Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which of the following is NOT COVERED under the OAP1?

1. A. General averages charged when the insured vehicle is jettisoned from a ferry on which it is being transported.

2. B. Towing charges to remove the insured vehicle from a drainage ditch after an accident.

3. C. Custom duties levied when the insured vehicle suffers a blown motor while vacationing in the USA necessitating replacing the motor.

4. D. Damage to the insured auto, caused by a friend of the insured, who borrows the vehicle with permission and is involved in an accident for which she is responsible.

The correct answer is: C. Custom duties levied when the insured vehicle suffers a blown motor while vacationing in the USA necessitating replacing the motor.

The option that is NOT COVERED under the OAP1 is option C. This is because the OAP1 policy only covers damage to the insured vehicle due to collision or upset, not mechanical breakdown or failure. Options A and B are both covered under the OAP1 policy, as they involve damage to the vehicle due to an accident. Option D is also covered, as it involves damage to the vehicle caused by a third party with the insured's permission. This means that as long as the friend is legally responsible for the accident, the damages would be covered under the OAP1 policy.