Registered Insurance Brokers of Ontario (RIBO) Practice Exam

A horse and buggy are hit by an automobile. The horse is killed. The automobile has been damaged but not the buggy. Which of the following coverages apply:

1. Own Damage

2. Third Party Liability (Property Damage)

3. Neither of the above

4. Both of the above

The correct answer is: Both of the above

This is because both own damage and third party liability (property damage) apply in this situation. Own damage coverage applies to the damages caused to your own vehicle while third party liability coverage applies to the damages caused to another person or their property. In this scenario, the horse and buggy are considered separate entities, so the automobile is responsible for damages to both the horse (third party liability) and the buggy (own damage). Therefore, both coverages apply. Option A (Own Damage) is incorrect because it only refers to damages to one's own vehicle, which does not apply to the horse in this case. Option B (Third Party Liability) is incorrect because it only refers to damages to another person or their property, which does not apply to the buggy in this case. Option C (Neither of the above) is incorrect because both coverages do apply in this situation.