Statutory Conditions

Question 1

Material Change in Risk

Answer 1

any change in the insurable interest must be made to the insurer promptly as any change could alter coverage provided

Question 2

Prohibited use by insured

Answer 2

prohibited from driving unless they hold a valid drivers license

or prove themselves qualified to drive

Question 3

Prohibited use by others

Answer 3

no coverage when any member of the insured’s household drives while license is suspended or prohibited to do so by court order

Question 4

Requirements where loss or damage to persons or property

Answer 4

give notice to insurer of incident
verify claim arose out of the use or operation of the automobile
forward any letters, documents, advice, or writ received
assist the insurer in securing information and evidence and co-operate

Question 5

Insured MUST NOT do the following things when there is loss or damage to persons or property:

Answer 5

voluntarily assume liability

interfere with negotiations during settlement

Question 6

Requirements where loss or damage to the automobile

Answer 6

insured will report the loss to insurer in writing
protect the auto from further loss
within 90 days provide statutory declaration
further loss not protected against will not be covered
no repairs permitted or removal of physical evidence w/o consent of insurer
insured will submit an exam under oath and produce all relevant document
loss or damage will be ascertained according to actual cash value
insurer may pay for damages in cash, repair, rebuild or replace
insured cannot abandon the auto to insurer w/o consent
disagreements of repairs needed the insurance act provides this is determined by appraisal provided

Question 7

Inspection of auto

Answer 7

permit insurer at all reasonable times to inspect auto & equipment

Question 8

time and manner of payment of insurance money

Answer 8

payments made within 60 days after proof of loss received or 15 days after award is rendered by appraiser
insured prohibited from taking legal action against insurer for recovery of any claim until requirements of Notice have been met or the loss amount is determined
Action against insurer must be done within 2 tears of the loss

Question 9

Who may give notice and proofs of claim

Answer 9

insured, or they may appoint an agent on their behalf. or if they refuse a mortgagee or other party of interest is entitled to make a claim under the policy

Question 10

Policy Termination Clauses

Answer 10

by insurer by 15 days notice by mail or 5 days written if personally delivered (15 days commences when insurer is in post office and sends it)

insured by request, refund cancelled on short rate basis subjected to retained prem

if by insurer the refund will be calculated on pro-rata basis, refund should be with the notice unless it needs to be adjusted