Term
Automobile insurance is not the same in all provinces.
In some provinces, automobile insurance is provided exclusively by private insurers. In these provinces, unacceptable drivers are referred to the Facility Associations. Explain how Facility Associations work. |
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Definition
Insurance coverage must be available to every licensed driver. But when an applicant fails to meet the underwriting standards established by the insurer, coverage may be denied.
To ensure the availability of coverage for applicants who are refused insurance, a Facility Association has been established in Alberta, Ontario & the Atlantic provinces.. All insurers writing automobile liability insurance are members and share in the pooled results. When persons insured are able to qualify for coverage in the marketplace, they are removed from the pool. |
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Term
| Explain the role of private insurers in provinces having compulsory government automobile insurance. |
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Definition
| The gov'ts of BC, Saskatchewan & Manitoba have established compulsory government insurance plans for all motorists residing in those provinces. All automobile owners are automatically entitled to purchase insurance equivalent to the minimum compulsory limits established in law. For this reason, provinces having compulsory insurance plans do not operate a Facility Association. |
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Term
| Why is the applicant's full name & address requested by the insurer in an application for automobile insurance? |
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Definition
| Errors in providing the driver abstract are less likely to occur when the full name and address of the applicant are provided to the insurer. |
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Term
| Why are the particulars of the described automobile requested by the insurer in an application for automobile insurance? |
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Definition
In the event of a claim, the insurer will want to be certain that the automobile for which coverage is being claimed is insured under the policy.
Information requested includes model, year, manufacturer and VIN (serial #). |
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Term
| Why is a list of all drivers requested by the insurer in an application for automobile insurance? |
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Definition
Automobile insurance policies permit the use of the automobile by persons not named on the policy. The question is designed to identify those persons having occasional or regular use of the insured automobile(s). The applicant is required to provide the following information:
*Name of all drivers
*Approximate percentage of use of the automobile
*Number of years licensed |
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Term
| Why is the driver, license & insurance history requested by the insurer in an application for automobile insurance? |
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Definition
The insurer carefully screens all applicants to ensure that insurance is not provided to people who have an undesirable driver history. Information required includes:
* Convictions History (previous 3 yrs)
* Accident & Claims History (previous 6 yrs)
* License History (previous 6 yrs)
* Insurance History (previous 3 yrs) |
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Term
| Identify three situations where the insured's right to recover under the policy shall be forfeited. Refer to 13. Penalty for False Statement for your answer. |
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Definition
1. Provides a false description of the automobile being insured which is to the prejudice of the insurer.
2. Knowingly misrepresents the risk or fails to disclose a required act.
3. Breaches a term policy. |
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Term
| Policy used by private insurers to provide automobile insurance in Ontario, Alberta & Atlantic provinces. |
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Definition
S.P.F. No. 1 Standard Automobile Policy (Owner's Form) - A number of Standard Endorsement Forms (S.E.F.'s) are available to modify the coverages provided by this policy.
Ex: O.P.F No 1 Ontario Automobile Policy (owner's Policy) O.C.P.F.'s in Ontario |
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Term
| Provinces having compulsory government automobile insurance plans. |
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Definition
| British Columbia, Saskatchewan & Manitoba |
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Term
| Role of private insurers in provinces having compulsory gov't automobile insurance plans. |
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Definition
Private insurers compete with gov't insurance plans in these provinces for excess coverages only. These include:
* Increased third party liability
* Addition of physical damage coverages (BC), or reduction of physical damage deductible (Saskatchewan & Manitoba)
* Increased Accident Benefits coverage
** In Quebec, the government maintains a monopoly on personal injury coverages for accidents occurring in that province. Other coverages may be purchased from private insurers. |
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Term
| Primary purpose of "No Fault" insurance plans. |
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Definition
| A "pure no fault" plan removes the right of the legal action against drives who cause injury or death to others. Instead, all accident victims, or their legal representatives, may claim compensation from their own insurers. This plan is used in Manitoba & Quebec. |
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Term
| The information required by the Application for Automobile Insurance (Owner's Form S.A.F. 1). |
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Definition
1. Applicant's Full Name & Postal Address (including county or district).
2. Policy Period - coverage commences at the time the application is taken & expires at 12:01 a.m. local time at the address of the insured.
3. Particulars of the Described Automobile.
4. Insuring Agreements.
5. List of all Drivers of the Described Automobile(s) in the Household or Business.
6. Physical or Mental Impairment.
7. Driver History: Convictions History, Accident & Claims History
8. Licence History
9. Insurance History
10. Use of Automobile |
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