AUTO C14 QUESTIONS | ACCURATE AND VERIFIED FOR GUARANTEED PASS | GUARANTEED PASS, Exams of Automatic Controls

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AUTO C14 QUESTIONS | ACCURATE AND

VERIFIED FOR GUARANTEED PASS |

GUARANTEED PASS| LATEST UPDATE|2024-

2025 WITH 100 QUESTIONS

Under a limited depreciation policy, which of the following items are subject to depreciation in the event of a partial loss? A. Tires, batteries, canopies, and permanently attached equipment B. Convertible tops, stereo equipment, and tires C. Tires, batteries, convertible tops, and repainting of the entire vehicle D. Convertible tops, tires, custom paint or decals, and stereo equipment

• ANSWER C.) Tires, batteries, convertible tops, and repainting of the entire vehicle are subject to depreciation in the event of a partial loss. What types of recreational vehicles are subject to the Off-Road Vehicle Act? - ANSWER Off-road vehicle (any five of the following) Snowmobiles Snow vehicles All-terrain vehicles Off-road motorcycles and dirt bikes Utility terrain vehicles Golf carts (with some exceptions) Describe the coverage and provisions of the rental vehicle policy (APV281).
  • ANSWER The rental vehicle policy (APV281) APV281 is available for private passenger cars, commercial vehicles, motor homes, trailers, and motorcycles.

Coverage is for pleasure and business use originating in British Columbia. Coverage includes third-party liability, basic vehicle damage coverage, accident benefits, underinsured motorist protection, collision, comprehensive, and loss of use. It excludes vehicles for commercial use, including delivering or carrying of goods, carrying passengers in a vehicle with a seating capacity of 16 or more, or carrying passengers for compensation or hire. An insured covered by an APV281 does not need to purchase a collision damage waiver from a vehicle rental company Describe what is excluded from the replacement cost endorsement of the extended Autoplan coverage.

• ANSWER Replacement cost endorsement exclusions Losses related to warranties, including third-party warranties, manufacturer warranties, and other vehicle warranty insurance. Rebuilt vehicles—vehicles that have been in a previous accident or incident and have been declared a total loss, which are subsequently repaired. Vehicles with altered status—vehicles that have had significant modifications since their manufacture. Specialty vehicles—including low-powered vehicles, Ubilts (custom-built vehicles, usually from a kit), off-road vehicles, and farm trucks. Replicars and replikits—custom-made or individually produced automobiles with a body that is a copy

of a vintage or classic automobile. WHERE DO private companies providing basic coverage.

• ANSWER Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Yukon, Nunavut, and Northwest Territories WHERE DO government insurers provide basic automobile insurance coverage.
• ANSWER Saskatchewan, Manitoba, and British Columbia Peer-to-peer (P2P) insurance
• ANSWER a method where a group of individuals form a network to pool their premiums to insure against a risk. WHERE USES Tort systems
• ANSWER Northwest Territories, Nunavut, and Yukon WHERE USES Choice of Tort or No-Fault
• ANSWER Saskatchewan WHERE USES No-Fault
• ANSWER Alberta British Columbiao Manitobao New Brunswicko Newfoundland and Labrador Nova Scotia Ontarioo Prince Edward Island Quebec

Tort systems

• ANSWER The at-fault party is responsible for paying for the damage he or she causes to another person's property due to his or her negligent operation of the automobile. Negligence is determined in accordance with common law. In most cases, the at-fault party is insured and the at-fault party's insurance company compensates the party who suffers property damage. Direct compensation systems
  • ANSWER Fault is determined in accordance with the Insurance Act and legislated fault determination rules. Insurers assign liability according to the position of the vehicles at the time of the loss. Insured's own insurer pays for any property damage caused by a negligent third party. Insureds can't bring an action against an at-fault third party for property damage. Insurers must follow the fault determination rules. In extenuating circumstances, the insured can bring an action against his or her own insurer to have the fault decision reversed by a court. Government insurance systems
  • ANSWER British Columbia, Saskatchewan, and Manitoba have no-fault government-operated automobile insurance plans.

Crown corporations operate each plan similar to any other insurance company, but are the sole providers of certain basic coverages. When individuals apply for their vehicle registration, they must automatically purchase basic insurance at the same time. Additional coverages, including higher limits and lower deductibles, may be purchased from the government insurer or from private insurers. 3 basic policy: evolution of standers form

• ANSWER third party liability negligent actions first party "you" second "insured" and third anyone using car or in car accident benefit for medical expenses, income replacement, death and funeral UMP coverage (underinsured motor protection) protects you and passengers if uninsured, unidentified or underinsured people cause injury or property damage to you Standard policy forms: Provence variations (Quebec QPF, Ontario OAP and New Brunswick NBPF) no policy in BC,SK &MB
• ANSWER · SPF 1 standard owners automobile policy: provided coverage for owners of vehicles used for commercial or personal use SPF 2 stander driver policy: driver of vehicles they do not own · SPF 4 standard grace policy: coverage for owned, non-owned and costumer autos (owned automobiles)(liability) · SPF 6 standers non-owned auto policy: (non-owned auto insurance) responsible for use of non-owned vehicles (collision)

· SPF 7 excess auto policy: provided excess insurance for liability exposures for use along with SPF 1,2,4 or 6 · SPF 8 lessor's contingent policy: provided contingent insurance for business that lease vehicles on long-term · SPF 9 transportation network policy: (Alberta, Nova Scotia, PEI and Quebec) covers accidents from the use or operation in transportation "ride sharing" · QPF 5 complimentary insurance for the damage caused to insured vehicle from (replacement insurance): sold as a complementary policy to owners to provide a replacement for ( 84 months) extension insurance:

• ANSWER additional insurance as package policy purchased by insured to provide higher coverage limits, lower deductible or cover additional PERILS owned automobile:
• ANSWER owned by insured - non owned automobile insurance: policy to protect insured against third party claims arising out of others use of vehicle excess insurance: - ANSWER dose not participate until all other similar insurance is exhausted or exceeds loss previously agreed upon (excess to all other insurances so each insurer contributes pro rata to the loss) contingent insurance: - ANSWER potential replacement policy to indemnify the insured only in the absence of another primary policy (for leases of business) transportation network: - ANSWER online based application used by persons to prearrange transportation of passengers for compensation "ride sharing"

in North America pink cards or pink slips are evidence of insurance and must be produced when demanded (proof of minimum limits set by law and jurisdiction: - ANSWER pink slips include name and address of insured&insurer agency or broker name or number description of insured vehicle policy or licence number effective and expiry date 3 types of cards used for proof of insurance: - ANSWER Temporary valid for 30 days permanent valid until expired date (illegal to use card if policy is canceled) endorsement used when required to record changes of vehicle or address Third party liability insurance: - ANSWER (tort committed) protects from legal liability(pay for harm done to others imposed by law) upon insured for bodily injury, death of any person or damage to property, belonging to others out of owner ship or operation of vehicle by the named insured, additional insured to unnamed Autoplan third party liability insurers the following people: - ANSWER owner of policy, person with owners consent, when owner is deceased personal representative or other with custody pending settlement of will or letter of administration, when owner is not an individual regular use described in policy such as employee or partner

PROVENCES REQUIRED MINIMUM AMOUNTS - ANSWER alberts= 200, · B.C= 200, · Manitoba =500, · New Brunswick =200, · newfoundland =200, · northwest territories and Nunavut =200, · nova Scotia = 500, Ontario =200, · PEI =200, · Saskatchewan =200, · Yukon =200, · Quebec =50,000 to auto accidents in Quebec · Quebec =500,000 excluded from government plan tractors or vehicles out of Quebec priorities of payment - ANSWER system to specify how much of the minimum policy limit will apply to bodily injury claims, and to property damage in situations where there is not enough insurance to cover all combined claims priorities of payment by jurisdiction: - ANSWER 90%BI 10%PD BI= 180, PD= 10, After an insured automobile has been damaged in an accident, whose responsibility is it to protect the automobile from further damage? a. Adjuster b. Insured c. Insurer

d. Person who caused the damage - ANSWER A.) When there has been a loss, the insured is required to give prompt notice of loss, protect the automobile from further loss, and submit a proof of loss within 90 days. Which type of vehicle use is prohibited under the prescribed conditions? a. Parent using the car to drive members of her daughter's sports team to a game b. Driver using the automobile for street racing c. Insured's sister speeding 10 km/h over the speed limit on the highway d. Driver using the car while she is qualified and authorized to drive - ANSWER B.) There is no coverage under the policy if insureds drive or operate the automobile or allow others to operate the automobile in any race or speed test. The prescribed conditions require an insurer to pay insurance money for which it is liable within which of the following time periods A. Within 60 days after the date of accident B. Within 60 days after the date the accident was reported by the insured C. Within 60 days after it receives the proof of loss submitted by the insured D. Within 60 days after the date of the accident, or within 60 days after the repairs are started if the insurer chooses to repair the damaged automobile - ANSWER C.) Payment of the loss by the insurer is required within 60 days after receipt of proof of loss or 15 days after the award by appraisers, where an appraisal has been made. Which statement is correct regarding the termination of a contract according to the prescribed conditions? a. Only the insurer may terminate the contract mid-term. b. The contract may be terminated by either the insured or the insurer, provided certain conditions are met. c. Once the contract has been issued, it can be terminated only if the insured gets rid of the automobile or gives up his or her driver's licence. d. Only the insured may terminate the contract after it has been issued. - ANSWER B.) The contract may be terminated by either the insured or the insurer. The insured can terminate it at

any time by making a request. The insurer must either give 15 days' written notice by registered mail, or give 5 days' written notice if hand delivered. What are statutory conditions called in Nova Scotia? A. Prescribed conditions B. Mandatory conditions C. General conditions D. Civil conditions - ANSWER B.) The statutory conditions, known as mandatory conditions in Nova Scotia, prescribed conditions in British Columbia, and general conditions in Quebec, are made up of definitions, rules, and regulations that govern every automobile insurance policy. Which of the following types of conditions apply to garage automobile policies in Ontario? A. Prescribed conditions B. Garage conditions C. Civil conditions D. Statutory conditions - ANSWER D.) The statutory conditions are made up of definitions, rules, and regulations that govern every automobile insurance policy. The same conditions apply to all types of automobile policies (owner's, non- owned automobile, and garage) and to endorsements, except where noted. Anton is driving his car in an illegal street race when he loses control and collides with a pole, which causes $5,000 of damage to his car. Which statement below describes how Anton's automobile policy will respond to the loss? A. The policy will pay the loss in full. B. The policy will pay the loss but will deduct a $1,000 penalty charge for the racing conviction. C. The policy will pay the loss but will subrogate against Anton. D. The policy will not pay the loss because racing is a prohibited use under the statutory conditions. - ANSWER D.) There is no coverage under the policy if insureds drive or operate the automobile or allow others to operate the automobile in any race or speed test.

Which of the following actions would an insurer consider to be a material change in risk? A. The insured installed a bicycle rack on the car. B. The insured borrowed a friend's car. C. The insured paid off her car loan. D. The insured began using her car to drive for Uber. - ANSWER D.) A material change is a change in exposure which may lead the insurer to charge a different premium. What happens if the insured has overpaid his insurance premium based on being incorrectly classified under the insurer's risk classification system? A. The insurer must refund the premium in full. B. The insurer must refund the overpayment with interest. C. The insurer can keep the overpayment. D. The insurer must renew the policy with a premium discount. - ANSWER B.) If there was an overpayment of premium based on this incorrect classification, the insurer must refund it with interest. Miguel is driving home from work. While he is stopped at an intersection for a red light, the motorist behind him fails to stop in time and collides with his rear bumper. Miguel's car is drivable, but it has damage that will need to be repaired. Which of the following actions should Miguel take? A. Give prompt written notice to the insurer of the accident and/or resulting claim B. Attempt to settle the loss directly with the other driver without involving his insurer C. Assume liability for the collision D. Accept the other driver's apology for causing the loss and his offer to pay to repair Miguel's damage himself - ANSWER A.) After an incident in which there has been a third-party liability loss, insureds must meet certain obligations including giving their insurer prompt written notice of any accidents or resulting claims. Miguel should not attempt to settle the loss with the other driver, assume liability, or accept the other driver's offer to pay to repair the damage.

Under the prescribed condition of prohibited use, name five circumstances for which there is no coverage under the policy if insureds drive or operate the automobile or allow others to operate the automobile. - ANSWER Prohibited use (any five of the following)

• Driver is not authorized and qualified by law to operate the vehicle .• Illicit or prohibited trade or transportation .• Escaping or avoiding arrest or other similar police action .• Participating in a race or speed test.
• Operating a vehicle contrary to statements made in the application, such as purpose or territory of use, and number of passengers .• Operating a vehicle while impaired by drugs or alcoho Under the prescribed condition requirements if loss or damage to persons or property, what obligations are required after an incident in which there has been a third-party liability loss? - ANSWER Requirements where loss or damage to persons or property (any five of the following) Give prompt written notice to the insurer of any accidents or resulting claims. Verify that a claim arose from the insured automobile being operated and that the responsible party is insured under the policy. Forward immediately to the insurer all writs, claims, correspondence, and so on. Do not assume or admit liability. Do not interfere with claims proceedings. Aid in securing information and evidence and the attendance of witnesses, and co-operate in the defence of any action (without cost to the insured).

Allow the insurer to inspect an insured vehicle or its equipment or both at any reasonable time. Under the prescribed condition requirements if loss or damage to vehicle, explain the terms relating to salvage (when insured property is not totally destroyed or lost but cannot be repaired or restored). - ANSWER Salvage Salvage is property saved from loss; salvage is also used as a verb indicating the process of taking steps to reduce the amount of a loss. When the property is not totally destroyed or lost, some portion of the property remains and usually has some monetary value. If the insured is reimbursed for a total loss, the insurer is entitled to possession of the property remaining. The insurer can then sell that property and retain the proceeds as salvage and thus reduce its loss. If insureds want to keep the salvage themselves, its value is deducted from the total loss settlement so that the insured does not profit from the loss. Within what period of time should the insured notify the insurer of the possession of a newly acquired automobile in British Columbia for coverage under Autoplan? a. 10 Hours b. 10 Days c. 60 Days d. 72 hours - ANSWER B.) The insured must notify the insurer within 10 days of taking possession of the newly acquired automobile.

Why is it a mistake to remove a vehicle from a policy immediately after it has been destroyed or stolen? A. Because this also eliminates the extended benefit provided for the temporary substitute automobile that the insured may be operating at the time B. Because this invalidates accident benefits under the policy C. Because this means the insured will have to immediately cancel the policy and pay a short rate penalty for early cancellation D. Because this invalidates the claim for the described automobile - ANSWER A.) Removing a vehicle from a policy also eliminates the extended benefit provided for the temporary substitute automobile (TSA) that the insured may be operating at the time. Rachel's automobile policy has liability coverage in the amount of $2 million. If she borrows a friend's vehicle with just the minimum liability coverage of $200,000 and is involved in an accident, what is the most her insurer will pay? a. $200, b. $1,800, c. $800, d. $2,000,000 - ANSWER B.) The most the insurer would pay is $1.8 million because the insurance on the vehicle is primary and would cover the first $200,000. Rachel's policy would then cover up to the limit of her $2 million coverage. When an insured is using or operating a non-owned automobile, such as a temporary substitute or other automobile, the insurer is only liable for an amount up to the limit carried by the driver. If both the driver and the owner only have minimum limits, $200,000 would be the maximum payment. The limits do not stack (that is, the limit would not be $400,000, but $200,000). Which of the following is NOT considered a war risk activity under a war risk exclusion? a. Bombardment b. Invasion c. Insurrection d. Vandalism - ANSWER D.) Vandalism is not defined as a war risk.

What is ridesharing? A. Arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee B. Arrangement where a driver leases a car on a short-term basis from a car rental company C. Arrangement set up by means of a website or mobile app that links renters and car owners to arrange peer-to-peer car rental D. Arrangement where an insured uses a temporary substitute automobile while the described automobile is in the shop for repair - ANSWER A.) Ridesharing is an arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee. What is carsharing? A. Arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee B. Arrangement where a driver leases a car on a short-term basis from a car rental company C. Arrangement set up by means of a website or mobile app that links renters and car owners to arrange peer-to-peer car rental D. Arrangement where an insured uses a temporary substitute automobile while the described automobile is in the shop for repair - ANSWER C.) Carsharing is an arrangement set up by means of a website or mobile app that links renters and car owners to arrange peer-to-peer car rental. Which of the following are required to qualify as a ridesharing driver in British Columbia? a. The driver must have a qualifying class 12 licence issued in British Columbia. b. The driver must pass a police record check. c. The driver must have a minimum of 10 years' driving experience. d. The driver must have an umbrella liability policy with a limit of $2 million. - ANSWER B.) The driver must pass a police record check. If there is an accident while a car is being rented in a carsharing arrangement (peer-to-peer rental), which of the following polices will cover the loss?

a. The commercial insurance policy attached to the car b. The garage policy attached to the car c. The owner's policy attached to the car d. The non-owned automobile policy of the renter - ANSWER A.) If there is an accident that occurs while the car is being rented or in the delivery period of a peer-to-peer rental, it will be paid by the commercial insurance policy. Amal is considering ways to supplement her income using her car. Which of the following statements correctly describes a use of her car that would be covered? a. She can drive for a taxi company using her own car but must notify her insurer. b. She can make deliveries using her own car and will be covered under her regular owner's policy. c. She can drive for a transportation network company but must have permission from her insurer. d. She can make deliveries using her own car and will be covered under the courier company's garage policy. - ANSWER C.) Ridesharing is excluded under the general provisions, definitions, and exclusions of the standard owner's policy. Drivers that would like to engage in these activities must notify their insurer and arrange additional coverage (endorsements) to cover this exposure. nsurance (Vehicle) Regulation and Insurance (Vehicle) Act do not exclude the same vehicle uses as the SPF 1 and OAP 1. Which of the following is a permitted use of a vehicle and not excluded under prescribed conditions in British Columbia? a. Carrying passengers for compensation b. Carrying radioisotopes for medical treatment c. Participating in drag races on public highways d. Transportation of counterfeit goods to flea markets - ANSWER B.) ICBC nuclear energy hazard exclusion does not exclude carrying radioisotopes that are packaged and labelled in accordance with the Transportation of Dangerous Goods Act (Canada); and to be used for medical treatment, research, photography, x-ray, or other similar purposes for using radioisotopes.

The general provisions of OAP 1/SPF 1 specifically exclude occupants in a vehicle being used without the owner's consent. Explain whether there is a similar exclusion under Autoplan - ANSWER Owner's consent exclusion With Autoplan, there is no need for a specific exclusion to deny coverage to an occupant or driver of a vehicle driven without consent. An insured person under third-party liability (Part 6) is deemed to be a person who, with the consent of the owner or while a member of the owner's household, operates the vehicle described in the owner's certificate. Under normal circumstances, a vehicle owner is not liable if a passenger in his or her vehicle is injured while it is being driven without his or her consent because, by definition, the person driving the vehicle without consent (the thief) is not an insured. Accident benefits (Part 7) are unavailable to both the driver and the occupant of a vehicle driven without consent, unless payment of benefits is restricted as detailed in Section 55(3) and Section 96 of the Insurance (Vehicle) Regulation. For example, no accident benefits are payable to the driver or occupant of a vehicle if they are injured or killed while the vehicle is being used for an illicit or prohibited trade or transport. Identify FIVE (5) general exclusions under the OAP 1/SPF 1. - ANSWER Five general exclusions under the OAP 1/SPF Excluded uses

• Rented or leased automobiles
• Carrying explosives or radioactive material
• Carrying passengers for compensation or hire Garage workers

War risks How is ridesharing insured in British Columbia? - ANSWER Insuring ridesharing British Columbia's Passenger Transportation Board (PTB) oversees the licensing of ridesharing companies in the province. Once they are approved to operate, ridesharing companies are responsible for ensuring drivers and vehicles meet PTB requirements set out in government regulations. Drivers must meet the qualifications, including having a qualifying commercial driver's licence issued in BC (Class 1, Class 2, or Class 4), passing a policy record check, having a vehicle that meets requirements and passes an inspection, and having a satisfactory commercial driving record (National Safety Code abstract). The Insurance Corporation of British Columbia (ICBC) provides a blanket insurance certificate for the ridesharing company to provide basic insurance while cars are being used for ridesharing. There is also a blanket optional policy that ridesharing companies can purchase to provide optional coverages, such as collision and comprehensive, to vehicles being used for ridesharing. Which of the following pieces of legislation deals with federal licensing and supervision of insurance companies and solvency standards for insurers? a. The Insurance Companies Act b. The provincial and territorial insurance acts c. The provincial and territorial highway traffic acts and regulations made pursuant to various acts d. The Federal Insurance Act - ANSWER A.) The Canadian government has enacted the Insurance Companies Act, which deals with federal licensing and supervision of insurance companies and solvency standards for insurers. Which of the following does the Motor Vehicle Act deal with?

A. The registration and licensing of motor vehicles, licensing of drivers, and traffic control of vehicles on highways, as well as the requirements for proof of financial responsibility and safety responsibility B. The federal licensing and supervision of insurance companies and solvency standards for insurers C. The licensing of insurance agents and brokers who sell automobile insurance D. Setting standards and imposing penalties for impaired driving, including cannabis use and driving - ANSWER A.) In general, the Motor (Vehicle) Act deals with registration and licensing of motor vehicles, licensing of drivers, and traffic control of vehicles on highways. The Act has also long played a role in automobile insurance relating to the requirements of proof of financial responsibility and safety responsibility. Which statement best defines an ombudsperson? a. An advocate for the insured in a privacy dispute b. An advocate for the insurer in a privacy dispute c. An impartial arbiter between insured and insurer in a privacy dispute d. An impartial intermediary between the public and government or bureaucracy - ANSWER C.) An ombudsperson is a person who hears and investigates complaints and acts as an impartial intermediary between the public and government or bureaucracy. Which of the following is an example of personal information that is collected and used for automobile insurance? a. Vehicle identification number (vin) of the car being insured b. Address of a person's employer c. Person's occupation d. Person's home address - ANSWER D.) For automobile insurance, personal insurance can include a person's name, address, driving record, or claims information. Residual markets, from an underwriting standpoint, refer to which of the following? a. Special programs to ensure insurance availability for all uninsured drivers b. A market that is immediately available to brokers/agents and the public

c. Special programs to ensure insurance availability for less desirable/more hazardous risks d. Special programs to encourage insurance for the more desirable/less hazardous risks - ANSWER C.) Residual markets ensure insurance availability for less desirable/more hazardous risks. What does a car year measure? a. An insurer's exposure b. Year the insured vehicle was made c. Condition of the insured vehicle d. Mileage on the insured vehicle - ANSWER A.) A car (vehicle) year is the measurement of an insurer's exposure. It means an automobile insured for a period of 12 months. What is the name of the Alberta risk sharing pool that allows automobile insurers to transfer private passenger exposures up to a pre-defined maximum? a. Grid pool b. Non-grid pool c. Grey pool d. Mobile pool - ANSWER B.) The non-grid pool is the Alberta risk sharing pool that enables the insurer to transfer any eligible private passenger automobile insurance exposures that are subject to the province's statutory maximum premium. Which of the following provinces has a risk sharing pool that is designed to provide affordable automobile insurance to operators with less than six years of driving experience and clean driving records? a. Alberta b. British Columbia c. New Brunswick d. Nova Scotia - ANSWER D.) Nova Scotia has an inexperienced driver risk sharing pool that is designed to provide affordable insurance to operators with less than six years of driving experience and clean driving records.

How are premiums and claims ceded to risk sharing pools in Alberta, New Brunswick, Newfoundland and Labrador, and Nova Scotia? A. Insurers in Alberta, New Brunswick, Newfoundland and Labrador, and Nova Scotia cede 15 percent of premiums and claims to their various pools. B. Insurers in Alberta, New Brunswick, Newfoundland and Labrador, and Nova Scotia cede 25 percent of premiums and claims to their various pools. C. Insurers in Alberta, New Brunswick, Newfoundland and Labrador, and Nova Scotia cede 75 percent of premiums and claims to their various pools. D. Insurers in Alberta, New Brunswick, Newfoundland and Labrador, and Nova Scotia cede 100 percent of premiums and claims to their various pools. - ANSWER D.) Insurers in Alberta, New Brunswick, Newfoundland and Labrador, and Nova Scotia cede 100 percent of premiums and claims to their various pools and share the results according to their market share (excluding business submitted to the pools). When can an insurer withdraw a risk from the Plan de répartition des risques (PRR)? a. Only at the policy renewal date b. Only at the time that coverage is granted c. Any time within a policy period d. Any time after the policy has been terminated - ANSWER C.) The insurer may transfer a risk to the PRR where coverage is granted or withdraw it from the PRR at any time within a policy period. Describe the role of the Facility Association in Canadian automobile insurance. - ANSWER Facility Association It is an unincorporated association of insurers. It provides automobile insurance to owners and operators of motor vehicles who may otherwise have difficulty obtaining insurance through the voluntary market.

In provinces and territories where the Facility Association operates, the underwriting rules of the various automobile insurers serve as guidelines to determine whether a risk qualifies for insurance through the voluntary market. These rules are a list of grounds for which the insurer declines to issue, terminates, or refuses to renew a contract, or refuses to provide or continue a coverage or endorsement. In theory, a risk would be placed in the residual market if it does not meet any insurer's underwriting rules. But some risks placed in the residual market may be eligible for insurance through the voluntary market since underwriting rules can vary amongst insurers. Describe the function of risk sharing pools. - ANSWER Risk sharing pools These pools allow automobile insurance underwriters to transfer certain private passenger automobile exposures that may meet the companies' underwriting guidelines, but still present higher-than-average risk. They are sometimes referred to as "grey" private passenger risks. Because these risks meet underwriting guidelines, insurers cannot decline them, and they must still be written in the voluntary market at the insurers' normal rates. Risk sharing pools give the writing companies the option of keeping such business for their own account or transferring it to the pool. Insurers share the experience of the transferred risk with the pool in accordance with their share of the market and/or their usage of the pool. Explain the Quebec Risk Sharing Plan. - ANSWER Quebec Risk Sharing Plan

In Quebec, the Groupement des assureurs automobiles (GAA) administers a risk sharing plan called the Plan de répartition des risques (PRR). All automobile insurers licensed in Quebec participate in the PRR, except those who do not write any automobile third-party liability insurance. The PRR supports insurers providing access to automobile insurance for all Quebec automobile owners. The PRR is a mechanism that allows an insurer to transfer any risk that does not meet its underwriting criteria into a shared pool. No standard rates are prescribed by the PRR and a risk is transferred for the standard premium set by the insurer and the decision to transfer a risk to the PRR is made solely by the insurer.