Chapter 9 - Automobile Insurance C14

Terms	Definitions
what are the territorial limitations of an automobile policy?	there is no coverage outside of Canada or the U.S.A.
To avoid a gap in coverage, how long does an insured have to report a newly acquired automobile?	an insured has 14 days to notify insurer.
What does the term "occupant of a motor vehicle"mean in relation to automobile insurance?	it is defined as a person, including the driver, in or on an automobile, getting into, on, out of, or off an automobile.
How is coverage affected when a driver of an automobile does not have the consent of the owner?	there is no coverage for a driver who does not have consent.
Why are garage personnel excluded from coverage?	garage personnel is excluded due to it being covered under a Garage Policy (OPF 4)
Is the definition for "the automobile" the same for all sections of the policy? Explain why it is or is not.	no, there is a difference between a described automobile and the automobile. a described automobile is one specifically shown on the certificate of automobile insurance.
Under what conditions does coverage apply to a newly acquired automobile before the owner advises his or her insurer?	coverage is automatically extended to automobile and the insurer has 14 days to notify insurer. the coverage is automatic but not free.
What is a temporary substitute automobile?	Its an automobile not owned by the insured or anyone living in the insured's dwelling premises and is being used as a temporary substitute for a auto that is out of service.
What coverage does the policy provide for a temporary substitute automobile?	legal liability for physical damage is extended to a temporary substitute automobile.
Under what circumstances does the policy of a driver of a temporary substitute automobile vehicle respond rather than the policy of the owner?	in instances where there is legal liability for physical damage.
Under what circumstances can the policy of a driver of a temporary substitute automobile vehicle respond in addition to the policy of the owner?	-where the temporary substitute vehicle is uninsured -where the owner's limit of liability under Liability is insufficient to pay a judgment or settlement
What types of vehicles could be referred to as "non-owned automobiles" as they relate to coverage under the policy?	- auto must not have weight of more than 4,500 kg. - named insured is an individual or if insured by two people. named insureds are spouses of each other - neither you or spouse is in business of selling, repairing, maintaining, storing, servicing or parking autos. - auto is not being used to carry paying passengers or make commercial deliveries at time of loss - other vehicle cannot be one owned by anyone living in your dwelling or regularly uses, cannot be owned, hired or leased by your employer
What coverage applies to trailers being pulled by an automobile?	liability coverage, accident benefits, and uninsured automobile coverage
What insurance options does an individual who owns several vehicles have?	can have them under one policy or separate policies issued by different insurers for each automobile.
What uses of the automobile are excluded under the policy?	carrying explosive/radioactive materials, carrying passengers for hire, war risks
Why are the uses of the automobile referred to in question15 above excluded from coverage?	including them would mean higher premiums for all insurers which would be unfair as many do not have these exposures.
Can any of these excluded uses be covered? If so, how?	the excluded uses can be "bought back" if coverage is needed.
What uses of an automobile are NOT considered to be the carrying of passengers for compensation or hire?	giving a ride to someone in return for one, sharing cost of trip with others, carrying domestic worker hired by you or spouse, carrying children to or from school activities, carrying current or prospective clients or customers, reimbursing volunteer drivers for reasonable driving expenses
John Jolly is loaned an automobile by a garage while his own automobile is in for repair. Would this be considered a temporary substitute automobile? Explain why or why not.	it is not covered as a temporary substitute automobile cannot be owned by a person who sells, repairs, maintains, stores, services or parks automobiles.
When you borrow a friend's 5-ton truck, would you have any coverage under the "other automobiles" section of your owner's policy? Explain why or why not.	no, as the other type of vehicles is limited to vehicles with a weight of 4500 kg or less.