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23 Cards in this Set
- Front
- Back
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Without insurance, an individual would have to bear legal defence costs.
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On the other hand, insurance will defend such cases regardless of the outcome
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Standard automobile policy owners form
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Forerunner of all other automobile policies.
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Type of automobile insurance: how is it marketed
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Independent agents/brokers selling on behalf of various companies Direct writing companies Provincial government crown corporations |
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MB, SK, BC
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Have compulsory monopolistic government insurance. Quebec has certain coverages provided by the government and other compulsory coverages provided by private insurers.
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Who has no-fault auto mobile provinces
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MB, SK, ON, QC, NB
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Words of legislation and forms is governed by province except for SK
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Extension policies
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Provide coverage over and above that provided by the basic compulsory government plans; used to increase limits or reduce deductible. Can be issued by government insurer or private insurer.
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Coverage granted by the approved standard policy forms may only be varied by the use of approved standard endorsement forms or specific approval
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If a new wording is developed, it has to be approved by the provincial government insurance regulator.
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Forms used to issue auto insurance
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most be approved by the province insurance regulator. Written and signed application are not required. Application usually resemble the declaration of a policy itself to facilitate preparation of the policy.
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Government auto insurance
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Policy is not issued as the basic coverage is compulsory.
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Driver's abstract
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Evidence of driving convictions.
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Policy period for QC
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12:01am to 12:01am the next day. For all other provinces, the coverage begins at the time of day stated till 12:01am
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Insurable interest
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When a person stands to lose if the calamity which is insured against should happen. No policy is issued to someone who won't be out of pocket when an insured peril occurs.
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Use of vehicle
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Determines how often the car will be driven.
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For impaired persons
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They are allowed to drive so far as the can show mental or physical disability does not affect the safe operation of a motor vehicle.
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Registered owner vs. actual owner
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Helps determine who the principal operator is. Lien holder is not considered to be an owner as defined in the provincial insurance act. Registered owner is the operator of the vehicle in whose name the vehicle is registered.
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Penalty clause
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Warning printed on every application. It causes a penalty if it was deliberate.
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A contract of insurance
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A contract where the insured promises to return for a consideration called the premium to indemnify the insured
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Consideration
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What a party (insured) promises to give in exchange for the act or promise of the other party(insurer) to the contract (insurance contract).
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Application in automobile insurance contain this:
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clause requiring that a consumer must be notified in writing before a report containing personal information is requested from a consumer reporting agency. ie credit, investigative etc
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What determines rates
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Age, gender, marital status: not in all provinces Driving experience Driving record Other regular drivers Territory and distance driven annually Vehicle usage Vehicle description Coverage chosen |
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Facility association
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Non profit organization that provides insurance to those who otherwise would not be able to obtain insurance. The use broker serving carriers who issue the policy and handle claims on behalf of the association. Rates are shown in the association rate manual.
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