OTL AUTOMOBILE CHPATER 11
questions well answered already passed
graded A+
Who is responsible for servicing a policy, including settling claims, once it has been transferred
into the risk sharing pool? - correct answer ✔✔The company who issues the initial policy
How are the Facility Association's servicing carriers compensated for their work? - correct
answer ✔✔They receive expense allowances agreed to by the membership.
What must an insurer provide to the provincial regulator (FSCO/FSRA) to be allowed to
terminate a contract? - correct answer ✔✔List of all grounds the insurer would use to cancel or
refuse to renew
When an applicant requests an automobile insurance quotation and the agent/broker
approached is affiliated with more than one insurer, which rate must be provided? - correct
answer ✔✔The lowest rate available from any affiliated insurer.
In Ontario, who are the members of the Facility Association? - correct answer ✔✔Every licensed
automobile insurer
What two markets exist for motorists to purchase automobile insurance? - correct answer
✔✔Regular market and residual market
Who performs the day to day tasks for the Facility Association? - correct answer ✔✔Servicing
Carriers
questions well answered already passed
graded A+
Who is responsible for servicing a policy, including settling claims, once it has been transferred
into the risk sharing pool? - correct answer ✔✔The company who issues the initial policy
How are the Facility Association's servicing carriers compensated for their work? - correct
answer ✔✔They receive expense allowances agreed to by the membership.
What must an insurer provide to the provincial regulator (FSCO/FSRA) to be allowed to
terminate a contract? - correct answer ✔✔List of all grounds the insurer would use to cancel or
refuse to renew
When an applicant requests an automobile insurance quotation and the agent/broker
approached is affiliated with more than one insurer, which rate must be provided? - correct
answer ✔✔The lowest rate available from any affiliated insurer.
In Ontario, who are the members of the Facility Association? - correct answer ✔✔Every licensed
automobile insurer
What two markets exist for motorists to purchase automobile insurance? - correct answer
✔✔Regular market and residual market
Who performs the day to day tasks for the Facility Association? - correct answer ✔✔Servicing
Carriers
