CH.12 THINGS TO REMEMBER

Question 1

Auto coverages

Answer 1

8 coverages

4 manadatory (LAUD):

Section 3: Liability Coverage

Section 4: Accident Benefits coverage

Section 5: Uninsured Auto coverage

Section 6: Direct compensation- Property damage (DCPD)

Optional coverage:

• Increased liability
• (SECT.7)loss/damage to your auto
• Other

Question 2

Section 3:

Liability

Answer 2

• aka 3rd party liability
• protects you when someone injured/killed/property dmaged BY YOU (not own damage)
• MINIMUM IN ON $200,000 (property damage+ bodily injury)
  
  • above this min: injury claims become priority (95%=190,000, PD 5%=10000)
• Pecuniary: economic losses
• Non-pecuiary: non economic losses
  
  • 2 conditions (Thresholds)
    
    1. Verbal definition
    2. Deductible $36,905.40
    • family law: $15,000

Rented/Leased cars: who policy pays 1st:

• person who rented car
• person who drove car
• Rental compnay/leased company

Question 3

Section 4:

Accident benefits coverage

Answer 3

• coverss expenses not covered by OHIP regardless who is at fault (conditions secct.4.4)
  
  • medical rehab
  • attendant care
  • income replacement benefits
  • death and funeral benefits (add on)
  • catastrophic injuries
  • caregiver benefits
  • housekeeping/home maintenance
  • dependant care benefit (add on)
  • indexation benefit- Must buy
  • tort deductible

Question 4

Accident benefits coverage before and after June 2016

Answer 4

Prior to June 2016:

Non catastrophic

• medical and rehab: $50,000
• Attendant care: $36,000

Catastrophic:

• Medical and rehab: $1,000,000
• attendant care: $1,000,000

After June 2016:

Non catastrophic:

• medical and rehab and attendant care: $65,000 (reduced)

Catastrophic:

• medical and rehad and attendant care: $1,000,000

Question 5

Accident benefits coverage:

Income Replacement Benefits (IRB)

Answer 5

• weekly income up to $400 1 week after accident
  
  • AFTER TRIAL: potentially 100%
• 70% of gross income up to $400/wk max
• can inccrease to $600, $800, $1000 a week

Question 6

Accidents benefit coverage:

Medical and rehab and attendant care

Answer 6

Prior to June 2016:

Non catastrophic

• medical and rehab: $50,000
• Attendant care: $36,000

Catastrophic:

• Medical and rehab: $1,000,000
• attendant care: $1,000,000

After June 2016:

Non catastrophic:

• medical and rehab and attendant care: $65,000 (reduced)

Catastrophic:

• medical and rehad and attendant care:

$1,000,000

Question 7

Accidents benefit coverage:

Death and Funeral (add on)

Answer 7

• 1st lump sum pmt to spouse/dependents
• 2nd lump sum pmt for cost of funeral
• $25,000 to spouse
• $10,000 each dependent
• up to $6000 for funeral
• can increase all these amounts

Question 8

Accident benefits coverage:

indexation benefit

Answer 8

• to adjust benefit annually for inflaation
• MUST BUY

Question 9

Section 5:

Uninsured auto coverage

Answer 9

• protects you + family +occupants if injured/killed by hit n run by unidentified, uninsured motorist
  
  • bodily injury: doesnt NEED to be identified, but must be uninsured if they are identified
  • Property Damage: Must be identified + Uninsured
• Property damage: $300 deductible, max $25000
  
  • Insurer has right to repair, repalce, rebuild instead of pmt
  • claims for PD and BI= max $200,000 regardless # of injured ppl
  • Payment is:
    
    • lower of
      
      • cost to repair - deductible
      • ACV at the time - deductible
        
        • claims for bodily injury AND property damage: max $200, 000 (subject to priority payment)
• if someone else at fault, covers damage to YOUR vehicle, contents, equipment, incl loss of contents

Question 10

Section 6:

Direct compensation-Property damage (DCPD)

Answer 10

• Only in Ontario + 1 other vehicle
• covers damage to auto and SOME trailers
• if someone else at fault, direct compensation covers damage to YOUR vehicle, contents, equipment incl loss of use and contents
  
  • except contents being carried for reward (cargo)
• rates filed at FSCO
• Signatory to legislation
• Sect.263: takes away your right to sue other person (for losses such as: damage to auro, its equip, contents and losss of use)
• payment?:
  
  • Depends on % + Fault determinations rules (and ins. act)
  • insurer has right to repair, replace, rebuild instead

Question 11

other policies

Answer 11

• Drivers policy:
  
  • other automobiles (i,e friends car)
  • sect. 3,4,5,6 covered
• Garage policy:
  
  • 2 key sections:
    
    • owned vehicles by garage
    • Customer car
• Non owned policy
  
  • only commercial
  • protects biz when employees drive personal vehicle on company time

Question 12

General Exclusions (pg.37 of text)

Question 13

Section 7:

Loss/damage coverages (own damage)

Answer 13

• pays for direct + accidental loss of or damage to a described auto + equipment (if not covered in sect.6)
• NO DEDUCTIBLE FOR FIRE + LIGHTNING
• perils: fire, theft, collision (if auto insured against these perils)
• Coverage options (See pic)
  
  • A. Specified Perils ($100 ded.):
  • B. Comprehensive($500 ded.)
    
    • animals, ice fishing
    • covers auto
  • C. Collision/Upset ($1000 ded.):
    
    • at fault losses
  • D. All perils (ignore 7.2.3 pg.46 thefts not covered):
• exclusions pg.44 (incl illegal use)
  
  • contents of auto/trailers other than equipment (7.1.1 pg.43)

Question 14

SECTION 7:

Loss/damage-coverages option details

Answer 14

Coverage options (See pic)

A. Specified Perils ($100 ded.):

• fire, theft/attempted theft, lightning, windstorm, hail, rising water (flood), earthquake (see rest pg.44)

B. Comprehensive($500 ded.)

• animals, ice fishing
• covers auto
• losses other than those covered in collision/upset incl: spec. perils (incl theft), falling/flying objects, missiles, vandalism

C. Collision/Upset ($1000 ded.):

• at fault losses
• wll pay for losses if auto involved in collision with another object or tips over)
• object incl: another auto attached, surface of ground, object in/on ground

D. All perils (ignore 7.2.3 pg.46 thefts not covered):

• collision/upset+comprehensive.
• incl loss/damage if person living in home steals auto
• also for employees

Question 15

Section 7:

Loss/damage- Additional benefits

Answer 15

• Forgoing right to recover:
  
  • covered if someone using your car with your permission, plus won’t try to reover from that person
  • keeps right to recover pmt:
    
    • if person had the car to sell, maintian, store, service, park the car
    • if the person violates policy conditions
• Temporary substitute auto:
  
  • TSA : a car, temporatily used, while your car out of service(breakdown, repair, servicing, theft, sale/destructions)
  • pays for direct damage - deductible
  • if deductible on their policy more than yours, pays diff.
• Loss of use due to theft:
  
  • if choose to rent a car. taxi, etc), costs not covered till 72 hours after theft reported to police
    
    • OPCF20 To remove wait
  • coverage continues till auto repaired OR replaced OR Sooner iof $ offered to srttle
  • max $900