knowledge topics
Automobile Insurance
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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 (e.g. all-purpose, pleasure, business purposes)
- Coverage (i.e. all perils, specific 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 (e.g. length, accidents, traffic-related convictions)
- Geographic location
- Type of vehicle
- Quantitative driving factors (e.g. how often vehicle is driven, how far it is driven)
- Optional coverages and endorsements added to policy
- Value of coverage (e.g. liability protection, deductibles)
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
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