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RIBO Practice Test 5a Auto

Terms in this set (30)

Which of the following provinces offer only government compulsory auto insurance?

a) Alberta, Quebec and Saskatchewan
b) Saskatchewan, Quebec and Manitoba
c) British Columbia, Manitoba and Saskatchewan
d) Ontario and Nova Scotia
C
Of the following, the person who most clearly has an insurable interest in an automobile is?

a) The person who actually owns the automobile
b) The person whose name appears on the auto insurance policy
c) A person who has a lien on the auto
d) A person who can legally drive the insured auto
A
When there is an auto loss, the insured is required to:

a) Abandon the automobile to the possession of the insurer
b) Protect the automobile from further loss
c) Try to settle any claim with a third party amicably
d) Submit proof of loss within 60 days
B
The minimum limit of automobile liability allowance by law in the Province of Ontario is $200,000. In the even of claims for both bodily injury and property damage which exceeds the limit, the money will be apportioned:

a) $195,000 BI, $5000 PD
b) $190,000 BI, $10,000 PD
c) $180,000 BI, $20,200 PD
d) $150,000 BI, $50,000 PD
B
Lawsuits for Non-economic loss due to an automobile accident are subject to which of the following?

a) $15,000 per person deductible
b) $10,000 per person deductible
c) $25,000 per person deductible
d) $30,000 per person deductible
D
Under the OAP 1 the Statutory Condition, Termination does not state:

a) Who may cancel the policy
b) How much notice must be given
c) The actual amount of premium to be refunded
d) How the notice must be given
C
You have an automobile with liability coverage for $500,000 under one policy (A) and another automobile with liability coverage for $1,000,000 under a separate policy (B). How much will policy (B) pay if you are involved in an accident involving an automobile you do not own?

a) 1/3
b) 2/3
c) 3/4
d) All
B
Which of the following would be considered "persons insured" under the uninsured Automobile Coverage?

a) The spouse of the insured when hit by an uninsured vehicle while walking the dog
b) The owner of the uninsured automobile
c) Anyone who drives your vehicle
d) All of the above
A
Which of the statements in not true pertaining to terminating an Auto Policy?

a) The insurer is required to provide 15 days written notice by registered mail
b) The insurer can terminate coverage by providing 5 days written notice which is personally delivered
c) The insured can terminate coverage anytime subject to returned premium on a pro-rata basis
d) Same as answer c except on a short rate basis
C
Which of the following losses is covered under the specified perils section of the policy?

a) Damages caused by radioactive contamination
b) Tapes stolen from the front car seat
c) Damage caused when water freezes in the radiator
d) Hail damage to the roof of the automobile
D
If you have comprehensive coverage with the standard $300 deductible, the deductible will apply to all of the following losses except

a) the theft of you auto's CD player
b) Scratches to the side of your auto caused by some type of blunt object while your auto is parked illegally in a no parking zone
c) Lighting damage to your vehicle
d) A broken window or damage to instrument panel of your auto as a result of attempted
C
All of the following statements about the risks insured by the Facility Association are true except which one?

a) The Facility Association only provides coverage for those who may not be able to obtain insurance in the regular market
b) Risks that do not qualify for the residual market segment may be transferred to risk sharing pool
c) A broker can assign facility business to any insurer
d) The. all-comers rule require that all applicant be provide an automobile policy
C
In which of the following situations would your policy apply if an accident occurred?
a) Your 15 year old on takes the family car for drive without permission
b) A valet parking attendant parks you car at a hotel
c) A mechanic take you car for a road test after a repair
d) A Taxi driver friend borrows your vehicle with permission to take his. children to school
D
Which of the following statements about Direct Compensation Property Damage (DCPD) is true?
a) Under DCPD, you recover damages from a third party insurer
b) Under DCPD, a standard deductible pf $1000 applies
c) Liability must be established with respect to who is at fault
d) You only recover under DCPD if you were responsible for the accident
C
income replacement coverage under the OAP1 is limited in its coverage to

a) Only those insured who were working at the time of the accident
b) 70% of the injured persons gross weekly income up to $400
c) The name insured, his or her spouse and their dependants only
d) Income lost more than 14 days after the accidents
C
The main purpose of the Family Protection Endorsement (OPCF 44) is to provide coverage

a) For all passengers of the insured auto
b) When the insured and his/her spouse are the occupant of a non-owned auto
c) For an insured person and his/her dependent family when a third party is at fault but is uninsured or inadequately insured to cover the insured's claim
d) To cover any family member who may be injured while walking or riding a bicycle
C
Mr. White is involved in a two car collision in which the other driver is determined to be 80% at fault, Mr. White requires extensive medical treatment for his injuries. Who will pay for the medical treatment?

a) The at-fault driver's insurance company
b) the Facility Association
c) Mr. White
d) Mr. Whites insurance company
D
Veh#1 collided with Veh#2. At the scene of the accident, it was determined that Veh#1. was completely at fault, but did not have insurance. Veh#2 was insured under an OAP1. The owner of the Veh#1 sustained severe bodily injuries. Vehicle#1 owner will obtain payment for medical rehabilitation and attendant care from:

a) No one as veh#1 has no insurance
b) The provincial government claim fund
c) The insurance policy of veh#2
d) The owner of vehicle #1 past expired policy
C
Your insured gets in touch with you to let you know that a close friend from Nova Scotia who is licensed to drive there will be visiting you for about a week. The insured expects the friend will likely be driving the insured. car. during the visit. You advise the insured the following:

a) Add an endorsement to extend coverage to the friend for the additional premium
b) the visitor cannot drive the vehicle unless they pass a test for the Ontario drivers license
c). Ask the insured. to send you a letter to be passed to the insurer
d) The policy coverage protect the visitor so long as he/she has a valid driver's license in Nova Scotia and your insured gives consent to the visitor to drive his/her auto
D
The insured for reasons of his own sold his auto and contacts you by phone as to what should be done about his OAP policy. You should advise the following

a) send the insured a cancellation form or a lost policy voucher, instructing him to insert the effective cancellation date, sign it and return it to your office for a pro-rata refund
b) tell him the premium, due to the sale of the car is fully earned and he can discard the policy
c) send the insured a cancellation form or lost policy voucher or ask him to sign off the policy, with the effective date of cancellation and return it to your office to be passed along to the insurer for a short rate refund of the unearned premium
d) Advise the insured you send him an immediate refund
C
Which one of following is the correct way to insure a snowmobile?

a) Buy a Snowmobile Floater to cover all the exposures of the insured
b) Buy an OAP1 policy to cover the exposures of the insured
c) Buy an endorsement to a Homeowners/ Condo/ Tenants policy to third party liability and a Personal Articles Floater for the physical damage to the snow-machine
d) Buy an OAP1 policy to cover the liability and accident benefits and an inland marine floater to cover the physical damage to the snow-machine
B
Your insured has bought a replacement snowmobile and has called to advise you that his 14 year old daughter will also be driving the new machine. Your insured has an existing OAP1 policy for the snowmobile. What do you advise your insured regarding this new information?

a) You will add OPCF 44 Family Protection to provide enhanced coverage for the daughter as operator
b) You will add OPCF 32 which provides coverage for unlicensed operators when driving the snowmobile off a public road
c) The daughter is fully covered as long as she takes a Snowmobile Association approved operators course
d) The is no coverage as a person that young should not be driving a dangerous machine
B
Which one of the following is correct about Uninsured Automobile Coverage

a) It covers third parties who sustain bodily injury and the insured has breached a Statutory Condition
b) It is only available by endorsement to an OAP1 Owners policy
c) it only covers bodily injuring, but never third party property damage
d) it covers accidental damage to the insured's automobile provided the uninsured owner or driver of the other vehicle is identified
D
A new client comes to your office and request automobile insurance, You are somewhat concerned that this person may not be acceptable to any one of your insurers. Under the Compulsory Automobile Insurance Act what are you required to do.

a) Do nothing and advise the person that you have just sold your last auto policy and he should go to another broker who may have more
b) Bind coverage with one of your companies and send a completed application to that company
c) Provide an application for auto insurance and if properly completed submit it to an insurance company
d) Collect the premium in cash and deposit it before submitting the application to the insurance company
C
Which one of the following statements correctly describes the purpose of OPCF-44R-Family Protection endorsement for your policyholder?

a) It indemnifies an insured up to the limit of the insured's policy for an amount they are legally entitles to recover for bodily injury and death from an inadequately insured third party.
b) It provides additional third party liability insurance if the insured is involved in an accident in a state or province where the statutory minimum limits are higher than those being carried
c) It protects the insured for liability for injuries to any passengers if the insured's coverage limits are inadequate to cover them fully
d) It provides flexibility in the insured's coverage in case it is inadequate to meet the costs resulting from the use or operation of the insured vehicle
A
Which one of the following statements regarding DCPD Coverage is incorrect?

a) It covers damage to the automobile, certain unscheduled trailers, their equipment and contents caused by another automobile in Ontario, including loss of their use
b) The policy on the other vehicle must be issued by an Ontario licensed insurer or one that has filed with the Financial Services Commission of Ontario to provide this cover
c) The accident may occur anywhere in Canada and at least one other automobile involved is insured under a motor vehicle liability policy
d) The insured collects from their own insurer even though the operator of the other vehicle was not entirely at fault for the accident
C
Your insured does not own and has never owned an automobile but occasionally rents one while on vacation. He expresses concern to you that the various rental agencies may not carry sufficient limits to properly protect him. What should you do?

a) Issue an OAP 1 Owners policy
b) Issue an OPF6 Non-Owned auto form
c) Issue an OAP 2 Drivers form
d) Advise him that all rental firms carry lots of policy limit and he should trust them to provide proper coverage
C
Your insured hires a babysitter on a regular basis and part of the compensation is the pick up and return of the sitter to her home by your insured. Since this is part of a compensation package what would you do to confirm to your client that he has adequate coverage for any claim that may arise from injury to the babysitter in an accident?

a) Add the change form "Permission to carry paying passengers".
b) Add "passenger hazard" change form
c) Reclassify the risk business use and charge more premium
d) Advise that no endorsement or change is coverage is included in the OAP 1 Owners Policy
D
A client phones you from his car to tell you that he has just installed a high end stereo system in his Mazda 3 and it cost him $5000. What would you advise him to do?

a) Not to do anything as there is automatic coverage for new equipment on a vehicle
b) there is not coverage available unless he also adds a high end security system
c) Send you a copy of the invoice so you can endorse the policy to cover the full value as there is a limit on the policy for electronic equipment
d) Coverage only applies if it is shown the vehicle was locked at the time of the loss
C
Under "what Automobiles are Covered" section of the OAP 1 Owners form, a newly acquired automobile is automatically covered for 14 days. This automatic coverage is limited to:

a) A vehicle which replaces an existing vehicle on the policy and not to additional vehicle
b) private passenger vehicles which are chiefly used for pleasure purposes
c) private passenger vehicles and no other types of vehicles
d) those coverage's which applied to the vehicle replaced or to all of the insured's vehicles if it is an additional vehicle
D
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