OTL AUTO CHAPTER 8 questions well
answered to pass
Blake purchases and installs a $2500 stereo for his automobile. Is the full amount of his new
stereo covered? - correct answer ✔✔No, the stereo would be subject to a limit of $1,500.
What is the term for the amount that the insured must pay on each loss? - correct answer
✔✔Deductible
The Spear family have an accident in California where their 'unrepairable' car is sold for salvage.
Will there be any insurance coverage for the customs duties they are charged? - correct answer
✔✔Yes, their insurance policy will respond to these custom duty charges under additional
benefits.
Which Agreement of the Insurer is being violated in the following scenario: After an accident,
Elliott left the damaged vehicle in his driveway for 3 months while he was away on a trip? -
correct answer ✔✔The insured agrees to do as much as possible to protect further damage.
Which damaged item would be covered under Section 7—Loss or Damage Coverage? - correct
answer ✔✔Car seat
Warren was convicted of driving under the influence in a collision with another driver. Will his
insurance company still pay for the damage to his car? - correct answer ✔✔No, this is excluded
due to his conviction under the criminal code
Which loss would NOT be covered if an insured is driving while intoxicated and losses control of
his automobile? - correct answer ✔✔Collision damage to his automobile
, Which loss or damage coverage indemnifies the insured for damage to the vehicle caused by
collision with another vehicle, person, object or the surface of the road"? - correct answer
✔✔Collision or upset
Under specified perils coverage, an insurer offers protection against which perils? - correct
answer ✔✔Earthquake, explosion, riot
Eddie has mandatory coverages plus collision and comprehensive coverages. When he finds out
that his car is stolen, he immediately reports to the police. Does his coverage help with the costs
of ride sharing service to commute to work? - correct answer ✔✔Yes, after the first 72 hours up
to $900 total
What are the three ways used to calculate actual cash value? - correct answer ✔✔Cost to repair
or replace less depreciation; fair market value, consideration of all value of the damaged
property
Under Loss of Use Due to Theft coverage, when does reimbursement end? - correct answer
✔✔When the vehicle is replaced or if recovered, when the necessary repairs are completed
Nicole borrowed her neighbour's car while hers was undergoing major repairs. When using it,
the car got scratched. How will Nicole pay to repair the scratch considering the neighbour does
NOT carry physical damage coverage? - correct answer ✔✔Use her own vehicle's collision
coverage since the neighbour's car was a temporary substitute
Greg was severely injured in an automobile accident and was unable to notify his insurance
company until 3 weeks after the incident. How would his insurer respond regarding repairs to
his vehicle? - correct answer ✔✔Investigate and pay the claim appropriately as he notified them
as soon as he was 'able'
In Ontario, what are the four optional own damage coverages? - correct answer ✔✔Collision or
upset, specified perils, comprehensive, and all perils
answered to pass
Blake purchases and installs a $2500 stereo for his automobile. Is the full amount of his new
stereo covered? - correct answer ✔✔No, the stereo would be subject to a limit of $1,500.
What is the term for the amount that the insured must pay on each loss? - correct answer
✔✔Deductible
The Spear family have an accident in California where their 'unrepairable' car is sold for salvage.
Will there be any insurance coverage for the customs duties they are charged? - correct answer
✔✔Yes, their insurance policy will respond to these custom duty charges under additional
benefits.
Which Agreement of the Insurer is being violated in the following scenario: After an accident,
Elliott left the damaged vehicle in his driveway for 3 months while he was away on a trip? -
correct answer ✔✔The insured agrees to do as much as possible to protect further damage.
Which damaged item would be covered under Section 7—Loss or Damage Coverage? - correct
answer ✔✔Car seat
Warren was convicted of driving under the influence in a collision with another driver. Will his
insurance company still pay for the damage to his car? - correct answer ✔✔No, this is excluded
due to his conviction under the criminal code
Which loss would NOT be covered if an insured is driving while intoxicated and losses control of
his automobile? - correct answer ✔✔Collision damage to his automobile
, Which loss or damage coverage indemnifies the insured for damage to the vehicle caused by
collision with another vehicle, person, object or the surface of the road"? - correct answer
✔✔Collision or upset
Under specified perils coverage, an insurer offers protection against which perils? - correct
answer ✔✔Earthquake, explosion, riot
Eddie has mandatory coverages plus collision and comprehensive coverages. When he finds out
that his car is stolen, he immediately reports to the police. Does his coverage help with the costs
of ride sharing service to commute to work? - correct answer ✔✔Yes, after the first 72 hours up
to $900 total
What are the three ways used to calculate actual cash value? - correct answer ✔✔Cost to repair
or replace less depreciation; fair market value, consideration of all value of the damaged
property
Under Loss of Use Due to Theft coverage, when does reimbursement end? - correct answer
✔✔When the vehicle is replaced or if recovered, when the necessary repairs are completed
Nicole borrowed her neighbour's car while hers was undergoing major repairs. When using it,
the car got scratched. How will Nicole pay to repair the scratch considering the neighbour does
NOT carry physical damage coverage? - correct answer ✔✔Use her own vehicle's collision
coverage since the neighbour's car was a temporary substitute
Greg was severely injured in an automobile accident and was unable to notify his insurance
company until 3 weeks after the incident. How would his insurer respond regarding repairs to
his vehicle? - correct answer ✔✔Investigate and pay the claim appropriately as he notified them
as soon as he was 'able'
In Ontario, what are the four optional own damage coverages? - correct answer ✔✔Collision or
upset, specified perils, comprehensive, and all perils
