Section A: TPL
A: A civil wrong or harm committed against another person.
Q: What is:
A tort.
A: This is AKA: a “no-fault system”.
A: What is:
A direct compensation system.
(That is not to say that no one is at-fault for the accident, it really just means that your own insurance company will handle your claim regardless of fault. Essentially, an insured is claiming against their own policy as though they are third-party.)
A: Examples include -- racing or stunt driving, careless or dangerous driving, impaired driving, and failure to remain at the scene of an accident
Q: What are:
Criminal Code violations.
(Would trigger the Absolute Liability provision).
A: This applies in situations where there isn’t enough insurance to cover all combined claims.
Q: What is:
Priority of Payments.
(If this happens and the liability insurance runs out, then the at-fault party can be sued for the excess amount privately.)
A: Protection for liability imposed by law for bodily injury or death of any person(s) or damage to their property arising out of the ownership, use, or operation of an automobile.
Q: What is:
Third-Party Liability insurance.
A: In Canada, there are two ways that auto insurance claims for accidents caused by TPs are settled.
Q: What are:
Tort and DCPD.
Name the two Agreements of Insured under Section A: TPL coverage.
What are:
1.Agree to the insurer being appointed as the insured 's attorney.
2.Reimburse the insurer any payments due to absolute liability.
A: Damage to property carried in or on the automobile or damage to other property owned, rented by, or in the care, custody, or control of the named insured or other insured persons.
Q: What is:
An exclusion under Section A: TPL coverage.
A: The motorist is presumed to be liable and must prove he/she was not negligent.
Q: What is:
Reverse Onus of Proof.
(When a car hits a pedestrian, the pedestrian doesn’t have a very high burden. He/she needs only prove that the accident happened, which is easily evidenced by a police report, through witnesses, from ambulance / hospital records, etc.).
True or False: Both tort and DCPD systems compensate victims based on the degree of the TP’s fault, and both use driver fault charts to determine liability for vehicle damage.
A: TRUE
(Under tort, driver fault charts are used to settle common accident types outside the courts, while under DCPD, fault determination rules are used.)
A: This provision provides protection for TP claimants only, up to the minimum limit in the jurisdiction where the loss occurred.
A: What is:
Absolute Liability provision.
True or False: Fault does not need to be determined under DCPD, because it's a no-fault system.
A: False
It really just means that your own insurance company will handle your claim regardless of fault. Physical damage for vehicles is determined using the FDR (Fault Determination Rules) set by the province.
A: $200,000.
Q: What is:
The minimum third-party liability limit of insurance available to purchase in Alberta.
(You cannot purchase less than the provincial minimum limit, but you can purchase more!)
A: Less investigation, less subrogation, less litigation, speedier settlements, negotiations with own insurer only, and ultimately cost savings and lower premiums.
Q: What are:
The goals / aims of DCPD Systems.
True or False: Under DCPD, insureds can still sue their own insurer if they are unhappy with the degree of fault or with the settlement.
A: TRUE.
(The insured would have to present evidence that extenuating circumstances made his or her situation different from the circumstances described by the rule (FDR) that was applied.)
A: Because of this policy provision, the insurer will pay all costs and interest judgment w/in the limits of the policy.
Q: What is:
An Additional Agreement of Insurer.
(Under Section A: TPL)
A: This is a system that specifies how much of the minimum policy limit will apply to BI, and how much will apply to PD.
Q: What is:
Priority of Payments.
A: Direct compensation systems allow people to be compensated by their own insurer for damage caused by a third party – regardless of fault. Access to the civil justice system to recover damages is strictly limited or banned -- insureds cannot claim vehicle physical damage against TPs or TPCs. Their own insurers will indemnify them for the cost of repairs, as well as for damage to contents carried in the vehicle and its loss of use to the extent that they are not at-fault.
Q: What are:
Key attributes of DCPD systems.
A: Typically, $0 and applies to NAF losses.
Q: What is:
A DCPD DED.
A: Subrogation in Alberta is permitted under DCPD in these three (3) circumstances.
Q: What are:
Garage losses, towing losses and contents losses greater than $20K.