Caib 3 - Chapter 3 - Auto

Front 1

What are two sources of automobile insurance in Canada

Back 1

1. Private Insurers

2. Government Insurers

Front 2

What do the following abbreviation's mean?

S.P.F. & S.E.F.

Back 2

1. S.P.F. - Standard Policy Form

2. S.E.F.- Standard Endorsement Policy

Front 3

Which three common law provinces currently have government automobile schemes?

Back 3

1. BC

2. Sask

3. Man

Front 4

Identify the minimum amount of third party liability insurance required in common law provinces?

Back 4

$200,000

Front 5

S.E.F. No. 44 Family Protection Endorsement provides valuable coverage for insured's. When will this endorsement respond to bodily injury losses of insured's?

Back 5

This endorsement will respond when insured's are injured or killed by an uninsured motorist

Front 6

S.E.F. No. 44 Family Protection Endorsement provides valuable coverage for insured's. How does this endorsement operate?

Back 6

This endorsement will raise the third party liability limits of the at fault driver to that of the insured's third party liability limits

Front 7

Indicate how coverage amounts are determined using this endorsement?

Back 7

The SEF No44 Family Protection Endorsement will provide the difference between the insured's Third Party Liability limit and Third Party Liability limit of the at fault driver

Front 8

Your insured has $1M total policy limit coverage with S.E.F. No44 Family protection Endorsement. She is injured by an underinsured driver who only carries $200,000. Your insured successfully sues the responsible party and receives a judgment in the amount of $1M. Indicate amounts paid by the following policies

Back 8

Resp driver $200,000

Insureds policy $800,00

Front 9

Accident Benefits are paid to injured parties on a no fault basis. What does this mean?

Back 9

Accident benefits are available regardless of who is at fault

Front 10

What coverage options are available to insured's when they wish to insure their own automobile?

Back 10

1. All perils

2. Collision or upset

3. Comprehensive

4. Specified Perils

Front 11

What are 2 conditions of coverage found in "Loss of Use by Theft" which is automatically in all auto policies insuring the peril of "theft"

Back 11

1. Coverage is provided for $25-30 per day

2. Coverage is provided up to 30 days

Front 12

How does the S.E.F. No 20 Loss of use endorsement differ by theft coverage?

Back 12

S.E.F. No 20 Loss of Use endorsement will provide coverage for loss of use expenses when insured automobiles are damaged from any insured perils, not just theft

Front 13

What are 2 expenses covered by SEF No#20 Loss of Use Endorsement

Back 13

1 Costs to rent substitute auto

2 cost to use taxi's, or public means of transportation

Front 14

What are the 3 "triggers of coverage" in the SEF No 20 loss of use endorsement?

Back 14

1. When the insured automobile cannot be operated under its own power coverage begins immediately

2. When the insured's automobile is stolen, coverage begins the day following report to police or insurer

3. In all other cases when insured automobile is dropped off for repairs coverage begins

Front 15

Your client rents their car on a short term basis (usually under 2 weeks) What endorsement is needed to provide coverage on these rented automobiles?

Back 15

SEF No 5C Permission to Rent or lease endorsement

Front 16

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

Back 16

1. SPF No 8 Standard lessors contingent automobile policy. This policy will provide coverage on automobiles when lessee fails to maintain coverage on the car required in the lease agreement.

2.SEF 5d Conversion coverage endorsement. this endorsement provides coverage when automobile is lost or damaged resulting from dishonest acts of lessee

Front 17

When renting automobiles on the short term basis in their name, insured's with SPF 1 Owners Form have 2 coverage's which will automatically apply to the short term rental automobiles. What are these two coverage's?

Back 17

1. Third party liability

2. Accident benefits

Front 18

Physical damage coverage on SPF 1 will not extend to cover short term rented automobiles. What options are available to insured's to receive this coverage?

Back 18

1. Purchase coverage from the rental car company

2.Purchase an endorsement on their SPF1 Owners Form

Front 19

Which SEF will provide damage coverage to certain short term rented automobiles?

Back 19

SEF No27 Legal Liability for damage to Non Owned Automobile Endorsement

Front 20

What are the 5 conditions of coverage found in the SEF No 27

Back 20

1. Coverage is restricted to insured and spouse

2.Coverge is for the same perils as are insured on the clients own policy

3. No more than one automobile may be rented or leased by clients or spouses at any time

4. Coverage is restricted to certain types of automobiles

5. Coverage is restricted to amount of $15,000

Front 21

When transporting people or goods for compensation, an unendorsed SPF1 Owners Form will not provide coverage. Indicate if the following the automobiles would be insured

Back 21

1. Autos rented to others- NC

2. Double decker bus - NC

3. Taxis - NC

Front 22

Certain uses of automobiles are allowed when covered by an SPF 1 Owners form even when some compensation is provided.

1 Car pooling where all participants

share driving responsibilities

2. Car pooling where 1 member of the car pool does not own a car, but pays a monthly fee to others in the car pool

Back 22

1. yes

2. No

Front 23

Certain uses of automobiles are allowed when covered by an SPF 1 Owners form even when some compensation is provided.

1.Taking a client to lunch

2. Car used to transport students from school to attend annual music festival

3. Taking your cleaner to the store to buy cleaning supplies

Back 23

1. yes

2. yes

3.yes

Front 24

Identify 2 ways in which insured's may purchase coverage provided by an SPF 6 Standard Non Owned Auto policy

Back 24

1. Clients may purchase a stand alone SPF No6

2. Clients may purchase an endorsement to their CGL

Front 25

Which is the most popular way to obtain SPF6 Non owned auto?

Back 25

Endorse onto clients CGL

Front 26

Identify 3 types of non owned automobiles covered by an SPF 6- standard non owned automobile policy

Back 26

1. Automobiles owned by employees

2. hired automobiles

3. Automobiles operated under contract for cliets

Front 27

What legal standard requires employers to purchase this coverage?

Back 27

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

Front 28

State 3 business that are candidates for the SPF 4 Standard garage policy

Back 28

1.Automobile Dealers

2. Repair garages

3. service stations

Front 29

What is the purpose of an SPF 4 Standard garage Automobile policy?

Back 29

This policy provides coverage for automobile exposures of business involved in automobile businesses.

Front 30

State 5 coverage sections in SPF 4 Standard Garage Automobile Policy

Back 30

1.Section A - Third Part Liability

2. Section B - Accident Benefits

3. Section C Loss of or Damage to Owned Automobiles

4. Section D - Uninsured Motorist Coverage

5. Section E Legal liability for Damage to a customers Automobile in the care custody or control of the insured

Front 31

What are the 2 kinds of automobiles insured by Section A - Third Party Liability

Back 31

1. Owned automobiles

2. Customers automobiles

Front 32

Indicate 3 types of Owned Automobiles covered by Section A - Third Party Liability

Back 32

1. Tow trucks

2. Service loaners

3. Automobiles held for sale

Front 33

State whether the following would be Covered or Not Covered

Automobile used by service manager for business or pleasure

Back 33

Covered

Front 34

State whether the following would be Covered or Not Covered.

A customer's automobile was being driven by a mechanic to determine what repairs are required when she rear ended a taxi

Back 34

Covered

Front 35

State whether the following would be Covered or Not Covered

When test driving an automobile owned by garage, a customer ran over 2 pedestrians

Back 35

Covered

Front 36

State whether the following would be Covered or Not Covered

An automobile owned by a garage is used by owners son while attending school in Calgary

Back 36

Not Covered

Front 37

Non owned automobile exposures exist for most repair garages. State the major source for this exposure

Back 37

Customers automobiles

Front 38

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

Back 38

1. While test driving customers vehicle to determine problems with engine of customers car, clients mechanic runs into pedestrian

2. While driving to customers home to drop off repaired customers automobile, service dept runs over pedestrian

Front 39

What is the usual minimum deductible used in Section C - Loss of or Damage to Owned Automobiles

Back 39

$250.00

Front 40

How are deductible's applied to the following types of losses?

1. Collision or Upset

2. Other Losses

Back 40

1. Deductibles apply to each automobile damage collision or upset

2. For insured losses other than collision or upset, deductibles are applied on an occurrence basis

Front 41

What three types of losses will no deductibles apply?

Back 41

1. Fire

2. Lightening

3. Theft of entire automobile

Front 42

Describe how premium is determined when insured's cover their owned automobiles using a Monthly Average Basis?

Back 42

Provisions premiums are charged based on clients estimate of maximum value of owned automobile during policy year

Front 43

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 was filed four months ago indicated inventory levels at $300,000

2. No report was ever filed and loss occurred in the third month of policy

Back 43

1. $300,000 (amount of last filed report)

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

Front 44

What are the requirements needed to satisfy coverage written on a Co-insurance Basis?

Back 44

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

Front 45

When will Co-Insurance be waived when losses occur?

Back 45

Co-Insurance will be waived when losses are confined to one automobile

Front 46

As bailees, what level of care are garages required to provide their customers?

Back 46

Bailees are required to exercise ordinary care

Front 47

When this level of care is not provided, what could occur

Back 47

When bailees do not exercise ordinary care, they may be found legally liable

Front 48

In Section E- Legal Liability for Damage to a Customers Automobile while in the care, custody or control of the insured?

Back 48

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

Front 49

What are two 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 49

1. Collision or Upset

2. Specified Perils (Excluding open lot Pilferage)

Front 50

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 50

SEF No 77, Legal Liability for Comprehensive Damage to Customers Automobiles Endorsement (Including Open Lot Pilferage)

Front 51

What endorsement may be purchased to provide payment for damages to customers automobiles regardless of legal liability?

Back 51

Waiver of Legal Liability Endorsement

Front 52

How does this endorsement help maintain happy customers?

Back 52

This endorsement helps maintain good will by providing coverage for damage to customers automobiles regardless of legal liability.