OMVIC Practice Test

What must a dealer do if the Fund pays out a claim on their behalf?

1. Nothing, they are not responsible for the payout

2. Repay the Fund

3. Submit a formal apology

4. Increase their payment to the Fund for the next term

The correct answer is: Repay the Fund

When a dealer has a claim paid out on their behalf by the Fund, they are required to repay the Fund. This requirement is in place to ensure that the Fund can continue to operate and cover future claims. If the Fund pays a claim, it effectively acts as a financial safety net for the dealer, but this safety comes at the cost of a responsibility to reimburse the Fund for the amount paid out. This repayment helps maintain the integrity and sustainability of the Fund for all dealers. The other options do not accurately reflect the responsibilities a dealer has following a payout from the Fund. Simply doing nothing would leave the Fund depleted and unable to assist other dealers, which would be detrimental to the system. A formal apology would not meet the financial obligation created by the payout, and increasing the payment for the next term does not directly address the current debt owed to the Fund after a claim has been paid.