What is the purpose of OPCF 23?

The purpose of OPCF 23, also known as the "Ontario Policy Change Form 23," is to provide coverage for lienholders and mortgagees. This endorsement is crucial for individuals or entities that hold a financial interest in a vehicle, such as banks or lenders, ensuring that they are protected in case of a loss. By including this coverage in an auto insurance policy, the insurer agrees to notify the lienholder when any changes occur, such as cancellation of the policy or claims made against it.

This type of coverage is particularly important because it safeguards the financial interests of the lienholder who may have provided a loan for the purchase of the vehicle. If the vehicle is damaged or deemed a total loss, the lienholder must be compensated accordingly before the vehicle owner can receive any payout.

In contrast, the other options refer to different types of coverage or adjustments that do not pertain specifically to the OPCF 23. While personal injury claims are usually addressed through a different part of the policy, geographical restrictions focus on where the vehicle can be driven, and adjustments to the premium generally relate to risk assessment and policyholder behavior rather than specific endorsements like OPCF 23.