C14 AUTO INSURANCE EXAM COMPLETE
PREPARATION GUIDE WITH UNDERWRITING
AND RISK MANAGEMENT CONCEPTS
◉ Autoplan third-party liability coverage can be transferred to a
vehicle other than the one described on the owner's certificate.
However, the coverage is only transferable when such a vehicle is
driven by which of the following persons?
a. A person named as an owner in an owner's certificate in British
Columbia
b. A person who is the spouse of an insured employee or partner but
does not reside in the same household
c. A person who is not named in an owner's certificate or driver's
certific.
Answer: A.) Autoplan third-party liability coverage can be
transferred to a vehicle other than the one described on the owner's
certificate when the person driving the vehicle is a person named as
an owner in an owner's certificate in British Columbia.
◉ Which of the following persons would be covered when Autoplan
third-party liability coverage is transferred to a vehicle other than
the one described on the owner's certificate?
a. A person who has a valid driver's licence who is driving a non-
owned all-terrain vehicle
,b. A mechanic who is test-driving a customer's automobile after
repairing it
c. A person who has an owner's certificate for a small compact car,
but borrowed a friend's pick-up truck to move some furniture and
didn't k.
Answer: C.) Autoplan third-party liability coverage can be
transferred to a vehicle other than the one described on the owner's
certificate when the person driving the vehicle is a person named as
an owner in an owner's certificate in British Columbia.
◉ Which statement correctly describes the coverage available to an
insured who is operating a non- owned vehicle without the consent
of the owner and does not have reasonable grounds to believe that
she has the consent of the owner?
a. The insured will have Autoplan third-party liability coverage
extended as long as the vehicle is covered under a valid owner's
certificate.
b. The insured will have Autoplan third-party liability coverage
extended as long as the insured is covered under a valid dr.
Answer: D.) Because the insured is operating a non-owned vehicle
without the consent of the owner and does not have reasonable
grounds to believe that she has the consent of the owner, she will
have no third-party liability coverage.
,◉ What happens when an insured operates a non-owned and
unlicensed vehicle and does not have reasonable grounds for
believing it was licensed?
a. The insured's Autoplan third-party liability coverage is not
transferable.
b. The insured's Autoplan third-party liability coverage is
transferable.
c. Only the minimum limit of third-party liability coverage is
transferable.
d. Autoplan basic underinsured motorist protection is transferable..
Answer: A.) Autoplan third-party liability coverage is not
transferable when an insured operates a non- owned and unlicensed
vehicle and does not have reasonable grounds for believing it was
licensed.
◉ Under what circumstance would the third-party liability section
of the policy have to respond due to the absolute liability provision?
a. The insured is legally liable for bodily injury to a third party when
operating her automobile while impaired.
b. The insured is legally liable for bodily injury to a third party when
operating her automobile as authorized under law.
c. The insured is legally liable for property damage to municipal
property.
d. The insured is legally liable for property dama.
, Answer: A.) Under absolute liability, third-party liability payments
are made because of bodily injury or property damage suffered by
third parties, for which the insured is legally liable, even if the
insured has done something to negate coverage.
◉ Cian allows his best friend, Haldun, to operate his automobile.
Haldun has an accident and is subsequently charged and convicted
of driving while intoxicated. He is found legally liable for injury to a
third party. What options are available to Cian's insurer regarding
the claim because of the absolute liability provision?
a. Accept the claim and pay up to the limit available on the
declarations page.
b. Deny the claim and refuse to pay the minimum amount required
by the jurisdiction.
c. Deny.
Answer: D.) The insurer may be liable for third-party judgments
even when the insured has violated a policy condition or obtained
the insurance by misrepresentation. For third-party liability
coverage, insured means not only the named insured under the
policy but also anyone who drives the automobile with the consent
of the named insured.
◉ Key attributes of direct compensation.
Answer: Direct compensation systems allow people to be
compensated by their own insurer for damage
caused by a third party.
PREPARATION GUIDE WITH UNDERWRITING
AND RISK MANAGEMENT CONCEPTS
◉ Autoplan third-party liability coverage can be transferred to a
vehicle other than the one described on the owner's certificate.
However, the coverage is only transferable when such a vehicle is
driven by which of the following persons?
a. A person named as an owner in an owner's certificate in British
Columbia
b. A person who is the spouse of an insured employee or partner but
does not reside in the same household
c. A person who is not named in an owner's certificate or driver's
certific.
Answer: A.) Autoplan third-party liability coverage can be
transferred to a vehicle other than the one described on the owner's
certificate when the person driving the vehicle is a person named as
an owner in an owner's certificate in British Columbia.
◉ Which of the following persons would be covered when Autoplan
third-party liability coverage is transferred to a vehicle other than
the one described on the owner's certificate?
a. A person who has a valid driver's licence who is driving a non-
owned all-terrain vehicle
,b. A mechanic who is test-driving a customer's automobile after
repairing it
c. A person who has an owner's certificate for a small compact car,
but borrowed a friend's pick-up truck to move some furniture and
didn't k.
Answer: C.) Autoplan third-party liability coverage can be
transferred to a vehicle other than the one described on the owner's
certificate when the person driving the vehicle is a person named as
an owner in an owner's certificate in British Columbia.
◉ Which statement correctly describes the coverage available to an
insured who is operating a non- owned vehicle without the consent
of the owner and does not have reasonable grounds to believe that
she has the consent of the owner?
a. The insured will have Autoplan third-party liability coverage
extended as long as the vehicle is covered under a valid owner's
certificate.
b. The insured will have Autoplan third-party liability coverage
extended as long as the insured is covered under a valid dr.
Answer: D.) Because the insured is operating a non-owned vehicle
without the consent of the owner and does not have reasonable
grounds to believe that she has the consent of the owner, she will
have no third-party liability coverage.
,◉ What happens when an insured operates a non-owned and
unlicensed vehicle and does not have reasonable grounds for
believing it was licensed?
a. The insured's Autoplan third-party liability coverage is not
transferable.
b. The insured's Autoplan third-party liability coverage is
transferable.
c. Only the minimum limit of third-party liability coverage is
transferable.
d. Autoplan basic underinsured motorist protection is transferable..
Answer: A.) Autoplan third-party liability coverage is not
transferable when an insured operates a non- owned and unlicensed
vehicle and does not have reasonable grounds for believing it was
licensed.
◉ Under what circumstance would the third-party liability section
of the policy have to respond due to the absolute liability provision?
a. The insured is legally liable for bodily injury to a third party when
operating her automobile while impaired.
b. The insured is legally liable for bodily injury to a third party when
operating her automobile as authorized under law.
c. The insured is legally liable for property damage to municipal
property.
d. The insured is legally liable for property dama.
, Answer: A.) Under absolute liability, third-party liability payments
are made because of bodily injury or property damage suffered by
third parties, for which the insured is legally liable, even if the
insured has done something to negate coverage.
◉ Cian allows his best friend, Haldun, to operate his automobile.
Haldun has an accident and is subsequently charged and convicted
of driving while intoxicated. He is found legally liable for injury to a
third party. What options are available to Cian's insurer regarding
the claim because of the absolute liability provision?
a. Accept the claim and pay up to the limit available on the
declarations page.
b. Deny the claim and refuse to pay the minimum amount required
by the jurisdiction.
c. Deny.
Answer: D.) The insurer may be liable for third-party judgments
even when the insured has violated a policy condition or obtained
the insurance by misrepresentation. For third-party liability
coverage, insured means not only the named insured under the
policy but also anyone who drives the automobile with the consent
of the named insured.
◉ Key attributes of direct compensation.
Answer: Direct compensation systems allow people to be
compensated by their own insurer for damage
caused by a third party.
