Caib 3 Chapter 3

Front 1

wht are 2 sources of automobile insurance in canada

Back 1

- private insurers

- government insureres

Front 2

what does s.p.f stand for

Back 2

standard policy form

Front 3

what does s.e.f stand for

Back 3

standard endorsement form

Front 4

which 3 common law provinces currently have government automobile schemes

Back 4

-bc

-saskatchewan

-manitobia

Front 5

identify the minium amount of TPL required in common law provinces

Back 5

$200,000

Front 6

s.e.f. 44 family protection endorsement provides valuable coverage for insureds. when will this endorsement respond to bodily injury losses of insureds

Back 6

this endorsement will respond when insureds are injured or killed by an under-insured motorist on uninsured motorist

Front 7

how does the SEF 44 operate

Back 7

this endorsement will raise the tpl limits of the at fault opperator to the amount of the insureds tpl limits

Front 8

indicate how coverage amounts are determined using this sef 44

Back 8

the sef 44 family protection endorsement will provide the difference between the insureds tpl limit and the tpl limit of the at fault driver

Front 9

your insured has $1,000,000 tpl coverage with the sef 44. she is injured by an inderinured driver who only carries $200,000 in tpl coverage. your insured successfully sues the responsible party and recieves a judgment in the amount of $1,000,000 indicate the amounts paid by the following policies :

A)responsible drivers

B)insureds policy

Back 9

A) $200,000

B)$800,000

Front 10

accident benefits are paid to injured parties on a no fault basis. what does this mean

Back 10

accident benefits are available regardless of who is at fault

Front 11

what coverage options are available to insured when they wish to insure their own automobile

Back 11

-all perils

-collision or upset

-comprehensive

-specified perils

Front 12

what are the 2 conditions of coverage found in loss of use by theft which is included automatically in all automobile policies insuring the peril of theft

Back 12

- coverage is provided for 25-30$ per day

- coverage is provided for up to 30 days

Front 13

how does the s.e.f. no 20 loss of use endorsement differ from the loss of use by theft coverage?

Back 13

s.e.f no 20 loss of use endorsement will provide coverage for loss of use expenses when insured automobiles are damages from any insured perils, not just left

Front 14

what are 2 expenses covered by the s.e.f no 20 loss of use endorsement

Back 14

-costs to rent substitute automobile

-costs to use taxicabs or public means of transportation

Front 15

what are the 3 triggers of coverage in the s.e.f. no 20 loss of use endorsement

Back 15

-when insured automobile cannot be operated under its own power, coverage begins immediately

-when insures automobile is stolen coverage begins day following report to police or insurer

-in all other cases when insured automobile is dropped off for repairs coverage begins

Front 16

your client rents their automobiles on a long term basis (usually under 2 weeks) what endorsement is needed to provide coverage on these rented auto mobiles

Back 16

s.e.f no 5c permission to rent of lease endorsement

Front 17

your client leases their automobiles on a long term basis ( usually 2-3 years ) what endorsement is needed to provide coverage on these leased automobiles

Back 17

s.e.f no 5 permission to rent or lease endorsement

Front 18

identify and explain other 2 coverage's that should be purchased by businesses leasing automobiles on long term leases

Back 18

-s.p.f no 8 standard lessors contingent automobile policy (this policy will provide coverage on automobiles when lessee fails to maintain coverage on automobile required on lease agreement)

-s.e.f. no 5d conversion coverage endorsement ( this endorsement provides coverage when automobile is lost or damaged resulting from dishonest acts of lessee)

Front 19

when renting automobiles on the short term basis in their name, insureds with an s.p.f no1 owners form have 2 coverages which will automatically apply to the short term rental automobiles. what are these 2 coverages

Back 19

-third party liability

-accident benefits

Front 20

physical coverage on s.p.f no 1 will NOT extend to cover short term rented automobiles. what options are available to insureds to receive this coverage

Back 20

-purchase coverage from the rental car company

- purchase and endorsement on their s.p.f. no 1 owners form

Front 21

which s.e.f. will provide physical damage coverage to certain short term rented automobiles

Back 21

s.e.f. no 27 legal liability for damage to non-owned automobile endorsement

Front 22

what are the 5 conditions of coverage found in the s.e.f. no 27 legal liability for damage to non owned automobile endorsement

Back 22

-coverage is restricted to insured and spouse

-coverage is for the same perils as are insured on the clients own policy

-no more than 1 automobile may be rented or leased by clients or spouses and any time

-coverage is restricted to certain types of automobiles

-coverage is restricted as to amount

Front 23

identify 2 ways in which insureds may purchase coverage provided by an s.p.f. no6 standard non owned automobile policy

Back 23

-clients may purchase an stand alone s.p.f. no 6

- clients may purchase an endorsement to their cgl

Front 24

which method to obtain coverage under an s.p.f. no 6 is the most popuar

Back 24

endorsing to their cgls

Front 25

identify 3 types of non- owned automobiles covered by an s.p.f. no 6 standard non owned automobile policy

Back 25

-automobiles owned by employees

-hired automobiles

-automobiles operated under contract for clients

Front 26

what legal standard requires employers to purchase this coverage

Back 26

employers are responsible for actions of employees while acting in normal course of their employment ( driving to bank to make employers deposit using their own automobile)

Front 27

state 3 businesses that are candidates for and s.p.f. no 4 standard garage automobile policy

Back 27

-automobile dealers

-repair garages

- service stations

Front 28

what is the purpose of an s.p.f. no 4 standard garage automobile policy

Back 28

this policy provides coverage for automobile exposures of business involved in automobile businesses

Front 29

state 5 sections in an s.p.f. no 4 standard garage automobile policy

Back 29

-section a -third party liability

-section b - accident benefits

-section c - loss of or damage to owned automobiles

-section d - uninsured motorist coverage

- section e - legal liability for damage to a customers automobile in the care custody or control of the insured

Front 30

what are the 2 kinds of automobiles insured by section a - third party liability

Back 30

-owned automobiles

-customers automobiles

Front 31

indicate 3 types of owned automobiles covered by section a - third party liability

Back 31

-tow trucks

-service loaners

- automobiles held for sale.

Front 32

non-owned automobile exposures exist for most repair garages. state the major source for this exposure

Back 32

customer's automobiles

Front 33

identify 2 situations where non-owned automobiles could cause a third party liability loss

Back 33

-while test driving customers automobile to determine problems with engine of customers car, clients mechanic runs into pedestrian

-while driving to customers home to drop off repaired vehicle, employee runs over pedesrian

Front 34

what is the usual minimum deductible used in section c - loss of or damage to owned automobiles

Back 34

$250

Front 35

how are deductibles applied to the following types of losses

1) collision or upset

2) other losses

Back 35

1) deductible applies to each automobile damaged by collision or upset

2) deductible is applied on an occurrence basis

Front 36

what 3 types of losses will no deductible apply

Back 36

-fire

-lightening

-theft of entire automobile

Front 37

describe how premium is determined when insureds cover their owned automobiles using a monthly average basis

Back 37

provisional premiums are charged based on clients estimate of maximum value of owned automobiles during policy year

Front 38

your insured suffered a severe hail loss to owned automobiles being held for sale. his policy limit was $500,000 on a monthly average basis. determine amount payable in the following situations

1) last report files was 4 months ago indicated inventory levels at $300,000

2) no report was ever filed and loss occurred in the 3rd month of polocy

Back 38

1) $300,000

2) $ 375,000 ( 75% of amount of insurance)

Front 39

what are the requirements needed to satisfy coverage written on a co insurance basis

Back 39

clients are required to insure at least 80% of the value of owned automobiles

Front 40

when will co-insurance be waived when losses occur

Back 40

co-insurance will be waived when losses are confined to 1 automobile

Front 41

as bailees what level of care are garages required o provide their customers

Back 41

bailees are required to exercise ordinary care

Front 42

when ordinary care is not provided from bailees, what could occur

Back 42

when bailees do not exercise ordinary care they could be found legally liable

Front 43

in section e- legal liability for damage to a customers automobile while in the care custody and control of the insured when will coverage respond

Back 43

this section will provide coverage when clients have been deemed to be legally liable for damage to customers automobile

Front 44

what are 2 coverage options available in section e - legal liability for damage to a customers automobile while in the care custody or control of the insured

Back 44

-collision or upset

-specified perils(excluding open lot theft)

Front 45

what endorsement is available to enhance coverage in section e - legal liability for damage to a customers automobile while in the care custody or control of the insured

Back 45

s.e.f. no 77 legal liability for comprehensive damage to customers automobiles endorsement (including open lot theft)

Front 46

what endorsement may be purchased to provide payment for damages to customers automobiles regardless legal liability

Back 46

waiver of legal liability endorsement

Front 47

how does the waiver of legal liability endorsement help maintain happy customers

Back 47

this endorsement helps maintain goodwill by providing coverage for damage to customers automobiles regardless of legal liability