ONTARIO AUTO EXAM 400 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS /ALREADY GRADED A+
WITH RATIONALES
1. Your client calls to advise he/she needs insurance on a car leased from an
automobile dealer. Which one of the following policies is required?
A) O.A.P. 1 Owner Form, suitably endorsed.
B) O.P.F. #2 Driver's Form.
C) O.P.F. #6 Non-owned Automobile Form, suitable endorsed.
D) Garage Auto Form, suitably endorsed.
Correct Answer: A
Rationale: A leased vehicle is considered a vehicle in which the insured has an
insurable interest, similar to an owned vehicle. The O.A.P. 1 Owner's Form is the
standard personal automobile policy used in Ontario for both owned and leased
vehicles. The policy can be suitably endorsed to reflect the leasing company's
interest.
2. Insurance under O.A.P. 1 Owner's Form, Section 7, Loss or Damage Coverages,
is usually subject to a deductible. It does not apply to damage caused by:
A) Windstorm
B) Explosion
C) Vandalism
D) Fire
Correct Answer: D
1
,Rationale: Under Section 7 of the O.A.P. 1, while most loss or damage claims are
subject to a deductible, there is a specific exception. If the loss or damage is caused
by fire or lightning, the deductible does not apply.
3. Uninsured Automobile coverage:
A) Must be added by endorsement to O.A.P. Owner's Form
B) Only cover's bodily injury, but never property damage.
C) Can cover accidental damage to the insured's automobile, provided the
uninsured owner or the driver of the actual automobile is identified.
D) Provides coverage for third parties if the insured causes bodily injury and has
breached a statutory condition.
Correct Answer: C
Rationale: Uninsured Automobile coverage protects the insured if they are
involved in an accident with a driver who has no insurance. It is available for
bodily injury and, in some cases, property damage. A key condition is that the
uninsured driver or owner must be identified.
4. A client phones to tell you he has brought a high-end stereo system costing
$5,000, which has been installed in his car. What should you tell him?
A) Be sure to always lock the car, as there is no coverage if the system costing
$5,000 is stolen when the car is unlocked.
B) There is no coverage on the system without an approved security system in the
car.
C) No further action is needed. The new system is automatically covered under his
O.A.P. 1 Owner's Form as a part of the car.
D) To provide you with a copy of the invoice so you can have his O.A.P. 1
Owner's Form endorsed to cover its full value.
Correct Answer: D
Rationale: After-market equipment like a high-end stereo system is not
automatically covered for its full value under the standard O.A.P. 1. To ensure it is
2
,properly insured, the client must provide the invoice to their broker, who can then
add an endorsement to the policy to cover its specific value.
5. One of the following statements is correct. Electronic accessories or equipment
are covered under O.A.P. 1 Owner's Form:
A) For the full replacement cost.
B) Up to $2,500 if installed after the vehicle is purchased.
C) For the actual cash value if factory installed.
D) For the actual cash value.
Correct Answer: C
Rationale: Electronic accessories and equipment are treated differently based on
when they are installed. If they are "factory installed," they are considered a part of
the vehicle and are covered for their Actual Cash Value (ACV) as part of the total
loss settlement. After-market equipment requires specific coverage through
endorsement.
6. Your insured parks his/her automobile at a shopping mall and on his/her return it
has been damaged by another vehicle. Your insured has O.A.P. 1 Owner's Form
with Liability, Accident Benefits, Comprehensive and OPCF44, Family Protection
Endorsement coverages. What section would cover the damage?
A) Comprehensive
B) OPCF 44, Family Protection Endorsement
C) Liability
D) There would be no coverage
Correct Answer: D
Rationale: Damage to an insured vehicle by a hit-and-run driver, or by an
identified driver in an Ontario parking lot, is typically covered under the Collision
or All Perils sections of the policy. Since the client does not have Collision or All
Perils coverage, there would be no coverage for this loss under their current policy.
3
, 7. Insured under Section 7 of O.A.P. 1 Owner's Form, Loss or Damage Coverages,
is usually subject to a deductible. It does not apply to loss or damage caused by:
A) Water
B) Lightening
C) Vandalism
D) Windstorm
Correct Answer: B
Rationale: Similar to fire, if a loss is caused by lightning, the policy's standard
deductible does not apply.
8. Your insured calls to report while ice fishing on Lake Simcoe his/her automobile
went through ice. He/she has O.A.P. 1 Owner's Form with Liability, Accident
Benefits and Comprehensive Coverages. The insurer:
A) Would pay the claim in full
B) Would not pay the claim, as there is no coverage.
C) Would pay the claim, less deductible
D) Would not pay the claim, as the automobile was not being operated on a public
highway.
Correct Answer: C
Rationale: An automobile sinking through ice is considered a loss covered under
Comprehensive coverage. The insurer would pay the claim, less the applicable
deductible.
9. The Facility Association is:
A) A group of insurance carriers that write the insurance risks on automobiles
owned by their agents/brokers and their staff.
4
DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS /ALREADY GRADED A+
WITH RATIONALES
1. Your client calls to advise he/she needs insurance on a car leased from an
automobile dealer. Which one of the following policies is required?
A) O.A.P. 1 Owner Form, suitably endorsed.
B) O.P.F. #2 Driver's Form.
C) O.P.F. #6 Non-owned Automobile Form, suitable endorsed.
D) Garage Auto Form, suitably endorsed.
Correct Answer: A
Rationale: A leased vehicle is considered a vehicle in which the insured has an
insurable interest, similar to an owned vehicle. The O.A.P. 1 Owner's Form is the
standard personal automobile policy used in Ontario for both owned and leased
vehicles. The policy can be suitably endorsed to reflect the leasing company's
interest.
2. Insurance under O.A.P. 1 Owner's Form, Section 7, Loss or Damage Coverages,
is usually subject to a deductible. It does not apply to damage caused by:
A) Windstorm
B) Explosion
C) Vandalism
D) Fire
Correct Answer: D
1
,Rationale: Under Section 7 of the O.A.P. 1, while most loss or damage claims are
subject to a deductible, there is a specific exception. If the loss or damage is caused
by fire or lightning, the deductible does not apply.
3. Uninsured Automobile coverage:
A) Must be added by endorsement to O.A.P. Owner's Form
B) Only cover's bodily injury, but never property damage.
C) Can cover accidental damage to the insured's automobile, provided the
uninsured owner or the driver of the actual automobile is identified.
D) Provides coverage for third parties if the insured causes bodily injury and has
breached a statutory condition.
Correct Answer: C
Rationale: Uninsured Automobile coverage protects the insured if they are
involved in an accident with a driver who has no insurance. It is available for
bodily injury and, in some cases, property damage. A key condition is that the
uninsured driver or owner must be identified.
4. A client phones to tell you he has brought a high-end stereo system costing
$5,000, which has been installed in his car. What should you tell him?
A) Be sure to always lock the car, as there is no coverage if the system costing
$5,000 is stolen when the car is unlocked.
B) There is no coverage on the system without an approved security system in the
car.
C) No further action is needed. The new system is automatically covered under his
O.A.P. 1 Owner's Form as a part of the car.
D) To provide you with a copy of the invoice so you can have his O.A.P. 1
Owner's Form endorsed to cover its full value.
Correct Answer: D
Rationale: After-market equipment like a high-end stereo system is not
automatically covered for its full value under the standard O.A.P. 1. To ensure it is
2
,properly insured, the client must provide the invoice to their broker, who can then
add an endorsement to the policy to cover its specific value.
5. One of the following statements is correct. Electronic accessories or equipment
are covered under O.A.P. 1 Owner's Form:
A) For the full replacement cost.
B) Up to $2,500 if installed after the vehicle is purchased.
C) For the actual cash value if factory installed.
D) For the actual cash value.
Correct Answer: C
Rationale: Electronic accessories and equipment are treated differently based on
when they are installed. If they are "factory installed," they are considered a part of
the vehicle and are covered for their Actual Cash Value (ACV) as part of the total
loss settlement. After-market equipment requires specific coverage through
endorsement.
6. Your insured parks his/her automobile at a shopping mall and on his/her return it
has been damaged by another vehicle. Your insured has O.A.P. 1 Owner's Form
with Liability, Accident Benefits, Comprehensive and OPCF44, Family Protection
Endorsement coverages. What section would cover the damage?
A) Comprehensive
B) OPCF 44, Family Protection Endorsement
C) Liability
D) There would be no coverage
Correct Answer: D
Rationale: Damage to an insured vehicle by a hit-and-run driver, or by an
identified driver in an Ontario parking lot, is typically covered under the Collision
or All Perils sections of the policy. Since the client does not have Collision or All
Perils coverage, there would be no coverage for this loss under their current policy.
3
, 7. Insured under Section 7 of O.A.P. 1 Owner's Form, Loss or Damage Coverages,
is usually subject to a deductible. It does not apply to loss or damage caused by:
A) Water
B) Lightening
C) Vandalism
D) Windstorm
Correct Answer: B
Rationale: Similar to fire, if a loss is caused by lightning, the policy's standard
deductible does not apply.
8. Your insured calls to report while ice fishing on Lake Simcoe his/her automobile
went through ice. He/she has O.A.P. 1 Owner's Form with Liability, Accident
Benefits and Comprehensive Coverages. The insurer:
A) Would pay the claim in full
B) Would not pay the claim, as there is no coverage.
C) Would pay the claim, less deductible
D) Would not pay the claim, as the automobile was not being operated on a public
highway.
Correct Answer: C
Rationale: An automobile sinking through ice is considered a loss covered under
Comprehensive coverage. The insurer would pay the claim, less the applicable
deductible.
9. The Facility Association is:
A) A group of insurance carriers that write the insurance risks on automobiles
owned by their agents/brokers and their staff.
4
