What type of policy form does ontario use?
OAP 1
Define minimum limits.
-are the smallest amount of TPL insurance that may be purchased in any canadian jurisdiction
Describe third party liability
- mandatory coverage
- designed to provide protection for the liability imposed by law upon the insured, for bodily injury/death of any persons, or damage to their property arising out of the ownership, use, occupancy of an auto
- includes anyone who personally drives the auto with the consent of the named insured, or anyone who has personally operates a part of the auto with consent
- must carry stated minimum amount ($200,000 in ont)
- law also provides priority of payment in case the amount of insurance is not sufficient enough to satisfy all claims arising out of one accident ($190,000 for B.I., $10,000 for P.D. in ont)
- is subject to the threshold (legal suits are barred unless the injury breaches the threshold)
- can sue for economic loss ( ex. lost wages)
- includes additional agreements from insurer and insured
Define priority of payment
- specify how much the minimum policy limit will apply to bodily injury claims and how much will apply to property damage claims in situations where there isnt enough insurance to cover all combined claims
- $190,000 for B.I., $10,000 for P.D. in ontario
Define negligence aka ordinary negligence.
- either the failure to do what a reasonable and prudent person would do in a given situation, or doing what such a person would not do in a given situation
Define gross negligence.
- is reckless, wanton, and willful misconduct where the standard of due care of a reasonable and prudent person has been ignored by such a shockingly wide margin that it reflects an indifference to nature and probable consequences as to almost amount to an intentional act
Define onus of proof.
- burden of proof
- provincial highway traffic act state who must prove negligence in specific auto accident situations
Explain the liability to other motorist and non-motorists.
- the owner and driver of an auto are liable for negligence except when the vehicle has been stolen
1) 2 motorists have an accident
- the one who alleges the other motorist is negligent is required to prove that fact aka onus of proof
- the person who brings a claim against another motorist must prove he/she is entitled to compensation as a result of the incident in question
2) accident involving non-motorist
- motorist is presumed to be at fault and must prove he/she is not negligent
What are needs for adequate TPL insurance?
- increase in average cost per accident, higher repair costs, poor vehicle construction, traffic congestion
- law requires minimum limits but insured is still responsible for greater amounts if awarded by a court
- insurer would pay up to the limit and the insured would pay the remainder
- millions of dollars are typical amounts when dealing with liability, without insurance you would be financially ruined
- can help mitigate resulting damages
Describe the absolute liability law.
- provides that the right of any 3rd party to have the insurance money under a policy applied to their judgement against an insured shall not be prejudiced by:
1) insured cannot do anything with the policy that would affect 3rd party’s right to claim under that policy
2) any act or default of insured before or after the event in violation of the act or policy
ex) insured allows unlicensed bro to drive, gets into accident, but insurer is obligated to pay up to minimum limit of jurisdiction if insured is found to be legally liable
3) any violation of the crinimal code or statue of any province by the owner or driver of the auto
- if insured is convicted of a crime and penalized for it, the will have no effect on 3rd party’s right to claim against insured’s policy if insured is legally liable
What info does a motor vehicle liability insurance card show?
1) name and address of insured
2) name and address of insurer
3) name and address of agent/broker
4) description of insured vehicle
5) policy number
6) effective date and term of policy
What 3 types of cards are in use today?
1) temporary
- valid for 30 days
- for use by agent/broker in binding risks
2) permanent
- used by insurers and recording agents
- effective until expiry date shown on card
- illegal to use when policy has been cancelled
3) endorsement
- used when endorsement is required to record a change of insured vehicle or address
Who is covered under TPL coverage?
1) the named insured
2) anyone else who, with consent of the named insured, personally drives the automobile insured
3) anyone who, with consent, operates a part of the auto like the door, window, hood
- any of the above are covered for liability, imposed on them by law, arising out of ownership, use, or operation of the auto and resulting in bodily injury to or death of any persons or damage to property
What is not covered under TPL coverage?
1) damage to property carried in or on insured auto (except for quebec and ont)
2) damage to property owned/rented by insured or in the care/custody/control of insured
- including vehicle damage
3) certain exclusion which may vary between provinces
What are the additional agreements of the insurer?
1) investigate, negotiate, and make settlements of claims
- the insurer pays the claims adjuster any other expenses such as expert witnesses involved in settling a third party claim
2) defend any civil action against insured which is the result of a loss even if action is groundless
- insurer defends and covers expenses
3) pay court costs and interest
- insurer will pay certain costs relating to judical process on behalf of insured
- interest from the award date from judge to the time the third party receives funds
- if you lose insurer will pay for other party’s legal fees as well as your own
4) reimburse the insured for out of pocket medical expenses for immediate medical aid
- use of personal blankets, medical supplies
5) pay up to the minimum limits of the jurisdiction, within canada, where the accident occurs
- from ontario, accident occurs in NS, pay $500,000 instead of $200,000
6) not use a defence that is not available in the jurisdiction where accident occurs
- lawyer can’t use defenses from ontario in NY because laws are different
What is the difference between conviction and a criminal offense?
- a criminal offense is pleading guilty
- conviction is not enough evidence to charge you
What is the agreements of the insured?
1) insurer is irrevocably appointed the insured’s attorney to conduct civil defence in actions arising out of the ownership, use, or operation of an auto
- insured must cooperate with the insurer and must not do anything to prejudice its position when dealing with a third party claimant
- must not admit liability to third party (offer to pay for damages)
2) must reimburse insurer for any amounts the insurer had to pay due to the absolute liability law
Explain direct compensation propery damage.
- June 1990
- mandatory coverage
- payment based on the % you are at fault
- your own insurance company pays for:
i) damages to your vehicle
ii) contents in vehicle
iii) cost of rental - is a section of TPL and comes automatically when TPL is purchased
- rates increase only if you’re at fault
Explain the threshold in Ontario.
- under TPL
- June 1990
- no suits permitted for bodily injury unless over the threshold
- applies to non-pecuniary damages only ( aka general damages, pain and suffering)
- in order to be awarded for their injuries one must:
i) die (family gets money)
ii) suffer permanent and serious disfigurement - lose a leg
iii) suffer permanent and serious impairments of important physical, mental, or psychological function - post tramatic stress disorder
- can still sue for economic loss ( ex. lost wages)
