Automobile Insurance

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Awareness

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify that a Canadian automobile insurance policy is effective only in Canada and the United States. 
  • Identify that the type, amount and characteristics of mandatory automobile insurance may differ across Canadian jurisdictions, including provincial government insurance.  
  • Define terms of automobile insurance contracts, such as:
    • Legal liability
    • Use of vehicle (i.e., All-purpose, pleasure, business purposes)
    • Coverage (i.e., All perils, specified perils)
    • Negligence
    • Named insured
    • Third party
    • Absolute liability
    • No-fault
    • Deductible
  • Identify types of coverage that an automobile insurance policy may provide,1 such as: 
    • Liability insurance
    • Collision coverage
    • Comprehensive coverage
    • Personal injury protection
    • Uninsured/underinsured motorist protection 
  • Identify the purpose for which each type of automobile insurance coverage may be used.  
  • Identify uses of automobiles that may impact the insurance policy coverage required, such as:
    • All-purpose
    • Pleasure
    • Business 
  • Identify that changes in the use of an automobile may require changes to insurance coverage, potentially resulting in a change in premium. 
  • Identify factors that may impact the premium of an automobile insurance policy, such as:
    • Driving history (i.e., length, accidents, traffic-related convictions)
    • Geographic location
    • Type of vehicle
    • Quantitative driving factors (i.e., how often vehicle is driven, how far it is driven)
    • Optional coverages and endorsements added to policy
    • Value of coverage (i.e., liability protection, deductibles)

REFERENCES

1 http://publications.gc.ca/collections/collection_2013/acfc-fcac/FC5-24-2012-eng.pdf 

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify that a Canadian automobile insurance policy is effective only in Canada and the United States. 
  • Identify that the type, amount and characteristics of mandatory automobile insurance may differ across Canadian jurisdictions, including provincial government insurance.  
  • Define terms of automobile insurance contracts, such as:
    • Legal liability
    • Use of vehicle (i.e., All-purpose, pleasure, business purposes)
    • Coverage (i.e., All perils, specified perils)
    • Negligence
    • Named insured
    • Third party
    • Absolute liability
    • No-fault
    • Deductible
  • Identify types of coverage that an automobile insurance policy may provide,1 such as: 
    • Liability insurance
    • Collision coverage
    • Comprehensive coverage
    • Personal injury protection
    • Uninsured/underinsured motorist protection 
  • Explain the purpose of each type of automobile insurance coverage.  
  • Identify uses of automobiles that may impact the insurance policy coverage required, such as:
    • All-purpose
    • Pleasure
    • Business 
  • Identify that changes in the use of an automobile may require changes to insurance coverage, potentially resulting in a change in premium. 
  • Identify factors that may impact the premium of an automobile insurance policy, such as:
    • Driving history (i.e., length, accidents, traffic-related convictions)
    • Geographic location
    • Type of vehicle
    • Quantitative driving factors (i.e., how often vehicle is driven, how far it is driven)
    • Optional coverages and endorsements added to policy
    • Value of coverage (i.e., liability protection, deductibles)

REFERENCES

1 http://publications.gc.ca/collections/collection_2013/acfc-fcac/FC5-24-2012-eng.pdf 
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