Term
Briefly Discuss the key points of the following Statutory Condition:
Prohibited Use by Insured/Others |
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Definition
Insureds shall not drive or operate the automobile:
a) Unless they are for the time being either authorized by law or qualified to drive
b) While they are prohibited under order of any court from driving or operating an automobile
c) While under the age of 16 or under such age at which a license or permit to drive may be issued to them
d) For any illicit or prohibited trade or transportation
e) In any race or speed test
Prohibited Use by Others
The provisions of this part are similar to those mentioned above.
There is no coverage when insureds allow a member of their household to drive or operate the automobile while such person's license is suspended or while they are prohibited under any court from driving or operating an automobile. |
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Term
Briefly Discuss the key points of the following Statutory Condition:
Requirements where Loss or Damage to the Automobile:
a) Time to file notice and proof of loss |
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Definition
1. Time to file notice - Promptly report all details of the loss to the insurer in writing as are obtainable at the time.
2. Proof of Loss - Proof of loss must be provided within 90 days of the date of the accident. If this is not done, the insurer is not legally bound to honour the claim. |
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Term
Briefly Discuss the key points of the following Statute
b) Obligations upon insured respecting protection of automobile. |
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Definition
| The insureds must take all reasonable steps to protect the automobile from further damage. For example, removing the vehicle from accident site will normally prevent pilferage, vandalism, and other losses which might otherwise occur should the automobile be left there. |
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Term
Briefly Discuss the key points of the following Statutory Condition:
Requirements where Loss or Damage to the Automobile:
c) Basis of settlement |
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Definition
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Term
Briefly Discuss the key points of the following Statutory Condition:
Requirements where Loss or Damage to the Automobile:
d) Repair or Replacement |
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Definition
| Except where an appraisal has been made, the insurer, instead of making payment, may repair, rebuild or replace the property damaged or lost if, within seven days after the receipt of the proof of loss, it gives written notice of its intention to do so. |
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Term
Briefly Discuss the key points of the following Statutory Condition:
Requirements where Loss or Damage to the Automobile:
e) Disagreement |
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Definition
| In case of disagreement as to the nature and extent of the repairs and replacements required, or as to their adequacy, or amounts payable, the Insurance Act provides that these questions shall be determined by appraisal. |
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Term
Briefly Discuss the key points of the following Statutory Condition:
Time and Manner of Payment of Insurance Money |
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Definition
1. Payment shall be made within 60 days after proof of loss is received by it, or, when an appraisal is made, within 15 days after the reward is rendered by the appraisers. (this allows the insurer a reasonable amount of time in which to process a claim)
2. Any action against the insurer is subject to the following:
* Loss or Damage to Persons or Property
(action shall be commenced within 2 yrs. next after the cause of action arose, and not afterwards)
* Loss or Damage to the Automobile
(actions shall be commenced within 2 yrs after the happening of the loss, and not afterwards) |
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Term
Briefly summarize the S.E.F. No 20 Loss of Use endorsement in respect to:
When the coverage applies |
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Definition
This endorsement is used only when Section C - Loss of or Damage to Insured Automobile coverage is purchased.
* Coverage starts immediately when the damage is such that the automobile cannot be operated under its own power.
* When the vehicle is stolen, coverage begins on the day following the report of the theft to the insurer or to the police. * In all other instances, coverage commences at the time the automatically included in the SPF No 1. Section C. |
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Term
Briefly summarize the S.E.F. No 20 Loss of Use endorsement in respect to:
Expenses insured. |
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Definition
When there is loss to the automobile which results in its loss of use to the insured, the insurer agrees to pay all reasonable expenses incurred for:
* The rental of a substitute vehicle.
* Taxicabs or public means of transportation. |
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Term
Briefly summarize the S.E.F. No 20 Loss of Use endorsement in respect to:
How claims paid. |
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Definition
Typically the insured is reimbursed.
Personal automobile - Limit $50 per day/$1500 occurrence (30 day period)
Business Automobile - Limit $200 per day/$6000 occurrence (3o day period) |
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Term
| State the purpose of the S.E.F. No 27 Legal Liability for Damage to Non-Owned Automobile Endorsement. |
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Definition
| The S.E.F. 27, when added to your automobile insurance policy, extends the physical damage coverage you currently carry on your personal vehicle, to a rental vehicle when you are away on vacation or business. You are covered for the actual cash value of the rental vehicle with the same physical damage deductibles that you carry on your personal vehicle. |
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Term
| Identify three important coverage provisions of S.E.F. No 27 endorsement. |
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Definition
1. The perils for which indemnity or loss or damage to such automobile is provided shall be the same perils as are stated in similar subsections of Section C
2. The indemnity provided by the endorsement shall be applicable only as respects an automobile of this___type.
3. Not more than one such automobile shall be in the care, custody or control of the insured or his or her spouse at any one time.
4. Such automobile is being used with the consent of the owner or lessee thereof. |
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