss of wages - what is this limit

Answer 28

Wage Loss Benefits - 75% of average gross weekly earnings, subject to a MAX of $300/week

Question 29

Limited Depreciation protects

Answer 29

Value of new/used car so that insured doesn't lose out to depreciation OR inflation on Manufacturer's Suggested Retail Price (MSRP) IF Vehicle is considered a write-off.

Question 30

List the 4 exclusions of Specified Perils

Answer 30

1.Vandalism, 2.malicious mischief, 3. windshield damage, 4. hitting an animal

Question 31

CLAIMS UNDER THIS Comprehenisve COVERAGE DO NOT AFFECT THE CLAIM-RATED SCALE DISCOUNT - T or F

Answer 31

TRUE

Question 32

CONTENTS of motor homes insured for Own Damage Coverage are insured by a RC basis for amounts not over $2000. T or F

Answer 32

TRUE

Question 33

Insured IS ENTITLED TO RECEIVE PAYMENT with what time from after a claim

Answer 33

Within 30 days WHEN no stat declaration is required and Within 60 days AFTER ICBC receives proof of loss OR other stat declaration from insured

Question 34

What is the waiting period before an insured can use Loss of Use Coverage

Answer 34

"72 hours that starts after notice of theft of insured auto has been given to the police

Question 35

List the 4 coverages by RoadStar Package

Answer 35

"1. Loss of Use Coverage, 2. Travel Protection Coverage, 3 Rental Vehicle Coverage, 4 Lock Re-Keying

Question 36

RoadSide PLUS Package includes the same 4 coverage as RoadStar pack plus 4 more - list

Answer 36

1. Family World Wide Transportation, 2. Theft Deductible Waiver, 3. Destination Assistance, 4. Emergency Roadside Expenses Repayment

Question 37

Excess Special Equipment Endorsement limits coverage to that is permanently attached/not otherwise insured to ($)

Answer 37

$5,000

Question 38

List the 2 coverages provided by Unlicensed Vehicle Policy

Answer 38

"1. Operated off public highways for pleasure us, 2. On consignment OR in storage on private property

Question 39

List the only 4 uses a vehicle with Collectors Plates can be used for

Answer 39

"1. Designated inspection facility (for vehicle repairs), 2. Exhibitions, club activities, pa- rades, etc, 3. Weddings, graduations, 4. Public functions like opening highways, bridges, dedicating streets, buildings