Chapter 4 - Automobile Insurance C14

Terms	Definitions
What is the purpose of an automobile insurance application?	the gathering of information used to formulate a policy
Who regulates automobile insurance forms and under what authority?	The superintendent regulates auto insurance forms under the Insurance Act of Ontario
Where can one find the rules regarding automobile applications and policies?	The insurance act of Ontario.
Is it mandatory to obtain a signed application before an automobile policy is issued? Explain.	no it is not required but a signed application must be returned to the insurer after it is sent
What are the disadvantages of an oral application?	an oral application is harder to prove in cases of misrepresentation
If an insurer issues a policy with a lower limit than the insured asked for in the written application, what must the insurer do?	the insurer must point out what ways the policy differs from the application in writing.
If an insured receives a policy that does not correspond to the written application, what are the insured's options?	the insured has 7 days to object to changes by writing to the insurer or he can accept the policy by not responding
On whom is the onus of proof if a misrepresentation is suspected?	the onus is on the insurer to prove misrepresentation
List the TWELVE (12) information sections found in an application for automobile insurance.	1. applicant's name and postal address 2. policy period 3. described automobile(s) 4. driver information 5. previous accidents and insurance claims 6. convictions 7. rating information 8. insurance coverages applied for 9. remarks 10. method of payment 11. declaration of applicant 12. report of broker/agent
When does an automobile policy commence and expire?	it commences and expires at 12:01 am, local time at the postal address stated.
Why is it important that the application contain an accurate description of the automobile to be insured?	it is important for rating purposes as well as identification in the event of a claim
What information is required regarding past convictions?	automobile related convictions of the past 3 years. the date and description for each conviction.
Why does the application ask for past insurance experience of the applicant and other drivers?	it is used to confirm any material misrepresentations.
Why is it important to the insurer that information regarding the use of the vehicle is provided?	different vehicle uses have higher risks of loss.
What is the difference between the registered owner of a vehicle and the actual owner?	registered owner may be a user of the vehicle but an owner actually paid for the vehicle
Who has an insurable interest in the vehicle?	the owner of the vehicle has an insurable interest not to have it damaged or destroyed.
Is there an insurance benefit to registering your vehicle in your parents' name if you are underage? Explain. What problems could arise?	it may result in lower premiums but the issue of ownership and absolute liability may arise down the road
Who is not an insured under an automobile policy, according to the Insurance Act?	anyone who is not named on the application as a driver of the automobile.
What does the application say with respect to the misrepresentation of facts on an automobile insurance application?	the insured must "knowingly" misrepresent or fail to disclose any fact required to be stated in the application.
What types of problems can arise when an application contains incorrect information, even though there was no intent to defraud or mislead?	it could give rise to legal implications when a claim is made.
Summarize the rating information requested in an automobile application.	the summary of information from sections 1-6 in the application is used to calculate the premium.
Why is it necessary for insurers to include the item regarding obtaining personal information about the applicant?	it allows the insurer to obtain relevant information e.g. past records
What coverages are mandatory, and which ones are optional?	liability, accident benefits, uninsured automobile and direction compensation - property damage is mandatory. loss or damage coverage and family protection is optional.
Why is it important that applicants sign applications?	it demonstrates that they have declared on information on the application to be true.
What are the insurer's obligations with respect to providing a "policy" to an insured? Explain.	the insurer has an obligation to make sure that all information o the application is correct and true.
Are insurers permitted to issue a policy that differs from a written application? Explain.	insurers are permitted to issue a policy that differs and the insured has the option to accept or reject it
Discuss how a misrepresentation can occur with an OAP1?	agents/brokers fill out most applications and an omission or error in the application could lead to a misrepresentation.