Personal auto practice

All 22 free personal auto questions

1. Under the Ontario Automobile Policy OAP 1, what determines whether a particular coverage applies to a specific automobile?

   • A The wording of the policy booklet describes the coverage and the insured received that booklet.
   • B The Certificate of Automobile Insurance shows a premium for that coverage, or shows the coverage is provided at no cost. Correct
   • C The insured named the coverage in the signed application for automobile insurance.
   • D The insurer accepted the risk and issued the policy without expressly excluding the coverage.

   Section 1.1 of the Ontario Automobile Policy OAP 1 makes the Certificate of Automobile Insurance the document that switches a coverage on, so a coverage exists for an automobile only where the Certificate shows a premium for it or shows it at no cost.

   OAP 1, Section 1.1

2. Marc is stopped at a red light when another driver rear-ends him. The other driver admits fault at the scene and both cars are damaged. Marc is annoyed but not hurt and has not decided whether to claim. What does the Ontario Automobile Policy OAP 1 require him to do?

   • A Report the accident to his agent, broker or insurance company within seven days, even though he was not at fault. Correct
   • B Report the accident to his agent, broker or insurance company within 24 hours because property was damaged.
   • C Report the accident only if he decides to make a claim under his own policy.
   • D Report the accident to his agent, broker or insurance company within 30 days of the accident.

   Section 1.4.4 of the Ontario Automobile Policy OAP 1 sets a seven day reporting duty for any accident involving injury or property damage and says it applies regardless of who is at fault, so a not-at-fault insured still has to report.

   OAP 1, Section 1.4.4

3. Wanda drives from Ontario into a United States state where the required minimum liability limit is higher than the $500,000 limit shown on her Certificate of Automobile Insurance. She causes an accident there. How does her Ontario Automobile Policy OAP 1 respond?

   • A The insurer honours the higher minimum limit required in that jurisdiction. Correct
   • B The insurer pays the $500,000 limit and Wanda is personally responsible for the difference.
   • C The insurer pays no more than the $500,000 limit shown on the Certificate.
   • D The policy does not respond at all, because coverage in another jurisdiction needs an endorsement.

   Section 3.3.3 of the Ontario Automobile Policy OAP 1 says that where an incident happens in a covered jurisdiction whose required minimum liability limit is higher than the limit on the Certificate, the insurer honours the higher amount, so the Ontario limit does not cap the payment.

   OAP 1, Section 3.3.3

4. Under the Ontario Automobile Policy OAP 1, what time limits apply to a person applying for Accident Benefits?

   • A Tell the insurer within 24 hours of the accident, and return the completed application within 14 days of receiving it.
   • B Tell the insurer within 60 days of the accident, and return the completed application within 60 days of receiving it.
   • C Tell the insurer within 30 days of the accident, and return the completed application within seven days of receiving it.
   • D Tell the insurer within seven days of the accident, and return the completed application within 30 days of receiving it. Correct

   Section 4.2.1 of the Ontario Automobile Policy OAP 1 pairs a seven day notice of the accident with a 30 day period to return the completed application, so the shorter clock runs first and the longer one starts when the form arrives.

   OAP 1, Section 4.2.1

5. For policies entered into or renewed on or after July 1, 2026, which benefits must every insurer offer as optional benefits under Part II of the Statutory Accident Benefits Schedule (SABS)?

   • A The income replacement benefit, the non-earner benefit and the caregiver benefit. Correct
   • B The death benefit, the funeral benefit and the caregiver benefit.
   • C The income replacement benefit only, with the non-earner and caregiver benefits remaining standard.
   • D The medical benefit, the rehabilitation benefit and the attendant care benefit.

   Section 4.1 of the Statutory Accident Benefits Schedule (SABS) requires every insurer to offer an income replacement benefit, a non-earner benefit and a caregiver benefit as optional benefits, so from July 1, 2026 those three are bought rather than included automatically.

   SABS, s. 4.1 (1)

6. Hana is stopped in slow traffic in the right lane when the car behind her, travelling in the same direction and the same lane, strikes her from the rear. The road was icy that morning. How is fault determined under the Fault Determination Rules?

   • A Hana and the other driver are each 50 per cent at fault because of the icy road.
   • B Fault is determined under the ordinary rules of law, because road conditions were a factor.
   • C Hana is not at fault and the other driver is 100 per cent at fault. Correct
   • D Hana is 25 per cent at fault because she was stopped in a live traffic lane.

   The Fault Determination Rules deal directly with a rear-end collision between two automobiles travelling in the same direction and lane, and road conditions are not considered, so the stopped driver is not at fault and the following driver carries 100 per cent.

   R.R.O. 1990, Reg. 668, s. 6 (2)

7. Which Ontario Policy Change Form pays the reasonable expenses of renting a similar substitute automobile, including taxicab or public transportation costs, when a loss from an insured peril leaves the client without transportation?

   • A OPCF 43, Removing Depreciation Deduction, which changes how a settlement is calculated
   • B OPCF 19A, Agreed Value of Automobiles, which fixes the value of the listed automobile
   • C OPCF 27, Liability for Damage to Non-Owned Automobiles, which responds to a rental car's damage
   • D OPCF 20, Coverage for Transportation Replacement, which reimburses substitute transportation Correct

   OPCF 20 exists to pay for other means of transportation when loss or damage from a peril the client is insured for takes the automobile off the road, and it reimburses the reasonable expenses of a rental as well as taxicab or public transportation costs.

   OPCF 20, Section 1

8. How does OPCF 20 change the loss of use protection a client already carries under the Ontario Automobile Policy OAP 1?

   • A It leaves subsection 7.4.4 in place and adds a separate daily and per occurrence limit that answers a theft loss only.
   • B It replaces the loss of use due to theft coverage and answers loss or damage from any peril the client is insured for. Correct
   • C It narrows the protection to theft, so a collision no longer produces a transportation claim.
   • D It doubles the amount payable under subsection 7.4.4 without altering the perils that trigger it.

   OAP 1 subsection 7.4.4 pays for substitute transportation only after a theft, while OPCF 20 replaces that coverage and answers loss or damage caused by any peril the client is insured for, so the reach of the protection widens well beyond theft.

   OPCF 20, Section 1

9. What does OPCF 28 do while a named person is driving the described automobile?

   • A It excludes all coverage apart from certain Accident Benefits while that person is driving.
   • B It reduces the coverages, limits and amounts for Liability and Loss or Damage shown on the Certificate. Correct
   • C It moves the Liability coverage onto the named person's own policy for the duration of the trip.
   • D It suspends the policy for the described automobile until the named person stops driving it.

   OPCF 28 keeps the named person insured but on reduced terms, because while that person drives, the Liability and Loss or Damage coverages, limits and amounts shown on the Certificate drop to the figures written on the change form.

   OPCF 28, Section 1

10. A client's car is destroyed by an engine bay fire. The policy carries Comprehensive with a $1,000 deductible, and OPCF 40 is attached. How is the claim settled?

    • A In full, because a loss caused by fire carries no deductible under the policy wording.
    • B In full, because OPCF 40 applies only where a third party set the fire deliberately.
    • C Less the $1,000 Comprehensive deductible, because OPCF 40 applies that deductible to each Section 7 fire claim. Correct
    • D Less half the Comprehensive deductible, because OPCF 40 splits the fire deductible between insurer and insured.

    Without the endorsement the policy pays a fire loss with no deductible, but OPCF 40 has the insured agree that the deductible shown for Specified Perils, Comprehensive or All Perils applies to each Section 7 fire claim, so the client carries the $1,000.

    OPCF 40, Section 1

11. What does OPCF 43 change about the way a loss or damage claim on the described automobile is settled?

    • A It removes the insurer's right to deduct depreciation from the value of the automobile. Correct
    • B It removes the deductible shown on the Certificate of Automobile Insurance for that automobile.
    • C It fixes the value of the automobile at the figure written on the change form.
    • D It pays the cost of a replacement automobile without regard to the original purchase price.

    OPCF 43 takes away the insurer's right under the policy's what we will pay rule to deduct depreciation from the value of the automobile, so the settlement is worked out without that reduction while the deductible on the Certificate still applies.

    OPCF 43, Section 1

12. A garage owner insures a courtesy car with Comprehensive coverage. A mechanic whose duties include driving and servicing that car steals it on a Sunday, well outside working hours. Is the loss covered?

    • A Yes, because the theft happened outside the mechanic's working hours.
    • B No, because the exclusion for theft by an employee whose duties include driving or repairing the automobile applies at any time. Correct
    • C Yes, because the employee limb of the exclusion catches only a person who lives in the same dwelling as the insured garage owner.
    • D No, because the theft was not reported to the police within 24 hours of being discovered.

    The subsection takes out theft by an employee whose duties include driving, maintaining or repairing the automobile, and it states that this applies at any time and not simply during working hours, so the Sunday timing does not rescue the claim.

    OAP 1, Section 7.2.3

13. Which claims does Liability Coverage under the Ontario Automobile Policy OAP 1 refuse?

    • A Claims for bodily injury suffered by a passenger riding in the described automobile
    • B Claims for damage to property carried in the automobile, or to other property in the insured's care, custody or control Correct
    • C Claims for damage to a warehouse wall that the insured struck while parking the automobile outside a customer's premises
    • D Claims brought by a pedestrian who was struck by the described automobile in a crosswalk

    The other limitations in Liability Coverage exclude claims for damage to property carried in or upon the automobile and to other property owned or rented by, or in the care, custody or control of, the insured or other insured persons, which is the gap OPCF 27 and OPCF 27B are sold to fill.

    OAP 1, Section 3.5.1

14. A client is rear-ended at a red light in Ontario and is found not at fault. Both automobiles are insured under Ontario motor vehicle liability policies. The client's car needs $6,000 of repairs and the contents of the trunk are ruined, and the client wants to sue the other driver for the lot. What does the Insurance Act say about that?

    • A The client may sue the other driver, and their own insurer will then subrogate against that driver.
    • B The client must claim from the other driver's insurer, which pays the whole loss because its own insured was entirely at fault for the collision.
    • C The client recovers from their own insurer and has no right of action against anyone else involved for that damage, the contents or loss of use. Correct
    • D The client may choose between suing the other driver and claiming from their own insurer.

    Section 263 routes damage to an insured automobile, its contents and loss of use to the insured's own insurer, and then removes the right of action against anyone else involved in the incident for those losses, so the not-at-fault driver collects from their own company rather than from the other driver.

    Insurance Act, s. 263 (5)

15. How is the degree of fault determined where an incident is not described in any of the Fault Determination Rules?

    • A The driver of each automobile is deemed to be 50 per cent at fault for the incident.
    • B The claim is refused, because the rules govern every incident that they apply to.
    • C The degree of fault is determined in accordance with the ordinary rules of law. Correct
    • D The insurer of the automobile carrying the higher limit bears the whole loss.

    The Fault Determination Rules do not try to describe every collision, so where an incident falls outside them the degree of fault of the insured is worked out under the ordinary rules of law, and the same answer applies where there is not enough information about the incident.

    O. Reg. 668, s. 5 (1)

16. What is the Plan of Operation that the Facility Association must establish?

    • A A government backed pool that pays claims where a member insurer becomes insolvent
    • B A plan for providing automobile insurance to owners, lessees and licensed drivers who could not otherwise obtain it Correct
    • C A schedule of the maximum rates that every member insurer must charge for the automobile insurance it writes in Ontario
    • D A voluntary arrangement under which member insurers share the cost of catastrophic claims

    The Compulsory Automobile Insurance Act requires the Facility Association to set out in its articles of association a Plan of Operation providing a contract of automobile insurance to owners, lessees and licensed drivers who could not otherwise obtain one, which is what makes it the market of last resort.

    CAIA, s. 7 (3)

17. Under the Compulsory Automobile Insurance Act, every insurer is a member of the Facility Association.

    • A True Correct
    • B False

    Membership is not a choice under the Act, which states that every insurer is a member of the Association, and every member must in turn comply with the Plan and the Association's articles, by-laws, rules and resolutions.

    CAIA, s. 7 (2)

18. Under the Statutory Accident Benefits Schedule (SABS), which disability test must an insured person meet to qualify for a non-earner benefit?

    • A A complete inability to carry on a normal life as a result of and within 104 weeks after the accident, where they do not qualify for an income replacement benefit Correct
    • B A substantial inability to carry on a normal life as a result of and within 104 weeks after the accident, whether or not they qualify for an income replacement benefit
    • C A substantial inability to perform the essential tasks of their employment at the time of the accident
    • D Unemployment at the time of the accident, with no medical test to be satisfied

    The non-earner benefit turns on a complete inability to carry on a normal life arising as a result of and within 104 weeks after the accident, in a person who does not qualify for an income replacement benefit. For policies issued or renewed on or after July 1, 2026 it is one of the optional benefits every insurer must offer.

    SABS, s. 12 (1)

19. A client was working full time when they were injured and now cannot perform the essential tasks of that job. Their policy, renewed after July 1, 2026, carries both the income replacement and the non-earner optional benefits. Which benefit fits their situation?

    • A The non-earner benefit, because it pays a larger amount where the person cannot return to work in any capacity at all.
    • B Both benefits together, because the client satisfies the test for each of them.
    • C The income replacement benefit, because the client does not meet the non-earner condition of not qualifying for it. Correct
    • D Neither benefit, because a person employed at the time of the accident is outside Part II.

    The non-earner benefit is written for a person who does not qualify for an income replacement benefit, so a client who was employed and now cannot perform the essential tasks of that job sits on the income replacement side of the line. Both are optional benefits for policies issued or renewed on or after July 1, 2026.

    SABS, s. 12 (1)

20. A personal support worker is injured in a collision and can no longer look after the client they are paid to care for, who lives in a different house. Their own policy, renewed after July 1, 2026, carries the optional caregiver benefit. Do they qualify for it?

    • A Yes, because they were the primary caregiver for a person in need of care at the time of the accident and can no longer do that work.
    • B Yes, provided their employer confirms that no replacement worker was available to take over.
    • C No, because a caregiver benefit is payable only to a parent caring for their own child.
    • D No, because the benefit requires the insured person to have lived with the person in need of care and to have been unpaid. Correct

    The caregiver benefit needs three things to line up at the time of the accident: residing with the person in need of care, being that person's primary caregiver, and receiving no remuneration for the caregiving, so paid work for someone in another household fails two of the three.

    SABS, s. 13 (1)

21. A client lives with and looks after their disabled brother without being paid for it. They are injured in a collision and can no longer carry out those caregiving activities. Their policy, renewed after July 1, 2026, carries the optional caregiver benefit. What disability test must be met?

    • A That the brother has no other family member able to step in and take over.
    • B That the client was employed at the time of the accident and has had to pay another person to take over the care of their brother at home.
    • C That the client's impairment is catastrophic within the meaning of the Schedule.
    • D That the client suffers a substantial inability to engage in the caregiving activities they were doing at the time of the accident. Correct

    Alongside the residence, primary caregiver and unpaid conditions, the benefit requires a disability test to be satisfied, namely a substantial inability, as a result of and within 104 weeks after the accident, to engage in the caregiving activities the person was doing at the time of it.

    SABS, s. 13 (1)

22. Under the statutory conditions for automobile insurance, when does the salvage vest in the insurer?

    • A Where the insurer exercises its option to replace the automobile or pays its actual cash value Correct
    • B As soon as the insured delivers the automobile to the insurer or to its appraiser
    • C Where the cost of repair exceeds seventy per cent of the automobile's value
    • D Where the insured signs a proof of loss describing the automobile as a total loss

    The salvage passes to the insurer at the point the insurer either replaces the automobile or pays its actual cash value, which is the second half of the same condition that prohibits abandonment unless the insurer consents.

    O. Reg. 777/93, Schedule, statutory condition 6 (7)