CAIB 3 - Chapter 3

Questions and Answers

Which of the following provinces allows the purchase of optional physical damage insurance through a private insurer?

British Columbia (correct)

Quebec

Saskatchewan (correct)

Newfoundland

Which endorsement allows an automobile to carry explosives?

S.E.F.No. 30

S.E.F.No. 4a (correct)

S.E.F.No. 6a

S.E.F.No. 4b

All provinces in Canada require mandatory accident benefits insurance.

False

What is the minimum third party liability required by common law provinces?

$200,000 Signup and view all the answers

The S.E.F.No. 6b endorsement allows for passenger transport for compensation only in private transport settings.

False Signup and view all the answers

What is the definition of a 'livery' vehicle?

A vehicle that is rented to others Signup and view all the answers

In Quebec, motorists must purchase _____ coverage through the Provincial Government compensation plan.

personal injury Signup and view all the answers

Match the types of vehicles insured to their descriptions:

Private passenger vehicles = Used for personal or business purposes Commercial vehicles = Transport goods of the insured or others Public automobiles = Buses and taxis with higher liability exposure Signup and view all the answers

The endorsement that allows carrying radioactive material is called _____.

S.E.F.No. 4b Signup and view all the answers

Which of the following is NOT considered carrying passengers for compensation under the exclusions?

Carrying children to educational activities Signup and view all the answers

Which type of coverage pays for damages regardless of fault?

Accident Benefits Signup and view all the answers

The S.E.F. No. 44 Family Protection Endorsement increases the legal liability limits to match those of the insured's personal policy.

True Signup and view all the answers

Match the endorsement with its purpose:

S.E.F.No. 6a = Permission to carry passengers for compensation S.E.F.No. 6c = Use of vehicle for carrying passengers for hire S.E.F.No. 30 = Excluding operation of attached machinery S.E.F.No. 4a = Permission to carry explosives Signup and view all the answers

Physical damage options include _____, Collision or Upset, and Comprehensive.

All Perils Signup and view all the answers

Public omnibus includes vehicles that serve multiple purposes.

True Signup and view all the answers

What does the S.E.F.No. 6b endorsement specifically relate to?

Revised School Bus Endorsement Signup and view all the answers

Which section provides benefits for medical expenses regardless of fault?

Section B Signup and view all the answers

Surcharge applies only to service vehicles.

False Signup and view all the answers

What are the four coverage options available under Section C?

Collision or Upset, Comprehensive, Specified Perils, Specified Perils Excluding Theft Signup and view all the answers

The _____ Protection Endorsement provides additional benefits against uninsured motorists.

Family Signup and view all the answers

Match the sections with their corresponding features:

Section A = Coverage for customer vehicles Section B = Accident benefits regardless of fault Section C = Loss of or damage to owned vehicles Section D = Coverage rating methods Signup and view all the answers

What is the primary basis for rating Collision or Upset coverage?

Entire payroll of the insured Signup and view all the answers

Coverage under Section B includes funeral costs for all provinces in Canada.

False Signup and view all the answers

If insured does not report monthly, the insurer is not liable for more than _____ of the limit of liability.

75% Signup and view all the answers

Which coverage begins immediately when damage to a vehicle renders it unusable?

Loss of Use Endorsement Signup and view all the answers

Coverage under the S.E.F.No. 5c extends to lessors for rented automobiles for periods longer than 30 days.

False Signup and view all the answers

What policy indemnifies the lessor for losses due to the lessee's failure to maintain required insurance?

S.P.F.No. 8 Standard Lessor’s Contingent Automobile Policy Signup and view all the answers

The coverage that limits liability to the insured and spouse is the ______.

S.E.F.No. 27 Legal Liability for Damage to Non-Owned Automobiles Endorsement Signup and view all the answers

Match the following endorsements with their descriptions:

S.E.F.No. 94 = Covers physical damage to a hired vehicle S.P.F.No. 8 = Indemnifies the lessor due to lessee's insurance failure S.P.F.No. 5d = Covers losses from dishonest acts of the lessee S.E.F.No. 5c = Applies to rentals of 30 days or less Signup and view all the answers

Which of the following statements about S.P.F.No. 5d Conversion Coverage Endorsement is correct?

It addresses losses from the dishonest acts of the lessee. Signup and view all the answers

Coverage is unlimited under S.E.F.No. 27 for rented automobiles.

False Signup and view all the answers

What endorsement is used for covering rental automobiles in the name of an individual?

S.E.F.No. 27 Legal Liability for Damage to Non-Owned Automobiles Endorsement Signup and view all the answers

What does the S.E.F.No. 75 endorsement cover?

Theft of entire vehicle from an open lot Signup and view all the answers

The S.E.F.No. 77 endorsement covers theft of contents from customer automobiles.

False Signup and view all the answers

What is the primary purpose of the S.P.F.No. 4 Standard Garage Automobile Policy?

To provide insurance coverage for garage operations including customer automobiles. Signup and view all the answers

The S.E.F.No. 77 endorsement addresses __________ for comprehensive damage to customer’s automobiles.

legal liability Signup and view all the answers

Match the following terms with their descriptions:

S.E.F.No. 75 = Open Lot Pilferage Endorsement for theft of vehicles S.E.F.No. 77 = Legal liability for comprehensive damage to customer’s automobiles S.P.F.No. 4 = Standard policy covering garage operations Gap Exercise = Concept review for students Signup and view all the answers

Study Notes

Exclusions and Endorsements

Exclusion for automobile use includes carrying explosives or radioactive materials, but can be covered with endorsements S.E.F.No. 4a and S.E.F.No. 4b.
Vehicles used as taxicabs, public omnibuses, or for passenger compensation are excluded but may be covered by endorsements S.E.F.No. 6a, S.E.F.No. 6b, and S.E.F.No. 6c.
Common definitions include:
- Public Omnibus: A bus serving multiple purposes, like transporting people and freight.
- Livery: Vehicle rented to others.
- Jitney: A bus or similar vehicle, often for sightseeing.

Vehicle Use Clarifications

Exceptions to passenger compensation exclusion include:
- Carriage of another insured for reciprocal trips.
- Occasional shared rides with cost-sharing.
- Transportation of a domestic servant.
- Accommodating clients or prospective clients.
- Transporting children for educational activities.

Provincial Insurance Variations

In British Columbia and Saskatchewan, optional physical damage coverage can be purchased for increased liability limits, accident benefits, and lower deductibles.
Quebec mandates personal injury coverage through a government compensation plan, with a minimum of $50,000.

Types of Automobiles Insured

Private passenger vehicles, including those used for business.
Commercial vehicles for transporting goods.
Public automobiles like buses and taxis, which have higher liability coverage due to greater exposure.

Summary of Coverages

Third Party Liability: Minimum of $200,000 required, covering damages to third parties. S.E.F.No. 44 adds protection against underinsured/uninsured motorists.
Accident Benefits: Compulsory in most provinces, covering medical expenses, rehabilitation, funeral costs, and loss of income regardless of fault.
Physical Damage options: Include All Perils, Collision, Comprehensive, and Specified Perils, with 25−25-25−30/day coverage for loss of use for up to 30 days.

Rented or Leased Automobiles

Short-term rentals (30 days or less): Covered by S.E.F.No. 5c, extending policy coverage.
Long-term rentals (>30 days): Covered by S.E.F.No. 5, granting permission for long-term contracts.
Coverage for lessees may include S.E.F.No. 27 for legal liability related to non-owned automobiles, restricted to the insured and spouse.

Optional Coverages

Outline various policies available for leasing scenarios, covering losses due to the lessee's failure to maintain insurance or due to dishonest acts.

Rating and Premiums

Premiums for garage policies are determined based on the nature of vehicle use, such as customer automobiles and owned vehicles.
Different sections within the S.P.F.No. 4 Garage Automobile Policy delineate coverage for owned vehicles held for sale, damage to staff-operated vehicles, and physical damage options.

Additional Endorsements

Various endorsements enhance coverage, including S.E.F.No. 44 for family protection and S.E.F.No. 77 for comprehensive damage to customer automobiles.

Key Terms and Assignment

No specific key terms listed; refer to IGO assignment for detailed understanding.
Ensure comprehension of the five insuring agreements under S.P.F.No. 4 Standard Garage Automobile Policy for the assignment.

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Description

This quiz focuses on understanding specific exclusions in insurance coverage, particularly related to the use of automobiles for carrying explosives and radioactive materials. Participants will explore various endorsements that provide coverage in these scenarios. Test your knowledge on these crucial aspects of insurance policies!

CAIB 3 - Chapter 3

Questions and Answers

Which of the following provinces allows the purchase of optional physical damage insurance through a private insurer?

Which endorsement allows an automobile to carry explosives?

All provinces in Canada require mandatory accident benefits insurance.

What is the minimum third party liability required by common law provinces?

The S.E.F.No. 6b endorsement allows for passenger transport for compensation only in private transport settings.

What is the definition of a 'livery' vehicle?

In Quebec, motorists must purchase _____ coverage through the Provincial Government compensation plan.

Match the types of vehicles insured to their descriptions:

The endorsement that allows carrying radioactive material is called _____.

Which of the following is NOT considered carrying passengers for compensation under the exclusions?

Which type of coverage pays for damages regardless of fault?

The S.E.F. No. 44 Family Protection Endorsement increases the legal liability limits to match those of the insured's personal policy.

Match the endorsement with its purpose:

Physical damage options include _____, Collision or Upset, and Comprehensive.

Public omnibus includes vehicles that serve multiple purposes.

What does the S.E.F.No. 6b endorsement specifically relate to?

Which section provides benefits for medical expenses regardless of fault?

Surcharge applies only to service vehicles.

What are the four coverage options available under Section C?

The _____ Protection Endorsement provides additional benefits against uninsured motorists.

Match the sections with their corresponding features:

What is the primary basis for rating Collision or Upset coverage?

Coverage under Section B includes funeral costs for all provinces in Canada.

If insured does not report monthly, the insurer is not liable for more than _____ of the limit of liability.

Which coverage begins immediately when damage to a vehicle renders it unusable?

Coverage under the S.E.F.No. 5c extends to lessors for rented automobiles for periods longer than 30 days.

What policy indemnifies the lessor for losses due to the lessee's failure to maintain required insurance?

The coverage that limits liability to the insured and spouse is the ______.

Match the following endorsements with their descriptions:

Which of the following statements about S.P.F.No. 5d Conversion Coverage Endorsement is correct?

Coverage is unlimited under S.E.F.No. 27 for rented automobiles.

What endorsement is used for covering rental automobiles in the name of an individual?

What does the S.E.F.No. 75 endorsement cover?

The S.E.F.No. 77 endorsement covers theft of contents from customer automobiles.

What is the primary purpose of the S.P.F.No. 4 Standard Garage Automobile Policy?

The S.E.F.No. 77 endorsement addresses __________ for comprehensive damage to customer’s automobiles.

Match the following terms with their descriptions:

Study Notes

Exclusions and Endorsements

Vehicle Use Clarifications

Provincial Insurance Variations

Types of Automobiles Insured

Summary of Coverages

Rented or Leased Automobiles

Optional Coverages

Rating and Premiums

Additional Endorsements

Key Terms and Assignment

Studying That Suits You

Description

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