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1. Which of the following statements describes automobile insurance in Quebec? A. Both bodily injury and property damage claims are covered by the Quebec government compensation plan. B. Bodily injury claims are covered by a government compensation plan, and property damage claims are covered by standard automobile policies issued by private insurance companies. ✅ C. Both bodily injury and property damage coverages could be purchased by the insured from either the Quebec government insurer or a private company. D. Both bodily injury and property damage claims are covered by private insurance companies. Rationale: Quebec has a dual system. Bodily injury is handled by a government plan (SAAQ), while property damage is covered by private insurers. 2. In which Canadian province are accident benefits an optional automobile insurance coverage? A. Ontario B. Newfoundland and Labrador ✅ C. Alberta D. Nova Scotia Rationale: Accident benefits are mandatory in most provinces, but they are optional in Newfoundland and Labrador. 3. What term means a method where a group of people form a network to pool their premiums to insure against a risk?
A. Ridesharing B. Insuretech C. Social disruption D. P2P insurance ✅ Rationale: Peer-to-peer (P2P) insurance allows individuals to pool their premiums to cover one another’s losses.
4. How many sections does the Quebec owner’s policy (QPF 1) have? A. 1 B. 2 ✅ C. 3 D. 5 Rationale: QPF 1 includes Section A (civil liability) and Section B (optional damage coverage). 5. Which of the following provinces has a private insurance system with direct compensation? A. Yukon B. British Columbia C. Ontario ✅ D. Saskatchewan Rationale: Ontario is among provinces with private insurance systems and direct compensation arrangements. 6. Which of the following provinces has a private insurance system with tort coverage? A. Northwest Territories ✅ B. British Columbia C. Ontario D. Nova Scotia Rationale: Territories operate under private tort systems , meaning claimants sue for damages rather than use no-fault benefits. 7. What is the name for the government automobile insurance plan in Manitoba?
A. To reduce car prices B. To promote public transit C. To cover damages, injuries, and lawsuits from car accidents ✅ D. To regulate car dealerships Rationale: Automobile insurance was developed to manage risks related to car ownership— vehicle damage , bodily injury , and liability claims.
12. Which of the following would be a municipal bylaw? A. Dangerous driving B. Zoning ✅ C. Rules of the road D. Trade between provinces Rationale: Zoning bylaws regulate land use and are enacted by municipal governments. 13. Who is the defendant in a civil matter? A. Person or organization that is being sued ✅ B. Lawyer defending a person being charged with a crime C. Lawyer prosecuting a person being charged with a crime D. Person bringing the legal action Rationale: The defendant is the party being sued in civil law. 14. Who stands to incur costs if a vehicle is damaged or destroyed in an accident? A. Owner of the vehicle ✅ B. Garage repairing the vehicle C. Tow truck driver D. Bystander Rationale: The vehicle owner bears financial loss unless covered by insurance. 15. Who is the plaintiff in a civil matter? A. Person being sued B. Party who brings a legal action ✅
C. Defence lawyer D. Prosecutor Rationale: The plaintiff is the party initiating the lawsuit.
16. What is the purpose of the standard driver’s automobile policy? A. Provides coverage for drivers of vehicles they don’t own ✅ B. Provides coverage for garages C. Covers businesses for non-owned vehicle liability D. Covers owners for damage to their own cars Rationale: This policy is for individuals who drive but don’t own vehicles. 17. Which of the following best describes contingent insurance? A. Pays after other insurance is used up B. Applies only if no other insurance exists ✅ C. Always responds first D. Drops down after primary insurance limit is reached Rationale: Contingent insurance acts as a backup and only applies when no other coverage is available. 18. Which cars require motor vehicle liability cards? A. Only rental cars B. Only commercial-use vehicles C. All cars ✅ D. Trucks only Rationale: Liability cards are required for all vehicles , proving insurance coverage. 19. Which type of information is included on a motor vehicle liability card? A. Age of driver B. Insurance premium C. Telephone number of insured D. Name and address of insurer ✅
If they are convicted of driving without valid automobile insurance, their insurance company may consider them "high-risk" drivers and charge them higher premiums or refuse to sell them insurance altogether. If they are injured in an accident while driving or occupying an uninsured vehicle, they may be prevented from recovering for the loss: They may not be entitled to receive certain types of accident benefits, and they may not be allowed to sue the at-fault driver for compensation as a result of injuries from the accident. Name and purpose of five standard policy forms - ANSWER SPF 2 standard driver's automobile policy—provides coverage for drivers who are driving vehicles they do not own SPF 4 standard garage automobile policy—provides certain types of automobile-related businesses (generally referred to as garages, but could include dealerships, repair shops, parking operations, and so on) with coverage for owned automobiles, non-owned automobiles, and customers' automobiles SPF 6 standard non-owned automobile policy—provides non-owned automobile insurance where there is responsibility for the use and operation of non-owned vehicles SPF 7 excess automobile policy—provides excess insurance for liability exposures, for use along with an SPF 1, 2, 4, or 6 SPF 8 lessor's contingent automobile policy—provides contingent insurance for businesses that lease vehicles on a long-term basis SPF 9 transportation network policy—covers accidents that arise from the use or operation of the automobile as a transportation network automobile
Information on the motor vehicle liability card (any five of the following) - ANSWER Name and address of insurer Agency/brokerage of insured• Description of insured vehicle Policy number Effective date and expiry date Warning of penalties for the card's misuse Tort systems compensate BASED ON - ANSWER Tort systems compensate victims based on the third party's fault/negligence and provide access to the civil justice system to recover damages. Driver's fault charts ARE USED FOR - ANSWER Driver's fault charts (or similar fault-assessment processes) are used to settle common accident types without the courts. Direct compensation systems allow - ANSWER Direct compensation systems allow people to be compensated by their own insurer for damage caused by a third party. Direct compensation systems limits and goals - ANSWER Access to the civil justice system to recover damages is strictly limited or banned. (Insureds cannot claim against third parties or third parties' insurers.) Goals: less investigation, less subrogation, less litigation, speedier settlements, negotiations with own insurer only, and ultimately cost savings and lower premiums.
c. Under tort systems, there is a $500 deductible for all claims, whether insureds are at fault or not. c. Under tort systems, all claims must be r - ANSWER A.) Under tort systems, when you are found at fault due to negligence for damage to someone else's automobile, that third party looks to you or your insurer for recovery. List FIVE (5) provinces other than Ontario that have automobile insurance systems providing direct compensation for property damage. - ANSWER Provinces that have direct compensation (any five of the following) Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Nova Scotia Prince Edward Island Quebec Explain how automobile damage is compensated under tort automobile insurance systems - ANSWER Automobile damage under tort In a tort system, automobile third-party liability insurance covers the at-fault driver for the legal costs of being sued. Automobile third-party liability insurance also pays for damages awarded to the victim, subject to certain conditions contained in the policy. The amount paid by liability insurance depends on the extent that the driver is found to be responsible for the accident.
If the driver is found to be 100 percent at fault (and the victim is 100 percent not at fault), then the victim is entitled to recover 100 percent of his or her other vehicle damage from the at-fault driver. Damage to the at-fault driver's vehicle will only be covered if optional own damage coverage has been purchased, such as collision or all perils. a) What kind of insurance every B.C. licensed vehicle is required to obtain? b) What does Insurance Companies Act deal with? c) How long is the limitation period which the Insurance (Vehicle) Act provides for optional insurance from ICBC and private insurers? d) Where are the details of Autoplan contained in? - ANSWER a - Basic Autoplan Insurance - TPL, AB, UMP, BVDC b - Federal licensing, Supervision of insurance companies, Solvency standards for insurers c - Two years d - the Insurance (Vehicle) regulation What kind of optional coverage is available for purchase both from ICBC and from private insurers that operate in B.C.? - ANSWER Coverages for loss or damage to the insured vehicle; Increased limits for Third Party Liability coverages; Special policies to cover certain kinds of risks such as vintage vehicles; Coverage for loss of use of the vehicle and
An individual who has consent from the owner or lives with the owner and uses the vehicle describes in the owner's certificate. When the owner dies the person that represents or has consent from the personal representative will gain custody of the vehicle until the will is validated through court. When the owner is not an individual an officer, employee or partner is protected if they are described in the regular use in the owner's certificate. When the owner is not an individual a member of the household of an officer, employee or partner of the owner with consent of the owner may operate the vehicle if described in owner's certificate. What four different types of people does third party Autoplan liability coverage for non owned vehicles transfer to - ANSWER - A person named under the owner's certificate.
- A member of the owner's household
- An employee or partner of the owner or whose regular use of the vehicle is described in the owners certificate provided.
- The spouse of an employee or partner as long as the spouse resides with the employee or partner. What are the four legal concepts that regulate the settlement of automobile accident claims? Describe all four of them - ANSWER Negligence: Negligence is the omission to do something which a reasonable person, guided by those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable person would not do. Onus of Proof: means the burden or responsibility of proof. Subrogation: is the transfer of legal rights (to an insurer) of someone whose debts or expenses have been paid to pursue recovery from an at-fault party.
Absolute Liability: Under absolute liability the insurer is responsible to pay third party claims. It provisions applicable in each jurisdiction, the law extends some rights to a third party where there is automobile liability insurance. Describe the legal responsibility of an insurer towards that concept and how an insurer can protect itself against absolute liability claims - ANSWER British Columbia's Insurance (Vehicle) Act, section 76, states that the insurer can not deny a third party's right to recover from an at fault insured based on: Assignment, transfer, surrender, cancellation, suspension, waiver or discharge of coverage under the plan or an optional insurance contract; Insured violates or breaches a policy condition Insured commits an act that violates the Criminal Code or statute of any province, state, or country Measures that Insurers can take to safeguard against absolute liability claims; Make sure application is properly completed and reviewed. Make sure all information of client is as accurate as possible If there is any doubt about the client or anything it should be resolved before binding. Identify coverage restrictions under Autoplan Accident Benefits - ANSWER Non BC resident and is the occupant of a vehicle not insured by Autoplan. An occupant of or is struck by a vehicle that cannot be licensed under the Motor Vehicle Act or Commercial Transport Act.
The amount paid under auto plan is limited to a percentage of the injured person's average weekly gross earnings minus weekly wage loss payments received from other disability benefits. Auto plan will pay up to a maximum amount per week for the reasonable expenses incurred by the insured to hire a person to perform the household tasks on his or her behalf Totally disabled at eh end of 104 weeks, benefits are available for the duration of the disability or until the insured reaches age 65, however, after 104 weeks of payment, benefits are reduced by any benefit received from the Canada Pension Plan or Quebec Pension Plan Death Benefits - There are two types of payment, an initial lump sum payment, and a weekly payment. Funeral Expenses List seven people that are insured under Autoplan Accident Benefits that occur in Canada - ANSWER The named insured. Members of the household of a person named in an Owner's Certificate. Members of the household of a person named in a Driver's Certificate. Occupants of vehicles licensed and insured in BC with the Insurance Corporation of BC. Occupants of vehicles not required to be licensed in BC operated by persons with a valid BC Driver's Certificate. Cyclists or Pedestrians involved in a collision with an insured vehicle; or
A resident of BC who is entitled to bring an action for injury or death under the Insurance (Vehicle) Act in cases involving uninsured vehicles or hit-and-run situations. What three kinds of injuries or deaths are not payable under Accident Benefits - ANSWER Suicide or attempted suicide. Involvement in illicit or prohibited trade or transportation, such as, carrying prohibited drugs; or Sickness or disease unless the sickness or disease is a direct result of the accident. Name five limitations of coverage for an underinsured motorist under Autoplan - ANSWER Under the following circumstances Autoplan will not cover bodily injury or death of persons who are: Riding in an unlicensed vehicle, unless they have reasonable grounds to believe the vehicle is licensed; Operating a vehicle without the owners permission and without reasonable grounds to believe that they have the owner's permission; or Riding in a vehicle exempt from Autoplan insurance The crash happens in a province or state where the law does not allow injured persons to sue and recover damages for injury or death caused by a motor vehicle crash; The injured person, or someone representing the injured person, settles with or takes legal action against a person or organization that may be liable for the injury or death, without ICBC's written agreement. List five uses that are not considered carrying passengers for compensation or hire - ANSWER Giving a ride to someone in return for a ride
situations - ANSWER The vehicle is not licensed under the Motor Vehicle Act, the Commercial Transport Act, or similar legislation of another jurisdiction, and the insured doesn't have reasonable grounds to believe the vehicle is licensed. The vehicle is exempted under the Insurance (Vehicle) Act, as is the case for government motor vehicles; or The insured is operating the vehicle without the consent of the owner and does not have reasonable grounds to believe that he has the consent of the owner. ICBC nuclear energy hazard exclusion does not exclude carrying what two radioisotopes - ANSWER Packaged and labeled in accordance with the Transportation of Dangerous Goods Act (Canada); and To be used for medical treatment, research, photography, x-ray, or other similar purposes using radioisotopes. What are the four conditions that if an insured breaches, insurer is not liable to an insured - ANSWER If the insured is not authorized and qualified by law to operate the vehicle. For an illicit or prohibited trade or transportation. To escape or avoid arrest or other similar police action; or In a race or speed test. What are the requirements for an insured if loss or damage to persons or property and vehicle - ANSWER Loss to persons or property
- Give insurer a written notice (promptly)
- Send insurer a copy of the claim, document, or legal correspondence (immediately)
- Assist insurer for the investigation, settlement, defence the claim
- Assume no liability and settlement for the insurer
- Allow the insurer to inspect an insured vehicle Loss to vehicle
- Notify the insurer the loss promptly
- File a proof of loss within 90 days
- Protect your vehicle for the future loss or damage
- Not remove any physical evidence of the loss or damage
- Receive an amount of indemnity from insurer Outline the claim forfeiture and claim relief clause in the accordance with the Insurance (vehicle) Act when applying for Autoplan coverage - ANSWER Claim forfeiture Any false statements by or in respect of the applicant or insured are invalid and the right of an applicant, an insured, or a person claiming through or on behalf of an applicant or insured or of a person claiming as a dependant of the applicant or the insured, to insurance money under the plan or an optional insurance contract can result in forfeiture of a claim if: the applicant lies about the description of the vehicle in respect to the application made the applicant knowingly misrepresents or fails to disclose in the application a fact required to be stated in it, the insured violates a term or condition of or commits a fraud in relation to the plan or the optional insurance contracts, the insured makes a willfully false statement with respect to the claim. Claim Relief
