OTL AUTO CHAPTER 7 EXAM QUESTIONS WITH CORRECT ANSWERS GRADED A+
Following an accident involving two drivers, who has the onus of proof during a lawsuit? - Answers The
person suing (plaintiff).
When was direct compensation for vehicle damage system introduced in Ontario? - Answers June 1990
In Ontario, how is the responsibility for an automobile accident assigned? - Answers By referencing the
fault determination rules
In automobile insurance, what does no-fault mean? - Answers Claimants are compensated by their own
insurer regardless of who was at fault.
In which automobile insurance system are insureds compensated by their own insurer regardless of
responsibility? - Answers No Fault insurance
Devon was involved in a motor vehicle accident and her antique painting, which was in her vehicle, was
destroyed. Devon was compensated under the DCPD section of her policy. Can Devon's insurer
subrogate against the at-fault driver for the damaged painting? - Answers Yes, to the degree that Devon
was not at fault if the painting was valued in excess of $20,000
Why were automobile insurance related direct compensation systems created? - Answers To reduce
delays caused by the 'tort' system and provide injured parties with quicker access to benefits and
treatment.
Which statement describes the coverage provided by Section 6 - Direct Compensation Property Damage
(DCPD) of the OAP 1 Owner's form? - Answers It covers damage to the insured automobile, its contents
and for its loss of use to the extent that the insured is not at fault for the accident
Would an insured's third-party liability coverage respond to damage caused to the insured's automobile
by a third-party? - Answers No, Third-Party Liability Coverage responds to damage the insured is
responsible for causing to someone else's automobile.
Nate has DCPD coverage with a $300 deductible. He has an accident that causes $1,000 damage to his
automobile and is deemed 50% at fault. How much will he recover from his DCPD coverage? - Answers
$350
Mario was involved in an accident for which he was not at fault and the contents in his vehicle (valued at
$30,000) were damaged. Is Mario's insurer able to subrogate for the damaged contents? - Answers Yes,
subrogation is permitted as the content's loss is over $20,000.
What is verbal threshold? - Answers The extent of injury required for a civil action to be allowed for non-
economic loss against an at-fault motorist.
Following an accident involving two drivers, who has the onus of proof during a lawsuit? - Answers The
person suing (plaintiff).
When was direct compensation for vehicle damage system introduced in Ontario? - Answers June 1990
In Ontario, how is the responsibility for an automobile accident assigned? - Answers By referencing the
fault determination rules
In automobile insurance, what does no-fault mean? - Answers Claimants are compensated by their own
insurer regardless of who was at fault.
In which automobile insurance system are insureds compensated by their own insurer regardless of
responsibility? - Answers No Fault insurance
Devon was involved in a motor vehicle accident and her antique painting, which was in her vehicle, was
destroyed. Devon was compensated under the DCPD section of her policy. Can Devon's insurer
subrogate against the at-fault driver for the damaged painting? - Answers Yes, to the degree that Devon
was not at fault if the painting was valued in excess of $20,000
Why were automobile insurance related direct compensation systems created? - Answers To reduce
delays caused by the 'tort' system and provide injured parties with quicker access to benefits and
treatment.
Which statement describes the coverage provided by Section 6 - Direct Compensation Property Damage
(DCPD) of the OAP 1 Owner's form? - Answers It covers damage to the insured automobile, its contents
and for its loss of use to the extent that the insured is not at fault for the accident
Would an insured's third-party liability coverage respond to damage caused to the insured's automobile
by a third-party? - Answers No, Third-Party Liability Coverage responds to damage the insured is
responsible for causing to someone else's automobile.
Nate has DCPD coverage with a $300 deductible. He has an accident that causes $1,000 damage to his
automobile and is deemed 50% at fault. How much will he recover from his DCPD coverage? - Answers
$350
Mario was involved in an accident for which he was not at fault and the contents in his vehicle (valued at
$30,000) were damaged. Is Mario's insurer able to subrogate for the damaged contents? - Answers Yes,
subrogation is permitted as the content's loss is over $20,000.
What is verbal threshold? - Answers The extent of injury required for a civil action to be allowed for non-
economic loss against an at-fault motorist.
