Intro to Auto Insurance
This level of government deals with matters such as education, property, health, transportation and auto insurance.
Insureds deal with their own insurers to indemnify them for the cost of repairs, damage to contents carried in the vehicle, and vehicle loss of use to the extent that they are not at fault.
What is "DCPD coverage"?
Subject to the DTPR, the insured must, within 30 days of the accident (or as soon as possible), give the insurer a properly completed prescribed claim form with details of the injury and the accident, and medical certificate (if required by the insurer).
What is "Notice and Proof of Claim"?
These are set up in most Canadian jurisdictions to ensure that innocent victims of accidents by uninsured automobiles are compensated.
What are "Motor Vehicle Accident Claims Funds (MVACFs)"?
This combines collision or upset coverage with comprehensive coverage and covers certain types of automobile theft that are excluded under comprehensive.
A: This is necessary for obtaining a driver abstract of the applicant’s driving record and can serve as a possible means of checking on the use of the vehicle
Q: What is:
The applicant's full name and postal address.
Motor vehicle liability cards are used for this purpose in most provinces and territories.
These are required in every jurisdiction. Priority of Payment applies if the insurance amount does not satisfy the claims.
What are "minimum limits"?
This is a waiver of liability, where the insured agrees to give up the right to sue the insurer for amounts the insurer has paid under accident benefits.
What is a "Release Form"?
This is an optional coverage available that insureds can purchase to protect against situations involving underinsurance. It covers the difference between the value of the insured’s claims and the third party’s limit of liability insurance.
What is the "Family Protection Endorsement (SEF 44)"?
This is an agreed specified amount that the insured must pay in the event of a loss before the insurance company will cover the rest of the claim.
A: This must be printed or stamped in conspicuous bold type on every application and policy.
Q: What is:
Section 554.1 of the Insurance Act outlining the seriousness of misrepresentation, fraud, or a violation of policy conditions.
This provides coverage for owners of vehicles that are used for commercial or personal purposes.
What is the "SPF 1"?
These are used to settle common accident types without the courts.
Collisions typically happen between two vehicles, producing many claimants who may be “eligible” for accident benefits. Claimants may also be involved in multiple accidents and in different vehicles (rental vehicles, for example, claim benefits simultaneously from several insurers, and use various names).
What is a "Fraud Ring"?
Section B, Subsection 3 of the owner’s policy covers damage and loss of use of the automobile and/or damage to contents that insureds have a legal right to recover from the identified owner or driver of an uninsured automobile.
What is "Uninsured Auto Coverage"?
This is a major initiative to use data analytics to combat automobile insurance fraud by identifying suspicious claims activity and providing alerts to member insurance companies.
What is "CANATICS"? (Canadian National Insurance Crime Services)
A: These are the two (2) levels of underwriting.
Q: What are:
Head Office level and Branch (individual) level.
The insurer files a certificate with the Registrar of Motor Vehicles showing that a motor vehicle liability policy has been issued in the name of the person involved and gives a description of the vehicle(s) owned.
What is "proof of financial responsibility"?
This system compensates victims based on the third party’s fault/negligence and provide access to the civil justice system to recover damages.
What is a "tort system"?
The person’s injury or death was caused directly from sickness or disease.
What is an "Excluded person under Subsection 1: Medical Payments or Subsection 2, Part 2: Total Disability".
At-fault motorist is insured and identified but carries a limit of third-party liability insurance that is less than the value of a judgment awarded against him or her.
What is "Inadequate Insurance"?
This is used by an insured because the described automobile is out of service because of breakdown, repairs, servicing, theft, sale, or destruction.
What is a "Temporary Substitute Automobile"?
A: These provinces cannot deny anyone basic coverage and so everyone tends to use the same rating criteria to determine the correct rate group. (accident-free status + driving experience).
Q: What are:
Government Provinces (BC, SK, MB).
These are used by agents or brokers in binding risks, are valid for 30-days (21-days in QC) and should provide enough time to issue a policy and a permanent card.
What is a "Temporary Motor Vehicle Liability Card"?
This provision requires insurers to pay third-party claims up to provincial/territorial minimum limits, even if insureds have breached a policy condition.
What is "absolute liability"?
Residents of Alberta who have accidents in a no-fault jurisdiction will receive benefits that would be paid in those provinces regardless of who is at fault.
What are "Supplemented Benefits in No-Fault Jurisdictions".
Insureds can recover from their own insurer for damages for bodily injury or death of an insured person arising from accidents caused by uninsured or unidentified vehicles.
What is "Coverage for Damage Caused by Uninsured or Unidentified Motorists"?
These perils are considered uninsurable, better insured elsewhere, or that might cause insureds to be careless if covered.
What are "Exclusions under Loss or Damage Coverages"?
A: This is the process of rating.
Q: What is:
A base rate is determined, and then loadings are added, or credits are applied to get the overall rate. That rate is then multiplied by the amount insured to obtain the premium.