OTL AUTO CHAPTER 4 EXAM QUESTIONS AND ANSWERS SOLVED CORRECTLY
Who is the third party on an insurance policy? - Answers A claimant under a liability policy
If a rented or leased automobile is damaged in an accident, in what order would different policies
coverage apply? - Answers The renter's policy is first. The driver's policy is second. The owner's policy is
last to respond.
Under absolute liability provisions, an insurer paid a third-party claim on their insured's behalf. From
whom can the insurer claim for the amount paid out? - Answers The insured
What are the responsibilities of the insured if there is loss or damage to people or property as a result of
an automobile related accident? - Answers Notify the insurer in writing with complete details within
seven days of the incident
How are the additional agreements of the insured in the OAP 1 reinforced? - Answers Through the
Statutory Conditions
Ali uses his car to deliver food for Uber Eats, but he did not disclose this fact to his agent/broker at the
time of application. Ali is later at fault in an accident while making a delivery that seriously injures a
pedestrian. Would Ali's insurer be responsible for paying the pedestrian's claim, and why? - Answers
Yes. The absolute liability provision will require Ali's insurer to respond.
Why would a broker/agent advocate for an insured to carry third-party liability limits beyond the
minimum provincial limits for automobile insurance? - Answers To mitigate financial ruin of the insured
What is the impact of an absolute liability claim on the insured? - Answers The insured is responsible to
pay back the amounts paid out by the insurer.
Damages of $600,000 have been made against Anita resulting from an automobile accident for which
she was at fault. Anita has $500,000 in liability coverage. How will the additional $100,000 in damages
be covered? - Answers Anita is personally responsible for paying the additional $100,000 in damages.
Who is the third party on an insurance policy? - Answers A claimant under a liability policy
If a rented or leased automobile is damaged in an accident, in what order would different policies
coverage apply? - Answers The renter's policy is first. The driver's policy is second. The owner's policy is
last to respond.
Under absolute liability provisions, an insurer paid a third-party claim on their insured's behalf. From
whom can the insurer claim for the amount paid out? - Answers The insured
What are the responsibilities of the insured if there is loss or damage to people or property as a result of
an automobile related accident? - Answers Notify the insurer in writing with complete details within
seven days of the incident
How are the additional agreements of the insured in the OAP 1 reinforced? - Answers Through the
Statutory Conditions
Ali uses his car to deliver food for Uber Eats, but he did not disclose this fact to his agent/broker at the
time of application. Ali is later at fault in an accident while making a delivery that seriously injures a
pedestrian. Would Ali's insurer be responsible for paying the pedestrian's claim, and why? - Answers
Yes. The absolute liability provision will require Ali's insurer to respond.
Why would a broker/agent advocate for an insured to carry third-party liability limits beyond the
minimum provincial limits for automobile insurance? - Answers To mitigate financial ruin of the insured
What is the impact of an absolute liability claim on the insured? - Answers The insured is responsible to
pay back the amounts paid out by the insurer.
Damages of $600,000 have been made against Anita resulting from an automobile accident for which
she was at fault. Anita has $500,000 in liability coverage. How will the additional $100,000 in damages
be covered? - Answers Anita is personally responsible for paying the additional $100,000 in damages.
