CAIB 3 Chapter 3 Study Questions with
Answers
What are two sources of automobile insurance in Canada? - ✔✔1. Private insurers
2. Government insurers
What do the following abbreviations mean? S.P.F. and S.E.F. - ✔✔1. S.P.F. - Standard Policy
Form
2. S.E.F. - Standard Endorsement Form
Which three common law provinces currently have government automobile schemes? -
✔✔British Columbia, Saskatchewan, Manitoba
Identify the minimum amount of third party liability insurance required in common law
provinces: - ✔✔$200,000
S.E.F. #44 Family Protection Endorsement provides valuable coverage for insureds. When will
this endorsement responds to bodily injury losses of insureds? - ✔✔This endorsement will
respond when insureds are injured or killed by an underinsured motorist or uninsured motorist.
How does this endorsement operate? - ✔✔This endorsement will raise the third party liability
limits of the at fault driver to that of the insured's third party liability limits.
Indicate how coverage amounts are determined using this endorsement. - ✔✔The SEF #44
Family Protection Endorsement will provide the difference between the insured's third party
liability limit and third party liability limit of the at fault driver.
Accident Benefits are paid to injured parties on a no-fault basis. What does this mean? -
✔✔Accident Benefits are available regardless of who is at fault.
, What coverage options are available to insureds when they wish to insure their own
automobile? - ✔✔1. All perils
2. Collision or upset
3. Comprehensive
4. Specified perils
What are the two conditions of coverage found in "Loss of Use by Theft" which is included
automatically in all automobile policies insuring the peril of "theft." - ✔✔1. Coverage is
provided for $25-$30 per day
2. Coverage is provided for up to 30 days
How does the S.E.F. #20 Loss of Use Endorsement differ from the Loss of Use by Theft coverage
mentioned above? - ✔✔SEF #20 Loss of Use Endorsement will provide coverage for the loss of
use expenses when insured automobiles are damaged from any insured perils, not just theft.
What are two expenses covered by the S.E.F. #20 Loss of Use Endorsement? - ✔✔1. Costs to
rent substitute automobiles
2. Costs to use taxicabs or public means of transportation
What are the three "triggers of coverage" in the S.E.F. #20 Loss of Use Endorsement> - ✔✔1.
When insured automobile cannot be operated under its own power, coverage begins
immediately
2. When insured automobile is stolen, coverage begins day following report to police or insurer
3. In all other cases when insured automobile is dropped off for repairs coverage begins
What endorsement is needed to provide coverage on short term (less than 2 weeks) rented
automobiles? - ✔✔S.E.F. #5c Permission to Rent or Lease Endorsement.
What endorsement is needed to provide coverage on long term (usually 2 to 3 years) rented
automobiles? - ✔✔S.E.F. #5 Permission to Rent or Lease Endorsement.
Answers
What are two sources of automobile insurance in Canada? - ✔✔1. Private insurers
2. Government insurers
What do the following abbreviations mean? S.P.F. and S.E.F. - ✔✔1. S.P.F. - Standard Policy
Form
2. S.E.F. - Standard Endorsement Form
Which three common law provinces currently have government automobile schemes? -
✔✔British Columbia, Saskatchewan, Manitoba
Identify the minimum amount of third party liability insurance required in common law
provinces: - ✔✔$200,000
S.E.F. #44 Family Protection Endorsement provides valuable coverage for insureds. When will
this endorsement responds to bodily injury losses of insureds? - ✔✔This endorsement will
respond when insureds are injured or killed by an underinsured motorist or uninsured motorist.
How does this endorsement operate? - ✔✔This endorsement will raise the third party liability
limits of the at fault driver to that of the insured's third party liability limits.
Indicate how coverage amounts are determined using this endorsement. - ✔✔The SEF #44
Family Protection Endorsement will provide the difference between the insured's third party
liability limit and third party liability limit of the at fault driver.
Accident Benefits are paid to injured parties on a no-fault basis. What does this mean? -
✔✔Accident Benefits are available regardless of who is at fault.
, What coverage options are available to insureds when they wish to insure their own
automobile? - ✔✔1. All perils
2. Collision or upset
3. Comprehensive
4. Specified perils
What are the two conditions of coverage found in "Loss of Use by Theft" which is included
automatically in all automobile policies insuring the peril of "theft." - ✔✔1. Coverage is
provided for $25-$30 per day
2. Coverage is provided for up to 30 days
How does the S.E.F. #20 Loss of Use Endorsement differ from the Loss of Use by Theft coverage
mentioned above? - ✔✔SEF #20 Loss of Use Endorsement will provide coverage for the loss of
use expenses when insured automobiles are damaged from any insured perils, not just theft.
What are two expenses covered by the S.E.F. #20 Loss of Use Endorsement? - ✔✔1. Costs to
rent substitute automobiles
2. Costs to use taxicabs or public means of transportation
What are the three "triggers of coverage" in the S.E.F. #20 Loss of Use Endorsement> - ✔✔1.
When insured automobile cannot be operated under its own power, coverage begins
immediately
2. When insured automobile is stolen, coverage begins day following report to police or insurer
3. In all other cases when insured automobile is dropped off for repairs coverage begins
What endorsement is needed to provide coverage on short term (less than 2 weeks) rented
automobiles? - ✔✔S.E.F. #5c Permission to Rent or Lease Endorsement.
What endorsement is needed to provide coverage on long term (usually 2 to 3 years) rented
automobiles? - ✔✔S.E.F. #5 Permission to Rent or Lease Endorsement.
