Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which statement about the Temporary Substitute Automobile provision is NOT true?

1. It applies when the described automobile is out of service due to specific reasons

2. A Temporary Substitute Automobile cannot be registered in the name of the insured or any other person in the same dwelling

3. The OAP 1 will pay for all damage caused to a Temporary Substitute Automobile by the insured

4. All claims paid are subject to the deductible applicable to the equivalent claim for damage to the insured's own vehicle

The correct answer is: The OAP 1 will pay for all damage caused to a Temporary Substitute Automobile by the insured

The statement that is NOT true is C, "The OAP 1 will pay for all damage caused to a Temporary Substitute Automobile by the insured". Option A is incorrect because it is true that the Temporary Substitute Automobile provision applies when the insured's vehicle is out of service for specific reasons, such as being in for repairs. Option B is incorrect because it is true that a Temporary Substitute Automobile cannot be registered in the insured's name or any other person in the same dwelling, as this would imply that the vehicle is a permanent substitute rather than temporary. Option D is incorrect because it is true that all claims paid are subject to the deductible applicable to the equivalent claim for damage to the insured's own vehicle. This is a standard provision in insurance policies. Explanation The correct statement about the Temporary Substitute Automobile provision is that the OAP 1 will not pay for all damage caused to a Temporary Substitute