CAIB 3 Chapter 3 Exam Questions With
Complete Solutions
Identify, other than in Quebec two different systems used to insure
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automobiles in Canada - ANSWER✔✔✔-1. Private insurers
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2. Compulsory government insurance plans
| | | |
Identify three types of Standard Policy Forms (SPF) that are used to
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insure vehicles - ANSWER✔✔✔-SPF No 1. Owners Form
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SPF No 4. Standard garage automobile policy
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SPF No 6. Standard non-owned automobile policy
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Briefly explain what is meant by standard policy forms - ANSWER✔✔✔-
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Policy forms developed by the insurance industry for all types of
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automobile use |
Identify three provinces were compulsory government insurance plans
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exist - ANSWER✔✔✔-1. British Columbia
| | | |
2. Saskatchewan
| |
3. Manitoba
|
,Identify three types of automobiles that can be insured on an SPF # 1 -
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ANSWER✔✔✔-Private Passenger |
Commercial vehicles (truck and delivery automobiles)
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Public automobiles (buses and taxicabs)
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Identify three ultimate limits that may be required by federal legislation
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depending on the use of the vehicle - ANSWER✔✔✔-1. Vehicle use out
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of the province $1,000,000 TPL
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2. Carriers of danger goods $2,000,000 TPL
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3. Transported to the USA between $750,000 and $5,000,000 TPL
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Identify the additional hazard faced by insurers of public vehicles -
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ANSWER✔✔✔-Increased number of passengers being carried and that | | | | | | | |
such vehicles are used continuously over long periods of time
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Identify the three sections of coverage available under the SPF # 1 -
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ANSWER✔✔✔-1. Third-party liability | |
2. Accident benefits
| |
3. Physical damage
| |
Identify five costs provided under section B - Accident Benefits -
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ANSWER✔✔✔-1. Reimbursement of reasonable medical expenses | | | | |
2. Rehabilitation costs
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, 3. Funeral expenses
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4. Death benefit
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5. Loss of income
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Identify the four options available under Section C - Physical Damage -
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ANSWER✔✔✔-1. All perils | |
2. Collision or upset
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3. Comprehensive
|
4. Specified perils
| |
The SEF # 44 provides coverage for:
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Caused by: - ANSWER✔✔✔-Injury and death
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An underinsured motorist
| | |
An uninsured motorist
| |
Explain the operation of the SEF # 44 - ANSWER✔✔✔-To increase the
| | | | | | | | | | | |
third-party liability limits available to victims of such accidents to the
| | | | | | | | | | |
same limits as purchased under their own policy. When a claim is made
| | | | | | | | | | | | |
payment will be limited to the difference between the liability insurance
| | | | | | | | | |
limits of the insurance policy and that carried by the motorist at fault
| | | | | | | | | | | | |
Identify the coverage limits and the maximum time provided for Loss of
| | | | | | | | | | | |
Use under Section C - ANSWER✔✔✔-$25-$30 per day
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Complete Solutions
Identify, other than in Quebec two different systems used to insure
| | | | | | | | | | |
automobiles in Canada - ANSWER✔✔✔-1. Private insurers
| | | | | |
2. Compulsory government insurance plans
| | | |
Identify three types of Standard Policy Forms (SPF) that are used to
| | | | | | | | | | | |
insure vehicles - ANSWER✔✔✔-SPF No 1. Owners Form
| | | | | | |
SPF No 4. Standard garage automobile policy
| | | | | |
SPF No 6. Standard non-owned automobile policy
| | | | | |
Briefly explain what is meant by standard policy forms - ANSWER✔✔✔-
| | | | | | | | | |
Policy forms developed by the insurance industry for all types of
| | | | | | | | | | |
automobile use |
Identify three provinces were compulsory government insurance plans
| | | | | | | |
exist - ANSWER✔✔✔-1. British Columbia
| | | |
2. Saskatchewan
| |
3. Manitoba
|
,Identify three types of automobiles that can be insured on an SPF # 1 -
| | | | | | | | | | | | | | |
ANSWER✔✔✔-Private Passenger |
Commercial vehicles (truck and delivery automobiles)
| | | | |
Public automobiles (buses and taxicabs)
| | | |
Identify three ultimate limits that may be required by federal legislation
| | | | | | | | | | |
depending on the use of the vehicle - ANSWER✔✔✔-1. Vehicle use out
| | | | | | | | | | | |
of the province $1,000,000 TPL
| | | |
2. Carriers of danger goods $2,000,000 TPL
| | | | | |
3. Transported to the USA between $750,000 and $5,000,000 TPL
| | | | | | | | |
Identify the additional hazard faced by insurers of public vehicles -
| | | | | | | | | | |
ANSWER✔✔✔-Increased number of passengers being carried and that | | | | | | | |
such vehicles are used continuously over long periods of time
| | | | | | | | |
Identify the three sections of coverage available under the SPF # 1 -
| | | | | | | | | | | | |
ANSWER✔✔✔-1. Third-party liability | |
2. Accident benefits
| |
3. Physical damage
| |
Identify five costs provided under section B - Accident Benefits -
| | | | | | | | | | |
ANSWER✔✔✔-1. Reimbursement of reasonable medical expenses | | | | |
2. Rehabilitation costs
| |
, 3. Funeral expenses
| |
4. Death benefit
| |
5. Loss of income
| | |
Identify the four options available under Section C - Physical Damage -
| | | | | | | | | | | |
ANSWER✔✔✔-1. All perils | |
2. Collision or upset
| | |
3. Comprehensive
|
4. Specified perils
| |
The SEF # 44 provides coverage for:
| | | | | |
Caused by: - ANSWER✔✔✔-Injury and death
| | | | |
An underinsured motorist
| | |
An uninsured motorist
| |
Explain the operation of the SEF # 44 - ANSWER✔✔✔-To increase the
| | | | | | | | | | | |
third-party liability limits available to victims of such accidents to the
| | | | | | | | | | |
same limits as purchased under their own policy. When a claim is made
| | | | | | | | | | | | |
payment will be limited to the difference between the liability insurance
| | | | | | | | | |
limits of the insurance policy and that carried by the motorist at fault
| | | | | | | | | | | | |
Identify the coverage limits and the maximum time provided for Loss of
| | | | | | | | | | | |
Use under Section C - ANSWER✔✔✔-$25-$30 per day
| | | | | | |
