You are a broker in a large firm in London Ontario. You have been approached by Matthew O'Brien for a quote on automobile insurance. Matthew is 54 years old, married to Mary who is 53. They live in Barrie Ontario with their two children Martha and Mark. Mark is 18 years old and has his G2 license. Martha is only 16 so not yet licensed.

Matthew found your brokerage online. He has just purchased a 2022 Ford Escape SE and he will be the principal driver of that vehicle, commuting 68 km each way to work in Toronto. His wife Mary will drive the other family vehicle, a 2018 Ford Focus 4dr. and commutes only 5 km to work daily. They also have a 1994 Chevrolet Camaro Z28 Hatchback which is driven by Matthew for pleasure only.

Matthew has been licensed since he was 16 years of age and has no tickets, convictions or accidents on his record. Mary has an equally long and clean record. Matthew does indicate that his son Mark will occasionally drive their cars, is a student at Georgian College and still lives at home. Mark has three speeding tickets currently on his record.

Matthew indicates he has prior insurance with Intact Insurance but is unsure of the expiry date. He indicated that he reached out to them to quote the new vehicle but found the additional premium for this third vehicle unreasonable and wanted a competitive quote.

1. Mark was involved in an accident while driving the 1994 Chevrolet Camaro. He rear-ended another vehicle while driving to school one morning in the fog. The third party had slowed down to turn into a side street. There were damages to both vehicles and the third party was taken by ambulance to the hospital. Matthew called to report the claim and is unsure how to proceed. Explain in detail the Statutory Conditions relating to Damage to Persons or Property and Damage to the Automobile outline the rights and responsibilities of both parties; the insured and the insurer, in this process.