Chapter 10 - Automobile Insurance C14

Terms	Definitions
What functions do the Statutory Conditions perform?	they are the definitions, rules and regulations. the intent to protect the rights of the insured and insurer by stating responsibilities of each.
Where do the Statutory Conditions get their authority?	from provincial insurance acts.
To what automobile policies do the Statutory Conditions apply?	they must be part of every automobile insurance contract.
What types of changes to an automobile policy are considered "material changes"?	they are changes that would influence a reasonable and prudent insurer to decide whether the stay on risk and/or the terms on which the risk is retained.
What must an insurer do when it discovers it has incorrectly classified an insured automobile and has overcharged the insured?	the insurer must refund premium overpayment with interest.
Can an insurer go back to the insured for additional premium if it has undercharged because of incorrect classification? Explain.	the insurer has 60 days to get the additional premium from insured, no interest is payable by the insured.
What are the prohibited uses of an automobile by an insured?	- in any race or speed test - for any illicit or prohibited trade or transportation
Is there a difference between the "prohibited use by the insured" and "prohibited use by others"? Explain.	there is no difference. in either case, there is no coverage.
Who is "authorized by law" to drive?	a person who has the physical qualifications and legal permission to drive.
What must an insured do after being involved in an accident where there is loss or damage to persons or property?	- must give written notice - verify auto claim (all available particulars of accident) - must forward writs, claims immediately to insurer
Why is it so important for an insured to forward all documents received with respect to a claim to the insurer immediately?	the insurer has 20 days from the time the statement of claim is issued to enter an appearance. if this is not taken, the plaintiff can apply to court for default judgment.
Why should an insured not assume liability or settle a claim on his or her own?	the action may negate a defense being set up by the insurer. if insured voluntarily assumes liability, they do so at their own cost.
Who pays for the cost of investigating and securing information with respect to an automobile accident?	the cost is paid by the insurer.
Why should an insured not have his or her vehicle repaired before the insurer has inspected it?	it allows the insurer to inspect the full extent of damage.
Whose responsibility is it to protect an automobile after an accident? Who pays if certain expenses are incurred?	it is the responsibility of the insured to protect the automobile. the cost of protecting the vehicle is paid by the insurer.
What are the "proof of loss" requirements?	- give written notice - submit proof of loss form within 90 days - no repairs without permission - examination of insured under oath
How is the value of an automobile determined for the purpose of a loss settlement?	a guideline on what acv helps one to understand the theory of determining the amount of a given loss.
How is "actual cash value" determined?	it is the replacement cost less depreciation.
Who has the option of deciding whether a damaged automobile will be repaired or replaced?	the insurer has the option
If the decision is made to repair or replace, what rules apply?	insurer must carry out repairs within a reasonable amount of time
What are the rules with respect to abandonment of a damaged vehicle?	insured cannot abandon vehicle without the consent of the insurer.
Who is entitled to the salvage when an insurer replaces or pays for a damaged vehicle?	the insurer is entitled to salvage.
How much time does the insured have to give notice of a loss to the insurer?	within 7 days.
Who may give notice and proofs of a claim?	other than insured, notice and proofs of claim can be given by an agent of the insured (legal rep) or a person whom part of the insurance money is payable (lessors)
How much time does the insurer have to pay the claim?	must pay within 60 days of receiving a proof of loss.
What must an insurer do if it denies a claim?	-must promptly notify insurer of refusal and indicate in writing why it claims it is not liable.
How does an insurer cancel an automobile policy?	-reason must be valid within the auto insurance act and insurance act - give 15 days notice after the insurer gives written notice by mail or - 5 days if personally delivered by insurer - refund premium on pro rata basis