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Your insured asks when a coverage applies to her car under the Ontario Automobile Policy (OAP 1). Which statement is TRUE?
- A It applies once she receives the policy booklet that describes it. The policy wording describes coverages generally, but the policy states that you only have a particular coverage for a specific automobile if the Certificate shows a premium or no-cost entry for it.
- B It applies where her Certificate shows a premium or no cost for it. Correct
- C It applies once she has asked for it in the signed application. The signed application is one of the three documents making up the contract, but a request in the application does not by itself turn a coverage on for an automobile.
- D It applies unless the insurer has issued the policy excluding it. Optional coverages are granted by being shown on the Certificate, not by the absence of an exclusion in the policy.
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
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Your insured is rear-ended at a red light. The other driver admits fault, and your insured is not hurt and has not decided whether to claim. What does his Ontario Automobile Policy (OAP 1) require?
- A Report it to his agent, broker or insurer within seven days. Correct
- B Report it to his agent, broker or insurer within 24 hours. Twenty-four hours is not the OAP 1 period; the policy states the report is due within seven days.
- C Report it only if he decides to claim under his own policy. The duty applies regardless of who is at fault and does not depend on the insured deciding to claim.
- D Report it to his agent, broker or insurer within 30 days. Thirty days is the period for returning a completed Accident Benefits application, not the accident reporting period.
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
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Ali takes delivery of a second car and calls his broker 22 days later to add it. His insurer covers every car he owns. How long did he have to tell the insurer?
- A No limit while every car he owns is with that insurer. Insuring all owned automobiles is one condition for covering an additional automobile, but it does not remove the separate 14 day notice requirement.
- B 30 days from delivery. Thirty days is not the newly acquired automobile period; the policy fixes it at 14 days from the time of delivery.
- C No limit for an added car, only for a replacement car. The 14 day notice applies to both replacement and additional automobiles, and a replacement simply takes the coverage of the automobile it replaces.
- D 14 days from delivery. Correct
Section 2.2.1 of the Ontario Automobile Policy OAP 1 insures a newly acquired automobile only if the insured tells the insurer within 14 days of delivery and pays any additional premium, and Ali reported on day 22, so the extension had already run out.
OAP 1, Section 2.2.1
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Wanda drives from Ontario into a United States state where the required minimum liability limit is higher than the $500,000 limit on her Certificate, and she causes an accident there. What does her OAP 1 policy pay?
- 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. The insurer honours the higher amount itself, so the shortfall does not fall on the insured.
- C The insurer pays no more than the $500,000 limit shown on the Certificate. The section exists precisely to lift the payment above the Certificate limit where the local minimum is higher.
- D The policy does not respond at all without an endorsement for that state. The United States is inside the territory the policy already covers, so no endorsement is needed for the policy to respond.
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
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Which accident benefits must every insurer offer as optional coverage on policies issued or renewed on or after July 1, 2026?
- 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. The death and funeral benefits are made optional by section 25.1, not by section 4.1, and the caregiver benefit does not sit with them.
- C The income replacement benefit only, with the non-earner and caregiver benefits still standard. All three Part II weekly benefits became optional together, so the non-earner and caregiver benefits are not left as standard entitlements.
- D The medical benefit, the rehabilitation benefit and the attendant care benefit. Medical, rehabilitation and attendant care benefits sit in Part III and remain standard benefits rather than optional ones.
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)
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Hana is stopped in slow traffic when the car behind her in the same lane runs into her rear. The road was icy that morning. How is fault shared?
- A Hana and the other driver are each 50 per cent at fault. Road conditions are expressly excluded from the fault determination, so ice cannot shift a share onto the stopped driver.
- B Fault is decided under the ordinary rules of law. The ordinary rules of law apply only where no rule describes the incident, and this rear-end pattern is described directly.
- 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 for stopping in a live traffic lane. The rule assigns no fault to the struck automobile where it is stopped or in forward motion in the same 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)
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What is the minimum liability limit every Ontario automobile policy must carry for any one accident?
- A $100,000 One hundred thousand dollars is below the statutory floor and would not satisfy the section.
- B $200,000 Correct
- C $500,000 Five hundred thousand dollars is a common limit sold in the market but it is above the statutory minimum.
- D $1,000,000 One million dollars is a frequently recommended limit, not the minimum the Act requires.
Subsection 251 (1) of the Insurance Act sets the statutory floor at $200,000 for any one accident exclusive of interest and costs, so higher limits are a matter of what the client buys rather than what the law demands.
Insurance Act, s. 251 (1)
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A client who signed OPCF 16 and took a refund for a stored car drives it two blocks to a service appointment. What is the effect of that trip?
- A None; OPCF 16 suspends only the optional loss or damage coverages. The form also cancels Liability, Accident Benefits, Uninsured Automobile and Direct Compensation coverage for use or operation of the automobile, so it is not road legal during the suspension.
- B None; a single trip for maintenance counts as continued storage. The undertaking is that the automobile is continuously out of use, and the form allows no maintenance exception.
- C The refund is reduced for each day the car is driven. The form provides for a refund and for no refund below 45 consecutive days of suspension; it does not prorate a refund against days driven.
- D The client has broken the agreement to keep the car out of use. Correct
OPCF 16 buys the refund with a promise from the insured: from the effective date of the change the described automobile is continuously taken out of use and not operated, so driving it at all, even once and even briefly, is a breach of what the client agreed to.
OPCF 16, Section 2.1
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Which Ontario Policy Change Form (OPCF) pays for a rental car, taxis or public transit when an insured loss leaves your insured without a car?
- A OPCF 43, Removing Depreciation Deduction. OPCF 43 removes the depreciation deduction from a loss settlement and pays nothing towards transportation.
- B OPCF 19A, Agreed Value of Automobiles. OPCF 19A settles the value of the automobile and does not reach the cost of getting around while it is off the road.
- C OPCF 27, Liability for Damage to Non-Owned Automobiles. OPCF 27 covers liability for damage to a non-owned automobile in the insured person's care, not the client's own transportation costs.
- D OPCF 20, Coverage for Transportation Replacement. 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
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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. Excluding coverage for a named person is the work of OPCF 28A; OPCF 28 reduces what is provided rather than removing it.
- 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. The form changes what this policy provides while the named person drives and does not shift the risk to another contract.
- D It suspends the policy for the described automobile until the named person stops driving it. Suspension of the coverages on a described automobile is done by OPCF 16 and depends on the automobile being taken out of use.
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
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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. The coverage under OPCF 43 stays subject to the deductible shown on the Certificate of Automobile Insurance.
- C It fixes the value of the automobile at the figure written on the change form. Agreeing a value for a listed automobile is what OPCF 19A does; OPCF 43 leaves valuation with the insurer and strips out the depreciation step.
- D It pays the cost of a replacement automobile without regard to the original purchase price. The most payable is the lowest of three amounts, one of which is the actual purchase price, so the purchase price is very much in play.
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
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Which claim is NOT covered by Liability Coverage under the Ontario Automobile Policy (OAP 1)?
- A Bodily injury to a passenger in the described automobile. Bodily injury to a passenger is a third party claim that Liability Coverage is written to answer.
- B Damage to property carried in the automobile or in the insured's care. Correct
- C Damage to a customer's wall the insured strikes while parking. A customer's wall is property the insured neither owns nor rents nor has in their care, custody or control, so damage to it stays inside Liability Coverage.
- D Injury to a pedestrian struck in a crosswalk. A pedestrian's injury claim is precisely the kind of third party claim the coverage responds to.
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
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Your insured is rear-ended at a red light and found not at fault, and both cars carry Ontario policies. He wants to sue the other driver for $6,000 of repairs and his ruined trunk contents. Where does he recover the loss?
- A He may sue the other driver, and his own insurer then subrogates. The same subsection also removes the insurer's right of indemnification or subrogation for what it pays, except as the regulations permit.
- B The other driver's insurer pays the whole loss. The other driver's insurer does not pay these losses, because the section directs the insured to their own insurer.
- C He recovers from his own insurer and cannot sue anyone else for that damage. Correct
- D He may choose between suing the other driver and claiming from his own insurer. There is no choice on offer: the right of action against the other participants for those losses is taken away.
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)
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Who does the Facility Association exist to insure?
- A Clients of a member insurer that has become insolvent. Paying claims after an insurer's insolvency is not what the Plan does; the Plan places risks that cannot find a market.
- B Owners, lessees and licensed drivers who could not otherwise get automobile insurance. Correct
- C Drivers charged more than a maximum rate the Association sets. The Plan does not fix rates for member insurers, and approval of rates sits with the regulator.
- D Member insurers facing catastrophic claims. A risk sharing pool and a catastrophic claims fund may be included in the Plan, but neither is what the Plan itself is.
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)
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What disability test must your insured meet for a non-earner benefit when she was not working at the time of a car accident and does not qualify for income replacement?
- A A complete inability to carry on a normal life. Correct
- B A substantial inability to carry on a normal life. The word in the test is complete rather than substantial, and substantial inability belongs to other benefits in the Schedule.
- C A substantial inability to do the essential tasks of her job. A substantial inability to perform the essential tasks of employment is the income replacement benefit test.
- D Unemployment at the time of the accident, with no medical test. Being unemployed is not the test, and paragraph 2 gives a separate route for students and recent graduates.
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)
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What does Liability Coverage under the Ontario Automobile Policy (OAP 1) pay for?
- A Losses others suffer that the law holds the insured responsible for. Correct
- B Damage to the insured's own car in a collision with another vehicle. Damage to the insured's own car from a collision is an optional Loss or Damage coverage under Section 7, not something Liability pays.
- C The insured's own medical and rehabilitation costs after an accident. The insured's own medical and rehabilitation costs are paid under Accident Benefits in Section 4, which pays whoever caused the accident.
- D Damage to the insured's car caused by an uninsured driver. Damage to the insured's car by an identified uninsured motorist falls under Uninsured Automobile Coverage in Section 5.
Section 3.1 of the Ontario Automobile Policy (OAP 1) provides that Liability Coverage pays the amounts the law holds the insured or other insured persons responsible for when others are injured or suffer losses, so it protects the insured against claims by other people rather than paying the insured's own losses.
OAP 1, Section 3.1
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Which statement BEST describes Accident Benefits coverage on an Ontario automobile policy?
- A It pays the insured's medical, rehabilitation and attendant care, whoever caused the accident. Correct
- B It pays the insured's medical costs only when another driver caused the accident. Accident Benefits pay regardless of who caused the accident, so they do not depend on another driver being at fault.
- C It pays the insured's medical costs only after a court decides who was at fault. No court finding of fault is needed, because the coverage applies whoever caused the accident.
- D It pays for damage to the insured's car, whoever caused the accident. Accident Benefits pay for the injured person's care; damage to the car is dealt with under other coverages such as direct compensation property damage or the optional Loss or Damage coverages.
The Ontario Automobile Policy (OAP 1) states that Accident Benefits provide medical, rehabilitation and attendant care benefits to an injured insured regardless of who caused the accident, so fault never decides whether they are paid. Under the Statutory Accident Benefits Schedule (SABS) as reformed on July 1, 2026, these three stay standard, while benefits such as income replacement are optional for policies issued or renewed on or after that date.
OAP 1, Insurance Required by Law
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An uninsured pickup backs into a parked car in Ontario, and its driver gives his name and admits full fault. Repairs cost $1,000. The car's OAP 1 policy carries Uninsured Automobile and direct compensation coverage, but no Collision or Upset. What would the insurer pay?
- A $0 Collision or Upset is not needed, because Uninsured Automobile coverage pays property damage caused by an identified uninsured driver.
- B $300 The $300 is the deductible the insured bears on the loss, not the amount the insurer pays.
- C $700 Correct
- D $1,000 Direct compensation needs another automobile insured under a liability policy, and the Uninsured Automobile payment is reduced by its $300 deductible.
Direct compensation property damage applies only where at least one other automobile involved is insured under a motor vehicle liability policy, so it cannot respond to an uninsured pickup. Uninsured Automobile coverage in the Ontario Automobile Policy (OAP 1), Section 5.2.3, pays damage an identified uninsured driver caused, subject to the $300 deductible that R.R.O. 1990, Reg. 676, Schedule, s. 2(1)(f) sets, so the insurer pays $1,000 less $300, or $700.
R.R.O. 1990, Reg. 676, Schedule, s. 2(1)(f); OAP 1, Section 5.2.3
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