Chapter 12 British Columbia and Saskatchewan Plans Key Point

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Hirose187
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Chapter 12 British Columbia and Saskatchewan Plans Key Point
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2014-03-12 17:11:33
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Chapter 12 British Columbia Saskatchewan Plans Key Point
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Chapter 12 British Columbia and Saskatchewan Plans Key Point
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  1. What is a major difference between a Crown corporation and a private insurer?
    Crown corporation are the sole providers of certain basic coverages within the province of operation; however their main objective is the same as the private insurers - to protect automobile owners and drivers, as well as innocent third parties, against losses arising out of automobile accidents.
  2. How does the main objective of a Crown corporation compare to that of a private insurer in a province such as alberta?
    The Crown corporation's main objective is the same as that of private insurers - to protect automobile owners and drivers, as well as innocent third parties, against losses arising out of automobile accidents.
  3. What is an extension policy?
  4. What legislation usually governs automobile insurance in a given province?
    Coverage is enshrined in legislation such as provincial Insurance Acts, Motor Vehicle Acts, and specific Automobile Insurance Acts supplemented by detailed Regulations. The provincial legislation regulating automobile insurance specifies the basic coverage limits and deductibles, where applicable, that must be carried by motorist.
  5. Why would an insured purchase extension insurance?
    additional coverages, including higher limits and lower deductibles.
  6. How is extension/optional insurance provided in each of British Columbia and Manitoba?
    In Manitoba, no policy is issued if the additional coverages are purchased from the government insurer; In Saskatchewan and B.C. both private insurers and the government insurer issue extension policies.
  7. Which province introduced the first government automobile insurance plan?
    Saskatchewan was the first province to develop a government insurance plan when the Automobile Accident Insurance Act was introduced in 1946.
  8. When is the premium paid?
    Vehicle owners are charged a basic premium when they register their vehicle. Owners may earn discounts to this basic premium for each year of driving without an at-fault claim.
  9. What is ICBC and what is its mandate?
    Insurance Corporation of British Columbia (ICBC or Corporation) is the sole provider of the mandated basic automobile insurance coverage known as basic Autoplan. It also provides driver licensing, vehicle licensing, and vehicle registration services on behalf of the provincial government.

    The Corporation was set up when the Insurance Corporation of British Columbia Act was passed in 1973. At the same time, the Automobile Insurance( Motor Vehicle) Act was passed to set up Autoplan. Vehicle owners must purchase basic Autoplan insurance when they pruchase vehicle license plates. However, certain vehicles are exempt from Autoplan.
  10. What is the basic automobile insurance plan called in British Columbia?
    Autoplan
  11. State the basic mandatory automobile insurance coverage in British Columbia?
    Basic Autoplan covers the owner of the insured vehicle and any other authorized licensed driver for basic limits of Third Party Liability coverage and provides no-fault Accident Benefits. Claimants must first accept or waive no-fault Accident Benefits available before exercising their tort right under the coverage.
  12. What is liability of vehicle owners or operators based upon in British Columbia?
    In B.C., liability of vehicle owners or operators to their passengers is based on ordinary negligence - whether the passenger is carried for compensation or gratuitously.
  13. How does a vehicle owner in B.C. insure the vehicle against physical damage?  
    Higher liability limits, higher Accident Benefits limits, and physical damage coverage may be purchased from ICBC or from private insurers.

    Optional insurance to increase to increase limits, cover physical damage to the vehicle, or cover additional perils and exposures may be purchased from Autoplan or from private insurers.
  14. What serves as proof of insurance in British Columbia?
    The vehicle registration serves as evidence of insurance, and the license plate number serves as the ICBC policy.
  15. Are lawsuits for injuries arising from automobile accidents permitted in British Columbia? If so, what must injured persons do before they exercise their tort right?
    Lawsuits are permitted in B.C. for injuries arising from automobile accidents. Before person A can sue Person B, person A must first exhaust all the coverage to which person A is entitled under Accident Benefits or waive his claim under Accident Benefits.

    If person A exhausts their coverage under Accident Benefits, sues person B, and is awarded an amount, it will be paid by Autoplan on behalf of person B( person B's Third Party Liability coverage). But the Accident Benefits that person A has already received will be deducted from the amount paid. If person A waives the Accident Benefits, sues, and loses his action, person A will be paid nothing.
  16. When is the premium paid?
    An insurance premium is payable on every motor vehicle license at the time the license plate is purchased.
  17. What is the Personal Injury Protection Plan(PIPP)?
    The Personal Injury Protection Plan(PIPP), a no-fault personal injury benefits plan now referred to as the No-Fault Plan, came into effect on January 1,1995.

    - It provides substantial limits for income replacement; rehabilitation coverage; medical, travel and personal expenses; living assistance; permanent impairment payments; and death benefits and funeral expense payments. It limits the right to sue a third party motorist to recover such expenses to amounts in excess of the limits provided by the Regulations. Even higher limits may be purchased from SGI Canada (the fully competitive arm of SGI selling property and casualty insurance products such as home, farm, business, and extension automobile) or from private insurers.
  18. What is the difference in function between SGI and SGI CANADA?
    SGI: provides basic license plate insurance.

    SGI Canada: is the competitive arm of SGI and provides extension insurance.
  19. What does comprehensive coverage include?
    In Saskatchewan, comprehensive insurance includes collision and upset, thus making it similar to all perils coverage under a standard automobile policy. It is subject to a deductible, the amount of which depends on the vehicle class.
  20. What is license plate insurance?
    A basic summary of the basic license plate insurance and the additional protection available from SGI Canada follows. In some cases, protection not provided by the basic license plate insurance may be purchased as extension insurance; in other cases limits may be increased or deductibles reduced by purchasing extension insurance.
  21. What is compulsory automobile insurance plan called in Saskatchewan?
    Basic License Plate Insurance
  22. What coverages are mandatory in Saskatchewan?
    Basic Plate Insurance

    Coverage:

    3rd party liability: 200,000

    Comprehensive:

    - covers collision , upset, and damage caused to the vehicle by specified perils, such as, theft and vandalism

    - Coverage is subject to a deductible, the amount of which depends on the class of vehicle covered.

    Bodily injury benefits (no-fault option):

    - Includes the following coverages, which are subject to various limits and conditions:

    - income benefits

    - rehabilitation coverage

    - medical, travel, and personal expenses

    - living assistance

    - permanent impairment payments

    - death benefits and funeral expenses



    - Coverages limits under the no-fault option are greater than under the tort option, however, the insured's right to sue is severely limited.


    Bodily injury benefits (tort option)

    - Includes the following coverages, which are subject to various limits and conditions:

    - income benefits

    - medical and rehabilitation coverage

    - permanent impairment payments

    - death benefits and funeral expenses



    - Coverage limits are lower than under the no-fault option, because an insured person not responsible for the collision can sue those responsible for expenses above the package of benefits and for pain and suffering.
  23. What limitations are there on the right to sue a 3rd party motorist for expenses arising out of injuries suffered in an automobile accident?
    • Coverage limits are lower than under the no-fault option, because an insured person not responsible for the collision can sue those
    • responsible for expenses above the package of benefits and for pain and suffering.
  24. Identify the difference between the no-fault Accident Benefits and the tort Accident Benefits.
    Bodily injury benefits (no-fault option):

    - Includes the following coverages, which are subject to various limits and conditions:

    - income benefits

    - rehabilitation coverage

    - medical, travel, and personal expenses

    - living assistance

    - permanent impairment payments

    - death benefits and funeral expenses



    - Coverages limits under the no-fault option are greater than under the tort option, however, the insured's right to sue is severely limited.


    Bodily injury benefits (tort option)

    - Includes the following coverages, which are subject to various limits and conditions:

    - income benefits

    - medical and rehabilitation coverage

    - permanent impairment payments

    - death benefits and funeral expenses



    - Coverage limits are lower than under the no-fault option, because an insured person not responsible for the collision can sue those responsible for expenses above the package of benefits and for pain and suffering.
  25. When do the tort Accident Benefits apply?

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