Registered Insurance Brokers of Ontario (RIBO) Practice Exam

In the case of a vehicle going through ice while fishing, how would the insurer respond under OAP 1 Owner's Form?

1. Would deny the claim

2. Would pay the claim in full

3. Would pay the claim less the deductible

4. Would cover only liability

The correct answer is: Would pay the claim less the deductible

In the context of the OAP 1 Owner's Form, which is a standard automobile insurance policy in Ontario, the coverage provided typically extends to damages incurred in various scenarios, including incidents like a vehicle going through ice while fishing. The correct approach in such situations involves the insurer covering the claim while applying the deductible specified in the policy. In essence, payment will be made for the damages to the vehicle itself after subtracting the amount of the deductible, which is the portion of the loss that the insured must cover before the insurance pays out. This means that the insurer recognizes the claim and is willing to cover the vehicle's damage but expects the policyholder to bear a small part of the cost through the deductible. This reflects the standard practice across many insurance policies, where deductibles are applied to manage the risk and avoid minor claims driving up insurance costs for all policyholders. The other options would not align with typical insurer responses to such claims under the policy. Denying the claim outright would not account for the valid scenario of accidental damage while fishing, and covering only liability would not address the property damage aspect of the vehicle itself. Additionally, paying the claim in full without a deductible wouldn't reflect the common stipulations found in most auto insurance agreements.