Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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Income replacement coverage under the OAP1 is limited to what percentage of gross weekly income?

60%
70%
80%
100%

The correct answer is: 70%

Income replacement coverage under the Ontario Automobile Policy (OAP1) is designed to provide financial assistance to individuals who are unable to work due to injuries sustained in a motor vehicle accident. The correct percentage of gross weekly income that is typically covered is 70%. This is intended to offer a balance between providing significant financial support while also ensuring that the benefits align fairly with income loss. In the context of other options, 60%, 80%, and 100% would not align with the established guidelines of the OAP1. While you might think higher percentages like 80% or 100% would provide better support, they would lead to higher premium costs and potentially more strain on the insurance system, making them less practical in a comprehensive insurance framework. Thus, the 70% coverage balances adequate support for the insured without imposing excessive costs on the insurance provider or the policyholders.