A-25, r. 4 - Direct Compensation Agreement for the Settlement of Automobile Claims

Section 5 Disposition versions

2012-09-01

5. When an insured has automobile liability and collision coverage, the following rules apply:

(a)  if both coverages are provided by the same insurer:

the insurer must first indemnify its own insured in accordance with its contract and then shall apply the Direct Compensation Agreement with respect to any sum payable under such Direct Compensation Agreement;

(b)  if the coverages are provided by different insurers:

damage to the automobile shall be covered by the collision insurer, which shall then recover from the automobile liability insurer any sum payable by the latter on the basis of the apportionment of liability shown in the appended Driver’s Fault Chart.

Decision 2007-03-27, s. 5.