Chapter 8 Endorsements Model Narrative Questions

a) Drive Other Automobiles (MSEF 2)

• - The purpose of this endorsement is to expand on the definition of insured person for the purpose of 3rd party liability when operating a non-owned
•      
•       - or other automobile.

- The Standard wording restricts coverage to named insured

      - and spouse only.

- This endorsement allows drivers that are listed on the endorsement to have the benefit of 3rd Party Liability coverage while operating other automobiles

      - or non-owned automobiles.

- It amends the definition of automobile in the General Provisions of the policy.


b) Amphibious Vehicles (MSEF 9)

- Amphibious vehicles are insured for the automobile part of the risk under an Owner's Policy.

- Since the water risk involved with these vehicles is quite different and there are differences in the laws pertaining to land

    - and water transportation,

    - only the automobile risk is insured under the policy,

- The water risk would be insurable under another form of policy, 

    - therefore, an endorsement is attached to the policy excluding coverage for the marine use of the vehicle.


c) Restricting Glass Coverage

- Glass claims use up a good part of Comprehensive premiums.

- Where gravel roads are common, the incidence of glass claims is high.

- Insurers offer reduced premiums when this endorsement is used to limit glass cover under Comprehensive to Specified Perils which do not include damage caused by gravel and stones.

- Sometimes underwriters may insist on this endorsement if an insured makes frequent glass claims.

Family Protection Endorsement (MSEF 44)

- This endorsement was originally called the Underinsured Motorist Endorsement.

- It was designed to protect innocent victims who suffer serious injury or death as a result of the negligence of an inadequately insured motorist.

- Where defined insured persons cannot make full recovery from such a motorist the insurer will pay the shortfall under the insured's own policy.

Since the introduction of the Personal Injury Protection Plan (PIPP) and the abolition of the right to sue for injuries sustained in motor vehicle accidents this coverage has become more or less redundant in Manitoba,

    - and is not available under basic or optional Autopac.

- It is available as an endorsement to an MSPF 1 policy for risks such as Extra Provincial Commercial Vehicles

    - and Off-Road Vehicles.

- It is still an important part of an automobile insurance policy in tort provinces

    - and is required knowledge for anyone dealing in auto insurance.

- "Insured person" is defined as the named insured

•     - and his or her spouse 
•     
•     - and any dependent relatives of either while

           - an occupant of the insured automobile;

           - an occupant of another automobile provided it is not owned or leased by the insured and it is not covered by a Family Protection Endorsement;

           - not an occupant of an automobile (e.g. as a pedestrian or cyclist).


- Similar provisions apply when the insured is a business and the vehicle is provided to employees.

- The limit is the Section A - 3rd Party Liability coverage limit

     - or the limit shown in the endorsement.

- It is important to note that this endorsement tops up the limit of Uninsured Motorist Cover from the minimum $200,000 limit to the endorsement limit.

- The endorsement now closely follows the same provisions for "unidentified motorists" 

     - as does the Uninsured Motorist Section of the policy.

a) Government-Owned Automobiles (MSEF 3)

- You would recommend the Government-Owned Automobile endorsement because when an insured also drives a government-owned automobile, a special situation arises because the federal and provincial governments do not carry automobile insurance.

- The insured may have his or her Owner's Policy endorsed to provide coverage against liability imposed by law

     - or assumed under contract or agreement for loss or damage arising from one of the perils insured against.

- The perils are specified in the endorsement and are the same as those set out in the Owner's Policy.

- Notice that the person covered by this endorsement is the insured (which includes the spouse, and any other person who, with the consent of the insured, personally drives the automobile),

    - and not the government authority that actually owns the automobile.

In effect, this endorsement provides a form of non-owned coverage for particular circumstances when the insured drives government automobiles.

- In order to claim under this coverage, one would need to prove negligence (or alternatively, assumption of liability under an agreement or contract) 

    - and that the peril insured against happened.

- The following special conditions apply to this endorsement:

- no more than one automobile owned by the government is in the care of the insured at one time; and

- coverage under this endorsement is subject to a limit per occurence under the physical damage section.


b) Suspension and Reinstatement of Coverage

- You would recommend the Suspension and Reinstatement of Coverage endorsement.

- This endorsement is available to provide for suspension of coverage at any time of the year.

- This may occur when an insured wishes to park a favourite automobile for the winter

    - or an insured takes an extended vacation and will not be operating his or her vehicle.

- This endorsement suspends coverage in relation to the use or operation of the described, newly acquired

    - and temporary substitute automobile.

- However, it maintains coverage in full force for liabilities arising from the "ownership" of a described automobile while it is parked and struck by another insured automobile

    - and also maintains coverage operations of other automobiles (non-owned),

    - as well as Accident Benefits coverage while named insured,

    - spouse,

    - and dependents,

    - and listed drivers are injured as occupants of a non-owned automobile, 

    - or struck by an uninsured non-owned automobile.


- The suspended policy will remain in force for primary liability insurance, in the event the insured is driving a non-owned uninsured vehicle.

    - and as excess insurance, if he drives an insured vehicle.

- As for Accident Benefits, the policy will be primary where there is no other insurance.

- Another endorsement is available to reinstate coverage.


c) Motorized Recreational Vehicles (MSEF 32) 

- You would recommend the Motorized Recreational Vehicle endorsement as when motorized recreational vehicles - snowmobiles,

     - dirt bikes,

     - ATVs, etc. are covered under an automobile policy, an endorsement is required to waive compliance with the Statutory Condition pertaining to qualification,

- This type of vehicle is normally operated off the highway and often by under-age and unlicensed operators.

- Special laws exist pertaining to the use and operation of recreational vehicles.

- "Recreational vehicle" and "public highway" are defined in the endorsement.