OTL Lesson Eight: 40 Question Quiz

Question 1 of 41

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?

O.A.P. #1 Owner’s Form, suitably endorsed
O.P.F. #2 Driver’s Form
O.P.F. #6 Non-owned Automobile Form, suitable endorsed.
O.A.P. 4 Garage Auto Form, suitably endorsed.

Question 2 of 41

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 3 of 41

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 4 of 41

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 5 of 41

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 Own Damage and Third Party Liability

Question 6 of 41

Newly acquired automobiles are automatically covered under and O.A.P. 1 Owner’s Form provided the insurer is notified:

As soon as practicable.
Within 14 days.
Within 7 days.
Within 21 days.

Question 7 of 41

Rising water is covered under:

All perils only
Comprehensive only
Comprehensive but not Specified perils.
All Perils, Comprehensive and Specified perils.

Question 8 of 41

Insurance under O.A.P. 1 Owner’s Form, Section 7, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to damage caused by:

Wind
Water
Fire
Vandalism

Question 9 of 41

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 10 of 41

Under the “What Automobiles Are Covered” section of O.A.P. 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 11 of 41

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 12 of 41

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 O.A.P. 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 13 of 41

All clients should be counseled regarding the availability of optional benefits available under O.A.P. 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 14 of 41

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 O.A.P. 1 Owner’s Form as part of the car.
To provide you with a copy of the invoice so you can have his O.A.P. 1 Owner’s Form endorsed to cover its full value.

Question 15 of 41

Under 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 16 of 41

One of the following statements is correct. Which one (1) is it? Electronic accessories or equipment are covered under O.A.P. 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 17 of 41

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 18 of 41

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 O.A.P. 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 19 of 41

In the following statement about Section 6 – Direct Compensation – Property Damage – of the O.A.P. 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 Ontario, including their loss of use.

Question 20 of 41

An insured requests that the limit of liability in his/her automobile policy O.A.P. 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 21 of 41

Insurance under Section 7 of O.A.P. 1 Owner’s Form, 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 22 of 41

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 23 of 41

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 24 of 41

The basic Income Replacement Benefit payable under O.A.P. 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 Net Income
70% of Gross Income
90% of Gross income

Question 25 of 41

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 26 of 41

Under Section 7, 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 27 of 41

Which of the following statements is NOT true? Lawsuits in Ontario 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 28 of 41

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 29 of 41

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 30 of 41

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 31 of 41

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 32 of 41

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 33 of 41

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 34 of 41

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 35 of 41

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 36 of 41

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 37 of 41

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 38 of 41

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 39 of 41

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 40 of 41

The OPCF#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 41 of 41

Fortuitous means

Fortunate
Accidental
In the future
Compensatory

OTL Lesson Eight: 40 Question Quiz

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