Chapter 9

Question 1

Described automobile

Answer 1

The vehicle identified in an insurance policy

Question 2

Newly acquired automobile

Answer 2

an automobile or trailer and insured newly owns that is not covered by any other insurance policy. It must be a replacement or an additional automobile they insured will be covered automatically for a specified number of days after the delivery for the same coverage under the existing policy if the insurer is informed of the new automobile and is paid the required premium

Question 3

Other automobile

Answer 3

A non-owned automobile that is, not owned by anybody in the household and does not have insurance coverage

Question 4

Describe territory provision

Answer 4

this provision specifies that the policy applies only while the automobile is being operated, used, stored, or parked within canada, the United states, or on a vessel traveling between ports of those countries. There is no coverage if an automobile is used or stored in mexico.

Question 5

Describe occupant defined provision

Answer 5

this provision defines who is considered an occupant of the insured vehicle. In the owner’s policy, occupant is defined to include a person, including the driver, in or on an automobile or getting into, on, out of, or off and on mobile. the exact wording of this definition varies between the provincial territorial variations of the automobile owners policy. Coverage is not just for accidents that occur while driving - it applies if a door or trunk injures somebody

Question 6

What does consent of owner mean?

Answer 6

no person is entitled to compensation under the owner’s policy who is an occupant of any automobile being used without the consent of the owner

Question 7

List Automobile that are covered under the owner’s policy SPF 1

Answer 7

Newly acquired automobiles
Temporary substitute automobiles
Other automobiles or borrowed automobiles
Trailers

Question 8

Certificate of Insurance

Answer 8

Written documents stating that insurance is in effect. Includes general statement of policies coverage

Question 9

List the 5 types of coverages

Answer 9

Liability
Accident benefits
Uninsured automobiles
DCPD
Loss or damage to the described automobile if coverage is purchased

Question 10

True or false when an insured purchases an additional or replacement automobile, the coverage is automatically extended to it, subject to certain conditions

Answer 10

True

Question 11

What is the time frame the insured has to notify the insurer of taking possession of a newly acquired automobile?

Answer 11

14 days

Question 12

True or false 14 days coverage for a newly acquired automobile are automatically covered and are free of cost?

Answer 12

False: the 14 days of coverage are automatic but not free. once notified, the insurer will issue an endorsement charging of premium from the date then church took possession of the new automobile. similarly, if the existing insured automobiles have different deductibles, than the higher deductible applies to the newly acquired automobile

Question 13

What 2 kinds of insurance coverages are extended to temporary substitute automobiles?

Answer 13

Third party liability and accident benefits.

Note: coverage is not provided for physical damage to a tsa, except for the limited coverage provided under additional agreements of the loss or damage coverage of section of the policy. under that section, the only physical damage coverage provided is for any difference between the deductible levels on the insurance own vehicle and the deductible on the TSA

Question 14

What is the biggest mistake made by brokers, insurers and agents regarding TSA and a loss?

Answer 14

a mistake made by insurers, brokers, and agents is to remove a vehicle from a policy immediately after it’s been destroyed or stolen. By doing so there are also eliminating the extended benefit provided for the TSA that the insured may be operating at the time.

Question 15

What is the primary responsibility for providing liability coverage for TSA?

Answer 15

the primary responsibility for providing liability coverage for a TSA is through the registered owners insurance policy. A person operating the temporary substitute with permission from the owner becomes an insured under the owner’s policy. The owner of the temporary substitute vehicle can only relinquish responsibility for physical damage to the vehicle. Regulations under the accident benefits specify the primary source of no-fault benefits

Question 16

Define gross vehicle weight rating

Answer 16

The maximum operating weight - Mass of a vehicle as specified by the manufacturer including the vehicles chassis, body, engine, engine fluids, fuel, accessories, driver, passengers, and cargo carried, but excluding that of any trailers. Also referred to as gross vehicle Mass

Question 17

List the two situations in which the liability coverage of a driver of a TSA will respond rather than, or in addition to, the TSA owner policy

Answer 17

1. The temporary substitute vehicle is uninsured

2. the limit of liability under the TSA’s policy is insufficient to pay a judgment or settlement

Question 18

What is classified as an other automobile?

Answer 18

automobiles not owned by the insurance and not fitting the definition of a temporary substitute automobile are classified as other automobiles.

Question 19

In what situation is another automobile covered by the owners policy?

Answer 19

under the owner’s policy, these other automobiles are covered if they are private passenger automobiles owned by another person and loaned to the insured

Question 20

List following conditions that must be met for coverage to extend to other automobiles

Answer 20

• the other automobile must be a private passenger or station wagon type
• the other automobile must be personally driven by the insured or by the insurance spouse who lives in the same household
• the other automobile must not have a manufacturer’s gross vehicle weight rating of more than 4500 kg
• the named insured under the owner’s policy extending coverage to other automobile must be an individual, or the named insured must be spouses of each other
• the insured or spouse must not be driving the other automobile in connection with the business of selling, repairing, maintaining, storing, servicing, or parking automobiles
• the other automobile must not be used to carry passengers or to make commercial deliveries at the time of any loss
• for all coverages, except accident benefits, the other automobile cannot be an automobile that the insured or anyone living in the insurance household owns or regularly uses
• the other automobile can’t be owned, hired, or least by the insurance employer or the employer of anyone living in the insurance household

Question 21

True or false the other automobile coverage does not apply to an employee or partner, or to dispose of such persons, for whose regular use of a described automobile is supplied.

Answer 21

False, if the insured under the owner’s policy extending coverage is a corporation, unincorporated association, partnership, sole proprietorship, business, or other entity, the other automobile coverage applies to an employee or partner, or to the spouse of such persons, for whose regular use a describe automobile is supplied

Question 22

Under legal liability losses for lease or rented vehicles that are covered under other automobiles which policy responds first under general provisions, definitions, and exclusions provisions for any other automobile?

Answer 22

The insurance owners policy response first under the general provisions, definitions, and exclusions provision for any other automobile. This means that the insurance policy response first to any loss. Prior to this, the rental / leasing company responded for any third party claims as the actual owner of the vehicle

Question 23

What kind of permission under owners policy gives to an insured to pull trailers?

Answer 23

the owners policy gives unlimited permission to the insured to pull trailers, it does not differentiate between owned or non-owned trailers

Question 24

What three coverages automatically apply to any trailer used in connection with the automobile?

Answer 24

Third party liability coverage, accident benefits, and uninsured automobile coverage

Question 25

List 2 conditions a trailer needs to meet in order for direct compensation property damage will apply to owned trailers not described on the policy

Answer 25

1. Is attached to, or normally used with, an automobile with manufacturer GVWR of not more than 4500 kg
2. Is not designed or used for living in, to carry passengers, or for commercial purposes

Question 26

What happens when a trailer is described on a policy?

Answer 26

when a trailer is described on a policy, it loses its status as a trailer and becomes a described automobile if the premium is charged under the corresponding sections of coverage

Question 27

What happens when two or more automobiles are entered under the same policy? How is each one treated? And how does this avoid confusion ?

Answer 27

when two or more automobiles are insured under the same policy, each one will be treated as if they are insured by a separate policy for claims resulting from its use or operation. This avoids confusion about limits and coverage that could arise when two of the insured on automobiles are involved in accidents

Question 28

If an accident occurs while a TSA or other automobile is being used when happens with the loss between the two policies?

Answer 28

The loss is pro-rated between the two policies

Question 29

True or false an automobile pulling one or more trailers will be treated as a single automobile when determining how much an insurer will pay under liability ?

Answer 29

True!

Question 30

True or false trailers will be treated as one with the automobile when determining deductible, the amount to be paid under DCPD and the amount to be paid by optional loss or damage coverages

Answer 30

False: trailers will be treated as separate automobiles for the purposes of determining the deductible

Question 31

Can an insurer inspect your automobile at any reasonable time?

Answer 31

Yes, the automobile may be inspected at any reasonable time. If the insured does not cooperate with any reasonable arrangement for inspection, his or her optional loss or damage coverage may be canceled and any claims under that section may be denied

Question 32

What are 3 of the general exclusions?

Answer 32

Excluded uses
Garage workers
War risks

Question 33

Why is excluded uses in the general exclusion section?

Answer 33

Except for certain accident benefits coverage, there is no coverage under this policy if the automobile is used

To carry explosives or radioactive material

Used as a taxi cab, bus, a sightseeing convenience, or to carry paying passengers

Question 34

Why is garage workers excluded?

Answer 34

no person who sells, repairs, maintains, stores, services, or Parks automobiles as part of a business is covered by this policy well involved in conducting that business, unless that person in fact owns the automobile involved in an incident.

There is other insurance to mitigate these losses that involve garage workers. Such as garage policy coverage while working on customers vehicles

Question 35

Why are wear activities not covered?

Answer 35

this provision states that insurer will not be liable and under any coverages except third-party liability for loss, damage, injury, or death caused by war activities. Were activities are defined as including bombardment, invasion, civil war, insurrection, rebellion, revolution, coup, or actions of armed forces while engaged in a war

Question 36

Define car sharing

Answer 36

an engagement setup by means of a website or mobile app that links renters and car owners. Sometimes called vehicle sharing or peer-to-peer car rental services

Question 37

What are the 3 distinct commercial activities during a ride sharing process ?

Answer 37

Period 1- driver accessing the app in the vehicle, but has not yet scheduled a ride

Period 2- driver has accepted a ride and is driving to pick up the passenger

Period 3- driver is carrying the passenger from pickup to drop off

Question 38

True or false the financial services commission of Ontario refers to the use of private vehicles for higher that use an online enabled application or system as ride sharing services.

Answer 38

True

Question 39

List four solutions insurers and regulators have been working to develop solutions to the growing risk of uninsured drivers

Answer 39

1. A rating structure that charges rideshare drivers a fair rate based on their use
2. Premium that cover claims so that personal use policyholders do not subsidize right during drivers
3. Market availability for riding drivers
4. Premiums that are reasonably affordable

Question 40

List three requirements for eligibility to get a ride sharing endorsement

Answer 40

They must be contracted with a TNC

They must not exceed the maximum number of driving hours

They must meet minimum licensing and driver experience guidelines