Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What type of coverage does the S.P.F. No. 1 Owner's Form exclude?

1. Owned vehicles

2. Rented or leased vehicles

3. Commercial vehicles

4. Personal automobiles

The correct answer is: Rented or leased vehicles

The S.P.F. No. 1 Owner's Form is designed primarily for private passenger vehicles, addressing the coverage needs of individuals against specific types of loss. This form generally excludes coverage for rented or leased vehicles, as it is focused on vehicles that are owned by the insured. Coverage for rented or leased vehicles typically falls under different policy forms or endorsements that cater specifically to those circumstances, since the responsibilities and risks associated with such vehicles can vary significantly from those of owned vehicles. Choosing this option highlights an important distinction in insurance coverage. Those considering using a rented or leased vehicle need to be aware that they may require specific insurance provisions or a different policy to ensure they are adequately protected in the event of an accident or loss. In contrast, owned vehicles, commercial vehicles, and personal automobiles typically receive coverage under different stipulations of the S.P.F. No. 1 Owner's Form.