Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Question: 1 / 475

Which statement about Direct Compensation - Property Damage (DCPD) is TRUE?

Under DCPD, you recover damages from the third party insurer.

A standard deductible of $1,000 applies under DCPD.

Liability must be established with respect to who is at fault in an accident.

With Direct Compensation - Property Damage (DCPD), liability must be established in order to determine who is at fault in an accident. This means that both parties' insurance companies will handle the property damage claims and the at-fault party's insurer will cover the damages. In contrast, option A is incorrect because under DCPD, the insured party's insurance company will handle the property damage claims and will not recover damages from the third party insurer. Option B is incorrect because the standard deductible amount can vary depending on the insurance policy. Option D is incorrect because DCPD covers property damage regardless of who is at fault in the accident.

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You only recover under DCPD if you are responsible for the accident.

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