42. Mei's vehicle is insured under optional Autoplan with comprehensive coverage. The vehicle is stolen from the driveway of her home in downtown Vancouver, BC. When Mei reports the loss to ICBC, it is discovered that her application for optional Autoplan indicated her vehicle would be kept in Langley, BC. Under what condition is ICBC NOT liable to pay Mei's theft claim?
Answer: B
ICBC is not liable to pay Mei's theft claim because the premium she would have paid for the Vancouver address exceeds the premium she paid for the Langley address.
If the premium for the Vancouver address is higher than what Mei paid for the Langley address, it indicates that Mei misrepresented the primary location of her vehicle, which can lead to ICBC denying her claim.
A) The premium she paid for the Langley address exceeds the premium she would have paid for the Vancouver address.
This option is incorrect because if the Langley premium is higher, it would not constitute a misrepresentation that would affect ICBC's liability. In fact, it would suggest that she was paying a higher rate for a lesser risk if her vehicle was primarily in Langley.
B) The premium she would have paid for the Vancouver address exceeds the premium she paid for the Langley address.
This option is correct as it highlights a critical condition under which ICBC is not liable. If the premium for Vancouver is higher, it implies that the risk associated with insuring the vehicle in Vancouver is greater, and thus, ICBC may deny the claim due to the discrepancy in the declared location.
C) The comprehensive deductible applied based on the Langley address is higher than the deductible that would have been applied based on the Vancouver address.
This option is incorrect because the deductible amount does not directly affect the liability for the theft claim. The key issue is the premium discrepancy, not the deductibles associated with different locations.
D) The comprehensive deductible that would have been applied based on the Vancouver address is higher than the deductible applied based on the Langley address.
This option is also incorrect. Similar to option C, the deductible amount is not relevant to the question of liability regarding the premium discrepancies. ICBC focuses on the premium paid relative to the risk of theft in each location.
Conclusion
The correct answer, B, clearly establishes that ICBC is not liable for Mei's claim due to the misrepresentation of her vehicle's primary location, as indicated by the premium discrepancy. Options A, C, and D do not address the core issue of premium misrepresentation, while B directly ties the insurance company's liability to the accuracy of the information provided by the insured.