Chapter 7 - Automobile Insurance C14

Terms	Definitions
Under Physical Damage automobile coverage (Section 7), who does the insurer agree to indemnify and for what?	it indemnifies the insured for direct and accidental loss of or damage to the vehicle and its equipment.
What are the FOUR (4) subsections under Section 7 of the automobile policy?	A. Specified Perils, B. Comprehensive C. Collision or Upset D. All Perils
Distinguish between Collision coverage and Comprehensive coverage.	comprehensive protects against perils other than collision whereas collision covers damage to vehicle caused by collision.
What perils are covered under Specified Perils?	fire, theft, lightning, windstorm hail, earthquake, explosion, riot, falling or forced landing of aircraft, stranding sinking burning derailment or collision of any conveyance on land or water
To what types of losses under section 7 does a deductible NOT apply?	no deductibles apply to fore or lightning losses
Under what circumstances is damage to tires covered?	tires are covered if damage is caused by a covered peril or caused by fire, theft, or malicious mischief.
Under which subsections would collision damage be covered?	it will be covered under collision coverage.
Under which subsections would damage caused by a flock of seagulls flying directly into the automobile windshield be covered?	it would be under comprehensive coverage.
You advertise your automobile in the local paper and sell it to the first person that responds to the ad. The buyer gives you a cheque and you hand over the car keys. The cheque comes back NSF; you cannot find the buyer, so you report the vehicle stolen. Will you recover the money owed to you under the Comprehensive subsection of your policy? Explain.	no, voluntary parting with title is a type of theft exclusion in the comprehensive coverage.
What are the Additional Benefits under section 7 of the policy?	the policy also covers some related expenses which often arise as a result of an auto accident.
What are salvage charges?	they are any expense involved in recovering property to prevent loss from an insured peril.