Which of the following describes a person who is not acceptable by an insurer at Standard?

Whether you're shopping around for auto insurance, your policy is about to expire, or you're looking to save money on your current policy, it is important to understand how your policy works.

The following information is designed to help you understand your auto insurance policy and all the various parts that make up your coverage, and to help you you to purchase the insurance coverage that meets your needs.

This is not a legal document and does not in any way modify or replace your auto insurance policy. For more detailed information, make sure to read your Ontario Auto Policy.

If you do not have a copy of your Ontario Auto Policy, you may ask your insurance agent, broker, or company representative for a copy, or download a copy of the standard policy 

Auto Insurance - It's the Law!

Ontario law requires that all motorists have auto insurance.

Fines for vehicle owners, lessees, and drivers who do not carry valid auto insurance can range from $5,000 to $50,000.

If you are found driving without valid auto insurance, you can have your driver's licence suspended and your vehicle impounded.

If you are convicted of driving without valid auto insurance, your insurance company may consider you a "high-risk" driver and charge you higher premiums or refuse to sell you insurance altogether. If you are injured in an accident while driving or occupying an uninsured vehicle:

• you may not be entitled to receive income replacement and/or non-earner benefits; and
• you may not be allowed to sue the at-fault driver for compensation as a result of injuries received in the accident.

More importantly, if you are found to be at fault for an accident causing injury or death to another person, you may be held personally responsible for his/her medical costs and other losses.

 Size: ## kb​​Where Can You Purchase Auto Insurance?

You have several options. You may purchase auto insurance from a licensed:

• insurance broker;
• insurance agent; or
• direct writer.

Insurance brokers sell insurance on behalf of a number of different insurance companies and will find you the best rate just from those companies. You have the right to ask your broker to provide you with the names of all the companies he or she represents.

Insurance agents generally represent only one insurance company.

Direct writers are insurance companies that sell their own insurance products directly to consumers.

There are several ways to find an insurance agent, broker, or direct writer:

There are many insurance companies who sell auto insurance in Ontario, so it is important to do your homework. There are six things you should think about when selecting your agent, broker or insurance company. All are important:

1. Licensed: Remember, insurance can only be sold by a licensed broker, agent or insurance company in Ontario. To find out if your insurance broker
   
    is licensed to do business in the province, visit the Registered Insurance Brokers of Ontario website. To find out if your insurance agent or insurance company is licensed to do business in the province, visit the Financial Services Commission of Ontario website.
2. Rates: Many companies sell insurance policies and rates vary greatly from one to another, so it pays to shop around. Get at least three quotes from different direct writers, brokers and agents. There is more information that will tell you how insurance rates are set and how to save on auto insurance.
3. Coverage: While basic auto insurance policies are standardized to some extent, it's still important to compare policies in terms of coverage as the particular amounts and range of coverage (for example: deductibles, limits and optional coverages) may differ from company to company.
4. Claims or Accident Forgiveness: You may want to question what the company's practices are if you have an at-fault claim or under what circumstances your insurance would not be renewed. Most insurers have some accident forgiveness provisions, or you can purchase an endorsement to receive this coverage.   Insurers can no longer use a minor at-fault accident that occurs on or after June 1, 2016 meeting certain criteria to increase your premiums. The criteria include that no payment has been made by any insurer, that there are no injuries, and that damages to each car and property were less than $2,000 per car and were paid by the at-fault driver. This provision is limited to one minor accident every three years.
5. Service: When making your insurance purchasing decision remember, it is not always wise to buy the cheapest insurance policy you can find. Shop around to compare service as well as price.
6. Comfort: Whether you buy it from an agent, a broker, or directly from the company, you should feel comfortable with your insurance purchase. Select an insurance representative who takes the time to answer your questions. Make sure that the agent, broker or company will be easy to reach if you have a question or need to file a claim.
    

Approaching Your Broker, Agent or Insurance Company

 
In order to quote you a premium, or sell you an automobile insurance policy, your broker, agent or insurance company will require some basic information about:

• you;
• your vehicle;
• your driving record;
• your current broker, agent or insurance company; as well as
• any other drivers.

It's a good idea to have all this information on hand before you contact your insurance representative. Use this printable version 

You must be accurate and honest, and update your insurance representative if your circumstances change. Your auto insurance rates are based on the information you have given to your broker, agent, or insurance company. An insurance company has the right to cancel your policy if the information you have given is not correct or complete. Non-disclosure or misrepresentation on your part of any of these facts could cause your rates to go up. Furthermore, it could render your policy null and void, and leave you without protection in the event of a claim.

Note: Auto insurance companies and their agents/brokers are prohibited from requiring that you consent to the collection and use of your credit information before providing an insurance quote or offering to renew a policy. They are also prohibited from using credit information when they respond to requests for quotes, or process applications for automobile insurance or renewals of policies.

Remember, it is not only the driver but also the owner of the vehicle who is liable when an accident is caused with his or her vehicle. This puts a heavy onus on owners to ensure that they give only licensed and competent drivers permission to operate their vehicle! 

 
Be prepared to ask some questions of your own so that you can compare quotes:

• How do I reach you if I need to ask a question or file a claim?
• Are there any optional coverages I should consider?
• Please break down the premium costs to me for each optional coverage I have selected or receive as part of my standard auto policy.
• How will my premium be affected if I am in an accident?
• What discounts does the insurance company offer?

Other important facts to remember when dealing with your insurance company include:

• If you want to change insurance companies and cancel your existing policy before it expires, you may have to pay a penalty. You may instead want to have the new policy start once your existing policy expires.
• You should receive your policy renewal from your insurance company approximately 30 days before it expires. This allows you to change your policy, examine policy changes, or shop around. 
• If you don't want to renew your policy, you should notify your broker, agent, or insurance company immediately. Don't just stop making payments: that will result in cancellation of your policy because of non-payment and possibly put you in a higher risk category.
• Your insurer can cancel your policy for non-payment of premiums, so long as it follows certain procedures. As required by the Insurance Act, the insurer must give you 15 days' notice of termination by registered mail or five days written notice of termination if it's personally delivered. If you pay the outstanding premium before the end of the notice period, the insurer may, but is not required to, keep the policy in force. If the insurer does not receive your payment before the end of the notice period, your policy will be cancelled for non-payment.
• If there is a lapse in your coverage due to cancellation of your policy because of non-payment of premiums, insurance companies may then charge you higher premiums for a future policy.
• Your auto insurance policy requires that any accident involving injury or property damage, be reported to your insurance company within seven days, regardless of who is at fault. If you are unable to report within seven days, you must report it as soon as possible after the accident. 

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Your Auto Insurance Policy

Your insurance company is responsible for providing you with the insurance coverage summarized on the Certificate of Automobile Insurance you receive each year on renewal or when you purchase insurance, and for which you pay a premium.

Your Certificate of Automobile Insurance:

• lists the vehicles that are insured
• lists the coverages purchased, including any optional coverages you have selected
• provides a description of how you were rated for the premiums charged, and
• indicates the period during which you are covered by insurance.

It is important that you read this certificate. You only have insurance coverage for a vehicle if your Certificate of Automobile Insurance shows a premium for that vehicle or shows that the coverage is provided at no cost.

What's in a Standard Auto Insurance Policy?

If you own a vehicle in Ontario, you are required to, at the very least, purchase the following automobile insurance coverage:

Increasing Your Liability and Accident Benefits Coverage

In addition to the mandatory minimum coverages that are required by law, you may purchase higher liability limits under your Third-Party Liability Coverage, as well as increased Accident Benefits Coverages. You have choices and flexibility over optional or increased coverages and the price you pay for auto insurance. These options allow you to customize your policy to better suit your needs.

Your insurance representative will be able to help you decide what level of coverage is best for you.

 
If you have benefits from your employer or another policy, you may already have some level of coverage for some or all of the optional benefits listed above. You should consider these benefits as you review your coverage options.

Summary of optional accident benefits coverage available for policies issued on or after June 1, 2016

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Extra Coverage for Loss or Damage to Your Vehicle

In addition to the standard policy coverages you may also buy extra coverage for loss or damage to your vehicle including:

 
Note: A deductible may apply to all of the above coverages.

Optional Policy Endorsements

Additional optional enhancements, also known as policy endorsements or Ontario Policy Change
Forms (OPCF), are special agreements that allow you to change, add or reduce the amount of coverage for certain situations.

The six most common policy endorsements are:

Please keep in mind that these are only some of the many policy endorsements available for purchase. Ask your broker, agent or insurance company which policy endorsements would benefit you.

Exclusions in Standard Auto Policy

 Recognize that:

• Mechanical failure or breakdown, rusting, wear and tear, freezing or explosion within the engine and damage to tires, are not covered unless they result from an insured peril (such as a collision).
• Your insurance company is allowed to deny payment for loss or damage caused to the vehicle in an accident, if you or anyone you let drive your vehicle:
• was unable to maintain proper control of the vehicle because you (or he and she) was driving under the influence of alcohol or drugs; or
• is convicted of one of the following Criminal Code offences (or any similar offences under any other law in Canada or the United States) relating to the use, care, or control of the vehicle:
• causing death or injury by criminal negligence,
• dangerous operation of a vehicle,
• failure to stop at the scene of an accident,
• driving a vehicle when impaired or with more than 80 mg of alcohol in the blood,
• refusal to provide the police with a breath sample,
• causing injury when driving a vehicle while impaired or with over 80 mg/100ml of alcohol in the blood, or
• driving the vehicle while disqualified from doing so.

Except for certain accident benefits, there is no coverage for anyone, including passengers, if:

• Your vehicle is driven by a person without your consent, or by someone specifically excluded from your policy by the OPCF 28A (Excluded Driver Endorsement).
• The vehicle is used to carry explosives or radioactive materials.
• The vehicle is used as a taxicab, bus, or sightseeing vehicle, or to carry paying passengers such as with a ride-sharing service.
• If you are intending to participate in a ride-sharing service as a driver, you should check with your auto insurance representative to ensure you have proper insurance that protects the driver, passenger and others.

What are Underwriting Rules?

When shopping for auto insurance, or when trying to renew your auto insurance policy, keep in mind that an insurance company's underwriting rules will affect whether or not you can obtain insurance - or continue to be insured - with that insurance company.

Check with your broker, agent, or insurance company to find out what your company's underwriting rules are and how they may affect you.

While underwriting rules differ from company to company, these are some of the more common rules:

• whether you or drivers in your household have had more than a certain number of driving convictions or at-fault accidents;
• whether you've had an auto insurance policy cancelled a number of times because you failed to pay your premium; and
• whether you've failed in the past to provide correct or complete information when applying for auto insurance.

All underwriting rules used by insurance companies must be filed with FSCO.

Once FSCO has reviewed and approved these rules, insurance companies may not use other rules to deny you coverage.

If an insurance company refuses to sell you an insurance policy, or to renew your policy, the company must advise you in writing of which rule (or rules) it has used to deny coverage to you.

Underwriting rules that do not comply with the Insurance Act or the regulations, such as those which are contrary to public policy, are prohibited. These include rules which deny insurance to individuals based on such factors as:

• credit history,
• physical or mental disability,
• where you live or the location of the vehicle, and
• whether you are newly licensed or a driver new to Canada.

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High Risk Drivers

Although an individual insurance company may refuse to sell you auto insurance if its approved underwriting rules determine you to be a "high risk," the insurance industry as a whole cannot refuse to sell you basic insurance.

High-risk drivers are those drivers who have had a number of convictions or at-fault accidents, had policies cancelled because they haven't paid their premiums, or have other risk-related characteristics.

The Facility Association, an insurance pool that all auto insurance companies belong to, is an insurer of last resort, which makes auto insurance available to high-risk drivers who are unable to find automobile insurance in the regular market. As well, there are a number of "non-standard" insurers that specialize in insuring high-risk drivers.

For more information visit the Facility Association website

Which of the following describes a person who is not acceptable by an insurer at standard rates because of health history?

What describes a person who is not acceptable by an insurer at standard rates because of health history occupation or hobbies?

What is considered a substandard risk?

What does life insurance substandard mean?