Collateral benefits are any sources of entitlement outside of the automobile insurance policy

• A. Limits payable under no-fault Accident benefits are stated in the Highway Traffic Act
• B. Collateral benefits are any sources of entitlement outside of the automobile insurance policy
• C. Rehabilitation and physical therapy expenses are not payable under no-fault Accident benefits
• D. The Family Protection endorsement applies only in single vehicle accidents

Answer: (B)

Collateral benefits are benefits from sources other than your own automobile insurance policy. This includes things like employer disability plans, workers’ compensation, government medical or disability programs, and other private plans. The auto insurer coordinates with these outside entitlements and may offset the no-fault accident benefits by their amount, so you don’t receive duplicate coverage. That’s why the statement defining collateral benefits as sources of entitlement outside the automobile policy is the correct choice.

For context, no-fault benefits under the applicable schedule cover medical, rehabilitation, income replacement, and other needs, but when you have benefits from other programs or plans, those collateral benefits come into play to determine the net amount payable.

Why the other statements don’t fit: limits for no-fault benefits aren’t set by the Highway Traffic Act but by the auto insurance regime (the relevant schedule and regulations). Rehabilitation and physical therapy expenses can be covered under no-fault benefits, so saying they aren’t payable isn’t correct. And the Family Protection endorsement isn’t restricted to single-vehicle accidents; it applies in broader scenarios to protect family members and dependents in certain multi-vehicle situations.