RIBO Equivalency Practice Exam 4 – AOE-TBT

With respect to a liability claim arising from an automobile accident, which of the following must prove the link between fault and damage?

With respect to automobile insurance, subrogation rights

a) Do not exist.
b) May be limited or removed by federal legislation.
c) Exist only if the insured gives written authorization to the insurer at the time a claim is paid.
d) May be limited or removed by provincial legislation.

Absolute liability implies that:

a) All liability claims resulting from an automobile accident are settled on a 50-50% basis.
b) The insurer must pay third party damages regardless of the amount involved.
c) The insurer must pay third party damages, up to the actual limits of the policy, even if the insured violated a policy condition.
d) The insurer must pay third party damages, up to the minimum limits of the jurisdiction in question, even if the insured violated a policy condition.

What does Direct Compensation mean as it relates to automobile insurance?

a) All automobile owners are fully reimbursed for any automobile damage claims.
b) All insureds collect 50% of their claim from their own insurer and 50% from the insurer of the other person involved.
c) Insureds will deal only with their own insurer for all automobile damage claims.
d) No-fault.

With respect to automobile insurance, no-fault insurance means:

a) A strict tort system of compensation.
b) Minimum limits under the Third-Party Liability coverage.
c) That all automobile coverages are sold by the government.
d) That legislation has been passed prohibiting or severely limiting lawsuits for injuries.

Under an automobile policy, property damage means damage to:

In addition to the basic Third-Party Liability coverage, the insurer agrees to:

a) allow the insured to investigate and settle his own losses if he so chooses.
b) defend any civil action against the insured that arises out of a loss.
c) pay half of the investigation cost for any loss.
d) reimburse the insured for out-of-pocket medical costs if the insured was at fault.

The purpose of the Accident Benefits coverage is to provide the insured with:

The Accident Benefits coverage of an automobile insurance policy does NOT pay for: