SAAQ Insurance & Claims Management 4

Question 1

What does the term 'subrogation' mean in the context of Quebec automobile insurance?

Accepted Answer

The insurer takes over the insured's rights to recover from the at-fault party after paying a claim

Answer

Subrogation allows an insurer who has paid a claim to step into the insured's legal shoes and pursue recovery from the responsible third party.

Question 2

A Quebec policyholder has a $500 deductible on collision coverage. Their car sustains $1,800 in damage. How much does the insurer pay?

Accepted Answer

$1,300

Answer

The insurer pays the loss minus the deductible: $1,800 − $500 = $1,300.

Question 3

In Quebec, which authority oversees the regulation and licensing of automobile insurance companies operating in the province?

Accepted Answer

Autorité des marchés financiers (AMF)

Answer

The Autorité des marchés financiers (AMF) regulates and supervises financial institutions including private insurers in Quebec.

Question 4

A Quebec driver causes a multi-vehicle accident resulting in $120,000 in property damage. Their civil liability limit is $50,000. What happens to the remaining $70,000?

Accepted Answer

The driver is personally responsible for the excess

Answer

When damages exceed the civil liability limit, the at-fault driver is personally liable for the excess amount, which is why higher limits are recommended.

Question 5

Under Quebec law, must a vehicle owner maintain automobile insurance even if the vehicle is parked and never driven?

Accepted Answer

Yes, insurance must be maintained as long as the vehicle is registered

Answer

Quebec law ties mandatory civil liability insurance to vehicle registration; a registered vehicle must be insured regardless of use.

(SAAQ) Société de l'assurance automobile du Québec Practice Test

(SAAQ) Société de l'assurance automobile du Québec Practice Test

SAAQ Insurance & Claims Management 4