Q.P.F. No. 5

Q.P.F. No. 5 - A replacement Insurance for automobiles and recreational vehicles

 
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ADVANTAGES FOR THE CUSTOMER
  • No deductible to pay in the event of total loss up to a maximum of $2,500 for vehicles worth less than $120 000 before tax.
  • No deductible to pay in the event of partial loss, up to a maximum of $250 or $500 per event, depending on the option selected.
  • Short term rental vehicle coverage up to $75/day to a maximum of $2,250 per event (tax included).
  • In the event of partial loss, this coverage will apply only if the described vehicle is a new vehicle or a demonstrator vehicle.

    When damaged parts cannot be repaired and they are replaced with new original equipment manufacturer parts, the insurer agrees to bear the difference between:
    - the cost of replacing the damaged parts with new original equipment manufacturer parts; and
    - the indemnity paid by the primary insurer for those parts.

    If any new original equipment manufacturer parts are out of stock or no longer manufactured, the liability of the insurer will be limited to the latest list price of those parts.
  • Any amount not borne by the insurer will be borne by the named insured.
  • Coverage terms adapted to the Insured needs :
    • from 24 to 84 months (monthly) for cars, trucks and minivans.
    • from 24 to 60 months (monthly) for motorcycles, snowmobiles, all terrain vehicles, mopeds, campers, caravans, fithwheels and tent trailers.
  • Client may change insurance company without losing his warranty privileges (and his coverage remains with your brokerage firm).
  • No reclamation limit for deductibles in partial loss.
  • Warranty provides protection against inflation .
  • There is no mileage limit.
  • High risk clients are admissible for coverage.
  • High risk vehicles are admissible for coverage.
  • Cost financing period from 12 to 84 months.
  • In claims for total loss, pro rata credit will be applied to the Insured for his/her current contract.
Transfer of a replacement value (FAQ 43) to a replacement insurance Q.P.F. No. 5
New term flexibility (number of months)

Procedure to follow for transferring a replacement value to a Q.P.F. No. 5

Transferring a replacement value (FAQ 43 A, E) to a Q.P.F. No. 5 for a maximum coverage period of 84 months (including the one given by the FAQ43A-E).Take the value of the sales contract (new) and proof of the active replacement value. Be sure to mention in Article 5.

Documents you need to keep (IMPORTANT):
• a copy of the vehicle's sales contract.
• proof that there is an active replacement value in place.

*NO MATTER WHICH PRIMARY INSURER

If the Insured has had the replacement value for 12 months he or she can obtain a Q.P.F. No. 5 for 72 months so as to have a total of 84 months of protection. If the Insured has had the replacement value for 39 months, he or she can obtain a Q.P.F. No. 5 for 45 months so as to make a total of 84 months protection. The total duration of the coverage cannot be more than 84 months.

ADVANTAGES FOR THE BROKER OR REPRESENTATIVE

  • Increased client satisfaction.
  • Produces client loyalty.
  • Competitive with today’s market.
  • Replacement insurance insured by INTACT ASSURANCE.

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REPLACEMENT INSURANCE DETAILS

VEHICLE ELIGIBILITY

Automobile, truck, van and recreational vehicles such as a motorcycle, snowmobile, all terrain vehicle, moped bike, motorhome, caravan, trailer and fifth wheel camper trailer.

  • For the Q.P.F. No. 5 to be in force, the Insured vehicle owner has to maintain a Québec automobile insurance policy – Owner’s form (Q.P.F. No. 1) containing Section A and at least one of the divisions of Section B with it's additional clauses.  
  • New vehicles, current year or preceding year, leased or purchased, contract value less than 120 days.
  • Demonstrators, 15,000 km and less, considered as new vehicles.
  • Used vehicles without age limitation , value stated on the purchase contract on condition that the designated vehicle was purchased at an automobile dealership within the 60 days preceding the effective date of the insurance contract.
  • In all other cases:
    - Used vehicle purchased from a private individual.
    - Used vehicle purchased or leased from an automobile dealership + 60 days.
    - New vehicle purchased or leased from an automobile dealership + 120 days.
    An evaluation is required.
  • Convertible sports vehicles included.
  • Luxury vehicles.
  • Utility vehicle weighing less than 4 500kg, 4x4 and diesel included (Article 5).
  • Commercial vehicles classes 33, 35, 36, 43 and 44 and delivery (Article 5)
  • Vehicles valued less than $120,000, excluding tax.
  • Fleet vehicles.

Note : For example, must be mentioned in Article 5 (Declaration is important for risk analysis):

  1. Utility vehicle less than 4500 Kg.
  2. Class 35.
  3. Additional accessories.
  4. Transfer of replacement cost to Q.P.F. No 5.

EXCLUSIONS

Unless indicated otherwise in the “Declarations” section, the following are excluded from coverage under the insurance contract:

  • Vehicles used for commercial purposes.
  • Utility vehicles whose gross vehicle weight exceeds 4,500 kg (10,000 lbs.).
  • Vehicles used for public service purposes, including:
    - ambulances.
    - buses.
    - driving school vehicles.
    - funeral directors’ vehicles.
    - government or municipal service vehicles, including police or fire department.
    - taxicabs.

The following are also excluded under the insurance contract:

  • Equipment and accessories, as well as any other option added to the described vehicle by the named insured, if they do not appear in the purchase contract, long-term lease or contract of leasing.  (All additional equipments must mandatorily be mentioned in Article 6 when the sale of the Q.P.F. No. 5 is made, otherwise they will not be taken into consideration.Important: Amendment 37A is necessary if installing electronic accessories).
  • Any claim arising from a loss not covered under Section B of the primary insurance contract;
  • Any claim that the primary insurer refuses to indemnify for any reason whatsoever; and
  • Any reduction in indemnity applied by the primary insurer for any reason whatsoever.
  • Any vehicle service agreements and/or chemical protections and their claims. Please note that only long term rust protection treatments applied by specialists or by the dealership will be honored.

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DESCRIPTION OF COVERAGES

The insurance contract covers replacement of the described vehicle in the event of total loss and replacement of damaged parts in the event of partial loss.

Coverage under the insurance contract is limited to complementing coverage under Section B of the primary insurance contract, unless otherwise indicated in this contract

 

COVERAGE IN EVENT OF TOTAL LOSS OF DESCRIBED VEHICLE

OPTION 1 = Designated dealership (original dealership).
OPTION 2 = Pay a settlement for the replacement of the designated vehicle.

A = New and demonstrator vehicle.
B = Used vehicle.

In the event of total loss of the insured vehicle, the Insurer agrees to:

 

OPTION 1
Replacement of described vehicle

 

OPTION 1A
New vehicle or demonstrator vehicle

In the event of total loss, where the described vehicle is a new vehicle or a demonstrator vehicle, the insurer agrees to replace the vehicle with a replacement vehicle through the named dealer.

The insurer then bears the difference between:

- the value of the replacement vehicle; and
- the indemnity paid by the primary insurer, plus the deductible assumed by the named insured.

If no replacement vehicle is available through the named dealer, the insurer may select an equivalent vehicle from the named dealer, in which case the value of that vehicle must be used in the calculation above.

At the request of the named insured, the insurer may also replace the described vehicle with:

- a vehicle of lower value, in which case the value of that vehicle must be used in the calculation above. The insurer will not pay the difference between the value of a replacement vehicle and that of the lower value vehicle; or

- a vehicle of higher value, in which case the named insured must pay any amount over and above the value of a replacement vehicle.

Any amount not borne by the insurer will be borne by the named insured.

 

OPTION 1B
Used vehicle

In the event of total loss, where the described vehicle is a used vehicle, the insurer agrees to replace the vehicle through the named dealer.

The insurer will then bear the difference between:

- the marked-up value of the described vehicle; and

- the indemnity paid by the primary insurer, plus the deductible assumed by the named insured.

Any amount not borne by the insurer will be borne by the named insured.

If the described vehicle was purchased or leased from a dealer of motor vehicles within 60 days of the effective date of the insurance contract, the marked-up value will be the purchase price of the described vehicle increased by 5% compounded annually, calculated in proportion to the number of days elapsed between the effective date of the contract and the date of the total loss.

 

OPTION 2
Payment of indemnity to replace described vehicle

 

OPTION 2A
New vehicle or demonstrator vehicle

In the event of total loss, where the described vehicle is a new vehicle or a demonstrator vehicle, the insurer agrees to pay an indemnity only when the named insured replaces the vehicle with a replacement vehicle. Replacement does not need to be made through the named dealer.

The insurer agrees to pay an indemnity equal to the difference between:

- the value of the replacement vehicle; and

- the indemnity paid by the primary insurer, plus the deductible assumed by the named insured.

If no replacement vehicle is available, the insurer may select an equivalent vehicle, in which case the value of that vehicle must be used in the calculation above.

The named insured may also replace the described vehicle with:

  • a vehicle of lower value, in which case the value of that vehicle must be used in the calculation above. The insurer will not pay the difference between the value of a replacement vehicle and that of the lower value vehicle; or
  • a vehicle of higher value, in which case the named insured must pay any amount over and above the value of a replacement vehicle.

Any amount not borne by the insurer will be borne by the named insured

 

OPTION 2B
Used vehicle

In the event of total loss, where the described vehicle is a used vehicle, the insurer agrees to pay an indemnity only when the named insured replaces the vehicle with another vehicle. Replacement does not need to be made through the named dealer.

The insurer agrees to pay an indemnity equal to the difference between:

- the marked-up value of the described vehicle; and

- the indemnity paid by the primary insurer, plus the deductible assumed by the named insured.

Any amount not borne by the insurer will be borne by the named insured.

In the event of partial loss, this coverage will apply only if the described vehicle is a new vehicle or a demonstrator vehicle.
When damaged parts cannot be repaired and they are replaced with new original equipment manufacturer parts, the insurer agrees to bear the difference between:

  • the cost of replacing the damaged parts with new original equipment manufacturer parts; and
  • the indemnity paid by the primary insurer for those parts.

If any new original equipment manufacturer parts are out of stock or no longer manufactured, the liability of the insurer will be limited to the latest list price of those parts.

Any amount not borne by the insurer will be borne by the named insured

If the described vehicle was purchased or leased from a dealer of motor vehicles within 60 days of the effective date of the insurance contract, the marked-up value will be the purchase price of the described vehicle increased by 5% compounded annually, calculated in proportion to the number of days elapsed between the effective date of the contract and the date of the total loss.

In all other instances, the marked-up value will be the value of the described vehicle on the date of total loss increased by 17% compounded annually, calculated in proportion to the number of days elapsed between the effective date of the insurance contract and the date of the total loss.

 

COVERAGE IN EVENT OF PARTIAL LOSS OF DESCRIBED VEHICLE

In the event of partial loss, this coverage will apply only if the described vehicle is a new vehicle or a demonstrator vehicle.

When damaged parts cannot be repaired and they are replaced with new original equipment manufacturer parts, the insurer agrees to bear the difference between:

  • the cost of replacing the damaged parts with new original equipment manufacturer parts; and
  • the indemnity paid by the primary insurer for those parts.

If any new original equipment manufacturer parts are out of stock or no longer manufactured, the liability of the insurer will be limited to the latest list price of those parts.

Any amount not borne by the insurer will be borne by the named insured.

 

OTHER COVERAGES IN EVENT OF TOTAL OR PARTIAL LOSS

In the event of total loss or partial loss of a new, demonstrator or used vehicle, the following coverages will apply even if the insurer had nothing to bear or pay under Options 1 and 2, but provided that the primary insurer has paid an indemnity.

  1. Bearing of deductible

    The insurer bears the deductible assumed by the named insured under the primary insurance contract, up to a maximum of $_______.
    -$2500 in the event of total loss
    -$250 or $500 per event, depending on the option selected in the event of partial loss

    The named insured will assume any amount of deductible exceeding the above maximum.

  2. Reimbursement of vehicle leasing expenses

    The insurer bears any leasing expenses for a vehicle similar to the described vehicle when the named insured is deprived of his or her vehicle as a result of a covered loss.

    These expenses will be reimbursed if the primary insurer:
    - does not bear the expenses; or
    - only bears part of the expenses, in which case only expenses not borne by the primary insurer will be reimbursed.

    Expenses incurred from the first day of leasing will be reimbursed up to a maximum amount of $75 per day (including taxes) and $2250 in total (including taxes).

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DOCUMENTS REQUIRED FOR FILING A CLAIM:

TOTAL LOSS

1. Cover page of the standard insurance policy and its endorsements.
2. Purchase or lease contract and/or evaluation of the vehicle declared as a loss.
3. Copy of the cheque issued by the primary insurer or signed proof of loss.
4. Copy of the purchase contract of the replacement vehicle.

PARTIAL LOSS (ORIGINAL NEW PARTS)

1. Cover page of the standard insurance policy and its endorsements.
2. Contact information of the bodyshop and a copy of the estimate before proceeding with the repairs.
3. A detailed copy of the invoice for the repairs.
4. Closure of the primary insurer.

 

DEDUCTIBLE AND/OR LEASED VEHICLE

1. Cover page of the standard insurance policy and its endorsements.
2. Closure of the primary insurer.

N.B All claims must be submitted to the primary insurer as well as to the ADMINISTRATOR immediately to begin processing.

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DEFINITIONS

DAMAGE: Any property damage caused to the described vehicle.

DEDUCTIBLE: The amount left to be paid by the named insured under the primary insurance contract.

DESCRIBED VEHICLE: A vehicle designated in Item 3, “Declarations.”

ENDORSEMENT: A document modifying the insurance contract and officially called “Quebec Endorsement Form” or “Q.E.F.”

EQUIVALENT VEHICLE: A new vehicle of the same kind and quality as the described vehicle, with similar equipment and accessories.

GARAGE BUSINESS: Includes any business activity involving the custody, selling, equipping, repairing, maintaining, storing, parking, moving or servicing of motor vehicles.

INSURANCE PREMIUM: The amount payable to the insurer in consideration of the coverage provided under the insurance contract.

INSURER: The insurer issuing this insurance contract.

LOSS: A risk that occurs and causes damage.

MOTOR VEHICLE: A vehicle propelled by any power other than muscular force and adapted for transportation on public highways but not on rails.

NAMED DEALER: The dealer named in the purchase contract, long-term lease or contract of leasing for the described vehicle. If the named insured is unable to have his or her vehicle replaced by that dealer, the named dealer may be any other dealer authorized by the insurer.

NAMED INSURED: A person designated in Item 1, “Declarations.”

PRIMARY INSURANCE CONTRACT: Unless otherwise indicated in this insurance contract, “Quebec Automobile Insurance Policy Form (Q.P.F.) No. 1 – Owners’ Form” and its endorsements, issued to the named insured. Q.P.F. No. 1 must include Section A and at least one of the protections under Section B.

PRIMARY INSURER: The insurer issuing the primary insurance contract.

PURCHASE PRICE: The actual price for the described vehicle, as indicated in the purchase contract, long-term lease or contract of leasing, including its equipment and accessories only.

REPLACEMENT VEHICLE: A new vehicle of the current year with the same specifications and equipment and accessories as those of the described vehicle. If such a vehicle is not available upon settlement of the loss, “replacement vehicle” will mean a vehicle of the year subsequent to the loss.

TOTAL LOSS: Complete and permanent loss of the described vehicle, including theft, or loss deemed by the primary insurer to be a total loss.

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APPLICABILITY

APPLICABILITY OF COVERAGE

In order for coverage under the insurance contract to apply, the following conditions must be met:

  1. On the date of the loss, the named insured holds a primary insurance contract that covers the described vehicle.
  2. The primary insurer has paid an indemnity to the named insured who is entitled to benefit from coverage under the insurance contract.
  3. For Options 2A and 2B, the named insured has replaced the described vehicle and submitted to the insurer a copy of the purchase contract, long-term lease or contract of leasing for the new vehicle so that the insurer is able to determine the indemnity to be paid.
  4. For coverage in the event of partial loss, the named insured has replaced the damaged parts and submitted supporting evidence to the insurer so that it is able to determine the indemnity to be paid.

    4.2 Specific rules for vehicles leased or under a contract of leasing

    When the owner and a lessee are named in Item 1, “Declarations” of the insurance contract, only the lessee is entitled to benefit from coverage under the insurance contract.

    4.3 Change of vehicle

    Coverage under the insurance contract may not be transferred to another vehicle. If the named insured changes vehicles, the insurance contract will terminate.
    In such instance, the named insured will be entitled to a refund, as specified in Article 2, “Effective date, renewal and expiry of insurance contract.”

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GENERAL CONDITIONS

1. LAWS APPLICABLE TO INSURANCE CONTRACT

The insurance contract is governed by the following laws:

  • Civil Code of Quebec; and
  • Code of Civil Procedure of Quebec.

Some of the general conditions of the insurance contract are a simplified version of the requirements of the above laws. In case of any ambiguity or discrepancy, the terms of the laws will prevail.

 

2. EXAMINATION OF DESCRIBED VEHICLE

At any reasonable time, the insurer is entitled to examine the described vehicle and its equipment and accessories.

3. NOTICE TO INSURER AND NAMED INSURED

Any notice to the insurer may be sent by any recognized means of communication to the insurer, its authorized representative or its distributor.

Any notice to the named insured may be delivered personally to the named insured or by mail addressed to the last known address of the name insured.

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REPORTING A LOSS AND SUBMITTING A CLAIM

1. WHAT TO DO IN THE EVENT OF A LOSS

1.1 Report the loss

As soon as the named insured becomes aware of a loss that may be covered under the insurance contract, he or she must inform the insurer.

Any interested person may also give such notice to the insurer.

Failure to fulfill the obligation to report the loss will result in the loss of his or her right to indemnity for the named insured if such failure causes prejudice to the insurer.

1.2 Report any additional information

When so requested by the insurer, the named insured will be required to inform the insurer as soon as possible of all the circumstances surrounding the loss, including:

  • the probable cause of the loss;
  • the nature and extent of the damage;
  • the location of the described vehicle or any other property;
  • the rights of any person other than the named insured;
  • any other insurance contracts that may apply.

The named insured must also provide the insurer with supporting documents for such information. In addition, the insurer may require proof of the indemnity paid by the primary insurer. The named insured must declare under oath that all of the information provided is true.

If, for any serious reason, the named insured is unable to fulfil these obligations as soon as possible, the named insured will be entitled to a reasonable time in which to do so.

If the named insured fails to fulfil these obligations, any interested person may do so on the named insured’s behalf.

1.3 Consequences of deceitful representations

If a person makes a deceitful representation relating to a loss, he or she will lose any right to indemnity. The person will lose that right solely with respect to the damage caused by the occurrence of the peril to which the deceitful representation relates.

However, if the occurrence of the peril caused damage both to property for occupational use and to personal property, the person will lose his or her right to indemnity solely with respect to the damage caused to the class of property to which the deceitful representation relates.

2. TIME TO REPLACE VEHICLE OR PAY INDEMNITY

Depending on the option selected, the insurer must pay the indemnity or make available to the named insured the vehicle in replacement of the described vehicle:

  • within 60 days after the date on which the named insured reported the loss; or
  • within 60 days after receipt by the insurer of the information or supporting documents that it requested.

 

3. RIGHT OF INSURER AFTER BEARING AMOUNT (RIGHT OF SUBROGATION)

3.1 General rule

After having borne any amount, the insurer will be subrogated to the rights of the named insured against the person responsible for the damage caused to the described vehicle. This means that the rights of the named insured are transferred to the insurer.

Subrogation operates up to the amount borne by the insurer.

If the insurer cannot exercise its right of subrogation due to any act of the named insured, the insurer may be fully or partly released from its obligations towards the named insured.

3.2 Exceptions

In the following two instances, the insurer cannot ask the person responsible for the damage to reimburse it for the amount it has borne:

(a) When that person is a member of the named insured’s household.
(b) When that person had care, custody or control of the described vehicle, with the consent of the named insured. This latter exception will not apply if the person:

  • was engaged in a garage business at the time of the loss; or
  • has failed to comply with the insurance contract or the primary insurance contract.

 

4. ARBITRATION IN EVENT OF DISAGREEMENT BETWEEN INSURED AND INSURER

4.1 Request for arbitration

The named insured or the insurer may request arbitration in the event of disagreement on the following:

  • the nature, extent or value of the damage caused to the described vehicle; or,
  • the adequacy of the repairs or replacement of the described vehicle or damaged parts. Arbitration may be requested even if the validity of the insurance contract is being challenged.

4.1.1 Request made by insured

The named insured must send a written notice to the insurer indicating the reason of the disagreement.

The insurer must accept a request for arbitration made by the named insured and send the named insured an acknowledgement of receipt within 15 clear days after receipt of the notice.

4.1.2 Request made by insurer

The insurer must send a written notice to the named insured indicating the reason of the disagreement.

The named insured must send the insurer confirmation of his or her acceptance or refusal to submit the disagreement to arbitration within 15 clear days after receipt of the notice.

4.2 Designation of experts and arbitrator

The insurer and the named insured must each choose an expert.

Depending on the nature of the disagreement, both experts thus chosen must determine:

  • the nature, extent and value of the damage caused to the described vehicle. In order to do so, they must assess separately the “actual cash value” of the described vehicle and the cost of repair or replacement of the vehicle; or
  • the adequacy of repair or replacement of the described vehicle or any damaged parts. If their assessments differ, experts must try and agree on a common value.

Should they fail to so agree, they must submit their difference to a neutral arbitrator of their choosing, that is, an arbitrator who represents the interests of neither the insurer nor the named insured.

The insurer or the named insured must ask a competent jurisdiction where the arbitration is held to appoint the arbitrator or experts if:

  • the insurer or the named insured failed to choose an expert within 30 clear days of the date of notice;
  • the experts fail to choose an arbitrator within 15 clear days of their appointment; or,
  • one of the experts or the arbitrator refuses to act or is unavailable.

4.3 Value of damage payable by insurer

Even if there is arbitration, the insurer will be required to pay the unchallenged portion of the value of damage. Payment must be made no later than:

within 60 days after the loss was reported; or

within 60 days after receipt by the insurer of the information or supporting documents that it requested.

However, if the validity or application of this insurance contract is being challenged, the insurer will not be required to pay such amount within the above time periods.

Following arbitration, the insurer will be required to pay the amount determined by the arbitrator within 15 days after the date on which the named insured accepted the arbitrator’s decision.

4.4 Conduct of arbitration

The arbitration must follow the procedure outlined in Articles 940 to 951.2, Code of Civil Procedure of Quebec, with the necessary modifications due to specific rules set out in the insurance contract.

As stated in Article 944.1, Code of Civil Procedure of Quebec, the arbitrator may decide which procedure to apply for arbitration. Nonetheless, the arbitrator must ensure that the rules set out in Articles 940 to 951.2, Code of Civil Procedure of Quebec are followed.

4.5 Choice of language

The arbitrator, the insurer and the named insured may use the language of their choice during the arbitration proceedings. Arrangements must be made to ensure that the proceedings are understood by everyone.

4.6 Place of arbitration proceedings

Arbitration proceedings take place in a location to be determined according to the domicile of the named insured.

4.7 Arbitrator’s decision

The arbitrator renders a decision based on the applicable laws of Quebec.

The arbitrator’s decision must be written and reasoned. It must also be signed and indicate the date and place where it was made.

The decision must be sent to the insurer and the named insured within 30 days after the date on which it was made.

4.8 Expenses and fees of arbitration

The insurer and the named insured each pay the expenses and fees of their own expert and half the expenses and fees of the arbitration proceedings.

However, if the arbitrator considers that the method for sharing the expenses and fees of the arbitration proceedings is not justified or fair in the circumstances, the arbitrator may decide otherwise.

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EFFECTIVE DATE, RENEWAL AND EXPIRY OF INSURANCE CONTRACT

1. EFFECTIVE DATE AND EXPIRY OF INSURANCE CONTRACT

The insurance contract takes effect and expires at the time and dates indicated in Item 2, “Declarations” or, where applicable, in the endorsement.

 

2. TERMINATION OF INSURANCE CONTRACT PRIOR TO EXPIRY DATE

The insurance contract will terminate prior to its expiry date if:

the described vehicle is a total loss and the insurer has fulfilled its obligations; or
the use of the described vehicle is changed to a use indicated under “Exclusions” and the change was not authorized by the insurer.

In addition, coverage under the insurance contract may not be transferred to another vehicle. If the
named insured changes vehicles, the insurance contract will terminate.

In all instances, the insurer must refund to the named insured any overpayment of insurance premiums, as calculated according to the “Cancellation table.” The “Cancellation table” is part of the insurance contract.

 

3. RENEWAL OF INSURANCE CONTRACT

Upon its date of expiry, the insurance contract will terminate and may not be renewed.

 

4. CANCELLATION OF INSURANCE CONTRACT (ENDING OF INSURANCE CONTRACT)

4.1 Cancellation by named insured

4.1.1 Conditions to be met

The named insured may cancel the insurance contract at any time by written notice to the insurer.

The named insureds may mandate one or more of them to send a written notice on behalf of them all.

Cancellation takes effect upon receipt by the insurer of the notice from each of the
named insureds or their representative.

4.1.2 Refund of insurance premium

If the insurance contract is cancelled by the named insured, the insurer must refund any overpayment of insurance premiums, as calculated according to the “Cancellation table.” The “Cancellation table” is part of the insurance contract.

However, if the insurance premium was paid to the insurer by the insurance broker or distributor, the named insured may be refunded solely for what has actually been paid or refunded to the insurance broker or distributor.

4.2 Cancellation by insurer

4.2.1 Conditions to be met

The insurer may cancel the insurance contract if the insurance premium has not been paid.

The insurer must send a written notice to each of the named insureds or their representative.
Cancellation takes effect 15 days after receipt of the notice by each of the named
insureds or by their representative, at their last known address.

4.2.2 Refund of insurance premium

If the insurer cancels the insurance contract, the insurer will be entitled only to the portion of the insurance premium corresponding to the number of days for which the named insured was actually covered under the insurance contract.

If the named insured paid the insurance premium in advance, the insurer must refund the overpayment. However, if the insurance premium was paid to the insurer by the insurance broker or the distributor, the named insured may be refunded solely for what has actually been paid or refunded to the insurance broker or distributor.

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