OTL AUTO CHAPTER 9 EXAM QUESTIONS AND ANSWERS ALREADY PASSED
If an insurer cancels an automobile policy, how is the amount owing or refund calculated? - Answers On
a pro rata basis
If an insurer incorrectly classifies a risk, what correction is required under the automobile statutory
conditions? - Answers Correction of the risk and a refund if required.
Wayne would like to know if his policy covers him loaning his car to Derek for a charity drag race? -
Answers No, using or permitting the use of his vehicle in a race or speed test is excluded.
Which legislation mandates the automobile Statutory Conditions in Ontario? - Answers Insurance Act of
Ontario
What should Bryce do when he receives legal documents regarding an automobile claim? - Answers
Send everything to his insurer immediately
What is the name of the amount of premium that the insurer keeps when a policy is cancelled? -
Answers Minimum retained premium
To which policy would the Statutory Conditions NOT apply? - Answers Commercial Property Policy
Under the automobile statutory condition—Authority to Drive and Prohibited Use what does it mean to
be 'authorized' to drive? - Answers To have the physical ability and legal permission to drive
How much notice must an insurer give to an insured when terminating an automobile contract of
insurance that has been in effect for at least 60 days for the reason of non payment of premium? -
Answers 30 days by registered mail or 10 days if hand delivered
Under the automobile statutory condition—Who may give notice and proof of a claim who is allowed to
give notice or proof? - Answers A person to whom any part of the insurance money is payable
Under the automobile Statutory Condition—Time and Manner of Payment what must the insurer do if a
claim is denied? - Answers Promptly inform the insured in writing of the reasons the insurer is not liable
to pay the claim.
When can an insured cancel a contract of automobile insurance? - Answers Any time during the contract
period
Under the automobile Statutory Condition—Requirements Where Loss or Damage to Persons or
Property what should an insured NOT do after a loss? - Answers Assume or admit liability
What is the purpose of the automobile Statutory Conditions? - Answers Establishes clear rules and
regulations that the insured and the insurer must follow.
Which of the following examples would be considered a 'material change in risk' as it relates to the
automobile policy?
If an insurer cancels an automobile policy, how is the amount owing or refund calculated? - Answers On
a pro rata basis
If an insurer incorrectly classifies a risk, what correction is required under the automobile statutory
conditions? - Answers Correction of the risk and a refund if required.
Wayne would like to know if his policy covers him loaning his car to Derek for a charity drag race? -
Answers No, using or permitting the use of his vehicle in a race or speed test is excluded.
Which legislation mandates the automobile Statutory Conditions in Ontario? - Answers Insurance Act of
Ontario
What should Bryce do when he receives legal documents regarding an automobile claim? - Answers
Send everything to his insurer immediately
What is the name of the amount of premium that the insurer keeps when a policy is cancelled? -
Answers Minimum retained premium
To which policy would the Statutory Conditions NOT apply? - Answers Commercial Property Policy
Under the automobile statutory condition—Authority to Drive and Prohibited Use what does it mean to
be 'authorized' to drive? - Answers To have the physical ability and legal permission to drive
How much notice must an insurer give to an insured when terminating an automobile contract of
insurance that has been in effect for at least 60 days for the reason of non payment of premium? -
Answers 30 days by registered mail or 10 days if hand delivered
Under the automobile statutory condition—Who may give notice and proof of a claim who is allowed to
give notice or proof? - Answers A person to whom any part of the insurance money is payable
Under the automobile Statutory Condition—Time and Manner of Payment what must the insurer do if a
claim is denied? - Answers Promptly inform the insured in writing of the reasons the insurer is not liable
to pay the claim.
When can an insured cancel a contract of automobile insurance? - Answers Any time during the contract
period
Under the automobile Statutory Condition—Requirements Where Loss or Damage to Persons or
Property what should an insured NOT do after a loss? - Answers Assume or admit liability
What is the purpose of the automobile Statutory Conditions? - Answers Establishes clear rules and
regulations that the insured and the insurer must follow.
Which of the following examples would be considered a 'material change in risk' as it relates to the
automobile policy?
