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  1. Transport trucks, private passenger vehicles, motorcycles - what automobile policy may insure all of these vehicles and others?
    Owner's Policy
  2. How might the task of rating as described in C14 for personal automobile insurance become unduly onerous for comemrcial automobile?
    • The rating task would become huge if one had to gather such information on every driver for a commercial risk that has 20 automobiles. Such a risk could have 20 drivers; a few occosional drivers; other personnel, such as the principal of the company, who might occasionally operate a vehicle; and some turnover of drivers.
    • The rating process would be so inefficient that one would have difficulty finding an insurer willing to accept the risk.
  3. Summarize the provisions of the Owner's Policy.
    Third-party Liability - damage to the property of others arising out of the ownership, use, or operation of the automobile.

    Accident Benefits - providees specified amounts of money for immediate expenses resulting from injuries arising out of the ownership, use, or operation of the automobile.

    Uninsured Automobile Coverage - uninsured or unidentified drivers.

    Physical damage - insured may buy coverage to protect it against loss or damage caused by collision, fire, theft and a number of other perils.
  4. What does the term "no-fault" mean in the context of Accident Benefits coverage?
    That benefits are provided to an injured insured whether or not that insured is responsible for his or her injuries.
  5. What consideration directly relates to how generous Accident Benefits are in some provinces as compared to others?
    Benefits are more generous in some provinces than others and are directly related to whether an injured party has the right to sue the responsible party in the particular province where the policy has been issued.
  6. What is the first recourse for indemnity for victims of accidents involving uninsured automobiles?
    In some provinces, this section of the policy is the first recourse for insureds injured in accidents. In other provinces, the public fund created to compensate victims of such accidents is their first recourse.
  7. How is compensation provided insureds in those provinces where the right to sue third parties for damages after automobile accidents has been taken away or limited?
    In those provinces, compensation is provided under insureds' own policies for damage to auto and their contents caused by other motorists.
  8. How is the coverage for an insured or his or her spouse driving "other automobiles" limited under the Owner's Policy?
    If the other automobile has a gross vehicle weight of more than 4500 kg. or is used to carry passengers or make commercial deliveries at any time.
  9. Give an example or circumstances for which some commercial risks need coverage that the owner's policy cannot accommodate.
    Employee may operate his or her own automobile at the direction of his or her employer.
  10. Explain the purpose of the following policies:
    - The Garage Automobile Policy
    - The Non-Owned Automobile Policy
    - The Excess Automobile Policy
    - The Lessor's Contingent Automobile Policy
    Garage Auto Policy: provides garage personnel the coverage that the owner's policy excludes. It insures non-owned and customers' automobiles in the care, custody or control of garage personnel. It can also be used to cover personal automobiles owned by the principal and other owned vehicles used in operation of the garage business.

    Non-Owned Auto Policy - provides legal liability coverage to a business entity for automobiles it does not own but may at times use for its business purpose. Often attached to the CGL Policy.

    Excess Auto Policy - provides limits of liability in addition to the limits on underlying auto policies. Often written as part of an umbrellla policy, it may also be added to the CGL policy. As an excess policy it makes its limit of liability available after the limit of liability on an underlying, or primary, auto policy has been exhausted. Can be used for both personal & commercial risks.

    Lessor's Contingent Auto Policy - primary coverage is arranged by the lessee. Owner's policy if properly endorsed will protect both the lessee and the lessor. The lessor's Contingent Auto Policy will protect the lessor, to the extent that the lessor is legally liable as the owner of the auto, shoud the primary policy be terminated or fail to respond. It can be added to the CGL policy.
  11. Define a "commercial automobile".
  12. - a motor vehicle of the truck type or deliver body style
    • - a motor vehicle of the PPV type that has been altered for the transportation of mechandise, equipment, materials or products, or other commercial use;
    • - a motor vehicle of the PPV type used for commercial delivery, driving schools, the transportation of passengers, or funeral, fire or police department services
    • - a motor vehicle of the bus type used to carry passengers along designated routes or on sightseeing trips or outings that does not fall within the defin
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Automobile Insurance Part 2
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