CAIB 3 GUIDE
Outline the purpose of the OPCF 44 Endorsement and indicate how it affects the
amount of insurance available to the insured. - answer To increase the TP limits
available to victims to the same limits as purchased under their own Policy. Insured can
avail the difference between TP Limit of his own Policy & the TP limit of the at-fault 3rd
Party.
Outline the purpose of the OPCF 20 Endorsement - answer To recover Expenses
incurred on -
a) rental of substitute automobile
b) Taxicabs or public means of transportation
When your client has $1M in TPL and gets into an accident with a third party who carrier
$200,000 in TPL. How much will this allow her policy to pay out for a max loss of $1M -
answer$800,000
Most rental agencies attempt to sell Sally the full range of automobile insurance
coverages. Identify the two (2) coverages provided by all insurance policies which
extend rental automobiles. - answer Third Party Liability and Accident Benefits
When automobiles owned by the insured's employee are used in the business, the
employer has a non-owned automobile liability exposure. Indicate the automobile
insurance policy which can be purchased by employers to insure this exposure. And
name another method of providing this coverage to business owners. - answerSPF6
Non-Owned Auto Liability and a CGL policy is an alternative.
Covered or Not Covered Under the OAP1: Automobile is being used to transport
tourists on local tours - answerNot Covered: Sight seeing conveyance is excluded.
Covered or Not Covered Under the OAP1: Automobile is being used transport
prospective buyers to real estate development located 30 kms. From the insured's
office. - answerCovered: Carriage of clients or prospective clients is ok.
Covered or Not Covered Under the OAP1: Automobile is used car pool in which all
persons involved take regular turns providing
transportation. - answerCovered: Car pool permitted.
Covered or Not Covered Under the OAP1: Automobile is used occasionally to drive
members of daughter's high school hockey team to games or tournaments. The insured
receives $2.5/Km as a transportation allowance from the school. - answerCovered:
Occasional & infrequent use permitted
, Each time Iona rents a car, the rental agency attempts to sell her insurance to cover the
period of the rental. Iona has asked you whether the policy on her own automobile
would respond to
pay for any claims arising out of the use of a rented automobile. Identify 2 coverages
provided under Iona's own policy which automatically extend to rented automobiles and
which, therefore, do not need to be purchased from the rental agency. - answerThird
Party Liability and Accident Benefits
When automobiles owned by the insured's employees are used in the business, the
employer has a non-owned automobile liability exposure. While the policy which can be
purchased by employers to insure this exposure can be provided on a standalone basis,
it is not normally done in this way. Explain the usual manner in which this coverage is
provided to business owners. - answerCGL Policy or CGL Policy Endorsement
Provide 2 examples of automobiles that fall within the definition of "Non-Owned
Automobiles" under the Policy. - answerVehicles owned by employees or hired vehicles.
State the common law rule that outlines the reason why the owner of the local Pizza-to-
go franchise would be a good candidate for Non-Owned Auto coverage. -
answerEmployers are responsible for the torts committed by their Employees.
SPF4 Covered or Not Covered: BI caused to Pedestrian at a crosswalk by insured's
employee who is test driving a customers' automobile to determine the adequacy of
repairs made by the garage. - answerCovered: Non-owned Autos include Customer's
vehicles which are used for test driving.
SPF4 Covered or Not Covered: BI & PD Caused when insured's tow truck collides with
school bus. The driver was in a rush to get to the accident scene and was going 20
Kms. Over the speed limit at the time of the accident. - answerCovered: Liability arising
out of Owned Automobiles covered as long as they are used in the insured's business.
OPCF 4 Section - C Loss of Damage to Owned Automobiles: Indicate the general rule
respecting value to be insured when coverage is provided on a Co-insurance basis. -
answer80% of Actual Cash Value of the Owned Autos
OPCF 4 Section - C Loss of Damage to Owned Automobiles: When coverage is
provided on "Monthly Average Basis" what amount is paid for a loss occurring in the 4th
month of coverage when no reports have been filed with the insurer. - answer75% of
Limit Purchased.
Section - E (Ontario Section - 6) Legal Liability for Damage to a customers' Automobile
while in the care, custody or control of the insured. What additional coverage can
protect a garage from a liability loss on the premises. - answerWaiver of Legal Liability
Endorsement
Outline the purpose of the OPCF 44 Endorsement and indicate how it affects the
amount of insurance available to the insured. - answer To increase the TP limits
available to victims to the same limits as purchased under their own Policy. Insured can
avail the difference between TP Limit of his own Policy & the TP limit of the at-fault 3rd
Party.
Outline the purpose of the OPCF 20 Endorsement - answer To recover Expenses
incurred on -
a) rental of substitute automobile
b) Taxicabs or public means of transportation
When your client has $1M in TPL and gets into an accident with a third party who carrier
$200,000 in TPL. How much will this allow her policy to pay out for a max loss of $1M -
answer$800,000
Most rental agencies attempt to sell Sally the full range of automobile insurance
coverages. Identify the two (2) coverages provided by all insurance policies which
extend rental automobiles. - answer Third Party Liability and Accident Benefits
When automobiles owned by the insured's employee are used in the business, the
employer has a non-owned automobile liability exposure. Indicate the automobile
insurance policy which can be purchased by employers to insure this exposure. And
name another method of providing this coverage to business owners. - answerSPF6
Non-Owned Auto Liability and a CGL policy is an alternative.
Covered or Not Covered Under the OAP1: Automobile is being used to transport
tourists on local tours - answerNot Covered: Sight seeing conveyance is excluded.
Covered or Not Covered Under the OAP1: Automobile is being used transport
prospective buyers to real estate development located 30 kms. From the insured's
office. - answerCovered: Carriage of clients or prospective clients is ok.
Covered or Not Covered Under the OAP1: Automobile is used car pool in which all
persons involved take regular turns providing
transportation. - answerCovered: Car pool permitted.
Covered or Not Covered Under the OAP1: Automobile is used occasionally to drive
members of daughter's high school hockey team to games or tournaments. The insured
receives $2.5/Km as a transportation allowance from the school. - answerCovered:
Occasional & infrequent use permitted
, Each time Iona rents a car, the rental agency attempts to sell her insurance to cover the
period of the rental. Iona has asked you whether the policy on her own automobile
would respond to
pay for any claims arising out of the use of a rented automobile. Identify 2 coverages
provided under Iona's own policy which automatically extend to rented automobiles and
which, therefore, do not need to be purchased from the rental agency. - answerThird
Party Liability and Accident Benefits
When automobiles owned by the insured's employees are used in the business, the
employer has a non-owned automobile liability exposure. While the policy which can be
purchased by employers to insure this exposure can be provided on a standalone basis,
it is not normally done in this way. Explain the usual manner in which this coverage is
provided to business owners. - answerCGL Policy or CGL Policy Endorsement
Provide 2 examples of automobiles that fall within the definition of "Non-Owned
Automobiles" under the Policy. - answerVehicles owned by employees or hired vehicles.
State the common law rule that outlines the reason why the owner of the local Pizza-to-
go franchise would be a good candidate for Non-Owned Auto coverage. -
answerEmployers are responsible for the torts committed by their Employees.
SPF4 Covered or Not Covered: BI caused to Pedestrian at a crosswalk by insured's
employee who is test driving a customers' automobile to determine the adequacy of
repairs made by the garage. - answerCovered: Non-owned Autos include Customer's
vehicles which are used for test driving.
SPF4 Covered or Not Covered: BI & PD Caused when insured's tow truck collides with
school bus. The driver was in a rush to get to the accident scene and was going 20
Kms. Over the speed limit at the time of the accident. - answerCovered: Liability arising
out of Owned Automobiles covered as long as they are used in the insured's business.
OPCF 4 Section - C Loss of Damage to Owned Automobiles: Indicate the general rule
respecting value to be insured when coverage is provided on a Co-insurance basis. -
answer80% of Actual Cash Value of the Owned Autos
OPCF 4 Section - C Loss of Damage to Owned Automobiles: When coverage is
provided on "Monthly Average Basis" what amount is paid for a loss occurring in the 4th
month of coverage when no reports have been filed with the insurer. - answer75% of
Limit Purchased.
Section - E (Ontario Section - 6) Legal Liability for Damage to a customers' Automobile
while in the care, custody or control of the insured. What additional coverage can
protect a garage from a liability loss on the premises. - answerWaiver of Legal Liability
Endorsement
