C14 automobile insurance EXAM 2024 AND PRACTICE QUESTIONS |ACCURATE ANSWERS| VERIFIED, Exams of Insurance Economics

Download C14 automobile insurance EXAM 2024 AND PRACTICE QUESTIONS |ACCURATE ANSWERS| VERIFIED and more Exams Insurance Economics in PDF only on Docsity! C14 auto EXAM 2024 AND PRACTICE QUESTIONS |ACCURATE ANSWERS| VERIFIED FOR GUARANTEED PASS |GRADED A |NEW VERSION WITH 100+ QUESTIONS What is British Columbia's mandated minimum limit of third-party liability coverage? a. $100,000 b. $200,000 c. $300,000 d. $500,000 - ANSWER B.) British Columbia's mandated minimum limit of third-party liability coverage is $200,000. Which of the following types of damage is covered under Autoplan third-party liability? a. Punitive, exemplary, or other non-compensatory damages b. Damage to property carried in or on a vehicle owned by the insured c. Loss or damage arising out of nuclear energy hazard, declared or undeclared war, insurrection, rebellion, or revolution d. Legal liability imposed by law upon the insured for bodily injury to another person arising out of the insured's use of an automobile – ANSWER D.) Automobile third-party liability insurance is designed to provide protection for the legal liability imposed by law upon the insured for bodily injury or death of any persons, or property damage to property belonging to other persons, arising out of the ownership, use, or operation of an automobile. Jake, a British Columbia resident, has purchased automobile insurance with a $200,000 liability limit. He is about to commence a two-day road trip in Nova Scotia, where the minimum liabilitycoverage is $500,000. If he is involved in an accident, what are the minimum limits that hisinsurer will pay? a. Up to $200,000 b. Up to $300,000 c. Up to $500,000 d. Jake's insurer will not cover the loss. - ANSWER C.) The additional limits under third party liability coverage state the insurer will be liable up to the minimum limits prescribed in the province or territory where the accident occurred, if that limit is higher than the policy's limit. Autoplan third-party liability coverage can be transferred to a vehicle other than the one described on the owner's certificate. However, the coverage is only transferable when such a vehicle is driven by which of the following persons? a. A person named as an owner in an owner's certificate in British Columbia b. A person who is the spouse of an insured employee or partner but does not reside in the same household c. A person who is not named in an owner's certificate or driver's certific - ANSWER A.) Autoplan third-party liability coverage can be transferred to a vehicle other than the one described on the owner's certificate when the person driving the vehicle is a person named as an owner in an owner's certificate in British Columbia. Which of the following persons would be covered when Autoplan third-party liability coverage is transferred to a vehicle other than the one described on the owner's certificate? a. A person who has a valid driver's licence who is driving a non-owned all-terrain vehicle b. A mechanic who is test-driving a customer's automobile after repairing it c. A person who has an owner's certificate for a small compact car, but borrowed a friend's pick- up truck to move some furniture and didn't k - ANSWER C.) Autoplan third-party liability coverage can be transferred to a vehicle other than the one described on the owner's certificate when the person driving the vehicle is a person named as an owner in an owner's certificate in British Columbia. Automobile insurance policies in these systems include direct compensation-property damage coverage to provide this compensation. State the aims of direct compensation automobile insurance plans, in addition to the ultimate goal of cost savings that result in lower premiums - ANSWER Aims of direct compensation automobile insurance plans Less investigation Less subrogation activity Less litigation Speedier settlements for insureds Insureds deal only with their own insurer Exclusions under third-party liability coverage - ANSWER Damage to property carried in or upon the automobile Damage to other property owned or rented by, or in the care, custody, or control of the named insured or other insured persons Contamination of property being carried Nuclear hazards, unless the insured also has a nuclear energy hazard liability policy, and then only as excess insurance Amounts over the policy limit purchased—other than legal costs and post-judgment interest Individuals covered by accident benefits - ANSWER Occupants of a vehicle licensed and insured in BC Members of the households of vehicle owners Occupants of vehicles driven by holder of BC driver's licence Pedestrians or cyclists in a collision with a BC licensed and insured vehicleo BC residents with driver's licence (certificate) (and their household members), without debt to ICBC Resident of BC injured by an uninsured or unidentified drive Coverage offered under Autoplan's enhanced accident benefits - ANSWER Health care, rehabilitation, and related benefits Permanent impairment compensation Income replacement benefits Benefits for students Benefits for minors Retirement income benefit Family and caregiver benefits Death benefits, reimbursement of funeral expenses, and grief counselling Catastrophic injury benefit Expenses for volunteers Medical care and rehabilitation - ANSWER The health-care, rehabilitation, and related benefits are grouped together Treatments include physiotherapy, chiropractic, and massage therapy Support and services include occupational therapy, counselling, dental care, medication, and medical devices or equipment Alterations to insureds' vehicles or homes include a ramp, stair lift, and bathroom alterations Travel and accommodation expenses when travelling out of town for medical or rehabilitation appointments Permanent impairment compensation - ANSWER An insured who sustains a permanent impairment as a result of the accident is entitled to a lump sum payment for the permanent impairment Income replacement benefits - ANSWER Full-time earners Injury or death is caused by sickness or disease unrelated to the accident Vehicles exempted from Autoplan restricting coverage - ANSWER Owned by governments (BC government is NOT exempt from Autoplan) Owned by visitors, non residents, and non-residents with appropriate non-resident permits Registered, licensed, and insured in another jurisdiction but operated in BC Breach of coverage conditions restricting coverage - ANSWER Driving without licence Illicit or prohibited trade or transportation Avoiding arrest or other similar police action Race or speed test Which of the following people would be considered an insured person under accident benefits? a. A pedestrian who is in a collision with a vehicle licensed and insured in British Columbia b. A person driving a British Columbia registered vehicle to escape a crime or avoid arrest c. The automobile insurance company d. A person who witnessed the accident but did not suffer any injuries - ANSWER A.) A pedestrian who is in a collision with a vehicle licensed and insured in British Columbia would be considered an insured person under enhanced care coverage accident benefits. Which of the following would be covered under accident benefits? a. Costs for buying a new automobile to replace the one damaged in the accident b. Costs for defending a third-party liability in court due to actions of the insured in an automobile accident c. Cost of medical and rehabilitative care for the treatment and recovery of injuries arising out of the use or operation of an insured automobile d. Costs for repairing damage to the insured car caused by an uninsured driver - ANSWER C.) Accident benefits coverage provides indemnification to an insured on a first-party basis towards the cost of medical and rehabilitative care for the treatment and recovery of injuries arising out of the use or operation of an insured's automobile. Which of the following persons would be considered an occupant of a vehicle for purposes of being eligible to receive accident benefits under the vehicle's insurance? a. Person who witnessed the vehicle being stolen b. Pedestrian who is hit by an Alberta vehicle driven by an Alberta driver c. Agent who set up the registration and insurance for the vehicle d. Passenger who is getting out of the vehicle - ANSWER D.) An occupant who is getting out of a vehicle, and is injured, is eligible for accident benefits. What does the recreation benefit provide? a. Support for insureds to participate in recreational or leisure activities they need extra help with following their injury b. Coverage for membership fees to professional sports organizations c. Reimbursement for the cost of hiring a personal trainer in a gym d. Reimbursement for the cost of buying sports equipment - ANSWER A.) The recreation benefit provides support for insureds to participate in recreational or leisure activities they need extra help with following their injury In British Columbia, which of the following must be provided as part of accident benefits? a. Direct compensation-property damage coverage b. Third-party liability coverage c. Medical, rehabilitation, and attendant care benefits d. Uninsured automobile coverage - ANSWER C.) Part 10 of the Insurance (Vehicle) Act provides for medical, rehabilitation, and attendant care benefits. Accident benefits will be paid to an injured person in which of the following situations? a. Cyclist who is not named in a BC owner's certificate is hit by a car in Alaska. b. Cyclist who is not named in a BC owner's certificate and is injured by a car in Alaska while on the way to British Columbia via ferry. c. Pedestrian hit by a car in Alaska who is not named in a BC owner's certificate. d. Pedestrian who is named in a BC owner's certificate and is injured on their way via ferry from - ANSWER D.) When an accident occurs in the United States or on a vessel traveling between Canada and the United States, no benefits are payable under Autoplan accident benefits to a cyclist or pedestrian, unless he or she is named in a British Columbia owner's certificate or a driver's certificate, or is a member of the household of a person named in such a certificate. Select the statement that is true. a. Accident benefits are paid to a person who was driving an automobile not licensed in British Columbia. b. Accident benefits are paid to any person who is using the vehicle in a race or speed test. c. Accident benefits are paid to a person operating a vehicle to escape or avoid arrest or other similar police action. d. Accident benefits are paid to occupants of vehicles licensed in British Columbia or vehicles not required to be licensed in British Columb - ANSWER D.) Autoplan enhanced accident benefits are paid to occupants of vehicles licensed in British Columbia or vehicles not required to be licensed in British Columbia but driven by a person with a valid BC driver's licence. What is a recruiter, as it relates to insurance fraud? Accident happens in jurisdiction where the law does not allow injured persons to sue and recover damages for motor vehicle accident. The injured person or representative settles or takes legal action without consent from ICBC. Which of the following is an example of non-vehicle property damage? a. Damage to a car's bumper when it is hit by an uninsured vehicle b. Injuries suffered by a pedestrian hit by an uninsured vehicle c. Damage caused to an uninsured vehicle when it collides with a streetlight pole d. Damage to a fence caused when it is hit by an uninsured vehicle - ANSWER D.) Damage to a fence caused when it is hit by an uninsured vehicle Non-vehicle property is defined as property other than a vehicle and its contents and permanently attached equipment. Which of the following provides optional coverage for property damage caused by unidentified drivers in British Columbia? a. Direct compensation--property damage coverage b. Basic vehicle damage coverage (BVDC) c. Third-party liability coverage d. Hit-and-run coverage - ANSWER D.) Hit-and-run coverage provides optional coverage for property damage caused by unidentified drivers in British Columbia. Which of the following would be considered an insured automobile? a. Car for which the owner or driver has no liability insurance to cover bodily injury or property damage arising out of its ownership, use, or operation b. Car for which the owner did not provide consent to drive the vehicle c. Car whose owner or driver cannot be determined d. Car driven by a person who as a valid driver's certificate and the vehicle has a valid owner's certificate - ANSWER D.) An uninsured motorist is one for which neither the owner nor driver has liability insurance to cover bodily injury or property damage arising out of its ownership, use, or operation, or in cases where the owner did not provide consent to the driver to use the vehicle. In British Columbia, people driving or operating vehicles (including trailers) on public highways must be insured under a valid driver's certificate and valid owner's certific What is the limit of basic underinsured motorist protection under Autoplan? a. $200,000 b. $500,000 c. $1,000,000 d. $2,000,000 - ANSWER C.) The basic limit of underinsured motorist protection under Autoplan is $1 million per person. If a taxi, bus, or limousine driver was injured by an underinsured motorist while working, who would he or she submit a claim to? a. Autoplan b. Autoplan underinsured motorist protection coverage c. Employment Insurance d. Provincial workers' compensation plan - ANSWER D.) Taxi, bus, or limousine drivers who are injured while working would submit a claim under the provincial workers' compensation plan. When an accident involving an underinsured motorist protection claim happens outside British Columbia, which law applies? a. Federal law b. Provincial law of BC c. The law of the jurisdiction d. The municipal bylaw - ANSWER C.) When an accident involving an underinsured motorist protection claim happens outside British Columbia, the law of the jurisdiction where the accident happened applies, regardless of the available protections. What is the family protection endorsement? a. An optional coverage endorsement available from private insurers in jurisdictions outside of British Columbia that protects against situations involving underinsurance b. A mandatory coverage included with Autoplan to protect against situations involving underinsurance c. An automatic coverage from Autoplan that will pay up to $200,000 in claims due to uninsured and unidentified motorists d. An optional coverage from private insurers that will pay - ANSWER A.) The family protection endorsement is an optional coverage endorsement available from private insurers outside of British Columbia that protects against situations involving underinsurance. Payments from the uninsured and unidentified motorist fund are based on which factor? a. Amount of damage done to the automobile b. Extent of the uninsured driver's legal liability c. Amount needed for bodily injury payments d. Policy premium - ANSWER B.) The payments of the uninsured and unidentified motorist fund are based on the extent of the uninsured driver's legal liability. If the claimant is 100 percent at fault, the fund does not pay. How can a victim receive payment under an uninsured and unidentified motorist fund if an uninsured owner or driver denies liability? a. The fund may require the victim submit a statutory declaration about the details of the accident. b. The fund may require the victim pay a $1,000 deductible before reimbursing any property damage loss. c. The fund may require that the victim sue and a judgment be rendered before making payment. d. The fund may require the victim complete a statement of loss and - ANSWER C.) If an uninsured owner or driver denies liability, the fund may require that the victim sue and a judgment be rendered before making payment. If the owner or driver is unidentified and the fund is satisfied that the victim was not responsible for the injury or damage, the fund will pay. There are four subsections of coverage for insuring loss of or damage to the insured's automobile - ANSWER 1.) specified perils 2.) Comprehensive 3.) collision or upset 4.) all perils Specified Perils - covers losses from the following: - ANSWER Fire Theft or attempted theft Lightning Windstorm, hail, or rising water Earthquake Explosion Riot or civil disturbance Falling or forced landing of aircraft or of parts there of The stranding, sinking, burning, derailment, or collision of any conveyance in or upon which a described automobile is being carried on land or water Comprehensive - protects an insured automobile against all perils other than collision or upset, including the following: - ANSWER Perils listed under specified perils Falling or flying objects Missiles (including windshield claims caused by stone chips) Vandalism Collision or upset - covers - ANSWER covers damage to the vehicle caused by collision with another vehicle, person, object, or the surface of the road; or by upset. It is usually sold in combination with comprehensive coverage. Collision with an animal is typically a comprehensive claim. All perils - combines collision or upset coverage and comprehensive coverage and covers certain types of automobile theft that are excluded under comprehensive: - ANSWER Theft by a person residing in the insured's household Theft of the vehicle if stolen by an employee who drives or uses, services, or repairs the described automobile Autoplan exclusions under loss or damage coverages: - ANSWER A vehicle operated off a highway, unless it carries specific industry licence A trailer being drawn by power other than vehicle or human power A vehicle being operated by remote control without a driver An aircraft, except when drawn as a trailer on a highway A vehicle being used in a contest, show, or race, or in advanced or performance driver training An amphibious vehicle when being used in or upon water, when in water, or being launched or landed A vehicle fitted with wheels of the crawler type while off a highway Losses excluded under all automobile owner's policies, including the Autoplan optional policy: - ANSWER Damage associated with the general wear and tear or lack of maintenance of a vehicle (rust, erosion, freezing, etc.) Damage caused by theft of the vehicle Damage caused by the voluntary parting with title of ownership (even through trick or fraud) Damage by contamination by radioactive material Damage to contents of trailers or to personal effects Damage to a motor vehicle licensed and insured as a trailer, unless the vehicle is being operated as a trailer Damage to media and equipment for use with a sound system Damage caused when driver is under the influence of intoxicating liquor or drugs Damage caused by theft of vehicle by person living with or employed by the insured Explain how deductibles affect coverage and premiums for loss or damage coverages. - ANSWER Each occurrence giving rise to a claim is subject to a deductible, except in the case of fire or lightning, in which case no deductible applies. A deductible may also be selected under DCPD coverage, but it is optional and many insureds choose not to have one. Basic vehicle damage coverage (BVDC) in BC does not have a deductible. Outline the additional benefits under loss or damage coverages. - ANSWER Payment of charges -General average charges -Salvage charges -Fire department charges - Canadian or US customs duties for which one is legally responsible as a result of an insured peril