Chapter 5 - Automobile Insurance C14

Terms	Definitions
Who has an insurable interest in an automobile policy?	the named insured has an insurable interest in the auto policy as he/she is the registered owner.
Distinguish between a "named insured" and an "insured" under an automobile policy.	a "named insured" is the registered owner whereas "insured" can be an person who is insured to use the automobile.
Where is the legal basis for liability arising out of motor vehicle accidents stated?	it is stated in the Highway Traffic Act.
What does Liability coverage include?	provides protection for injury to others (Bodily Injury) and damages to the property of others (Property Damage)
Who is insured under the Liability coverage section of a policy?	the named insureds and persons insured in the policy are covered
Why is having an adequate amount of liability insurance important?	the average cost of injuries and property damage is constantly increasing. without adequate insurance, financial ruin is a possibility.
What types of losses are not covered under the Liability section of a policy?	other property carried in the vehicle, contamination of property carried in vehicle are all excluded
What coverage is provided for nuclear hazards under an automobile policy?	the policy will cover up to $200,000 where loss or damage caused directly or indirectly by a nuclear hazard.
What is Direct Compensation Property Damage (DCPD)?	insureds only deal with their own insurer in the case of a loss and cannot claim against third parties or their insurers
When does DCPD apply?	when there is damage to a vehicle in which the party is not at-fault of the loss.
To what extent does an insured recover under DCPD?	an insured can only claim if they are 100% not at-fault of the accident.
How is fault determined for the purposes of DCPD?	the fault determination rules are used in Ontario to determine fault.
What can an insured do if he or she is unsatisfied with the degree of fault apportioned to him or her as a result of an automobile accident?	an insured can sue their own insurer. they must provide evidence of "special circumstances" that caused the damage.
When may an insured sue a third party for damage to an insured vehicle?	they can only sue if the negligent party is insured outside of Ontario and are not subscribed to DCPD.
Can an insurer subrogate against a garage if a mechanic test-drives an insured vehicle and it is damaged in an accident?	the insurer can subrogate against automobile businesses as stated under section 7 of regulation 664.
On what authority did you base your answer to the preceding question?	the authority of the Ontario Insurance Act.
Who is responsible for damages to an insured automobile when it is towed by a third party?	the insurer pays for damages but may subrogate the amount from the tower if they are negligent.
What recovery provisions exist for insurers with respect to contents losses?	if the contents loss is > $20k, the insurer may recover from the at-fault party. there must be at least 2 automobiles.
How is damage to property other than automobiles dealt with when caused by an automobile?	the fault determination rules do not apply, ordinary rules of tort will apply.
What is the standard deductible applicable to all physical damage claims? Can it be altered?	the standard deductible is $500. the insured can select a higher or lower amount.
What is a "threshold"?	it is the defined conditions under which a person can sue.
What is SABS?	it is Bill 164 introduced in 1994. stands for Statutory Accident Benefits. "psychological and mental impairments" were added to the threshold.
Under what circumstances could a claimant sue for injury claims under OMPP?	it allowed the right to sue a third party in the event that the injury met the severity "threshold".
Under what circumstances could a claimant sue for injury claims under Bill 164?	it allowed suits on the grounds of death or serious disfigurement or serious impairment of an important physical or psychological function.
Under what circumstances may a claimant sue for injury claims under the new Statutory Accident Benefits Schedule?	claimants can sue for injury claims if a threshold is met.
How will a policy respond when action is brought against an Ontario insured in another province?	the policy must respond with a defence without any qualifications.
What is the main difference between economic and non-economic loss with respect to the right to sue?	a threshold is not neccesary to meet when suing for an economic loss while a non-economic loss requires it.
How are the deductibles for non-economic losses applied, and to whom are they applied?	deductibles are on a per person basis. they apply in respect of each person who is entitled to damages for non-pecuniary loss.
Who is protected against liability for injury claims involving an insured automobile?	the owner of an automobile, the occupants of an automobile and any person present at the incident are protected.