Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What is the main purpose of the Family Protection Endorsement (OPCF 44)?

1. To insure against theft

2. To provide comprehensive coverage for the vehicle

3. To cover injuries caused by inadequately insured third parties

4. To ensure liability coverage for property damage

The correct answer is: To cover injuries caused by inadequately insured third parties

The Family Protection Endorsement (OPCF 44) is specifically designed to provide coverage for injuries sustained by the insured and their family when they are involved in an accident caused by a driver who has insufficient or no insurance. This endorsement acts as a safety net, ensuring that policyholders have adequate financial protection in situations where they are injured due to the negligence of another party whose insurance coverage cannot fully compensate them for their losses. This means that if the at-fault driver is inadequately insured, the Family Protection Endorsement steps in to cover the resulting claims for medical expenses, lost wages, and other damages. It emphasizes the importance of safeguarding individuals against the risks associated with underinsured motorists. This is particularly crucial in an environment where not all drivers carry sufficient liability coverage. The other options do not accurately reflect the purpose of the Family Protection Endorsement. Theft coverage, comprehensive vehicle coverage, and liability for property damage are handled by different aspects of an auto insurance policy and do not pertain specifically to protection from underinsured motorists, which is the central role of the OPCF 44.