CAIB 1 - Chapter 6 Questions and Answers Rated A+

CAIB 1 - Chapter 6 Questions and Answers Rated A+ What types of claims are paid out under Death & Injury court awards to innocent victims and their families, death benefits and funeral expenses, medical payments, rehabilitation costs, loss of income What types of claims are paid out under Damage to Property Collision, Comprehensive Why is auto insurance compulsory in all provinces? It is unlikely that people would voluntarily purchase insurance thus leaving society to pay costs associated with replacing property, rehabilitation costs, supporting victims' families etc. What is the minimum required amount of Third Party Liability insurance in most provinces? $200,000 What are the limits outlined in the Priority of Payments schedule in BC Third Party Liability - $200,000; $180K to Bodily Injury and $20K to Property Damage. When a claim exceeds the amount of third party liability insurance which type of claim takes priority? Bodily Injury How is proof of financial responsibility proven in provinces with private insurers vs those with government insurers? Private - An inter province motor vehicle liability certificate or pink card. Government - Certificate of vehicle registration (pink copy) Explain why Financial Responsibility Laws have been enacted in all provinces Financial Responsibility Laws require that all motorists purchase auto insurance up to a certain dollar amount - this helps to ensure that society is not left to pay the costs of restoring property damage, rehabilitating accident victims and compensating their families. What is the "Unsatisfied Judgement Fund"? When losses are caused by uninsured drivers, the victims may be left with little to no compensation for their losses. Funds have been set up in each province to ensure the victims of these accidents are provided with some level of compensation Discuss what is covered by Accident Benefits and how it works These benefits are available to every insured who is injured in an auto accident regardless of who is at fault. Includes medical payments, funeral expenses, disability income, death benefits, dismemberment or permanent impairment benefits. (TRUE OR FALSE) Physical damage is required to be purchased in BC False Define Government Insurers Government insurers have compulsory coverages with minimum limits and each plan is described in the Auto mobile Insurance Act. Additional coverages can be purchased.