OMVIC Practice Test 2026 – All-In-One Guide to Exam Success!

A claim can be made from the Compensation Fund primarily under specific conditions that relate to the financial responsibility of a dealer, which is essentially outlined in the context of protection for consumers. The primary situation that allows for a claim is when a dealer is bankrupt or insolvent. This is because the Compensation Fund is designed to assist consumers who have incurred losses due to the failure of a registered dealership to fulfill its contractual obligations, particularly in cases where the dealer can no longer provide recourse due to financial incapacity.

When a dealer is bankrupt or insolvent, it indicates an inability to compensate consumers directly for losses, making the Compensation Fund a critical resource for affected individuals. This fund aims to ensure that consumers can seek restitution and protection in legitimate cases of loss caused by the dealers' financial failings.

The other options provided relate to aspects of vehicle sales and employment status that do not meet the specific criteria under which claims may be submitted to the Compensation Fund. Thus, they do not align with the fundamental purpose of the fund, which focuses on protecting consumers from financial risks associated with dealer insolvency.