Chapter 16 - Automobile Insurance C14

Terms	Definitions
What do we mean when we say that Quebec has a "split" system of automobile insurance?	the Automobile insurance act created a new system where government and private insurers each have separate responsibilities, coverages and do not compete for delivery of auto insurance
What is the role of the Societe de I'assurance automobile du Quebec (SAAQ)?	it provides basic coverage for bodily injury.
How are the Quebec government automobile insurance plan and all of its functions financed?	it is mainly financed by automobile owners when they register their vehilces, when drivers obtain or renew their driving license and by investment income.
What categories of persons are entitled to compensation under the no-fault bodily injury plan administered by the SAAQ?	all residents of Quebec (and their dependents) who suffer bodily injury caused by an automobile in or outside Quebec are entitled to compensation.
Are Quebec motorists allowed to sue for bodily injury caused by an automobile in Quebec? Explain.	Quebec was the first jurisdiction in North America to totally ban lawsuits for bodily injury caused by an automobile.
What alternatives are available to challenge decisions rendered by the SAAQ?	i) the bureau de revision - victim completes an application for review and submits to SAAQ within 60 days of decision. ii) an appeal before the commission des affaires sociales - an appeal may be filed within 90 days of the date the bereau de revision rendered its decision. commision's decision is final.
Which provinces have made reciprocal agreements with the SAAQ?	Alberta, Manitoba and Ontario have reciprocal agreements with the SAAQ.
What bodily injury benefits are provided for in the Automobile Insurance Act?	- income replacement and other indemnities - death benefits - compensation for non-pecuniary damage - reimbursement of certain expenses and rehab.
What categories of victims are entitled to receive income replacement benefits?	• Full-time employees • Temporary or part-time employees • Persons unemployed but able to work • Persons under age 16 • Students aged 16 or over attending a secondary or post-secondary educational institution on a full-time basis, and students who have employment earnings • Persons aged 64 or over • Persons unable to hold any employment
What benefits are available to cover funeral expenses?	The SAAQ pays a lump sum indemnity for funeral expenses to the beneficiaries of the deceased victim, up to a prescribed limit.
What is the purpose of the Fonds d'indemnisation (Indemnity Fund)?	used mainly to compensate innocent victims of property damage
Give an example of situation where bodily injury suffered by a motorist would not be covered by the SAAQ plan.	An insured Quebecer hits a pedestrian in Florida.
What are the main duties of the Groupement des assureurs automobiles (GAA)?	i) establish a mechanism to enable every automobile owner to find an authorized insurer with whom he or she may purchase liability insurance. ii) To oversee collision repair appraisal iii) To establish and publish a standardized accident report form. iv) To establish and administer a direct compensation agreement.
How is Civil Liability coverage provided?	insurers pay for damage to an insured's vehicle to the extent that the insured is not-at-fault.
What is the Direct Compensation Agreement for the settlement of automobile insurance claims?	-all automobile insurers are bound by the Direct Compensation Agreement for the settlement of automobile insurance claims.
What is the Driver's Fault Chart?	- liability is determined by the Driver's Fault Chart.
Is there a difference in the amount a motorist recovers for damage to an owned vehicle when the motorist is partially responsible for the accident and has collision coverage versus when there is no collision coverage? Explain.	with collision coverage, the amount recovered would be higher due to the insurer covering collision damage.
Are automobile insurance application forms regulated in Quebec? Explain.	application forms are not regulated in Quebec and can vary from one insurer to another. declarations are derived from it are standard for all insurers.
What must an insurer do if there is a difference between the application submitted by the motorist and the policy issued by the insurer?	the insurer must draw special attention to these differences in a separate written document to the client.
What is the major difference between the Quebec Policy Form 1 (QPF 1) and the standard automobile policy used in other provinces?	the QPF does not have a section relating to Accidents Benefits.