CAIB 3- Chapter 3 Exam 2025
Questions and Answers
What are two sources of automobile insurance in Canada? - ANSWER✔✔-1. Private insurers
2. Government insurers
What do the following abbreviations mean? S.P.F. and S.E.F. - ANSWER✔✔-1. S.P.F. - Standard
Policy Form
2. S.E.F. - Standard Endorsement Form
Which three common law provinces currently have government automobile schemes? -
ANSWER✔✔-British Columbia, Saskatchewan, Manitoba
Identify the minimum amount of third party liability insurance required in common law provinces: -
ANSWER✔✔-$200,000
S.E.F. #44 Family Protection Endorsement provides valuable coverage for insureds. When will this
endorsement responds to bodily injury losses of insureds? - ANSWER✔✔-This endorsement will
respond when insureds are injured or killed by an underinsured motorist or uninsured motorist.
How does this endorsement operate? - ANSWER✔✔-This endorsement will raise the third party
liability limits of the at fault driver to that of the insured's third party liability limits.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Indicate how coverage amounts are determined using this endorsement. - ANSWER✔✔-The SEF
#44 Family Protection Endorsement will provide the difference between the insured's third party
liability limit and third party liability limit of the at fault driver.
Accident Benefits are paid to injured parties on a no-fault basis. What does this mean? -
ANSWER✔✔-Accident Benefits are available regardless of who is at fault.
What coverage options are available to insureds when they wish to insure their own automobile? -
ANSWER✔✔-1. All perils
2. Collision or upset
3. Comprehensive
4. Specified perils
What are the two conditions of coverage found in "Loss of Use by Theft" which is included
automatically in all automobile policies insuring the peril of "theft." - ANSWER✔✔-1. Coverage is
provided for $25-$30 per day
2. Coverage is provided for up to 30 days
How does the S.E.F. #20 Loss of Use Endorsement differ from the Loss of Use by Theft coverage
mentioned above? - ANSWER✔✔-SEF #20 Loss of Use Endorsement will provide coverage for
the loss of use expenses when insured automobiles are damaged from any insured perils, not just
theft.
What are two expenses covered by the S.E.F. #20 Loss of Use Endorsement? - ANSWER✔✔-1.
Costs to rent substitute automobiles
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
Questions and Answers
What are two sources of automobile insurance in Canada? - ANSWER✔✔-1. Private insurers
2. Government insurers
What do the following abbreviations mean? S.P.F. and S.E.F. - ANSWER✔✔-1. S.P.F. - Standard
Policy Form
2. S.E.F. - Standard Endorsement Form
Which three common law provinces currently have government automobile schemes? -
ANSWER✔✔-British Columbia, Saskatchewan, Manitoba
Identify the minimum amount of third party liability insurance required in common law provinces: -
ANSWER✔✔-$200,000
S.E.F. #44 Family Protection Endorsement provides valuable coverage for insureds. When will this
endorsement responds to bodily injury losses of insureds? - ANSWER✔✔-This endorsement will
respond when insureds are injured or killed by an underinsured motorist or uninsured motorist.
How does this endorsement operate? - ANSWER✔✔-This endorsement will raise the third party
liability limits of the at fault driver to that of the insured's third party liability limits.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Indicate how coverage amounts are determined using this endorsement. - ANSWER✔✔-The SEF
#44 Family Protection Endorsement will provide the difference between the insured's third party
liability limit and third party liability limit of the at fault driver.
Accident Benefits are paid to injured parties on a no-fault basis. What does this mean? -
ANSWER✔✔-Accident Benefits are available regardless of who is at fault.
What coverage options are available to insureds when they wish to insure their own automobile? -
ANSWER✔✔-1. All perils
2. Collision or upset
3. Comprehensive
4. Specified perils
What are the two conditions of coverage found in "Loss of Use by Theft" which is included
automatically in all automobile policies insuring the peril of "theft." - ANSWER✔✔-1. Coverage is
provided for $25-$30 per day
2. Coverage is provided for up to 30 days
How does the S.E.F. #20 Loss of Use Endorsement differ from the Loss of Use by Theft coverage
mentioned above? - ANSWER✔✔-SEF #20 Loss of Use Endorsement will provide coverage for
the loss of use expenses when insured automobiles are damaged from any insured perils, not just
theft.
What are two expenses covered by the S.E.F. #20 Loss of Use Endorsement? - ANSWER✔✔-1.
Costs to rent substitute automobiles
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
