Other Than Life (OTL) Practice Exam

Which coverage presently available in all provinces and territories has some no-fault features?

1. Physical damage

2. Uninsured motorist

3. Third party liability

4. Accident benefits

The correct answer is: Uninsured motorist

The correct response highlights the nature of uninsured motorist coverage, which includes certain no-fault features across all provinces and territories. This type of coverage is designed to provide protection for insured individuals involved in accidents with drivers who do not have insurance. In instances where the insured party suffers injuries or property damage due to an uninsured driver, the uninsured motorist coverage steps in to compensate for the losses. This coverage typically allows policyholders to access benefits without needing to prove fault on the part of another driver, aligning with the principles of no-fault insurance. The aim is to ensure that individuals can receive timely reimbursement for their losses regardless of the other party’s insurance status. In contrast, other types of coverage like physical damage, third-party liability, and accident benefits do not universally embody this no-fault characteristic. Physical damage coverage is primarily concerned with damage to the insured's vehicle, third-party liability focuses on providing protection against claims from other parties who may be injured or have property damaged by the insured, and accident benefits can vary significantly in terms of coverage and fault determination depending on provincial regulations. Thus, uninsured motorist coverage stands out for its specific no-fault advantages, making it the most appropriate answer to the question.