OTL AUTO CHAPTER 4 questions well
answered to pass
Who is the third party on an insurance policy? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer
✔✔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? - correct answer ✔✔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? - correct answer ✔✔To mitigate
financial ruin of the insured
answered to pass
Who is the third party on an insurance policy? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer
✔✔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? - correct answer ✔✔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? - correct answer ✔✔To mitigate
financial ruin of the insured
