OTL Licence – Auto Insurance Study Guide and Certification Exam Preparation Material
OAP 1 - ✔✔Ontario automobile policy
OAP 2 - ✔✔Ontario application for automobile insurance
SPF 7 (Ontario commercial form) - ✔✔Excess automobile policy
- Provides limits of liability in addition to the limits on underlying automobile policies
SPF 6 (Ontario commercial form) - ✔✔Standard policy form (Non-owned automobile policy)
- Legal liability coverage to a business entity for automobile it does not own
SPF 8 (Ontario commercial form) - ✔✔Lessor's contingent automobile policy
- As the owners of automobiles under long-term leases, lessors have a legal responsibility under
compulsory insurance laws to insure the automobile
Legal jurisdictions - Federal - ✔✔Sections relating to driving offenses, such as failure to stop at
the scene of an accident
Legal jurisdictions - Provincial - ✔✔Rules of the road, such as speed limits and traffic lights
Legal jurisdictions - Municipal - ✔✔Bylaws that regulate local matters, such as parking and
crosswalk
Insurance Companies Act of Ontario - ✔✔- Governs all federally incorporated or registered
insurance companies in Canada
- It is regulated to create a revenue stream for government
,Third party liability (mandatory coverage in Ontario) - ✔✔Insurance against the insured's legal
liability for injury to other people and damage to the property of others. Covers the non
responsible injury.
Accident benefit (mandatory coverage in Ontario) - ✔✔Indemnity for the cost of medical and
rehabilitative care for the insured
Direct comprehensive property damage (mandatory coverage in Ontario) - ✔✔Damage or loss
of use to automobiles when the other driver is at fault for the incidence. Even though someone
else caused damage, the insured person collected directly from his insurer instead of from the
person who caused the accident
Uninsured motorist coverage (mandatory coverage in Ontario) - ✔✔A form of insurance that
pays for bodily injury or property damage caused by owner or operator of the vehicle that is not
insured.
The limit of liability coverage in Ontario is $200 000.
Insurance Companies Act - ✔✔Governs all federally incorporated or registered insurance
companies in Canada
Highway traffic act - ✔✔Deals with registration and licensing of motor vehicles and drivers,
and traffic control on the highway
Compulsory automobile insurance act - ✔✔Require every owner of lessee of a vehicle to
insure that vehicle if it is being operated on a public road
Insurance Act - ✔✔Sets out basic provisions, statutory conditions and general rules of the
insurance policies
, Application information required - ✔✔- Driver info
- Described automobile
- Previous insurance history
- Previous accidents and insurance claims
- Convictions
- Rating information
-Declaration of applicant
Underwriting information - ✔✔Risk selection: review both risk and applicant, accept or reject
risk
Rating: determine proper cost, apply rates established by the actuarial term, dependent on risk
type and size
Endorsements: extensions provide additional coverage, agreements or restrictions alter the
coverage based on the insurers underwriting rules
Years required for:
Previous insurance history
Previous accidents and insurance claims
Convictions
Past license insurance experience - ✔✔Previous insurance history: 3
Previous accidents and insurance claims: 6
Convictions: 3
Past license insurance experience: 6
Info required for ratemaking - ✔✔Age, gender & marital status
OAP 1 - ✔✔Ontario automobile policy
OAP 2 - ✔✔Ontario application for automobile insurance
SPF 7 (Ontario commercial form) - ✔✔Excess automobile policy
- Provides limits of liability in addition to the limits on underlying automobile policies
SPF 6 (Ontario commercial form) - ✔✔Standard policy form (Non-owned automobile policy)
- Legal liability coverage to a business entity for automobile it does not own
SPF 8 (Ontario commercial form) - ✔✔Lessor's contingent automobile policy
- As the owners of automobiles under long-term leases, lessors have a legal responsibility under
compulsory insurance laws to insure the automobile
Legal jurisdictions - Federal - ✔✔Sections relating to driving offenses, such as failure to stop at
the scene of an accident
Legal jurisdictions - Provincial - ✔✔Rules of the road, such as speed limits and traffic lights
Legal jurisdictions - Municipal - ✔✔Bylaws that regulate local matters, such as parking and
crosswalk
Insurance Companies Act of Ontario - ✔✔- Governs all federally incorporated or registered
insurance companies in Canada
- It is regulated to create a revenue stream for government
,Third party liability (mandatory coverage in Ontario) - ✔✔Insurance against the insured's legal
liability for injury to other people and damage to the property of others. Covers the non
responsible injury.
Accident benefit (mandatory coverage in Ontario) - ✔✔Indemnity for the cost of medical and
rehabilitative care for the insured
Direct comprehensive property damage (mandatory coverage in Ontario) - ✔✔Damage or loss
of use to automobiles when the other driver is at fault for the incidence. Even though someone
else caused damage, the insured person collected directly from his insurer instead of from the
person who caused the accident
Uninsured motorist coverage (mandatory coverage in Ontario) - ✔✔A form of insurance that
pays for bodily injury or property damage caused by owner or operator of the vehicle that is not
insured.
The limit of liability coverage in Ontario is $200 000.
Insurance Companies Act - ✔✔Governs all federally incorporated or registered insurance
companies in Canada
Highway traffic act - ✔✔Deals with registration and licensing of motor vehicles and drivers,
and traffic control on the highway
Compulsory automobile insurance act - ✔✔Require every owner of lessee of a vehicle to
insure that vehicle if it is being operated on a public road
Insurance Act - ✔✔Sets out basic provisions, statutory conditions and general rules of the
insurance policies
, Application information required - ✔✔- Driver info
- Described automobile
- Previous insurance history
- Previous accidents and insurance claims
- Convictions
- Rating information
-Declaration of applicant
Underwriting information - ✔✔Risk selection: review both risk and applicant, accept or reject
risk
Rating: determine proper cost, apply rates established by the actuarial term, dependent on risk
type and size
Endorsements: extensions provide additional coverage, agreements or restrictions alter the
coverage based on the insurers underwriting rules
Years required for:
Previous insurance history
Previous accidents and insurance claims
Convictions
Past license insurance experience - ✔✔Previous insurance history: 3
Previous accidents and insurance claims: 6
Convictions: 3
Past license insurance experience: 6
Info required for ratemaking - ✔✔Age, gender & marital status
