Chapter 1 - Automobile Insurance C14

C14: Download

Terms	Definitions
Identify the TWO (2) distinct legal systems used in Canada.	the common law and Quebec civil law
Why is common law also called "judge-made law?"	the principle of precedent based on previous judgments is legally binding in courts
What is the Civil Code of Quebec?	the legal system used in the Quebec, it is based on canon law and the customs of the Code Napoleon
Give an example of a law that has been enacted with respect to the operation of an automobile by each of the three levels of government in Canada.	municipal - parking bylaws provincial - speed limits federal - criminal code regarding impaired driving
What coverages were first provided by automobile insurance policies?	injury and property damage to others
Why did the provinces establish mandatory policy wordings for automobile insurance policies?	there was too much fine print in policies
How has automobile insurance developed along with the automobile?	increased traffic, more accidents and higher repair costs have led to a complex insurance product
In which province is Accident Benefits optional?	Newfoundland and Labrador
How is automobile insurance marketed in Canada?	it is sold through either private insurance companies or provincial crown corporations
In which provinces is automobile insurance operated by a Crown Corporation?	Saskatchewan, Manitoba and B.C.
Who decides on the wording of an automobile policy?	wordings are governed by each province
What does SPF, OAP and QPF stand for in automobile policy forms?	SPF - standard automobile policy OAP - Ontario Auto Policy QPF - Quebec Policy Form
To what extent, if any, are automobile policies in Canada subject to standard policy forms and standard endorsement forms?	some provinces use different prefixes to identify their policies while government plans require endorsements to be standard and approved form
Where crown corporations provide automobile insurance, what takes the place of the insurance policy?	a motor vehicle certificate of registration is issued and serves as the owner's certificate of insurance
What are the SIX (6) main automobile policies?	SPF1 - standard auto policy, OAP1 - Ontario Auto Policy (owners policy) SPF2 - coverage for drivers who are driving vehicles they do not own, OAP2 - drivers policy. SPF4 - standard garage auto policy, OAP4 - garage policy
Who decides what the rules for the operation of automobiles should be?	Provincial governments
What provincial legislation embodies the majority of rules relating to the operation of automobiles?	Ontario highway traffic act
Name the THREE (3) distinct types of automobile coverages available.	first party - protected by policy second party - provides the insurance third party - anyone else involved in a motor vehicle accident
What is "financial responsibility" as it relates to the operation of automobiles?	it is the ability to pay if responsible for injury
How do you file proof of financial responsibility?	an insurer files a certificate with the Registrar of Motor Vehicles showing that a motor vehicle liability policy has been issued
What constitutes proof of financial responsibility?	a pink card is a proof of liability policy
What is another term for "own damage" coverage?	no-fault is another term for own damage coverage.