Study 1

Question 1

What are the THREE LEVELS of LEGAL JURISDICTIONS in Canada?

Answer 1

FEDERAL, PROVINCIAL (or TERRITORIAL), and MUNICIPAL—like a legal sandwich with different layers of rules!

Question 2

What does the FEDERAL GOVERNMENT handle?

Answer 2

Big stuff affecting ALL of Canada—like CRIMINAL LAW, TRADE, TELECOMMUNICATIONS, CUSTOMS, IMMIGRATION, and FISHERIES.

Yes, even fish laws!

Question 3

What are some VEHICLE-RELATED OFFENCES under the CRIMINAL CODE?

Answer 3

IMPAIRED DRIVING, REFUSING A BREATH SAMPLE, VEHICLE THEFT, DANGEROUS DRIVING, and HIT-AND-RUN. Basically, don’t be a menace on the road.

Question 4

What’s the FEDERAL BLOOD ALCOHOL LIMIT (BAC) for driving?

Answer 4

0.08%—but in B.C., they tighten the belt at 0.05%!

Question 5

What happens if you’re convicted of a CRIMINAL DRIVING OFFENCE and have INSURANCE?

Answer 5

Your INSURANCE COMPANY might DENY COVERAGE. Bad choices = big consequences.

Question 6

What does PROVINCIAL and TERRITORIAL LEGISLATION cover?

Answer 6

EDUCATION, PROPERTY, HEALTH, and—most importantly for drivers—ROAD RULES and AUTOMOBILE INSURANCE.

Question 7

What are some PROVINCIAL ROAD RULES?

Answer 7

SPEED LIMITS, TRAFFIC LIGHTS, STOP SIGNS, and RIGHT-OF-WAY RULES. Ignore them, and you’ll meet the ticket fairy.

Question 8

Can your insurance company DENY COVERAGE for PROVINCIAL DRIVING OFFENCES?

Answer 8

Not usually—unless there’s a POLICY EXCLUSION. Read the fine print!

Question 9

What do MUNICIPAL GOVERNMENTS handle?

Answer 9

LOCAL MATTERS like ZONING, SMOKING LAWS, ANIMAL CONTROL, and CONSTRUCTION PERMITS. Also, PARKING, SPEED LIMITS, and CROSSWALKS.

Question 10

Can you lose INSURANCE COVERAGE for breaking a MUNICIPAL BYLAW?

Answer 10

Not unless there’s a POLICY EXCLUSION. Your bad parking won’t cancel your coverage, but it will annoy your neighbors.

Question 11

What are possible PENALTIES for breaking AUTO LAWS?

Answer 11

FINES, DEMERIT POINTS, TEMPORARY LICENSE LOSS, IMPRISONMENT, or ALL OF THE ABOVE. Choose your adventure wisely.

Question 12

Why should you care about AUTO LAWS?

Answer 12

To avoid FINANCIAL RUIN, JAIL, or just the embarrassment of losing your license and begging for rides.

Question 13

Why was AUTOMOBILE INSURANCE created?

Answer 13

To PROTECT drivers from FINANCIAL RUIN caused by accidents, theft, or lawsuits.

Because car crashes and lawsuits are expensive hobbies.

Question 14

How does INSURANCE work?

Answer 14

Everyone PAYS INTO A POOL, and the unlucky few who suffer LOSSES get compensated. It’s like a group project where only some people take the hit.

Question 15

Why did AUTO INSURANCE evolve over time?

Answer 15

More CARS → Better ROADS → FASTER CARS → MORE ACCIDENTS → More NEED for INSURANCE. A never-ending cycle!

Question 16

What are the MAIN EXPOSURES that car owners face?

Answer 16

ACCIDENTS, THEFT, FIRE, and LAWSUITS.

Basically, everything that makes owning a car stressful.

Question 17

What’s WORSE than your car being wrecked?

Answer 17

LIFE-CHANGING INJURIES that stop you from WORKING and supporting your family.

Question 18

What if the person who CAUSED the accident is BROKE?

Answer 18

You might SUE them, but if they have NO MONEY, good luck collecting anything. That’s where insurance steps in!

Question 19

What happens if YOU cause an accident that injures or kills someone?

Answer 19

You could be SUED for MILLIONS, ruining your finances forever.

Goodbye house, hello debt!

Question 20

Why is the THREAT of a LAWSUIT a big deal?

Answer 20

Society is LITIGIOUS—people SUE even when liability isn’t clear. Even if you WIN, legal fees can be massive!

Question 21

How does insurance help in LAWSUITS?

Answer 21

It COVERS LEGAL DEFENCE COSTS and any JUDGMENTS against you.

Because lawyers don’t work for free!

Question 22

What happens if you don’t have insurance and get sued?

Answer 22

You PAY for your own DEFENSE and JUDGMENTS.

Hope you like working forever.

Question 23

What is the PENALTY for driving WITHOUT INSURANCE in Ontario?

Answer 23

FINES from $5,000 to $50,000, plus possible LICENSE SUSPENSION and VEHICLE IMPOUNDMENT.

Basically, a very expensive mistake.

Question 24

Why do some INSURANCE COMPANIES charge HIGHER PREMIUMS for uninsured drivers?

Answer 24

If you’re caught driving UNINSURED, you’re seen as HIGH-RISK.

Like a gambler, but with cars instead of poker chips.

Question 25

What happens if you're INJURED while driving an UNINSURED vehicle?

Answer 25

You may get NO ACCIDENT BENEFITS and NO RIGHT to SUE for compensation. ## Footnote Ouch—twice.

Question 26

What happens if YOU cause an accident while UNINSURED?

Answer 26

You could be held PERSONALLY RESPONSIBLE for all medical and damage costs. ## Footnote Say hello to lifelong debt.

Question 27

How did MANDATORY INSURANCE LAWS lead to STANDARDIZED POLICY FORMS?

Answer 27

They forced insurers to use the SAME WORDING and TERMS across provinces, ensuring consistency. ## Footnote No sneaky fine print surprises.

Question 28

What is SPF 1?

Answer 28

STANDARD OWNER’S AUTO POLICY—covers VEHICLE OWNERS for personal or commercial use.

Question 29

What is SPF 2?

Answer 29

STANDARD DRIVER’S AUTO POLICY—covers DRIVERS using vehicles THEY DON’T OWN.

Question 30

What is SPF 4?

Answer 30

STANDARD GARAGE POLICY—covers AUTO BUSINESSES like dealerships, repair shops, and parking lots.

Question 31

What is SPF 6?

Answer 31

STANDARD NON-OWNED AUTO POLICY—covers LIABILITY when using a vehicle YOU DON’T OWN.

Question 32

What is SPF 7?

Answer 32

EXCESS AUTO POLICY—provides EXTRA LIABILITY COVERAGE beyond a standard policy.

Question 33

What is SPF 8?

Answer 33

LESSOR’S CONTINGENT POLICY—covers businesses that LEASE vehicles long-term.

Question 34

What is SPF 9?

Answer 34

TRANSPORTATION NETWORK POLICY—covers RIDESHARE VEHICLES (like Uber).

Question 35

What is QPF 5, and where is it used?

Answer 35

REPLACEMENT INSURANCE for NEW VEHICLES, sold in QUEBEC ONLY.

Question 36

How do GOVERNMENT INSURANCE plans work?

Answer 36

In provinces like BC and Manitoba, the VEHICLE REGISTRATION or DRIVER’S LICENSE serves as PROOF of BASIC INSURANCE.

Question 37

What’s the difference between CONTINGENT and EXCESS INSURANCE?

Answer 37

CONTINGENT applies ONLY IF NO OTHER INSURANCE EXISTS, while EXCESS kicks in AFTER other coverage is EXHAUSTED.

Question 38

What is the POLICY FORM PREFIX used in Ontario?

Answer 38

OAP (Ontario Automobile Policy).

Question 39

What provinces DO NOT ISSUE a basic insurance policy because of government plans?

Answer 39

BC, Manitoba, and Saskatchewan.

Question 40

Which provinces use SPF 1 as their standard auto policy?

Answer 40

Alberta, Northwest Territories, Nunavut, Yukon, Nova Scotia, Newfoundland & Labrador, and PEI.

Question 41

What is the Quebec equivalent of SPF 1?

Answer 41

QPF 1 (Quebec Policy Form 1).

Question 42

What LAW requires vehicle owners to have insurance in Ontario?

Answer 42

The COMPULSORY AUTOMOBILE INSURANCE ACT. ## Footnote Basically, no insurance = no legal driving.

Question 43

What is the primary PROOF of insurance in most provinces?

Answer 43

MOTOR VEHICLE LIABILITY CARDS, also known as 'PINK CARDS.'

Question 44

What serves as PROOF OF INSURANCE in provinces with GOVERNMENT insurance?

Answer 44

VEHICLE REGISTRATION. ## Footnote No separate insurance card needed.

Question 45

Why are MOTOR VEHICLE LIABILITY CARDS called “PINK CARDS”?

Answer 45

They were traditionally printed on PINK PAPER. ## Footnote Classic, but now often digital.

Question 46

What is an ELECTRONIC PROOF OF AUTO INSURANCE (EPAI)?

Answer 46

A DIGITAL version of an insurance card, also called an 'eSlip.'

Question 47

What province was the FIRST in Canada to allow ELECTRONIC INSURANCE PROOF?

Answer 47

NOVA SCOTIA (in 2018).

Question 48

What is the ONLY Canadian jurisdiction that has NOT approved ELECTRONIC PROOF OF INSURANCE?

Answer 48

NUNAVUT.

Question 49

What are some CONCERNS about switching to ELECTRONIC INSURANCE CARDS?

Answer 49

PRIVACY (handing a phone to police), FRAUD, and TECHNICAL ISSUES.

Question 50

What INFO does a MOTOR VEHICLE LIABILITY CARD display?

Answer 50

Insured’s NAME & ADDRESS, Insurer’s DETAILS, Agent/Broker INFO, Vehicle DESCRIPTION, POLICY NUMBER, and POLICY TERM.

Question 51

What are the THREE TYPES of INSURANCE CARDS?

Answer 51

TEMPORARY (valid for 30 days, 21 in Quebec), PERMANENT (valid until policy expiry), ENDORSEMENT (for changes in vehicle or address).

Question 52

What happens if you USE an INVALID insurance card?

Answer 52

You may face FINES, IMPRISONMENT, or a LICENSE SUSPENSION. ## Footnote Not worth it!

Question 53

What is PROOF OF FINANCIAL RESPONSIBILITY?

Answer 53

A certificate filed by an INSURER proving a person meets MINIMUM INSURANCE REQUIREMENTS.

Question 54

When might someone be required to file PROOF OF FINANCIAL RESPONSIBILITY?

Answer 54

After a CRIMINAL CODE conviction, an ACCIDENT while UNINSURED, or if they are a HIGH-RISK driver (e.g., underage or elderly).

Question 55

How can someone file PROOF OF FINANCIAL RESPONSIBILITY without owning a vehicle?

Answer 55

By purchasing a DRIVER’S POLICY (non-owned automobile coverage).

Question 56

What are ALTERNATIVE WAYS to prove financial responsibility?

Answer 56

Surety Bonds (filed by a licensed surety company) or Cash/Securities Deposits equal to the minimum required insurance.

Question 57

Who typically uses CASH or SURETY BONDS as proof of financial responsibility?

Answer 57

CORPORATIONS, not individual drivers.

Question 58

Who has the authority to make AUTOMOBILE LAWS in Canada?

Answer 58

The FEDERAL, PROVINCIAL/TERRITORIAL, and MUNICIPAL governments.

Question 59

What does the FEDERAL GOVERNMENT regulate in relation to automobiles?

Answer 59

It oversees CANADA-WIDE matters, including the CRIMINAL CODE, which covers driving offenses.

Question 60

What do the PROVINCIAL and TERRITORIAL governments regulate?

Answer 60

They set RULES OF THE ROAD and govern AUTOMOBILE INSURANCE policies.

Question 61

What can MUNICIPAL governments regulate regarding automobiles?

Answer 61

LOCAL BYLAWS, including SPEED LIMITS within their jurisdiction.

Question 62

What are the TWO MAIN financial risks for VEHICLE OWNERS?

Answer 62

PHYSICAL DAMAGE losses to their vehicle and LIABILITY if they cause an accident.

Question 63

How does AUTOMOBILE INSURANCE help vehicle owners?

Answer 63

It COVERS some financial losses in exchange for a PREMIUM.

Question 64

Who regulates AUTOMOBILE INSURANCE in Canada?

Answer 64

PROVINCIAL and TERRITORIAL governments.

Question 65

What is the SPF 1 BASIC AUTOMOBILE POLICY?

Answer 65

The STANDARD POLICY FORM used in all provinces and territories for both PERSONAL and COMMERCIAL vehicles.

Question 66

How many STANDARD POLICY FORMS exist for different insurance needs?

Answer 66

SEVEN, each covering different situations like garage businesses, non-owned vehicles, and excess liability.

Question 67

Do provinces with MANDATORY GOVERNMENT INSURANCE issue a standard policy?

Answer 67

No, instead, vehicle registration serves as proof of insurance.

Question 68

What is a MOTOR VEHICLE LIABILITY CARD used for?

Answer 68

PROOF of THIRD-PARTY LIABILITY insurance.

Question 69

Where should a MOTOR VEHICLE LIABILITY CARD be kept?

Answer 69

Inside the insured vehicle, so it can be shown to police if requested.

Question 70

What details are shown on a MOTOR VEHICLE LIABILITY CARD?

Answer 70

Insured’s NAME & ADDRESS, Insurer’s INFO, Agent/Broker INFO, Vehicle DESCRIPTION, Policy NUMBER, and Policy TERM.

Question 71

Can drivers use ELECTRONIC PROOF of insurance?

Answer 71

Yes, in most provinces/territories that allow eSlips on smartphones.