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CAIB 1 Chapter 6 Exam With 100% Correct Answers 2023-2024, Exams of Advanced Education

CAIB 1 Chapter 6 Exam With 100% Correct Answers 2023-2024 What is the minimum limit of Third Party Liability available in your province? - Correct Answer-$200,000 How does an insured show proof of financial responsibility in your province - Correct Answer-The "pink copy" of the certificate of registration Identify the Automobile coverages that are available in your province and indicate which are compulsory. - Correct Answer-Auto Policy Limits - $200,000 Bodily Injury - $180,000 Property Damage - $20,000 All compulsory in Manitoba (6-4) Identify a province where Automobile is provided by Government insurance and Private insurance - Correct Answer-Government Insurance - BC, MB, SK Private Insurance - AB, ON, Atlantic Provinces Explain the purpose of the "Unsatisfied Judgement Fund" or similar, (Section D for students in Atlantic Canada) - Correct Answer-When losses are caused by uninsured drivers, the innocent victim may have coverage

Typology: Exams

2023/2024

Available from 08/21/2024

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Download CAIB 1 Chapter 6 Exam With 100% Correct Answers 2023-2024 and more Exams Advanced Education in PDF only on Docsity!

CAIB 1 Chapter 6 Exam With 100%

Correct Answers 2023-

What is the minimum limit of Third Party Liability available in your province? - Correct Answer-$200, How does an insured show proof of financial responsibility in your province - Correct Answer-The "pink copy" of the certificate of registration Identify the Automobile coverages that are available in your province and indicate which are compulsory. - Correct Answer-Auto Policy Limits - $200,000 Bodily Injury - $180, Property Damage - $20, All compulsory in Manitoba (6-4) Identify a province where Automobile is provided by Government insurance and Private insurance - Correct Answer-Government Insurance - BC, MB, SK Private Insurance - AB, ON, Atlantic Provinces Explain the purpose of the "Unsatisfied Judgement Fund" or similar, (Section D for students in Atlantic Canada) - Correct Answer-When losses are caused by uninsured drivers, the innocent victim may have coverage Explain the role of Facility Association in those provinces that do not have government insurance plans. - Correct Answer-To ensure the availability of coverage for applicants who are refused insurance by private insurers. Briefly outline the operation of any "no fault" insurance plan of the province of your choice. - Correct Answer-Their primary purpose is to provide benefits to persons injured in automobile accidents, regardless of who is at fault. Explain why the SAF No. 1 requires the applicant's full name and postal address including the country or district. - Correct Answer-Reduces the potential for error that might occur if only the name is known. Could be multiple people same name Identify 5 particulars of the "Described Automobile" required to be included in the application - Correct Answer-1. Model Year

  1. Trade Name
  2. Model or C. C.
  3. Body Type
  4. V. I. N. Identify 3 items of information about all drivers required in the application. - Correct Answer-1. Name of all drivers (as shown on driver's license)
  1. Approximate percentage of use of the automobile
  2. Number of years licensed Identify 8 physical and mental disabilities which might affect the safe operation of a vehicle. - Correct Answer-1. Frequent fainting spells
  3. Dizziness or loss of consciousness
  4. Heart Disorder
  5. Epilepsy
  6. Diabetes
  7. Defective vision or hearing
  8. Nervous disorder
  9. Depression Identify 4 business uses of the automobile that must be disclosed to the insurer because a special endorsement is required. - Correct Answer-1. Rented or leased to others
  10. Used for carrying passengers for compensation or hire
  11. Used for the carrying of explosives or radioactive material
  12. Used for the transportation of goods for compensation Identify 5 situations where the right of the insured to recovery may be forfeited if not disclosed on the application - Correct Answer-1. Provides a false description of the automobile which is prejudice of the insurer
  13. Knowingly misrepresents the risk or fails to disclose a required fact
  14. Breaches a policy term (using for illicit or prohibited trade or transportation)
  15. Commits a fraud (insured causes the loss)
  16. Willfully makes a false statement in respect of a claim Identify 3 persons insured under SectionA of the SPF No 1. - Correct Answer-1. The named insured
  17. Everyone else who personally drives the automobile with the consent of the Named Insured
  18. Everyone who personally operates a part of the automobile with the consent of the Insured Identify 5 exclusions that are general to Section A. - Correct Answer-1. Any liability imposed by any workers' compensation law
  19. Loss or damage resulting from bodily injury to or the death of any employee of any person insured in this section while engaged in the operation or repair of the automobile
  20. Loss of damage to the property carried in or upon the automobile
  21. Any amount in excess of the limit(s) stated in Section A of item 4 of the application
  22. Any liability arising from contamination of property carried in the automobile Explain how, if at all, Section A would respond if the insured was intoxicated at the time of loss. - Correct Answer-Insures bodily injury and property damage caused by insureds

while under the influence. Without this coverage, the victims or their families would end up bearing the costs of the insured's negligent actions themselves. Identify 2 agreements of the insured under Section A. - Correct Answer-1. Acceptance of the policy, the insured "constitutes and appoints the insurer as his irrevocable attorney.

  1. Insured also agrees to reimburse the insurer for any amounts paid under the policy by reason of the provisions of any statute relating to automobile insurance and which the insurer would not otherwise be liable to pay under the policy Section B is on a "no fault" basis. Explain what this means. - Correct Answer-There is no requirement to show that the insured was legally responsible for the injuries caused to the claimant. Identify 3 subsections of Section B. - Correct Answer-1. Medical Payments and Funeral Expenses
  2. Death Benefits and Loss of Income Payments
  3. Uninsured Motorist Coverage Identify 2 areas which might be considered reasonable expense under Subsection 1. - Correct Answer-1. Medical, surgical, chiropractic, dental, hospital, professional nursing and ambulance
  4. Other services and supplies essential to treatment or rehabilitation Identify the 3 conditions that must apply before payment of any loss of income under Subsection 2 - Correct Answer-1. Benefits payable on a weekly basis subject to a 7 day waiting period
  5. Establish that they were employed for at or 6/12 months before the time of accident if 18 up
  6. Benefits cease at end of 104 weeks. Define Uninsured Automobile - Correct Answer-is one in which neither the driver nor owner has applicable and collectible bodily injury liability insurance. Define Unidentified Automobile - Correct Answer-one which causes bodily injury or death to an insured person arising out of actual contact of that automobile with the automobile in which the insured is an occupant Identify 3 conditions to meet before a claim will be paid for an unidentified automobile under Subsection 3 (Section D in Atlantic Canada) - Correct Answer-1. Shown that the identity of either the owner or driver cannot be ascertained
  7. Accident reported to authorities within 24 hours
  8. Statement must be filed under oath within 30 days

Identify the coverage options or subsections of Section C of the SPF No. 1 and briefly explain the perils provided by each. - Correct Answer-i. All perils: Broadest form of physical damage coverage available ii. Collision or upset: Caused by collision with another object - restricted to only those losses caused by collision with another object, or by upset iii. Comprehensive from any peril other than by collision with another object - Insures all losses, excluding only those caused by collision with another object or upset. iv. Specified Perils caused by fire, lightening, theft or attempt there at, windstorm, earthquake, hail, explosion, riot etc. Most insurers include impact with wild animals under Comprehensive, rather than Collision. What are 2 advantages to the insured in this circumstance? - Correct Answer-

  1. Deductible applying to comprehensive claims is usually less than that provided for collision
  2. Claims under this section do not count as charge able losses and do not effect renewal prem. A deductible is normally applied to all losses under Section C. List 3 losses where there is no deductible applied. - Correct Answer-1. Fire
  3. Lightening
  4. Theft of the entire vehicle Explain how, if at all, Section C would respond if the insured was intoxicated at the time of loss. - Correct Answer-There would be no coverage for the physical damage caused to these automobiles List 3 exclusions to Section C (6-22) - Correct Answer-1. Loss or Damage to tires
  5. Caused by contamination by radioactive material
  6. Contents of trailers or to rugs or robes Purpose of General Average - Correct Answer-the insured agrees to participate in the general averaging of the amount of the loss. Ex. Ship captain has to jettison 50 automobiles to save a sinking ship. There are 200 on the ship so the insurers of all 200 split the cost of the 50 that were thrown. Purpose of customer duties - Correct Answer-If automobile is damaged in an accident in USA and the repair is made there, those costs are subject to payment of custom duties. The insurer agrees to pay those duties. Identify 3 situations where the insurer would not waive its right of subrogation under Section C. - Correct Answer-1. Those having possession for the purposes of garaging
  7. Those who have breached a policy condition
  8. Drivers or operators convicted of an alcohol related offence

Coverage loss of use arising directly as a result of theft of the entire automobile is subject to three limitations. Briefly explain what they are. - Correct Answer-1. Provides for reimbursement of up to $25 a day for a max of 30 days

  1. Payment is made only for costs incurred to rent a substitute automobile including taxi or bus
  2. 72 hour waiting period applies, commencing after notice of theft of the insured automobile Your client is planning to drive to Mexico on holiday and would like to know if his SPF No. 1 he purchased from you will respond to any accidents that may occur while on vacation. How would you answer his question? - Correct Answer-No, separate insurance must be purchased from the Mexican Government Your client has called to explain that he purchased a new vehicle and has had an accident before notifying your office. Would there be any coverage under his SPF No. 1 with you? Outline your response to this insured. - Correct Answer-Yes, coverage is provided for 14 days without requirement for notice to the insurer Your client has called to advise that his 18 year old daughter was involved in an accident this past weekend. She was driving a friend's car that was uninsured. There are third party injuries and damage to the friend's car. Outline your response to the insured. - Correct Answer-She would not be covered for Uninsured Motorist Coverage as she did not make a claim within 24 hours Identify 5 uses that are not considered carrying passengers for compensation. - Correct Answer-1. Car pools
  3. Sharing costs of trip
  4. Carrying of domestic servants
  5. Carrying of clients or customers or prospective clients or customers
  6. Occasional and infrequent use of automobile for transporting of children to or from activities for education Outline 5 prohibited uses by the insured under the SPF No. 1. - Correct Answer-1. Unless authorized by law or qualified to drive
  7. While his license is suspended or while his right to obtain a license is suspended
  8. While under age 16 or under such other age at which a license or permit to drive is issued
  9. For any illicit or prohibited trade or transportation
  10. In any race or speed test Outline 4 requirements of the insured in the event of loss or damage to persons or property. - Correct Answer-1. Promptly give written notice to insurer of accident
  11. The claim arose out of use or operation of the automobile and that person so involved
  12. Forward immediately any letters, documents, advice or writ received by him
  1. Assist the insurer in securing information and evidence and the attendance of any witnesses and co-operate, except financially, in defense or subsequent prosecution of any appeal Summarize the purpose of the following SEF endorsements and when coverage applies: 20 - Loss of Use 27- Legal Liability for Damage to Non-Owned Automobiles 43R - Limited Waiver of Depreciation 44- Family Protection - Correct Answer-i. 20 - Loss of Use Endorsement. Insurer agrees to pay all reasonable expenses incurred for a rental, taxicabs or public transit. Coverage starts immediately when the damage cannot be operated. ii. 27 - Legal Liability for Damage to Non-Owned Automobiles Endorsement. - Provide coverage for loss or damage to certain types of non-owned automobiles which are leased or rented to insureds in their own name. Coverage applies to automobiles being operated, used, stored or parked in Canada and USA. Only if insured is legally liable for damage. iii. 43R - Limited Waiver of Depreciation Endorsement. - Provides coverage against depreciation when the loss or damage to the automobile occurs within 24 months of the purchase of the automobile. Coverage is the lesser of actual purchase price, and manufacturers suggested list price. iv. 44 - Family Protection Endorsement. - Covers insured if they do not have enough insurance, or is uninsured. It also increases the Third Party Liability limits available to those insureds. Persons qualified are the named of the insured and his or her spouse and depended relatives. Outline 3 limitations of the SEF No. 27 - Correct Answer-1. Coverage is limited to the insured and spouse only
  2. Coverage is restricted to certain types of automobiles
  3. Coverage is subject to a maximum amount in any one occurrence By use of an example, demonstrate your understanding of the SEF 44 - Correct Answer-Coverage for a spouse if their spouse was struck by an uninsured driver and it resulted in bodily harm or death. Briefly explain the purpose of the following SPF forms: SPF2 Standard Driver's Automobile Policy SPF6 Standard Non-Owned Automobile Policy SPF7 Standard Excess Automobile Policy - Correct Answer-SPF2 Standard Driver's Automobile Policy. - Individuals who drive automobiles which they do not own and which are not registered in their name SPF6 Standard Non-Owned Automobile Policy - Insures the 3rd Party Liability exposure of business owners arising from the use or operation of automobiles not owned in whole or part by or licence in the name of the insured SPF7 Standard Excess Automobile Policy - Provides 3rd Party Liability limits when excess coverage is required over and above those limits provided by SPF 1.