CAIB 1 Chapter 6 Exam Questions And Answers Already Graded A+

What is the minimum limit of Third Party Liability available in your province? - $200,000 How does an insured show proof of financial responsibility in your province - The "pink copy" of the certificate of registration Identify the Automobile coverages that are available in your province and indicate which are compulsory. - Auto Policy Limits - $200,000 Bodily Injury - $180,000 Property Damage - $20,000 All compulsory in Manitoba (6-4) Identify a province where Automobile is provided by Government insurance and Private insurance - Government Insurance - BC, MB, SK Private Insurance - AB, ON, Atlantic Provinces Explain the purpose of the "Unsatisfied Judgement Fund" or similar, (Section D for students in Atlantic Canada) - When losses are caused by uninsured drivers, the innocent victim may have coverage Explain the role of Facility Association in those provinces that do not have government insurance plans. - To ensure the availability of coverage for applicants who are refused insurance by private insurers. Briefly outline the operation of any "no fault" insurance plan of the province of your choice. - Their primary purpose is to provide benefits to persons injured in automobile accidents, regardless of who is at fault. Explain why the SAF No. 1 requires the applicant's full name and postal address including the country or district. - Reduces the potential for error that might occur if only the name is known. Could be multiple people same name Identify 5 particulars of the "Described Automobile" required to be included in the application - 1. Model Year2. Trade Name 3. Model or C. C. 4. Body Type 5. V. I. N. Identify 3 items of information about all drivers required in the application. - 1. Name of all drivers (as shown on driver's license) 2. Approximate percentage of use of the automobile 3. Number of years licensed Identify 8 physical and mental disabilities which might affect the safe operation of a vehicle. - 1. Frequent fainting spells 2. Dizziness or loss of consciousness 3. Heart Disorder 4. Epilepsy 5. Diabetes 6. Defective vision or hearing 7. Nervous disorder 8. Depression Identify 4 business uses of the automobile that must be disclosed to the insurer because a special endorsement is required. - 1. Rented or leased to others 2. Used for carrying passengers for compensation or hire 3. Used for the carrying of explosives or radioactive material 4. Used for the transportation of goods for compensation Identify 5 situations where the right of the insured to recovery may be forfeited if not disclosed on the application - 1. Provides a false description of the automobile which is prejudice of the insurer 2. Knowingly misrepresents the risk or fails to disclose a required fact 3. Breaches a policy term (using for illicit or prohibited trade or transportation)4. Commits a fraud (insured causes the loss) 5. Willfully makes a false statement in respect of a claim Identify 3 persons insured under SectionA of the SPF No 1. - 1. The named insured 2. Everyone else who personally drives the automobile with the consent of the Named Insured 3. Everyone who personally operates a part of the automobile with the consent of the Insured Identify 5 exclusions that are general to Section A. -1. Any liability imposed by any workers' compensation law 2. Loss or damage resulting from bodily injury to or the death of any employee of any person insured in this section while engaged in the operation or repair of the automobile 3. Loss of damage to the property carried in or upon the automobile 4. Any amount in excess of the limit(s) stated in Section A of item 4 of the application 5. Any liability arising from contamination of property carried in the automobile Explain how, if at all, Section A would respond if the insured was intoxicated at the time of loss. - Insures bodily injury and property damage caused by insureds while under the influence. Without this coverage, the victims or their families would end up bearing the costs of the insured's negligent actions themselves. Identify 2 agreements of the insured under Section A. - 1. Acceptance of the policy, the insured "constitutes and appoints the insurer as his irrevocable attorney. 2. Insured also agrees to reimburse the insurer for any amounts paid under the policy by reason of the provisions of any statute relating to automobile insurance and which the insurer would not otherwise be liable to pay under the policy