Exam 6C Practice Question 4
Study guide: Exam 6C
A contractor's van, insured by Insurer X in Ontario, is struck by a car insured by Insurer Y. Under the fault determination rules, the car's driver is 75% at fault and the van's driver is 25% at fault. The contents of the van suffer $32,000 of damage, for which Insurer X compensates its insured under direct compensation.
Ontario Regulation 664, section 8, gives the insurer of an automobile whose contents suffer damage greater than $20,000 a right of indemnification from the insurer of the other automobile involved.
Calculate the amount Insurer X can recover from Insurer Y.
- A) $3,000
- B) $9,000
- C) $12,000
- D) $15,000
- E) $24,000
Answer this question and see the worked solution