Copy of Ontario Licensing Lesson Eight Quiz 2-BU-Jan 25

Question 1 of 59

1. Question

Your client calls to advise he/she needs insurance on a car leased from an automobile dealer. Which one (1) of the following policies is required?

OAP #1 Owner’s Form, suitably endorsed

OAP #2 Driver’s Form

SPF #6 Non-owned Automobile Form, suitably endorsed.

OAP #4 Garage Auto Form, suitably endorsed.

Question 2 of 59

2. Question

A client phones to tell you he has bought a high-end stereo system costing $5,000, which has just been installed in his car. What should you tell him?

Be sure to always lock the car, as there is no coverage if the system is stolen when the car is unlocked.

There is no coverage on the system without an approved security system in the car.

No further action is needed. The new system is automatically covered under the SPF1 Owner’s Form as part of the car.

To provide you with a copy of the invoice so you can have his OAP 1 Owner’s Form endorsed to cover its full value.

Question 3 of 59

3. Question

In the following statement about Direct Compensation – Property Damage – of the OAP 1 Owner’s Form, one (1) is INCORRECT. Indicate which it is:

The policy on the other vehicle must be issued by an Ontario licensed insurer or one that has filed with the Ontario Insurance Commission to provide this coverage.

The insured collects from his/her insurer even though the operator of the vehicle, with the insured’s consent, was not entirely at fault for the accident.

The accident may occur anywhere in Canada and at least one of the other automobiles involved is insured under a motor vehicle liability policy.

It covers damage to the automobile, certain unscheduled trailers, their equipment and contents caused by another automobile in Alberta, including their loss of use.

Question 4 of 59

4. Question

Newly acquired automobiles are automatically covered under and OAP 1 Owner’s Form provided the insurer is notified:

As soon as practicable.

Within 14 days.

Within 7 days.

Within 21 days.

Question 5 of 59

5. Question

One of the following statements is correct. Which one (1) is it? Electronic accessories or equipment are covered under OAP 1 Owner’s Form:

For the full replacement cost.

Up to $2,500 is installed after the vehicle is purchased.

For the full actual cash value if factory installed.

For the full actual cash value.

Question 6 of 59

6. Question

The insured (who has automobile insurance) is struck by an automobile while riding her bicycle and receives minor injuries. Medical payments for the insured will:

Be paid by the insured’s automobile policy under Accident Benefits.

Be paid by the provincial medical plan.

Be paid by the motorist’s automobile policy under Third Party Liability.

Not be paid if the insured was at fault to any extent.

Question 7 of 59

7. Question

Under the “What Automobiles Are Covered” section of OAP 1 Owner’s Form, a newly acquired automobile is automatically covered for a period of 14 days. This automatic coverage is limited to:

Those coverages which applied to the vehicle replaced or which apply to all of the insured’s vehicles if it is an additional automobile.

Private passenger vehicles only.

A vehicle which replaces one already insured under the policy.

Vehicles which are chiefly used for pleasure purposes.

Question 8 of 59

8. Question

Insurance under Loss or Damage Coverages, is usually subject to a deductible. It does not apply to loss or damage caused by:

Water

Lightning

Windstorm

Vandalism

Question 9 of 59

9. Question

Which of the following is NOT true of recreational vehicles:

Coverage under an automobile insurance policy should be excluded by endorsement if an all-terrain vehicle is used in the water.

Not all drivers of recreational vehicles must be licensed.

Recreational vehicles are permitted to cross highways.

Motorized snow vehicles are automatically covered under an automobile insurance policy – no endorsements are needed at any time.

Question 10 of 59

10. Question

All clients should be counseled regarding the availability of optional benefits available under OAP 1 Owner’s Form. Which one (1) of the following is NOT available?

Increased Income Replacement Benefit

Excess Economic Loss Endorsement

Indexation Benefit

Increased Caregiver Benefit

Question 11 of 59

11. Question

The insured’s automobile is broken into and some articles are taken. Specified perils will cover:

Musical instruments that were in the trunk.

The bumper jack belonging to the automobile.

The insured’s raincoat.

Property of the insured’s passengers.

Question 12 of 59

12. Question

Under the section that covers Physical Damage to Own Automobile coverage, the insurer agrees to indemnify:

Any occupant of the vehicle.

Anyone who drives or operates the automobile with consent.

The named insured.

Any of the above.

Question 13 of 59

13. Question

Indicate the correct way to insure a snowmobile:

Through an O.A.P #1 Owner’s Form to cover all the exposures to be insured.

By an endorsement to a Homeowners or Tenants policy to cover the Third Party Liability and a Personal Articles Floater for direct damage to the machine.

With an OAP 1 Owner’s Form to cover Third Party Liability and Accident Benefits, and an Inland Marine Floater for direct damage to the machine.

Through a Snowmobile Floater to cover all the exposures to be insured.

Question 14 of 59

14. Question

If the insured drove his automobile in to his own garage door, what would be included under the Own Damage coverage of his automobile policy?

Both the auto and the door

The auto

The door

No coverage applicable

Question 15 of 59

15. Question

If an insured automobile being driven by a person without the owner’s consent is involved in an accident, the only coverage available to that driver is certain coverage under:

Third party liability.

Accident benefits.

All perils.

Uninsured motorist coverage.

Question 16 of 59

16. Question

An insured requests that the limit of liability in his/her automobile policy OAP 1 be reduced. What is the minimum amount he/she must carry under Ontario law?

$100,000/$300,000 – Bodily Injury, $50,000 – Property Damage

$200,000 inclusive

$500,000 inclusive

$1,000,000 inclusive

Question 17 of 59

17. Question

The insured leaves a tavern, gets in to his auto in an intoxicated state, and causes an accident on the way home. Which of the following would not be covered?

Collision damage to his automobile.

Damage to a telephone pole.

Damage to another automobile.

Medical and surgical expenses required as a result of injuries he sustains.

Question 18 of 59

18. Question

What type of automobile insurance policy provides liability coverage to a person who does not own an automobile but requires coverage for other automobiles?

Excess policy

Lessor’s Contingent policy

Standard non-owned policy

Driver’s policy

Question 19 of 59

19. Question

The basic Income Replacement Benefit payable under OAP 1 Owner’s Form, Section 4 – Accident Benefits Coverage is $400 per week. The actual amount is based on:

90% of Net Income

70% of Gross Income

80% of Gross Income

90% of Gross income

Question 20 of 59

20. Question

Under Loss of Use (subsequent to a theft of an automobile), reimbursement begins:

24 hours after the theft has been reported to the insurer

24 hours after the theft has been reported to the police

48 hours after the theft has been reported to the insurer or to the police

72 hours after the theft has been reported to the insurer or to the police

Question 21 of 59

21. Question

Which of the following is covered under the All Perils coverage (own damage) of an automobile policy?

Damage caused to the automobile while the driver was under the influence of drugs.

Radioactive contamination.

Rusting of the automobile body.

Vandalism damage to the automobile.

Question 22 of 59

22. Question

Which of the following statements is NOT true? Lawsuits in Alberta are:

Permitted with respect to economic loss under certain circumstances.

Not permitted with respect to non-economic loss unless the threshold has been met.

Not permitted with respect to most health care expenses.

Not permitted with respect to catastrophic impairment.

Question 23 of 59

23. Question

A cigarette sets the automobile seat on fire and causes $450 damage. The policy shows a $300 deductible under Specified Perils. The insurer would pay?

$0

$150

$450

$350

Question 24 of 59

24. Question

In which of the following situations is coverage available for a temporary substitute automobile?

A friend lends his automobile to the insured.

The insured borrowed an automobile while his vehicle is being repaired.

The insured rents an automobile while on vacation in Florida.

The insured borrows the company van to move a few pieces of furniture.

Question 25 of 59

25. Question

Provincial Insurance Acts governing automobile insurance applications state that:

A signed application must be obtained before a policy can be issued.

A signed application must be obtained after the policy is issued.

No application is required unless the insurer wants it.

If a policy is issued without a signed application the insurer must send a true copy of the application to the insured for signature

Question 26 of 59

26. Question

The SEF 44 Family Protection coverage:

Applies to property damage caused by unidentified and uninsured motorists.

Applies a deductible to injury losses.

Is part of every Canadian owner’s automobile policy.

Allows an insured to recover up to the limit of his own policy.

Question 27 of 59

27. Question

To a person who has made or who knows of a material misrepresentation, the insurer is NOT required to pay:

Attendant care benefits

Death or funeral benefits

Income replacement benefits

Any of the above

Question 28 of 59

28. Question

In the Additional Agreements of the Insurer, Own Damage, the insurer agrees to waive subrogation against:

A neighbor driving the auto with the insured’s consent.

A neighbor who had care or custody of the auto for repair purposes.

Anyone, other than the named insured, who has breached any condition of the policy.

Someone who was storing the auto in a parking garage.

Question 29 of 59

29. Question

All accidents and claims within the following time period immediately preceding the application must be disclosed:

Three (3) years

Four (4) years

Five (5) years

Six (6) years

Question 30 of 59

30. Question

A horse and buggy are hit by an automobile. The horse is killed. The automobile has been damaged but not the buggy. Which of the following coverage apply?

Own Damage.

Third Party Liability (Property Damage)

Neither of the above.

Both of the above.

Question 31 of 59

31. Question

Recovery from the responsible party for loss of income as a result of an auto accident, after trial is:

70% of net income

90% of net income

70% of gross income

100 % of gross income

Question 32 of 59

32. Question

Rising water is covered under:

All perils only

Comprehensive only

Comprehensive but not Specified perils.

All Perils, Comprehensive and Specified perils.

Question 33 of 59

33. Question

When a third party has been injured, which of the following could jeopardize the insured’s auto coverage?

Not admitting responsibility even if he feels at fault.

Refusing to discuss the claim with the third party.

Reporting the claim directly to the insurer instead of to the agent/broker.

Trying to settle amicably with the third party.

Question 34 of 59

34. Question

The insurer is required to pay the money for which it is liable under the automobile insurance contract within sixty days after the:

Date of the accident

Proof of loss has been received by the insurer.

Date that the insured has filed a report with the police.

Insurer has chosen to repair the damaged automobile.

Question 35 of 59

35. Question

Which one (1) of the following statements is TRUE?

Limits payable under the no-fault Accident Benefits are stated in the Highway Traffic Act.

Collateral benefits are any sources of entitlement outside of the auto insurance policy.

Rehabilitation and physical therapy expenses are not payable under no-fault accident benefits.

The family protection endorsement applies only in single vehicle accidents.

Question 36 of 59

36. Question

Your insured has bought a snowmobile and advises you a fourteen year old son will also be operating it. You have provided your insured with an SPF 1, Owner’s Form and advise that:

Damage to the exterior of the building directly caused by vandalism or malicious acts.

You will add OPCF 32, Recreational Vehicle Endorsement to provide coverage for underage operator.

There is no coverage while the son is driving as he is under sixteen years of age and the coverage cannot be obtained.

You will add the OPCF 44 Family Protection Endorsement, to cover any accident the son may have.

Question 37 of 59

37. Question

Insurance under SPF 1, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to damage caused by:

Wind

Water

Fire

Vandalism

Question 38 of 59

38. Question

Under SEF 20 Loss of Use due to theft, reimbursement ends upon:

The date of the completion of the repairs or replacement.

The date the Insurer tenders settlement.

Either A or B whichever occurs first.

The expiry date of the policy

Question 39 of 59

39. Question

Uninsured Automobile coverage

Must be added by endorsement to O.A.P. Owners Form.

Only covers bodily injury, but never property damage.

Can cover accidental damage to the insured’s automobile, provided the uninsured owner or driver of the other automobile is identified.

Provides coverage for third parties if the insured causes bodily injury and has breached a statutory condition.

Question 40 of 59

40. Question

Highway Victims Indemnity Funds:

Are operated by the government of all provinces.

Only pay, in most provinces, if a judgment is obtained.

Only pay for injury claims.

Will not pay if the claimant was totally responsible for causing the accident.

Question 41 of 59

41. Question

Which situation requires the addition of an SEF 4 permissions endorsement to an automobile policy?

Insured is a professor of Geology and carries specialized rocks to and from his lab for study.

Insured is a car dealer and sometimes uses his own vehicle to transport customers.

Insured is an engineer and is required to carry a Geiger counter, which contains radioactive material.

Insured is a real estate broker and sometimes carries passengers or clients to view home listings.

Question 42 of 59

42. Question

When a loss is presented as a claim the insurer has the right to investigate. How is this protected in the agreements of insureds under Loss or Damage Coverage?

Permit the insured to inspect the automobile at any reasonable time as determined by the insurer.

Insured agrees to make no repairs beyond those needed to protect the automobile, or remove evidence of the damage, without the insurer’s written consent.

Allow insured to copy all documents in their possession that relate to the incident before turning them over to the insurer.

Not leave the insured to dispose of the automobile unless they agree to do so, or the insurer tells them to

Question 43 of 59

43. Question

Georgia is excluded from her parent’s policy as a driver. She decides to take the vehicle for a drive and is involved in an accident. Would Georgia be entitled to accident benefits?

Maybe. Insurers are not obligated to pay some accident benefits when the insured is an excluded driver.

Yes. Insurers are obligated to pay educational expenses even though she was an excluded driver.

No. Insurers are not obligated to pay any accident benefits when the insured is an excluded driver.

Yes. Insurers are obligated to pay non-earner benefits even though she was an excluded driver.

Question 44 of 59

44. Question

Priscilla, her stepson Bruce, and his friend Miles were in a car accident with an uninsured person. Brue and Miles are killed. Would Bruce and Miles be considered insureds under the Uninsured Motorist section of her policy?

Yes, both Miles and Bruce would be considered insured, despite the lack of blood relationship to Priscilla.

Only Bruce would be considered a named insured.

Bruce might be considered a person insured, if he had been named on the policy, Miles would not.

Neither Bruce nor Miles would be considered a named insured as they are not dependent relatives.

Question 45 of 59

45. Question

What is the purpose of the SEF 32—Use of Recreational Vehicle by Unlicensed Operators?

Ensures compliance with the statutory condition pertaining to qualification and age of the vehicle operator when it is operated off public highways.

Waives compliance with the statutory condition pertaining to qualification and age of the vehicle operator when it is operated on public highways.

Ensures compliance with the statutory condition pertaining to drivers who are not licensed but borrow the recreational vehicle to drive on local roads

Waives compliance with the statutory condition pertaining to qualification and age of the vehicle operator when it is operated off public highways.

Question 46 of 59

46. Question

The Spear family have an accident in California where their ‘unrepairable’ car is sold for salvage. Will there be any insurance coverage for the customs duties they are charged?

No, customs duties are the responsibility of the insured.

Yes, custom duty charges will need to be paid before they return to the United States again.

No, the Spears are Canadian citizens and are not required to pay custom duty charges

Yes, their insurance policy will respond to these custom duty charges under additional benefits.

Question 47 of 59

47. Question

Which endorsement is applied when a vehicle is rated on a predetermined value that limits the total amount payable in a claim?

There is no endorsement that can be applied to rate based on value of an automobile.

OPCF 19A Agreed Value of Automobiles

OPCF 7 Separate Limits Liability

OPCF 19 Limiting the Amount Paid for Loss or Damage Coverages

Question 48 of 59

48. Question

If the at-fault driver of a vehicle that caused an accident is unidentified, what is required for the SEF 44R to apply?

The injured party must sign an affidavit stating the true facts of the accident.

Any occupant in the automobile of the not at fault driver can corroborate the accident.

A judge must be the arbitrator and side with either the insured or insurer.

Material evidence of the unidentified automobile or an independent witness must corroborate the accident.

Question 49 of 59

49. Question

What happens to funds that are not paid to an insured due to the criminal offence exclusion of the automobile policy when the insured is later found not guilty of the offence?

The funds are added to the maximum limits available for future claims

The funds are NOT paid to the person

The funds are withheld from the person for twelve months without interest before being paid

The funds must be paid to the person

Question 50 of 59

50. Question

Which endorsement series is NOT considered a buyback endorsement?

SEF 5 Series: Rented or Leased Automobile

SEF 19 Series: Amount Paid

SEF 6 Series: Passenger Risks

SEF 4 Series: Permission

Question 51 of 59

51. Question

What is the purpose of the SEF 32—Use of Recreational Vehicle by Unlicensed Operators?

Waives compliance with the statutory condition pertaining to qualification and the age of the operator of a vehicle while it is being operated OFF the public highway.

Waives compliance with the statutory condition pertaining to qualification and the age of the operator of a vehicle while it is being operated ON the public highway.

Ensures compliance with the statutory condition pertaining to drivers who are not licensed but borrow the recreational vehicles to drive on the local roads.

Ensures compliance with the statutory condition pertaining to qualification and the age of the operator of a vehicle while it is being operated off the public highway.

Question 52 of 59

52. Question

Which endorsement is added to a policy that will provide coverage for the cost of using a ridesharing program when the automobile is being repaired?

SEF 20—Coverage for Transportation Replacement

SEF 29—Additional Coverage for Named Persons

SEF 35—Coverage for Emergency Road Service

SEF 3—Government Owned Automobiles

Question 53 of 59

53. Question

Which scenario does NOT require the addition of a Series 6—Passenger Endorsement?

The insured volunteers to deliver meals on wheels to the elderly one day a week.

The insured registers and is participating in a ridesharing program.

The insured takes a job as a driver training instructor and plans to use their own vehicle.

The insured picks up students end of the day to bring them to an after-school daycare.

Question 54 of 59

54. Question

Peter emails his broker/agent to request a reduction to the third-party liability limit on his automobile policy (from $500,000 to $100,000). Why would Peter’s request be refused?

The broker believes this is an inadequate liability limit.

A request for a reduction in coverage must be made in-person to obtain a signature.

Liability limits cannot be purchased below the mandatory minimum of $200,000 in Ontario.

The insurance company does not offer liability limits lower than $500,000.

Question 55 of 59

55. Question

Permission to Carry Paying Passengers and Driving Training School are both endorsements in which series?

Rented or Leased Automobiles, OPCF 5 Series

Lienholder and Mortgagee Protection, OPCF 23 Series

Amount Paid, OPCF 19 Series

Passenger Risks, OPCF 6 Series

Question 56 of 59

56. Question

What is the purpose of adding the SEF 40—Fire & Theft Deductible to an SPF 1 with specified perils?

Eliminates the deductible for damage caused by all perils other than fire and lightning

Extends the deductible for losses caused by fire and lightning, while eliminating the deductible for loses caused by all other specified perils

Extends the deductible to the usually excluded fire and lightning perils

Eliminates the deductible for losses caused by fire and lightning

Question 57 of 59

57. Question

Blake purchases and installs a $2500 stereo for his automobile. Is the full amount of his new stereo covered?

No, the stereo would not be covered as it is not part of the original car.

Yes, the stereo is covered with no limitations.

No, the stereo would be subject to a limit of $1,500

Yes, as the equipment is now part of the vehicle, it would be fully covered up to $2,500.

Question 58 of 59

58. Question

Samara carries mandatory coverages plus collision and comprehensive, each with a $500 deductible. How much would the insurer pay for $3,000 fire damage to Samara’s vehicle?

$2,500 under collision

$2,500 under comprehensive

$3,000 under comprehensive

$3,000 under collision

Question 59 of 59

59. Question

There are specific endorsements for commercial risks insured under the SPF1. Which endorsement is NOT for commercial use?

SEF 24 – Fire and Rescue Equipment Endorsement

SEF 27 – Legal Liability for Damage to Non-Owned Automobile Endorsement

SEF 21A – Monthly Basis Reporting Fleet

SEF 31 – Non-owned Equipment