Review Quiz 1 AND 2 Flashcards
(105 cards)
1
Q
- Which type of assignment can occur without the consent of the insurer?
a. Assignments when the insured decides they want to
b. Assignments under the Insurance Act
c. Assignments of assets to an executor or administrator of a will
d. Assignments when property is sold
A
c. Assignments of assets to an executor or administrator of a will
2
Q
- How is personal liability coverage for cemetery plots provided to insured homeowners?
a. Coverage for personal liability related to cemetery plots can be added with an endorsement.
b. Coverage for personal liability related to cemetery plots is provided under Coverage-G.
c. Cemetery plots are typically included in the definition of premises under the personal liability section of homeowners policies.
d. Cemetery plots are not an insurable premise for liability coverage under homeowners
policies.
A
c. Cemetery plots are typically included in the definition of premises under the personal liability section of homeowners policies.
3
Q
- Which type of cause is required for an insurer to pay a loss when that cause is an insured peril?
a. The immediate cause of the loss
b. The last link in the chain of causes
c. The remote cause of the loss
d. The proximate cause of the loss
A
d. The proximate cause of the loss
4
Q
- Tenants legal liability insurance is used to pay for which type of damage?
a. Damage caused by the tenant to the premises they rent.
b. Damage caused by the tenant to the tenant’s own contents.
c. Damage caused by the landlord to the premises rented by the tenant.
d. Damage caused by the tenant to other units in the building.
A
a. Damage caused by the tenant to the premises they rent.
5
Q
- Which statement describes the Additional Condition–Parts?
a. If a property consists of several parts, the insurer is only liable for the insured value of the
lost or damaged part(s).
b. If a property is made up of several parts, loss, or damage to any one or more parts will be
considered loss or damage to the entire property.
c. If a property consists of several parts, the insurer will pay a reasonable and fair percentage of
the value of the total set.
d. If a property consists of several parts, each part must be scheduled separately.
A
a. If a property consists of several parts, the insurer is only liable for the insured value of the
lost or damaged part(s).
6
Q
- Which situation requires the addition of an OPCF 4 permissions endorsement to an automobile
policy?
a. Insured is a professor of Geology and carries specialized rocks to and from his lab for study.
b. Insured is a car dealer and sometimes uses his own vehicle to transport customers.
c. Insured is an engineer and is required to carry a Geiger counter, which contains radioactive
material.
d. Insured is a real estate broker and sometimes carries passengers or clients to view home
listings.
A
c. Insured is an engineer and is required to carry a Geiger counter, which contains radioactive
material.
7
Q
- The sharing of loss or liability between two or more insurance companies covering the same
risk is the definition for which term?
a. Salvage
b. Subrogation
c. Contractual provisions
d. Contribution
A
d. Contribution
8
Q
- While making dinner in his rental apartment, the insured causes a fire that damages his unit
and two adjacent units. Which liability coverage would cover the damage to the other units?
a. Premises liability
b. Tenants legal liability
c. Personal liability
d. The building owner’s liability coverage
A
c. Personal liability
9
Q
- Which party from the examples provided would be considered to have insurable interest?
a. A fur shop owner who has a fur coat in her care, custody, and control
b. A grandson who is going to inherit property sometime in the future
c. A potential buyer of an automobile
d. A member of a golf club
A
a. A fur shop owner who has a fur coat in her care, custody, and control
9
Q
- Which type of assignment can occur without the consent of the insurer?
a. Assignments when the insured decides they want to
b. Assignments under the Insurance Act
c. Assignments of assets to an executor or administrator of a will
d. Assignments when property is sold
A
c. Assignments of assets to an executor or administrator of a will
9
Q
- Which term describes when an insurer is deprived of subrogation rights by the insured who releases a third party from the obligation to pay?
a. Statutory Provision
b. Contribution
c. Contractual Provision
d. Prejudice
A
d. Prejudice
9
Q
Georgia is excluded from her parent’s policy as a driver. She decides to take the vehicle for a
drive and is involved in an accident. Would Georgia be entitled to accident benefits?
a. Maybe. Insurers are not obligated to pay some accident benefits when the insured is an
excluded driver.
b. Yes. Insurers are obligated to pay educational expenses even though she was an excluded
driver.
c. No. Insurers are not obligated to pay any accident benefits when the insured is an excluded
driver.
d. Yes. Insurers are obligated to pay non-earner benefits even though she was an excluded
driver.
A
c. No. Insurers are not obligated to pay any accident benefits when the insured is an excluded
driver.
9
Q
- What is the standard maximum funeral benefit?
a. $5,000
b. $9,000
c. $6,000
d. $8,000
A
d. $8,000
10
Q
- A letter published in a local newspaper was found to have defamed or injured a person’s
reputation. What is the author of the letter guilty of?
a. Slander
b. Negligence
c. Libel
d. Nuisance
A
c. Libel
11
Q
- Unlawfully taking another person’s property in his/her presence, by violence or the threat of
violence, is the definition for which term?
a. Burglary
b. Theft
c. Fidelity
d. Robbery
A
d. Robbery
- remember based on severity
- theft > burglary (breaking in) > robbery (hold up)
12
Q
- Priscilla, her stepson Bruce, and his friend Miles were in a car accident with an uninsured
person. Brue and Miles are killed. Would Bruce and Miles be considered insureds under the
Uninsured Motorist section of her policy?
a. Yes, both Miles and Bruce would be considered insured, despite the lack of blood
relationship to Priscilla.
b. Only Bruce would be considered a named insured.
c. Bruce might be considered a person insured, if he had been named on the policy, Miles
would not.
d. Neither Bruce nor Mikes would be considered a named insured as they are not dependent
relatives.
A
a. Yes, both Miles and Bruce would be considered insured, despite the lack of blood
relationship to Priscilla.
13
Q
- After a privacy breach has occurred how can an organization prevent future breaches from
occurring?
a. With better privacy policies
b. Contact the provincial ombudsperson or commissioner to find out how to prevent future
privacy breaches
c. Determine how it happened and take disciplinary action against those responsible
d. Determine how it happened and take steps to stop it from happening again
A
d. Determine how it happened and take steps to stop it from happening again
14
Q
- What is the purpose of the OPCF 32—Use of Recreational Vehicle by Unlicensed Operators?
a. Ensures compliance with the statutory condition pertaining to qualification and age of the
vehicle operator when it is operated off public highways.
b. Waives compliance with the statutory condition pertaining to qualification and age of the
vehicle operator when it is operated on public highways.
c. Ensures compliance with the statutory condition pertaining to drivers who are not licensed
but borrow the recreational vehicle to drive on local roads.
d. Waives compliance with the statutory condition pertaining to qualification and age of the
vehicle operator when it is operated off public highways.
A
d. Waives compliance with the statutory condition pertaining to qualification and age of the
vehicle operator when it is operated off public highways.
15
Q
A
16
Q
- If a customer experiences bodily injury or property damage from the use of a product made by
ABC Manufacturing which type of damages could the manufacturer be responsible to pay?
a. Punitive damages
b. Compensatory damages
c. Pecuniary damages
d. Direct damages
A
b. Compensatory damages
- special damages are specific
16
Q
- Which policy would protect an insured against a loss caused by a dishonest employee?
a. Robbery policy
b. Fidelity policy
c. Theft policy
d. Burglary policy
A
b. Fidelity policy
- fidelity: faithfulness to a person, cause, or belief, demonstrated by continuing loyalty and support.
17
Q
- Hunter becomes a paraplegic after an accident where he was not at-fault. A judge awards him
$1,200,000 for his lifelong care. The at-fault driver carries the legal minimum of $200,000
liability coverage. Hunter’s OAP 1 has liability up to $1,000,000 with OPCF 44R. How will Hunter
collect what he is entitled to?
a. $200,000 from the third party’s policy; $800,000 from his own policy
b. $200,000 from the third party’s policy; $200,000 from his own policy; $800,000 from the
third party directly
c. $200,000 from the third party’s policy, $1,000,000 from the Unsatisfied Judgement Fund
d. $1,200,000 from the third party’s insurer
A
a. $200,000 from the third party’s policy; $800,000 from his own policy
- review this?
- first party, own party, remainder
- you can only claim up to 1m total
- limit of 44R = 1m, 44R will TOP UP
17
Q
- Chris causes an accident and injures a third party while racing his automobile. How will Chris’s
insurer respond to the third-party claim for $300,000?
a. His insurer will pay the full amount of the claim.
b. His insurer will NOT pay the claim.
c. His insurer will NOT pay however the uninsured motorist fund will cover the claim.
d. His insurer is required to pay up to the provincial minimum limits to the third party claim.
A
d. His insurer is required to pay up to the provincial minimum limits to the third party claim.
- absolute liability?
17
Q
- What is the premium cost on a home valued at $750,000 when the insurer is using 25-cent
rates?
a. $750 annually
b. $2,500 annually
c. $1,875 annually
d. $1,250 annually
A
d. $1,250 annually
- RATE MAKING: ‘‘amount of ins/100 x rate’’
18
28. How would an OAP 2—Driver’s Automobile Policy assist someone who drives a government owned vehicle?
a. Provides increased liability coverage to the vehicle because governments carry only the
minimum compulsory limits
b. Provides extension of coverage to other government employees that might drive the vehicle
c. Provides physical damage coverage to the vehicle because governments are not required to
carry insurance
d. Provides liability coverage when driving a government vehicle because governments are not
required to carry insurance
d. Provides liability coverage when driving a government vehicle because governments are not
required to carry insurance
19
30. The Spear family have an accident in California where their ‘unrepairable’ car is sold for
salvage. Will there be any insurance coverage for the customs duties they are charged?
a. No, customs duties are the responsibility of the insured.
b. Yes, custom duty charges will need to be paid before
they return to the United States again.
c. No, the Spears are Canadian citizens and are not required to pay custom duty charges.
d. Yes, their insurance policy will respond to these custom duty charges under additional
benefits.
d. Yes, their insurance policy will respond to these custom duty charges under additional
benefits.
- salvage charges, duty charges
19
31. How is the loss of food in a fridge or freezer addressed by a comprehensive homeowners
policy?
a. The loss is NOT covered unless a personal property endorsement has been purchased.
b. The loss is covered if the fridge/freezer is on the insured premises and the loss was a result
of an accidental interruption of power or the freezer’s breakdown.
c. The loss is covered regardless of the fridge/freezer’s location and the loss was a result of any
interruption of power.
d. The loss is NOT covered as loss of food in a fridge or freezer is excluded.
b. The loss is covered if the fridge/freezer is on the insured premises and the loss was a result
20
33. What differentiates speculative risk from pure risk?
a. The chance of loss
b. The presence of a hazard
c. The chance of profit
d. The presence of a peril
c. The chance of profit
21
38. Which conditions must be met for a fire insurance policy to classify an incident as a fire?
a. Heating of something that is damaged in the heating process; the incident was intentional.
b. The fire department must be called to put out the fire.
c. There must be an actual fire; what is on fire is something that should not have been on fire;
the fire was accidental.
d. The fire department must classify the incident as a fire.
c. There must be an actual fire; what is on fire is something that should not have been on fire;
the fire was accidental.
22
What is the provincial superintendent of insurance (or provincial equivalent) responsible for?
a. Licensing and supervision of insurance companies and solvency standards for insurers.
b. Licensing of motor vehicles, drivers, and traffic control of vehicles on highways.
c. Licensing of brokers and agents, and adjusters pursuant to the Provincial Insurance Act.
d. Licensing of brokers and agents, and adjusters pursuant to the Insurance Companies Act.
b. Licensing of motor vehicles, drivers, and traffic control of vehicles on highways.
22
50. The common elements of a condominium building are insured by which of the following?
a. A Section of the Comprehensive homeowners Policy
b. Condominium unit owner insurance
c. The condominium corporation’s master policy
d. A subscription policy lead by the condominium corporation and signed by each unit owner
c. The condominium corporation’s master policy
23
45. What is the main purpose of a co-insurance clause?
a. To allow an insurer, who has paid a claim, to recover some or all of the claim settlement from
those who are legally responsible for it
b. To ensure that when two or more insurers have a policy covering the same loss, the payment
for the loss is divided equitably among the insurers
c. To encourage insureds to carry adequate amounts of insurance on their property by requiring
them to bear a portion of every loss if underinsurance exists
d. To encourage insureds to carry adequate amounts of insurance for their liability claims
c. To encourage insureds to carry adequate amounts of insurance on their property by requiring
them to bear a portion of every loss if underinsurance exists
23
47. With regards to contract law, a "meeting of the minds" is necessary to fulfill the element of
a. Agreement
b. Genuine intention
c. Consideration
d. Legal capacity
a. Agreement
24
49. Which one (1) of the following items has a special limit of insurance if the item is stolen, but
not if it is damaged or destroyed in a fire?
a. Garden tractors
b. Watercraft
c. Computer software
d. Jewellery
d. Jewellery
- easily stolen
- sample pg 5
- damaged for various reasons
24
51. Which of the following describes how mobile home insurance is different from homeownerinsurance for a regular home?
a. Regular home insurance policies include liability coverage, but mobile home policies do not.
b. Regular home insurance policies include coverage for building and contents, but mobile home policies do not.
c. Regular home insurance policies include the peril of windstorm, but mobile home policies do not.
d. Regular home insurance policies do not consider contents, such as appliances as part of the structure, but mobile insurance policies can consider them part of the building.
d. Regular home insurance policies do not consider contents, such as appliances as part of the
structure, but mobile insurance policies can consider them part of the building.
24
52. Many small to medium sized enterprises such as retail stores can purchase pre-set package
policies that typically include which of the following coverages?
a. Contents, liability, errors and omissions and crime
b. Contents, liability, crime, and business interruption
c. Contents, liability, crime, fidelity
d. Contents, liability, boiler and machinery, fidelity
b. Contents, liability, crime, and business interruption
25
What are the two main types of business interruption insurance?
a. Income Replacement Insurance and Extra Expense
b. The Earnings Approach and the Profits Approach
c. Gross Earnings coverage and the Profits Approach
d. Extra Expense and Business Restoration
b. The Earnings Approach and the Profits Approach
25
54. Insurance to protect against the destructive effects of power that is accidentally released was
traditionally known as Boiler and Machinery insurance and is now more commonly known as
which of the following?
a. Electronic Data Processing Equipment insurance
b. Builders Risk insurance.
c. Business Interruption insurance
d. Equipment Breakdown insurance
d. Equipment Breakdown insurance
26
A promise made by one party to guarantee the performance of a second party to a third party is known as which of the following?
a. Insurance
b. Surety Bond
c. Fiduciary
d. Obligee
b. Surety Bond
27
55. When discussing Surety Bonds, who is the Principal?
a. The party who guarantees the performance
b. The party whose performance is guaranteed
c. The party who is owed the stated obligation
d. The person entrusted with the administration of something for the benefit of another
b. The party whose performance is guaranteed
- the persons in charge (2+)
28
58. John is involved in a collision for which he is 50% at-fault. The total damage to his vehicle is $3000
and he does not have collision coverage. How much would John receive from his insurance
company?
a. $0
b. $750
c. $1500
d. $3000
c. $1500
- review?
- because he's 50% at fault
29
60. With Direct Compensation-Property Damage under the OAP 1, an insured whose vehicle sustains $3000 damage as a result of an accident in which the driver of the other vehicle was
100% at fault will be indemnified by how much and from which insurer?
a. He will have to sue the other driver’s insurer for indemnification
b. $1,500 from his own insurer and $1,500 from the other driver’s insurer
c. $3000 by his own insurer
d. $3000 by the other driver’s insurer
c. $3000 by his own insurer
- review? why? look up DCPD
30
61. Which endorsement allows a minor to operate a snowmobile off the highway?
a. OPFC 20
b. OPFC 28
c. OPFC 32
d. OPFC 35
c. OPFC 32
31
62. Pina is involved in an automobile accident that causes $1000 damage to her automobile and
she is deemed to be 25% at fault while the driver of the other vehicle (Paul) is deemed to be
75% at fault. How will the indemnification for PINA be paid assuming no deductible applies?
a. Pina would be indemnified from her own policy; Section 7 – Loss or Damage Coverages for
$250 and from Section 6 – Direct Compensation Property Damage for $750.
b. Pina would be indemnified from Section 6 – Direct Compensation Property Damage for $250
and $750 from Paul’s insurer.
c. Pina would be indemnified $1000 from Section 6 – Direct Compensation Property Damage.
d. Pina would have to sue Paul and his insurer to pay for the damage to her vehicle.
a. Pina would be indemnified from her own policy; Section 7 – Loss or Damage Coverages for
$250 and from Section 6 – Direct Compensation Property Damage for $750.
32
64. The Uninsured Motorist coverage is designed to provide indemnity for which one (1) of the
following?
a. Property damage caused by a hit and run accident
b. Bodily injury caused by the negligence of an uninsured motorist
c. Bodily injury that meets verbal threshold
d. Property damage or bodily injury
b. Bodily injury caused by the negligence of an uninsured motorist
32
63. In terms of automobile insurance, an insured is required to submit proof of loss within how
many days of the loss?
a. 15 days
b. 30 days
c. 60 days
d. 90 days
d. 90 days
32
66. What provision regarding automobile insurance allows an innocent third party to claim against the insured’s policy who is held legally liable for the loss even though the insured may be convicted of a crime and is penalized for it?
a. Absolute Liability
b. Statutory Condition
c. General Conditions
d. Priorities of Payment
a. Absolute Liability
- review absolute liability
33
65. Which of the following best describes the Facility Association?
a. It is a provincial government insurance office that accepts applications from all automobile
owners who are having difficulty obtaining the automobile insurance that they need.
b. It is a pool of insurers who operate to provide a reinsurance device for accommodating
automobile policyholders who wish to have particularly high limits of insurance.
c. It is a for-profit organization that for a fee will facilitate the process of getting automobile
insurance for an individual that is having difficulty finding the favourable rates s/he is looking
for.
d. As an unincorporated non-profit association, it provides insurance for owners and operators
of motor vehicles who may otherwise have difficulty obtaining insurance in the open market
due to their driving history.
d. As an unincorporated non-profit association, it provides insurance for owners and operators
of motor vehicles who may otherwise have difficulty obtaining insurance in the open market
due to their driving history.
33
In addition to the legal requirements of ordinary contracts insurance contracts, to be valid, must
contain additional distinctive elements. What are the additional elements of an insurance
contract?
a. Indemnity, Insurable Interest, Subrogation
b. Indemnity, Insurable Interest, Utmost Good Faith
c. Salvage, Subrogation, Contribution
d. Salvage, Subrogation, Utmost Good Faith
b. Indemnity, Insurable Interest, Utmost Good Faith
34
67. In regard to the statutory condition ‘Change of Interest’, after which situation is an insurer still
liable for loss/damage?
a. Change of title after death
b. Change of title after sale
c. Change of title after donation
d. Change of title after repossession
a. Change of title after death
35
68. A contract is an agreement enforceable at law and has several requirements. Which of the
following contains the full list of legal requirements of ordinary contracts?
a. Agreement, Genuine Intention, Utmost Good Faith, Consent
b. Agreement, Consideration, Capacity to Contract, Genuine intention, Legality of purpose
c. Agreement, Consideration, Capacity to contract, Utmost good faith
d. Agreement, Capacity to contract, Legality of purpose, Insurable Interest
b. Agreement, Consideration, Capacity to Contract, Genuine intention, Legality of purpose
36
70. The Personal Articles Endorsement provides all-risk coverage on specific classes of personal
property that are susceptible to thieves and command a higher premium. Which of the
following may be scheduled on a personal articles endorsement?
a. Video recorder, diamond ring, a painting
b. Violin, diamond ring, skis
c. Sterling silver cutlery, Video recorder, fur coat
d. Sterling silver cutlery, diamond ring, skis
c. Sterling silver cutlery, Video recorder, fur coat
82 4-20
- this one is weird. originally i put D when we reviewed, answer is actually C?
37
71. If an insured accidentally drives his automobile into his own garage door, what damage would
be covered by Section 7 Loss or Damage coverage with Collision or Upset of the OAP 1?
a. Damage to the automobile
b. Damage to the garage door
c. Damage caused to both the automobile and the garage door
d. Neither damage to the automobile or garage door would be covered
a. Damage to the automobile
38
1. Which legislation is enforced by the Office of the Superintendent of Financial Institutions (OSFI)?
a. The Insurance Companies Act
b. The Highway Traffic Act
c. The Insurance Act
d. The Compulsory Automobile Insurance Act
a. The Insurance Companies Act
- OSFI = federal level
39
2. Which coverage does a comprehensive homeowner policy extend to personal property during a
move?
a. In transit for a specified period and at the new residence
b. Cannot be insured
c. None without a special endorsement
d. At the new residence, but in transit coverage requires an endorsement
a. In transit for a specified period and at the new residence
40
3. What two basic categories is the insurance business divided into?
a. Property insurance and Liability insurance
b. Property insurance and Casualty insurance
c. Personal insurance and Commercial insurance
d. Life and health insurance, and General insurance
d. Life and health insurance, and General insurance
41
5. What is the OAP 1—Uninsured Automobile Coverage limit for physical damage?
a. $25,000
b. $30,000
c. $35,000
d. $50,000
a. $25,000
-Maxes out at 25k
- review limits
42
7. What is the ONLY coverage available to an injured driver when he has taken the car without the owner’s consent?
a. Accident benefits
b. All perils
c. Uninsured motorist
d. Third-party liability
a. Accident benefits
43
Suri is walking in her neighbourhood when she slips and falls on ice in front of her neighbour’s house where the sidewalk has not been cleared for over a week. Where would the payment to Suri come from?
a. The personal liability section of Suri’s homeowners policy.
b. The personal liability section of the neighbour’s homeowners policy.
c. The premises liability section of Suri’s homeowners policy.
d. The property section of the neighbour’s homeowners policy.
b. The personal liability section of the neighbour’s homeowners policy.
44
11. Which act establishes and governs the automobile statutory conditions?
a. The Insurance Companies Act
b. The Insurance Act
c. The Compulsory Insurance Act
d. The Statutory Accident Benefits Act
b. The Insurance Act
- review Insurance act vs insurance companies act
45
15. Which endorsement is added to a policy that will provide coverage for the cost of using alternate
transportation while the automobile is being repaired?
a. OPCF 20—Coverage for Transportation Replacement
b. OPCF 29—Additional Coverage for Named Persons
c. OPCF 35—Coverage for Emergency Road Service
d. OPCF 3—Government Owned Automobiles
a. OPCF 20—Coverage for Transportation Replacement
46
18. Alan’s roommate took Alan's car without permission and was involved in an accident that
damaged Alan's car. If Alan has collision and comprehensive, would coverage apply?
a. Yes, as it was not Alan’s fault that the roommate took the car
b. Maybe, it depends on a possible theft charge
c. No, because it would be covered under the roommate’s insurance
d. No, because his roommate did not have permission to use the car
d. No, because his roommate did not have permission to use the car
47
19. Which special class of loss payee has a registered interest on real property as security for the
money that they have loaned the property owner?
a. Named insured
b. Lessee
c. Mortgagee
d. Insured
c. Mortgagee
- any financial institute who loans you will be classified as a loss payee. has a registered interest on your property
48
20. What is the purpose of a risk sharing pool?
a. A way for the government to ensure that insurance companies are adhering to codes of
conduct.
b. A way for insurers to take on the responsibility of higher exposure risks that still qualify for
the regular market from the members of the association.
c. A way for insurers to transfer some of the responsibility for higher exposure risks that still
qualify for the regular market, among all the members of the association.
d. A way for the government to gather statistical analysis for different risk across Ontario.
c. A way for insurers to transfer some of the responsibility for higher exposure risks that still
qualify for the regular market, among all the members of the association.
48
21. Which insurance distribution system uses salaried employees as their sales force and owns the
business?
a. General agency
b. Independent brokerage
c. Exclusive agency
d. Direct writing
d. Direct writing
- not C because they are not employed by insurance company, but represent the insurance company
49
22. What is the insurance term for when a contractor is sued by the insurance company after he
causes a fire while completing repair work on the insureds home?
a. Contracts
b. Contribution
c. Salvage
d. Subrogation
d. Subrogation
- review Contribution vs Subrogation
50
25. How do collateral benefits interact with benefits available from an automobile policy?
a. The insured will receive both benefits.
b. The collateral benefits will no longer be received.
c. They may be deducted depending on the collateral benefit.
d. The insurer pays them back when they are recovered.
c. They may be deducted depending on the collateral benefit.
50
28. What is one of the qualifiers as stated in the verbal threshold for a claimant to sue for noneconomic damages?
a. The claim must be for a serious injury.
b. The claim must be for property damage caused to the claimant.
c. The claimant’s impairment must be a form of bodily injury.
d. The claimant’s impairment must be a permanent serious disfigurement.
d. The claimant’s impairment must be a permanent serious disfigurement.
- verbal threshold = perm
51
29. What is the term for unlawful removal of property from a premise by visible forceable entry or
exit?
a. Theft
b. Malicious mischief
c. Vandalism
d. Burglary
d. Burglary
52
30. A garage that is attached to the dwelling by a fence is which type of structure?
a. Subsidiary structure
b. Detached structure
c. Attached structure
d. Compound structure
b. Detached structure
53
31. Blake purchases and installs a $2500 stereo for his automobile. Is the full amount of his new
stereo covered?
a. No, the stereo would not be covered as it is not part of the original car.
b. No, the stereo would be subject to a limit of $1,500.
c. Yes, as the equipment is now part of the vehicle, it would be fully covered up to $2,500.
d. Yes, the stereo is covered with no limitations.
b. No, the stereo would be subject to a limit of $1,500.
- review OAS 8-8
54
32. Who performs the day to day tasks for the Facility Association?
a. Broker Association
b. Every member of the association
c. Ministry of Transportation
d. Servicing Carriers
d. Servicing Carriers
54
34. The condominium corporation is responsible for snow and ice removal on the property. A guest
falls and sues the corporation for his injuries. The corporation’s policy liability limit is $2,000,000,
however the plaintiff is awarded $2,500,000 by the court. How does the unit owner’s loss
assessment insurance coverage apply?
a. The unit owner will be assessed on their share of the shortfall of $500,000 and can claim it on
their unit owner’s policy.
b. The unit owner’s policy pays nothing as the unit owner is not responsible for snow and ice
removal.
c. The unit owner’s policy will pay the entire settlement if the injury occurred on the unit
owner’s driveway.
d. The unit owner’s policy pays nothing as the unit owner was not sued.
a. The unit owner will be assessed on their share of the shortfall of $500,000 and can claim it on
their unit owner’s policy.
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35. What is an unusual, fortuitous, unexpected, or unforeseen event or occurrence called?
a. Accident
b. Risk
c. Pure Risk
d. Hazard
a. Accident
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40. What exposures does a commercial comprehensive 3-D policy insure?
a. Dishonesty, Disappearance, and Damage
b. Dishonesty, Disappearance, and Destruction
c. Dishonesty, Disappearance, and Delays
d. Dishonesty, Disappearance, and Disruption
b. Dishonesty, Disappearance, and Destruction
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41. What is a key purpose of Statutory Conditions?
a. Establish specific rights for the insurer and obligations on the insured.
b. Establish specific rights for the insured and obligations for the insurer.
c. Establish specific rights and obligations for both the insurer and the insured.
d. Establish the rights and obligations for brokers and insurers.
c. Establish specific rights and obligations for both the insurer and the insured.
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43. With respect to the Outboard Motors/Boats Coverage, a Full Average Clause:
a. Describes average exposure for the policy year, for the calculation of the premium.
b. Requires the insured to bear a portion of any loss if the boat is not insured for its full value.
c. Provides all risk coverage on the hull and motor.
d. Describes average exposure for the policy year for the calculation of loss settlement.
b. Requires the insured to bear a portion of any loss if the boat is not insured for its full value.
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44. To cover costs for a business to lease a new location to continue business after an insured loss,
the business would require which of the following?
a. Profits coverage
b. Extra expense coverage
c. Extended business profit endorsement
d. Gross earnings
b. Extra expense coverage
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49. A fiduciary is someone __________.
a. To whom a bond is given.
b. Who makes good the obligations of the obligee if the principal fails to do so.
c. Who provides a personal guarantee promising to make good any defaults of another.
d. To whom the administration of something is entrusted for the benefit of another.
d. To whom the administration of something is entrusted for the benefit of another.
- entrust
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55. The insured leaves a tavern, gets into his auto in an intoxicated state, and causes an accident on
the way home. Which of the following would NOT be covered?
a. Collision damage to his automobile.
b. Damage to a telephone pole.
c. Damage to another automobile.
d. Medical and surgical expenses required as a result of injuries he sustains.
a. Collision damage to his automobile.
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51. Under a personal liability policy, Employers’ Liability _____________.
a. Acknowledges that the premises is a place where business is conducted, or an area is leased to others.
b. Extends legal liability coverage for bodily injury to residence employees arising out of
their employment for the insured.
c. Extends contingent coverage to employees of the insured if Workers’ Compensation will not
respond for specified reasons.
d. Extends coverage for property damage caused to another by residence employee arising out
of their employment for the insured.
b. Extends legal liability coverage for bodily injury to residence employees arising out of
their employment for the insured.
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54. An insured calls to report that his automobile went through the ice while ice fishing. His
OAP 1 Owner’s Form has liability, accident benefits, and comprehensive coverages. What would
the insurer pay?
a. The claim in full.
b. Nothing, as there is no coverage.
c. The claim less the deductible.
d. Nothing, as the automobile was not being
operated on a public highway.
c. The claim less the deductible.
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52. Uninsured Motorist coverage _______________.
a. Must be added by endorsement to OAP1 Owner’s Form.
b. Only covers bodily injury, but never property damage.
c. Can cover accidental damage to the insured’s automobile, provided the uninsured
owner or driver of the other automobile is identified.
d. Provides coverage for third parties if the insured causes bodily injury and has breached a
statutory condition.
c. Can cover accidental damage to the insured’s automobile, provided the uninsured
owner or driver of the other automobile is identified.
- OAS 6-6
- must be identifiable
section 5
section 7 is for hit and run
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56. A cigarette sets the automobile seat on fire and causes $450 damage. The policy shows a $300
deductible under Specified Perils. For a vehicle insured in Ontario, what would the insurer pay?
a. $0.
b. $150.
c. $300.
d. $450.
d. $450.
- OAS 8-5
- peril is fire so it is covered
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58. In terms of automobile insurance and under Loss of Use Due to Theft, when does reimbursement
end?
a. The date of the completion of the repairs or replacement.
b. The date the Insurer tenders settlement.
c. Either A or B, whichever occurs first.
d. The expiry date of the policy
c. Either A or B, whichever occurs first.
- you have 72 hrs
- maxes out at 900
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61. Without slowing down, driver A drives through an intersection on a red light and collides with
driver B. Driver A is injured and his car is damaged. Driver B is seriously injured and her car was
destroyed in the accident. What injury and/or damage could be covered by third party liability
coverage?
a. Driver A’s injury
b. Driver A’s injury and damaged car
c. Driver B’s and driver A’s injuries
d. Driver B’s injury
d. Driver B’s injury
- review third party liability coverage
63
63. Who scrutinizes a risk and decides if it is eligible for insurance?
a. Adjusters
b. Actuaries
c. Underwriters
d. Brokers/agents
c. Underwriters
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66. For which exposure does the Non-owned Automobile policy provide coverage?
a. Employees using their employer’s commercial vehicle for personal use
b. Employees using their employer’s personal vehicle for personal use
c. Employees using their employer’s commercial vehicle for purposes of the employer’s
business
d. Employees using their personal vehicles for purposes of their employer’s business
d. Employees using their personal vehicles for purposes of their employer’s business
- aka SPF 6 standard policy form
- review non owned auto policy
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65. While working in the insured’s home, a housekeeper severely injures her hand. Which section of a
homeowners policy would provide coverage?
a. Voluntary Medical Payments
b. Voluntary Payment for Damage to Property
c. Voluntary Compensation for Residence Employees
d. Voluntary Payment for Bodily Injury
c. Voluntary Compensation for Residence Employees
- when employer is not negligent, it is voluntary
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69. The Sue and Labour Clause in an insurance policy is designed to:
a. Require the insurer to sue others who may be responsible for loss or damage to the insuredproperty.
b. Require the insurer to do some of the repair work to restore the property.
c. Point out to the insured their duty to take all reasonable steps in and about the recovery of the property in return for agreement that the insurer will contribute to the cost.
d. Permit the insurer to sue the insured for failure to maintain the property in good condition.
c. Point out to the insured their duty to take all reasonable steps in and about the recovery of the property in return for agreement that the insurer will contribute to the cost.
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68. Your client wants to insure some items of historical value. What do you advise your client?
a. Items of historical value are fully covered under an all-risk policy.
b. Purchase a fine arts floater.
c. Insure the items with a broker who specializes in items of historical significance.
d. Purchase a personal articles endorsement.
b. Purchase a fine arts floater.
- Review fine art floater vs personal articles endorsement
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70. A Building worth $100,000 is insured for $60,000 under a policy with 80% co-insurance clause.
Fire damages the building to the extent of $90,000. How much would the insurer pay?
a. $60,000
b. $48,000
c. $50,000
d. $67,500
a. $60,000
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73. An insured’s house is destroyed by fire and due to local by-laws, has to be rebuilt with more
expensive materials. In the absence of a special endorsement indicate if the comprehensive
homeowners policy covers:
a. The cost plus 25% for improvements and betterments.
b. The increased cost to rebuild.
c. The cost plus 10% for improvements and betterments.
d. The cost to rebuild in the same manner and the same general materials as existed
before the loss.
d. The cost to rebuild in the same manner and the same general materials as existed
before the loss.
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75. Your insured owns a summer residence with a detached garage and tool shed. The property is
insured for Fire & Extended Coverage Perils under a Seasonal Dwelling form. What is the maximum amount of insurance that could apply if one of these detached structures is destroyed
by fire?
a. The actual cash value of the destroyed structure without reference to the other structures.
b. That proportion of 10% of the amount of insurance on the dwelling building that the value of
the destroyed structure bears to the total value of both structures.
c. 10% of the amount of insurance on the dwelling.
d. 10% of the amount of insurance on the dwelling divided by the number of structures.
b. That proportion of 10% of the amount of insurance on the dwelling building that the value of
- ? i dont get it
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76. Your insured has a condominium Unit Owners Comprehensive policy. While smoking in bed,
he/she negligently causes a fire in his/her unit. The fire spreads to the adjoining unit and the
occupant is overcome by smoke and dies. Under which section of the policy would the insurer
respond if a claim were made by the relatives of the deceased person?
a. Voluntary Medical Payments
b. Personal Liability Coverage
c. Loss Assessment Liability Coverage
d. Loss Assessment Property Damage Coverage
b. Personal Liability Coverage
- review personal liability coverage
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77. Which one (1) is NOT TRUE of the Replacement Cost Coverage under a homeowners
comprehensive policy?
a. Payment will be made without deduction for depreciation.
b. Replacement cost coverage for contents must be endorsed on to the policy.
c. Replacement cost coverage applicable to both the building and personal belongings
insured under the policy are basic coverages.
d. Replacement must be made with property of similar quality.
c. Replacement cost coverage applicable to both the building and personal belongings
insured under the policy are basic coverages.
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79. Your insured is driving alone and is injured in an accident in the state of Georgia. The U.S. driver is
found 100% at fault. Your insured carries $1,000,000 liability coverage and the OPCF #44 Family
Protection Coverage. The other vehicle is covered for Bodily Injury $10,000 one person $20,000 to
two or more persons and $10,000 property damage. Your insured is awarded $180,000 in
damages for bodily injury. How much would be paid out under the OPCF #44?
a. $140,000
b. $180,000
c. $170,000
d. $160,000
c. $170,000
-OAS 10-20
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80. In the following statements about Section 6- Direct Compensation – Property Damage of the OAP
1 Owner’s Form, which one (1) is INCORRECT?
a. The accident may occur anywhere in Canada and at least one of the other automobiles
involved is insured under an automobile insurance policy.
b. The insured collects from his/her insurer even though the operator of the vehicle, with the
insured’s consent was not entirely at fault for the accident.
c. It covers damage to the automobile, certain unscheduled trailers, their equipment and
contents caused by another automobile in Ontario, including their loss of use.
d. The policy on the other vehicle must be issued by an Ontario licensed insurer or one that has
filed with the Ontario Insurance Commission to provide this coverage.
a. The accident may occur anywhere in Canada and at least one of the other automobiles
involved is insured under an automobile insurance policy.
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Which one (1) of the following accidents would be considered a loss under Section 7.1.2.B,
comprehensive of an O.A.P. 1 Owner’s Form policy?
a. Your insured’s windshield was smashed by a falling boulder while driving through a rock-slide
area.
b. You insured, while passing another vehicle at the entrance to a narrow bridge, struck the
bridge supports.
c. Your insured severely damaged the undercarriage of his vehicle when he/she struck
pothole in the roadway.
d. Your insured’s towing a trailer and stopped quickly causing the trailer to hit the rear of
his/her automobile damaging both vehicles
a. Your insured’s windshield was smashed by a falling boulder while driving through a rock-slide
area.
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83. Anne and her sisters rent a vehicle while on vacation. Anne, who will mainly drive the rental car,
has an OAP 1 with an OPCF 27 added. Does Anne’s insurance extend to her sisters if they drive
the rental car?
a. Yes, if each of her sisters have their own OAP 1 with an OPCF 27.
b. Yes, if her sisters have been specifically listed on Anne’s OPCF 27 endorsement.
c. No, because they do not have valid driver’s licences in the country that they are vacationing in.
d. No, because they did not declare their intention to the rental company.
b. Yes, if her sisters have been specifically listed on Anne’s OPCF 27 endorsement.
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86. Peter is injured in an accident with an uninsured driver outside of Ontario. The minimum liability
where the accident occurs is $100,000. He carries a $1 million limit and the loss is $300,000.
Which liability limit would apply to this loss?
a. $300,000
b. $100,000
c. $1,000,000
d. $200,000
b. $100,000
- OAS 6-4
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87. An insured with basic homeowners insurance rents a basement apartment to tenants. Which loss
would be EXCLUDED?
a. Damage to the front window results from a driver losing control of his vehicle.
b. A kitchen fire causes extensive damage to the homeowner’s fittings and fixtures.
c. Vandals cause damage to the building which has been reported to the police.
d. The tenants move out and take all the homeowner's appliances from the rental unit.
d. The tenants move out and take all the homeowner's appliances from the rental unit.
- review basic homeowners
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89. If a tenant causes fire damage to an apartment building, which policy will most likely respond to the
insured loss?
a. Tenants legal liability
b. Building owners policy
c. Personal legal liability
d. Contractual liability policy
a. Tenants legal liability
- Review tenants legal liability
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90. Which theft loss would be covered by a basic homeowners policy?
a. Theft by tenants or from parts of the dwelling rented to tenants.
b. Theft of property or building materials from properties under construction.
c. Theft of personal property from insured’s principal dwelling and damage to the building
due to attempted theft.
d. Theft from secondary locations if insureds are not residing there.
c. Theft of personal property from insured’s principal dwelling and damage to the building
due to attempted theft.
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94. How would a comprehensive homeowners policy respond to the theft of the insured’s antiques that
are on exhibit at a local fair?
a. There is theft coverage with a special limit.
b. There is no coverage as property on exhibit is excluded.
c. There is coverage provided for half the loss.
d. There is no coverage as antiques are excluded.
b. There is no coverage as property on exhibit is excluded.
- at the exhibit which increases the chance of loss, would need exhibition floater
