Under the O.A.P. 1, what is the primary difference between a "Temporary Substitute Automobile" and a vehicle covered under "OPCF 27"?
A.
A Temporary Substitute is used when the insured's own car is in the shop, whereas OPCF 27 is for when the insured is renting a car for pleasure/leisure.
B.
A Temporary Substitute is a newly purchased car, while OPCF 27 is for a car borrowed from a neighbor.
C.
Temporary Substitute coverage is mandatory, while OPCF 27 is only for commercial policies.
D.
There is no difference; they both provide the same coverage in all situations.
This question tests the broker's technical knowledge of Section 2 - What Automobiles Are Covered versus Optional Endorsements.
A Temporary Substitute Automobile (TSA) is a defined term in the OAP 1 (Section 2.2.2). It is a vehicle usedin place ofthe described automobile because the described car is "withdrawn from normal use" due to breakdown, repair, loss, or destruction. The OAP 1 automatically extends the insured’s own coverage (Liability, Accident Benefits, and Physical Damage if the insured carries it) to the TSA at no extra charge.
OPCF 27 (Legal Liability for Damage to Non-Owned Automobiles) is an optional endorsement. It is used when the insured is driving a vehicle they do not own in situationsother thanwhen their own car is in the shop (e.g., renting a car on vacation or borrowing a friend's truck for a day). Without OPCF 27, the insured would have no physical damage coverage for that non-owned vehicle under their own policy.
The RIBO Level 1 Blueprint requires brokers to accurately identify the "trigger" for each. During Consulting and Advising, if a client says "my car is being repaired and I'm getting a rental," the broker explains the TSA rules. If the client says "I'm flying to Florida and renting a car there," the broker recommends the OPCF 27. Understanding this prevents the client from being over-insured or under-insured. This technical precision is essential for Risk Assessment and Classification, ensuring the client knows exactly when their policy "follows" them to a non-owned vehicle.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit