CAIB 1 - Chapter 6

Insurance Training & Education

• The company's name is ensure TRAINING & EDUCATION.
• CAB 1 General Insurance is a topic covered.
• An attendance poll asked if students could hear the facilitator and see the slides.
• Students were asked to write down the most confusing concept for two minutes.
• The forgetting curve was introduced to help students recall concepts effectively. Re-reviewing material helps retain information over time.
• An insurance graphic organizer was used for chapter 5 of CAIB 1.
• A question about environmental exclusions was given as an exam question for CAIB 1, Chapter 5.
• Environmental exclusions provide no coverage for emissions, releases, discharges, etc. into land/water.
• Major loss sources from smoke/fires are excluded.
• Exclusions do not apply to bodily injury/property damage from emissions/releases if from accidents with proof with insured.
• Other amendments cover bodily injuries from hostile fire, accidental chemical drifts (aircraft not used), and damage detected in 120 hours of spraying.
• Canada's private auto insurers pay more than $7 billion annually covering deaths, injuries and damages related to auto accidents.
• Approximately 4,000+ people die and 275,000 are injured annually in Canada in auto accidents.
• Auto insurance premiums are the main source of income for many Canadian brokers.
• Compulsory insurance in all provinces covers third-party liability.
• Owners of passenger vehicles in all provinces must carry a minimum third-party liability limit of $200,000.
• Insurance policies detailing common methods of meeting financial responsibility laws are discussed. The methods vary by province; however, methods like posting bonds or providing cash/securities are not the most common, buying insurance policies is more common.
• Losses due to uninsured drivers have funds established in all provinces to provide victims' some compensation.
• Compulsory coverage for all common law provinces (except Newfoundland) may include medical payments, funeral expenses, and disability income benefits.
• Insurance is compulsory for auto residents in Saskatchewan, Manitoba, and British Columbia, due to most bodily injury/property damage claims being uninsured.
• Private insurers used standard policy forms.
• Insurance coverage must cover every licensed driver.
• Facility associations exist in each province to ensure coverage to those who were rejected coverage.
• Some provinces use no-fault insurance plans, primary purpose is to cover injured parties regardless of who caused the accident.
• Other jurisdictions use a 'threshold' no-fault method. Legal action can be taken against the responsible party if monetary amounts exceed a threshold (that amount may cover pain/suffering or economic losses).
• Modified no-fault plan.
• Saskatchewan uses a no-fault plan, usually for Canadian visitors, for auto accidents.
• Auto application forms are discussed—including full name/address/ID, policy period (expires), auto particulars, insuring agreements-premium amounts, drivers of the automobile, and physical/mental impairments.
• Coverage and policy payments may be dependent on whether the auto is used in a business capacity or personally.
• If there are details of false statements or inaccurate information on the application form, there are penalties.
• Penalties may be levied from false statements, misrepresenting risks, or not providing necessary facts.
• Penalties will include the insurers right to get reports from other sources
• Penalties include the insurer requiring additional information (EX. previous insurers name if applicable)
• There are various conditions of a policy including the method of payment, loss of use time frame, and damage or loss to the insured auto.
• There are different methods or kinds of coverage for accidents, and depending on the kind of coverage, timeframes and processes differ.

Insurance Application Form Requirements

• An auto insurance application form provides necessary information for underwriting, issuing, and rate assessment of auto insurance policies.
• Forms specify questions for both private passenger and commercial vehicles.
• The policy period is generally 12 months and starts when the application is taken at the insured's address.
• The covered auto is described in detail, including make, model, year.

Coverage for loss from theft

• If a vehicle is stolen while still in the insured's ownership, the insurer will pay for the loss of use of the vehicle.
• The payment amount is based on a set rate per day, up to a maximum amount of days.
• The time frame during which the insured vehicle is covered starts from the day the notice was made to the insurer or the time police were contacted.

Policy Coverages

• A range of different scenarios are covered by the policies that include physical damage (from all perils), collision, and comprehensive losses.
• Deductibles can vary depending on the claim, but are usually less than those for a collision loss claim.
• There are specified exclusions applicable to all coverages, such as losses/damages arising from normal wear & tear, the loss/damages of a conversion, and if the claim is due to a voluntary release of ownership.
• The insurance company may cover costs for losses in cases of salvage of the auto, and expenses incurred to save an auto from further loss from an accident (like tow truck and storage fees).
• An insurer can waive subrogation against any external party involved in an accident with the insurer's consent for use of the insured's auto.
• Insurance will also cover losses from others who drive your vehicle, based on their legal use/possession (like if the insured let a friend use their vehicle).
• Loss of use compensation can cover taxis, buses, and other transportation expenses when use of an insured auto is impacted.
• Physical damage coverages will have limits to ensure cost aren't limitless. Limits may be set to a higher range for larger vehicles (like commercial trucks) or depending on the situation (like damage due to wild animals).

Additional Insurance Agreements

• Insurers can agree to extend damages coverage. This would cover costs that are liable as required by Marine Law
• Insurers can agree to costs associated with protecting the vehicle from further loss, if the vehicle is involved in an accident. (EX, towing, storage, etc)
• Insurers can waive the right to seek compensation from others, if they are involved in using insured autos.
• Insurance might cover theft of an auto by paying for its replacement or cash settlement values.

Uninsured/Unidentified Auto Coverage

• Insurers (in most provinces) cover bodily injury/death caused by an uninsured/unidentified motor vehicle, to compensate insured or others injured.
• Policy limits apply if the amount is deemed as the least of the valid provincial/territorial statutory limit.
• When an insured is involved in a loss/damage claim, conditions include reporting to the authorities within a certain timeframe, and filing a written statement within 30 days, with the insurer.
• The insurer will pay damages when a claimant is insured by the agreement, and this is the individual's responsibility rather than someone else's.
• There may be cases when no coverage is applicable to avoid compensation scenarios (when a party is driving an unregistered vehicle, if a driver does not have a valid license, committing a crime related to driving, etc).
• Types of losses/damages include bodily injury to a person who is occupying or driving the insured vehicle, or bodily injury to a pedestrian.

Insurance Policy Forms

• There are different forms for different situations/policies. Different policy forms address specific exposures which would not be covered by a standard owner's form auto policy. Common forms include those addressing the use of an auto by others, and additional coverage for business or employment uses.

Test your knowledge on the concepts covered in CAIB 1 General Insurance. This quiz reviews key topics such as environmental exclusions, the forgetting curve, and major loss sources related to insurance coverage. Prepare for your exam with a focus on Chapter 5 materials.