C14 Exam Review Questions with All
Solved Solutions 2026 Updated.
Six standard policy forms used in Canada - Answer SPF is Canada wide except: Ontario is OAP
and Quebec is QPF
◦ SPF 1 - Standard Automobile Policy (Owner's Form) provides coverage for owners of vehicles
◦ SPF 2 - Standard Automobile Policy (Driver's Form) provides coverage for drivers who are
driving vehicles they do not own
◦ SPF 4 - Standard Garage Automobile Policy provides coverage for garages in respect of owned,
non-owned, and customer's vehicles
◦ SPF 6 - Standard Non-Owned Automobile Policy provides non-owned automobile insurance
SPF 7 - Excess Automobile Policy provides excess insurance for liability exposures
◦ SPF 8 - Lessor's Contingent Automobile Policy provides contingent insurance for businesses
that lease vehicles on a long-term basis
◦ SPF 9 - Transportation Network Policy covers accidents that arise from the use or operation of
the automobile as a transportation network automobile (Alberta only)
Information found on Motor Vehicle Liability Card - Answer · Name and address of insurer
· Name and address of insured
· Agency or brokerage name or number
· Description of insured vehicle
· Policy number (licence plate number in those provinces having full government plans)
· Effective date and expiry date
Tort Systems - Answer Tort systems compensate victims based on the third party's
fault/negligence and provide access to the civil justice system to recover damages.
When Person A is found at-fault due to negligence for damage to Person B's automobile, Person
B (the third party) looks to Person A for recovery.
Onus of proof is on the motorist who alleges the other is negligent (with exceptions for
pedestrians).
Tort! I will see you in Court!
,Key attributes of direct compensation - Answer Deal with their own insurer for damage
caused by third party
access to the civil justice system to recover damages is strictly limited or banned.
Insureds cannot claim against third parties or third parties' insurers.
Their own insurers will indemnify them for the loss to the extent that they are not at fault.
Aims of DCPD Plans - Answer · less investigation
· less subrogation activity
· less litigation
· speedier settlements for insureds,
· Insureds deal only with their own insurer
· Ultimate Aim : cost savings that result in lower premiums.
Third Party Liability Coverage - Answer covers legal liability for bodily injury or death of any
persons, or damage to property belonging to other persons, arising out of the ownership, use,
or operation of an automobile.
Ontario Minimum Limit is $200,000
Third Party Liability : Who is Covered - Answer - The named insured
- Anyone who has, drives, or operates the automobile with the insured's CONSENT
Third Party Liability Coverage : Exclusions - Answer - Damage to property carried in or upon
the automobile
- Damage to other property owned or rented by, or in the care, custody, or control of insured
- Contamination of property being carried
- Nuclear hazards
- Amounts over the policy limit purchased—other than legal costs and post-judgment interest
Threshold - Answer Denotes the degree of injury that must be sustained to allow a civil
action against the at fault motorist.
- permanent serious disfigurement; or
, - permanent serious impairment of an important physical, mental, or psychological function.
Non - Economic Losses (non-pecuniary) - Answer - Must meet definition of threshold
- intangible losses that affect the quality of life; pain and suffering, loss of amenities and
enjoyment of life, loss of life expectancy
Economic Losses (Pecuniary) - Answer - right to sue without the need to meet threshold
- cost of future care, loss of earning capacity, and can be quantified with evidence (e.g. receipts,
proof of loss of income)
Absolute Liability - Answer •Absolute liability requires insurers to pay third-party claims up to
provincial/territorial minimum limits even if insureds have breached a policy condition.
Subrogration limited To: - Answer - Insureds can sue negligent parties if they are insured
outside of the province, and their insurers do not subscribe to DCPD agreements.
- Insurers that pay DCPD claims can subrogate against:
garage risks
:tow trucks,
:other insurers for contents losses over $20,000.
Insured persons under accident benefits - Answer For accidents in Ontario with insured/other
automobiles
• Named insured and any person specified in the policy as a driver of the insured automobile
• Spouse of the named insured
• Dependant of the named insured or spouse
• Person who is involved in an accident involving the insured automobile
For accidents outside of Ontario
• Person who is an occupant of the insured automobile and who is a resident of Ontario, or was
a resident of Ontario at some point during the 60 days prior to the accident
For persons not actually involved in accidents
• If they suffer psychological or mental injuries because of an accident that injures certain
relatives or dependants
Priority of Payments (AB) - Answer 1. Own automobile insurer
Solved Solutions 2026 Updated.
Six standard policy forms used in Canada - Answer SPF is Canada wide except: Ontario is OAP
and Quebec is QPF
◦ SPF 1 - Standard Automobile Policy (Owner's Form) provides coverage for owners of vehicles
◦ SPF 2 - Standard Automobile Policy (Driver's Form) provides coverage for drivers who are
driving vehicles they do not own
◦ SPF 4 - Standard Garage Automobile Policy provides coverage for garages in respect of owned,
non-owned, and customer's vehicles
◦ SPF 6 - Standard Non-Owned Automobile Policy provides non-owned automobile insurance
SPF 7 - Excess Automobile Policy provides excess insurance for liability exposures
◦ SPF 8 - Lessor's Contingent Automobile Policy provides contingent insurance for businesses
that lease vehicles on a long-term basis
◦ SPF 9 - Transportation Network Policy covers accidents that arise from the use or operation of
the automobile as a transportation network automobile (Alberta only)
Information found on Motor Vehicle Liability Card - Answer · Name and address of insurer
· Name and address of insured
· Agency or brokerage name or number
· Description of insured vehicle
· Policy number (licence plate number in those provinces having full government plans)
· Effective date and expiry date
Tort Systems - Answer Tort systems compensate victims based on the third party's
fault/negligence and provide access to the civil justice system to recover damages.
When Person A is found at-fault due to negligence for damage to Person B's automobile, Person
B (the third party) looks to Person A for recovery.
Onus of proof is on the motorist who alleges the other is negligent (with exceptions for
pedestrians).
Tort! I will see you in Court!
,Key attributes of direct compensation - Answer Deal with their own insurer for damage
caused by third party
access to the civil justice system to recover damages is strictly limited or banned.
Insureds cannot claim against third parties or third parties' insurers.
Their own insurers will indemnify them for the loss to the extent that they are not at fault.
Aims of DCPD Plans - Answer · less investigation
· less subrogation activity
· less litigation
· speedier settlements for insureds,
· Insureds deal only with their own insurer
· Ultimate Aim : cost savings that result in lower premiums.
Third Party Liability Coverage - Answer covers legal liability for bodily injury or death of any
persons, or damage to property belonging to other persons, arising out of the ownership, use,
or operation of an automobile.
Ontario Minimum Limit is $200,000
Third Party Liability : Who is Covered - Answer - The named insured
- Anyone who has, drives, or operates the automobile with the insured's CONSENT
Third Party Liability Coverage : Exclusions - Answer - Damage to property carried in or upon
the automobile
- Damage to other property owned or rented by, or in the care, custody, or control of insured
- Contamination of property being carried
- Nuclear hazards
- Amounts over the policy limit purchased—other than legal costs and post-judgment interest
Threshold - Answer Denotes the degree of injury that must be sustained to allow a civil
action against the at fault motorist.
- permanent serious disfigurement; or
, - permanent serious impairment of an important physical, mental, or psychological function.
Non - Economic Losses (non-pecuniary) - Answer - Must meet definition of threshold
- intangible losses that affect the quality of life; pain and suffering, loss of amenities and
enjoyment of life, loss of life expectancy
Economic Losses (Pecuniary) - Answer - right to sue without the need to meet threshold
- cost of future care, loss of earning capacity, and can be quantified with evidence (e.g. receipts,
proof of loss of income)
Absolute Liability - Answer •Absolute liability requires insurers to pay third-party claims up to
provincial/territorial minimum limits even if insureds have breached a policy condition.
Subrogration limited To: - Answer - Insureds can sue negligent parties if they are insured
outside of the province, and their insurers do not subscribe to DCPD agreements.
- Insurers that pay DCPD claims can subrogate against:
garage risks
:tow trucks,
:other insurers for contents losses over $20,000.
Insured persons under accident benefits - Answer For accidents in Ontario with insured/other
automobiles
• Named insured and any person specified in the policy as a driver of the insured automobile
• Spouse of the named insured
• Dependant of the named insured or spouse
• Person who is involved in an accident involving the insured automobile
For accidents outside of Ontario
• Person who is an occupant of the insured automobile and who is a resident of Ontario, or was
a resident of Ontario at some point during the 60 days prior to the accident
For persons not actually involved in accidents
• If they suffer psychological or mental injuries because of an accident that injures certain
relatives or dependants
Priority of Payments (AB) - Answer 1. Own automobile insurer
