Questions - Chapter 6 - The Basics of Personal Auto Insurance, Section 1 - The Need for Auto Insurance Flashcards
What’s the minimum limit of Third Party Liability available in your province?
B.C. Auto Policy Limit $200,000; Bodily Injury $180,000; and Property Damage $20,000
How does an insured show proof of financial responsibility in your province?
Certificate of vehicle registration
Identify the Automobile coverages that are available in your province and indicate which are compulsory.
B.C. must purchase all compulsory coverages from the government plan. For insureds wishing for more than the minimum limits and coverages can be purchased under the government plan or from private insurers.
Identify a province where Automobile insurance is provided by:
i) Government Insurance
ii) Private Insurance
i) B.C.
ii) Alberta
Explain the purpose of the “Unsatisfied Judgement Fund” or similar, (section D for students in Atlantic Canada).
When losses are caused by uninsured drivers, the innocent victim may be left with no compensation for their losses. Funds have been established in all provinces to ensure that the victims of these accidents are provided with some level of compensation.
Explain the role of Facility Association in those provinces that do not have government insurance plans.
To ensure the availability of coverage for applicants who are refused insurance by private insurers, a Facility Association has been established. All insurers writing auto insurance are members and share in the pooled results.
Briefly outline the operation of any “no fault” insurance plan of the province of your choice.
A ‘pure no fault’ plan removes the right of legal action against owners or drivers who cause injury or death to others. All accident victims may claim compensation from their own insurers. This plan is used in Quebec and Manitoba.
Explain why the SAF No. 1 requires the applicant’s full name and postal address including the county or district.
Having both the applicant’s name and address reduces the potential for error. The territory in which an auto will be chiefly be used has a clear bearing on the risk to an insurer. The insurer anticipates that the described auto is and will be chiefly used in the vicinity of the applicant’s address.
Identify five particulars of the ‘Described Automobile’ required to be included in the application.
1) Model year
2) Trade name
3) Model
4) Body Type
5) V.I.N
Identify three items of information about all drivers required in the application.
1) Name of all drivers
2) Approximate percentage of use of the auto
3) Number of years licensed
Identify six physical and mental disabilities which might affect the safe operation of a vehicle.
1) Frequent fainting spells
2) Dizziness
3) Heart Disorder
4) Epilepsy
5) Depression
Identify four business uses of the automobile that must be disclosed to the insurer because of a special endorsement is required.
1) Rented or leased to others
2) Used for carrying passengers for hire
3) Used for carrying of explosives or radioactive material
4) Used for transportation of goods for compensation
Identify five situations where the right of the insured to recovery may be forfeited if not disclosed on the application.
1) Provides a false description of the auto being insured which is to the prejudice of the insurer.
2) Knowingly misrepresents the risk or fails to disclose a required fact.
3) Breaches a policy term.
4) Commits a fraud.
5) Wilfully makes a false statement in respect of a claim.
