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The Federal Department of Insurance is most interested in which of the following?

The qualifications and licensing of insurance agents and brokers in each province (correct)

The licensing of Insurance Adjusters

The financial stability of federally licensed Insurance companies

Insurance Brokers Trust Funds

Rules or agreements concerning the binding of coverage by brokers are:

Laid out in the insurance act of Ontario

Set by RIBO and are uniform and apply to every insurance brokerage firm in Ontario (correct)

Set out and agreed upon between the insurance company and the broker office

Enforced by FSCO

The unearned premium reserve is a fund for the protection of the public that:

Gives money back to a claimant if there is a dispute in a claim

Pays if an insurer refuses to pay for a claim

Pays claims if an insurer goes bankrupt

Pays an insured the unearned premium if an insurer goes bankrupt or becomes insolvent. (correct)

R.I.B.O (Registered Insurance Brokers of Ontario) is:

The provincial government body that licenses insurance agents Signup and view all the answers

Who is protected by a mortgage clause in a property insurance policy?

The one who borrows the money Signup and view all the answers

In general, when an insurance company indemnifies an insured, it tries to:

Better the financial position of an insured Signup and view all the answers

In arranging an insurance contract the broker must always:

Pass on the insurer all relevant information whether requested or not Signup and view all the answers

Your insured request that his automobile policy be cancelled part way through the term. The refund due to the insured would be calculated on:

A short rate basis Signup and view all the answers

In many ways an insurance contract is similar to a legal contract one might encounter. One feature that it does not share with any other contract is:

Utmost good faith Signup and view all the answers

Of the following individuals, who has the legal capacity to contract:

A 16 year old who does not live with her parents and is buying insurance on her car that she needs to drive to work Signup and view all the answers

Of the following persons or organizations who could have an insurable interest in a piece of real property (real estate)?

Executor of a will Signup and view all the answers

An insured owns a building valued at $200,000 and insures it for same amount subject to an 80% co-insurance clause. A fire does $100,000 damage. How much of the loss will the insurer pay?

$100,000 Signup and view all the answers

An insured owns a building valued at $100 000 and insured it for $70,000 with a 90% co-insurance clause. The building is damaged by fire to an extent of $25,000. How much of the loss will the insurer pay for?

$19,425 Signup and view all the answers

You insure your new home in the country. It is twelve miles from town and has no available fire protection. You write one policy for $1,000,000 All Risk and since none of your companies would write the whole amount you insure it using three companies. This is known as:

Subscription Signup and view all the answers

Pure premium is the:

Rate or premium required Signup and view all the answers

A person wishing to buy insurance may complete:

An application Signup and view all the answers

A binder

Is a temporary insurance undertaking Signup and view all the answers

A subscription policy differs from other policies in that:

More than one insurer participates in a policy prepared by the lead company Refer to question Signup and view all the answers

A legal person is one who:

Can sue and be sued Signup and view all the answers

People who stand in such relationship to property that they may be financially prejudiced by its loss and financially benefit from its continuing existence are said to have:

Insurable interest in the property Signup and view all the answers

Contribution is the:

Sharing of loss or liability between two or more insurance companies Signup and view all the answers

The proximate cause is:

The immediate and effective cause of a loss Signup and view all the answers

With respect to salvage:

It always belong to the insured Signup and view all the answers

Insurance is:

An undertaking by one person to indemnify another person against specific loss Signup and view all the answers

Risk is:

The uncertainty regarding Loss Signup and view all the answers

When we speak of General Insurance, we mean:

Insurance other than Life and Health Insurance Signup and view all the answers

An independent agent or broker must maintain a trust account:

Into which all commission amounts are transferred Signup and view all the answers

An insurer wishing to terminate an insurance policy may do so by:

Giving the insured 15 days notice by registered mail and refunding the unearned premium Signup and view all the answers

Misrepresentation discovered by an insurer may result in the policy being voided. To do so successfully, the insurer must show:

The misrepresented fact was material to the risk Signup and view all the answers

The insured, under a Fire Policy, goes bankrupt and there is loss shortly afterward. Which one (1) of the following statements are true?

The insurer is liable to pay the loss to the Trustee in Bankruptcy Signup and view all the answers

Statutory Conditions in a Fire Policy are primarily to protect the rights of:

The insurer Signup and view all the answers

Misrepresentation by the insured in applying for insurance:

Voids the policy at the option of the insurer Signup and view all the answers

The Standard Mortgage Clause approved by the Insurance Bureau of Canada and generally used throughout the insurance industry outlines:

The rights of the insurer, the obligations of the mortgagee, and the rights of the mortgagee Signup and view all the answers

Improvements and Betterments made to a Condominium Unit by its owner are:

Under Coverage A3 of the individual Unit Owners Comprehensive Signup and view all the answers

The contents of a building are insured for $90 000 but valued at $200 000. The policy contains a 90% co-insurance clause with a $2 500 deductible. A fire damages the contents to the extent of $20 000. How much would the policy pay?

$15,500 Signup and view all the answers

Your client has a Homeowners Comprehensive Policy through your office. She decides to go into business for herself and opens up a hairdressing salon in her home without telling you. She has no employees. How may this affect her insurance policy?

It is a change material to the risk and coverage could be impaired because of failure to notify the insurer Signup and view all the answers

Additional Living Expense under a Homeowners Comprehensive policy is payable when the premises become unfit for occupancy in which one (1) of the following circumstances?

The insured's home has suffered severe smoke damage Signup and view all the answers

The Condominium Unit Owners Comprehensive Policy includes which one (1) of the following?

It adds the Condominium Corporation as an additional named insured with respect to liability coverage Signup and view all the answers

Your clients advise they are having their house renovated. Until it is ready for occupancy, they will be placing most of their goods in storage for six weeks. They ask you if coverage under their Homeowners Comprehensive policy will extend to the property in storage. You advise them that:

All coverages under their present policy will continue to apply Signup and view all the answers

Your client has a $100 000 Homeowners Comprehensive policy with a $200 deductible. They are planning to build a new garage and begin to buy the necessary building materials. $2000 worth of materials is stored in their backyard and $3000 worth in the brother's garage two blocks away. The brother's garage is totally destroyed by fire, along with your client's materials stored there. How much can your client collect under their own policy?

$2400 Signup and view all the answers

A dwelling valued at $100 000 is owned and insured by three persons. The first person has $50 000 invested. The second person has $25 000 invested and the third person has $25 000. The first person resides in the house. It is insured for $60 000. The building is demolished by a tornado. How much would the second person receive from the insurers?

$15 000 Signup and view all the answers

Your insured phones you and tells you that while visiting with his prospective in- laws, he accidentally burnt a small hole in their oriental rug. The insured wishes to know if the cost of repairing the rug is covered under his Tenants Comprehensive policy. You advise:

Yes, coverage under the Voluntary Property Damage section would apply Section 2 of the policy - you may not be legally liable however you feel morally obligated - remember no deductible under section 2 Signup and view all the answers

Which one (1) of the following coverages under a Homeowners Comprehensive policy including Inflation Protection is NOT automatically increased in amount at the anniversary of the policy?

Liability Coverage Signup and view all the answers

In claiming for damage to a building under a Homeowners Comprehensive policy, the insured has two options: (A) replacement cost settlement: or (B) actual cash value settlement. If the insured opts for (A), which (1) of the following requirements does NOT apply?

The amount of the loss will be based upon the relationship between the amount of the insurance and 80% of the actual cash value of the building Signup and view all the answers

Your insured owns one of each of the vehicles listed and seeks advice concerning coverage. Which one (1) is covered under the Liability section of the Homeowners Comprehensive policy?

A trail bike Signup and view all the answers

Your client has a $120,000 Homeowners Comprehensive policy. Due to fire which months, at a rent of $1000 per month. If we assume your client's mortgage payments are causes substantial damage to the home, the family must rent another house for three $900 Comprehensive policy pay towards the cost of renting the temporary house (ignore the deductibles).

$3000 Signup and view all the answers

The "pair and sets" clause in an insurance policy means:

Settlement of a loss with respect to an article which is part of a set, shall be based upon a reasonable proportion of the value of the set, but not the entire set Signup and view all the answers

In Section 2 Liability Coverage of the Homeowners Comprehensive policy, coverage is provided for Voluntary Payment for Damage to Property in which one of the following situations?

Property of others damaged intentionally by the insured's 10 year old son, for which he is not legally liable. Signup and view all the answers

Your insured has a Tenants Comprehensive Policy through your brokerage. He has signed a waiver which releases the landlord from liability for injury or damage occurring on the premises being rented. A fire in the building damages your insured's contents. It is established that the landlord was responsible for the fire. Which of the following statements is correct regarding coverage under the policy?

The insurer will pay the loss but would be unable to subrogate. Signup and view all the answers

Your client has a Comprehensive Condominium policy through your brokerage subject to a $500 deductible. The common areas of the building suffer severe damage which is not covered by the Condominium Corporations Master Policy. The loss is covered under your client's policy. The Corporation has assessed your client $2,000 of the damages. How would your clients policy respond?

$1,500 Signup and view all the answers

The liability section of a Homeowners Comprehensive policy does NOT provide coverage for which one of the following properties?

Newly acquired farm premises Signup and view all the answers

If an insurer discovers a misrepresentation has been made by an insured on a new application, which one of the following steps may the Insurer NOT take if the representation is material to the risk?

Continue the policy as it stands. Signup and view all the answers

Your insured owns 2 Secondary residences on the same property and rents one out for $500.00 per month. A windstorm totally destroys the rental residence and it will take 5 months to rebuild the dwelling. The Secondary policy covers the building for $100,000 subject to a $500 deductible. How much would the insured collect under the Rental Value section of the Secondary policy in addition to the total loss of the dwelling?

Nothing as the Rental Value section is included in the policy limit Signup and view all the answers

To what extent does A2 Loss Assessment Coverage in the Comprehensive Condominium Unit Owners policy cover an assessment against a Unit owner?

Any covered assessment that is valid under the Corporation, insured by the Unit owners policy and to a limit of $10,000 Signup and view all the answers

Your client has closed their seasonal residence for the winter and is not intending to return until spring. What is the status of the premises?

Unoccupied Signup and view all the answers

Risk is:

Speculative in nature. Signup and view all the answers

Insurers achieve a spread of risk by:

By writing insurance on as few classes of risk as possible Signup and view all the answers

Actual Cash Value is:

The original purchase price less depreciation reflecting the age and use of the damaged property Signup and view all the answers

An express contract between an agent and principal is one in which the:

Terms of the agreement have been specifically stated and agreed to by both. Signup and view all the answers

Where there is a co-insurance clause in a replacement cost policy, it is necessary to determine:

The original cost of the policy. Signup and view all the answers

If an insured requests mid-term cancellation of a policy, the insurer will:

Allow a short rate refund of a portion of the premium Signup and view all the answers

Which one (1) of the following perils may be insured under a property insurance policy?

Loss or damage caused by the insured's criminal acts Signup and view all the answers

The Sue and Labour Clause in an insurance policy is designed to:

Require the insurer to sue others who may be responsible for loss or damage to the insured property. Signup and view all the answers

Laws regulating the zoning, demolition, repair or construction of buildings and their related services can increase costs of repair to buildings. These increased costs are:

Partly covered under the 10% extension clause in most policies. Signup and view all the answers

A binder.

Must always be in writing Signup and view all the answers

Proximate cause is:

The suspected cause of loss. Signup and view all the answers

Subrogation:

Means that the insurer takes salvage if the claim has been paid in full. Signup and view all the answers

The basic perils Insured by each and every Basic Fire Policy include:

Fire, lightning, and explosion. Signup and view all the answers

Which of the following is NOT an extended coverage peril.

Hail Signup and view all the answers

Nearly every insurance policy has Policy Conditions, which are common to all policies issued in a particular class. Some policies contain Statutory Conditions. Which one (1) of the following types of insurance has Statutory Conditions?

Fire insurance policy. Signup and view all the answers

Which one (1) of the following affects the amount of settlement of an insured loss?

Subrogation Clause. Signup and view all the answers

The insured calls to report someone has broken into their unlocked seasonal dwelling. You would advise

There is no coverage, if there are signs of forcible entry/exit Signup and view all the answers

The insured, under a property policy, goes bankrupt and there is a loss shortly thereafter. Which (1) one of the following statements is TRUE?

Bankruptcy is considered a material change to the risk and the policy is therefore void. Signup and view all the answers

The contents of a building are insured for $45,000 but valued at $100,000. The policy contains a 90% co-insurance clause along with a $2,500 deductible clause. If fire damages the contents to the extent of $8,000, how much would the insurer pay?

$1,500. Signup and view all the answers

Insurance under O.A.P. 1 Owner's Form, Section 7, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to damage caused by:

Vandalism Signup and view all the answers

Uninsured Automobile coverage:

Only covers bodily injury, but never property damage. Signup and view all the answers

A client phones to tell you he has bought a high-end stereo system costing $5,000, which has just been installed in his car. What should you tell him?

Be sure to always lock the car, as there is no coverage if the system is stolen when the car is unlocked. Signup and view all the answers

One of the following statements is correct. Which one (1) is it? Electronic accessories or equipment are covered under O.A.P. 1 Owner's Form:

For their full actual cash value if factory installed. Signup and view all the answers

Your insured parks his/her automobile at a shopping mall and on his/her return finds it has been damaged by another vehicle. Your insured has 0.A.P. 1 Owner's Form with Liability, Accident Benefits, Comprehensive and OPCF44, Family Protection Endorsement coverages. What section would cover the damage?

Comprehensive Signup and view all the answers

Insurance under Section 7 of O.A.P. 1 Owner's Form, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to loss or damage caused by:

Lightning Signup and view all the answers

Your insured calls to report while ice fishing on Lake Simcoe his/her automobile went through the ice. He/she has O.A.P. 1 Owner's Form with Liability, Accident Benefits and Comprehensive Coverages. The insurer.

Would not pay the claim as the automobile was not being operated on a public highway. Signup and view all the answers

The Facility Association Is:

A group of insurance carriers that write the insurance risks on automobiles owned by their agents/brokers and their staff. Signup and view all the answers

The insured's automobile is broken into and some articles are taken. Specified penils will cover.

The insured's raincoat. Signup and view all the answers

If the insured drove his automobile in to his own garage door, what would be included under the Own Damage coverage of his automobile policy?

Neither the auto nor the door. Signup and view all the answers

The insured leaves a tavern, gets in to his auto in an intoxicated state, and causes and accident on the way home. Which of the following would not be covered?

Damage to another automobile. Signup and view all the answers

Under Loss of Use (subsequent to a theft of an automobile), reimbursement begins:

24 hours after the theft has been reported to the insurer. Signup and view all the answers

A cigarette sets the automobile seat on fire and causes $450 damage. The policy shows a $300 deductible under Specified Perils. The insurer would pay?

$150 Signup and view all the answers

The OPCF #44, Family Protection Endorsement coverage:

Is part of every Canadian owner's automobile policy. Signup and view all the answers

In the Additional Agreements of the Insurer, Own Damage, the insurer agrees to waive subrogation against:

A neighbor who had care or custody of the auto for repair purposes. Signup and view all the answers

A horse and buggy are hit by an automobile. The horse is killed. The automobile has been damaged but not the buggy. Which of the following coverages apply.

Own Damage. Signup and view all the answers

Rising water is covered under.

All Perils, Comprehensive and Specified perils. Signup and view all the answers

Is a snowmobile considered to be an automobile for insurance purposes in Ontario?

Yes Signup and view all the answers

Your client calls to advise he/she needs insurance on a car leased from an automobile dealer. Which one (1) of the following policies is required?

O.P.F. #2 Driver's Form. Signup and view all the answers

An eighteen year old youth enters your office and requests insurance on his new automobile-a Chevrolet Corvette. You know that most insurers are not keen on insuring young drivers with powerful automobiles. However, the premium is substantial and the commission attractive. You should:

Refer him to another broker who writes this class of business. Signup and view all the answers

Newly acquired automobiles are automatically covered under and O.A.P. 1 Owner's Form provided the insurer is notified:

Within 14 days Signup and view all the answers

Your insured belongs to a car pool and uses his/her automobile to transport the other three members to work every fourth week. One of the other members drives each of the other three weeks. As his/her insurance broker, what would you recommend to make sure your client is covered against claims from passengers for injures?

Advise the insurer to reclassify the vehicle to business use. Signup and view all the answers

Under the "What Automobiles Are Covered" section of O.A.P. 1 Owner's Form, a newly acquired automobile is automatically covered for a period of 14 days. This automatic coverage is limited to:

Private passenger vehicles only. Signup and view all the answers

All clients should be counseled regarding the availability of optional benefits available under O.A.P.1 Owner's Form. Which one (1) of the following is NOT available?

Increased Income Replacement Benefit. Signup and view all the answers

As the result of an automobile accident involving two automobiles both registered and insured in Ontario, both cars are damaged. One driver, John Smith, is killed and the other driver, Mary Jones sustains minor injuries. Mary Jones is found 100% liable for the accident. Which one (1) of the following statements is TRUE?

John Smith's family will be compensated initially under his policy. Signup and view all the answers

Indicate the correct way to insure a snowmobile.

With an O.A.P. 1 Owner's Form to cover Third Party Liability and Accident Benefits, and an Inland Marine Floater for direct damage to the machine. Signup and view all the answers

An insured requests that the limit of liability in his/her automobile policy O.A.P. 1 be reduced. What is the minimum amount he/she must carry under Ontario Law?

$500,000 inclusive. Signup and view all the answers

Your insured, who owns a van, which is used for pleasure purposes, is laid off. The insured advises you that until he/she is re-hired, the van will be used to deliver flowers for the local florist. What steps should you take?

Make no change. Signup and view all the answers

The basic Income Replacement Benefit payable under O.A.P. 1 Owner's Farm, Section 4-Accident Benefits Coverage is $400 per week. The actual amount is based on:

90% of Gross income Signup and view all the answers

The owner's policy or insurance coverage on a specific automobile is:

Primary Coverage Signup and view all the answers

Which of the following documents must be approved by the provincial govemment?

Endorsement forms. Signup and view all the answers

The susceptibility of paper to water damage is an example of:

Perishability Signup and view all the answers

Small retail business packages are ideal for covering:

Accountants Signup and view all the answers

A surety bond protects the:

Surety Signup and view all the answers

Under the Commercial Building, Equipment and Stock Form, Equipment includes:

Fittings, fixtures and utensils. Signup and view all the answers

The Earnings approach in Business Interruption is best suited to a business that will:

Not be affected by the loss once it re-opens. Signup and view all the answers

A peak season endorsement:

Is only available for large manufacturing risks. Signup and view all the answers

A bailee is someone

Who entrusts the goods of others to another Signup and view all the answers

Accounts Receivable covers an insured for:

Extra expenses incurred in reconstructing billing records. Signup and view all the answers

A fiduciary is someone

Who provides a personal surety promising to make good the defaults of another Signup and view all the answers

The stock in a butcher shop would be considered:

Highly perishable. Signup and view all the answers

The various items insured under a Commercial Property Policy can be found in the:

Limitations and exclusions forming part of the policy. Signup and view all the answers

Risks arising our of the use of computers, computer hardware and computer software are most appropriately covered under

Electronic data processing equipment. Signup and view all the answers

Under the basic Glass insurance policy:

Costs for boarding up and fixing window sashes may be covered. Signup and view all the answers

Under a Bid Bond, the principal is the.

Insurer Signup and view all the answers

A farm policy usually covers

Farm buildings subject to a rebuilding-deferred payment clause Signup and view all the answers

Rating for a Commercial Property Floater includes a loading because?

No coinsurance or deductible clauses apply. Signup and view all the answers

Machinery and equipment such as plumbing, heating and electrical systems being, or to be, installed in buildings being erected or renovated are covered under a

Installation floater. Signup and view all the answers

Extra Expense insurance is purchased to

Replace lost income until a business is able to reopen. Signup and view all the answers

The term fiduciary refers to individuals or organizations occupying positions of trust. Three (3) of the following are examples. Which is the EXCEPTION?

An insurance broker. Signup and view all the answers

Business interruption insurance gives protection against loss of earnings:

The bankruptcy of the landlord. Signup and view all the answers

Which one (1) of the following classes of insurance is intended to indemnify a business for loss of income due to fire damage to building, stock & equipment?

Business interruption insurance. Signup and view all the answers

A fiduciary is:

One who holds money or property in trust. Signup and view all the answers

Which one (1) of the following would protect your client against loss due to the dishonest of an employee?

A theft policy. Signup and view all the answers

One of the following is NOT a type of business interruption insurance. Indicate which one (1) is the EXCEPTION

Gross Earning insurance. Signup and view all the answers

Under the Commercial Building, Equipment and Stock Form, the definition of Building includes

Wrapping and advertising material. Signup and view all the answers

The Office of the Superintendent of Insurance is most interested in which of the following?

The financial stability of federally licensed Insurance companies Signup and view all the answers

Rules concerning the binding of coverage by brokers are:

Set by RIBO and are uniform and apply to every insurance brokerage firm in Ontario Signup and view all the answers

The P&C Compensation Corporation is for the protection of the public that:

Pays an insured the unearned premium if an insurer goes bankrupt or becomes insolvent Signup and view all the answers

R.L.B.O (Registered Insurance Brokers of Ontario) is:

A trade association of insurance brokers Signup and view all the answers

Who is protected by a mortgage clause?

The one who lends the money and the insurer of the property Signup and view all the answers

When an insurance company indemnifies an insured it tries to:

Put the insured back in the same financial position he/she was in at the time the loss occurred Signup and view all the answers

When a broker places insurance for a client they must always:

Collect the full premium at the time of the inception date Signup and view all the answers

The insured cancels the policy mid-term, the refund due to the insured would be calculated on:

A short rate basis Signup and view all the answers

What feature does an insurance contract not share with a other contracts?

Utmost good faith Signup and view all the answers

Who has the legal capacity to contract:

A 16 year old who does not live with her parents and is buying insurance on her car that she needs to drive to work Signup and view all the answers

Who could have an insurable interest?

Executor of a will Signup and view all the answers

An insured owns a building valued at $300,000 and buys a policy for that value. The insurance company uses an 90% co-insurance clause. A fire does $180,000 damage. How much of the loss will the insurer pay?

$180,000 Signup and view all the answers

A building valued at $100 000 and insured it for $70,000 with a 90% co-insurance clause. The building is damaged by fire at $25,000. How much will the adjuster pay?

$18,444 Signup and view all the answers

You insure a building that is Unprotected and the value is above the line limits of any of your insurers. Therefore you contacted 4 of your top companies to write this risk to get a policy issued. This type of policy is called a:

Subscription Signup and view all the answers

Pure premium is the:

Premium required to meet the losses that occur Signup and view all the answers

When buying an insurance policy a broker completes?

A binder Signup and view all the answers

A binder:

Notice that insurance is bound waiting policy issuance Signup and view all the answers

A subscription policy?

Many companies are on risk using their own insurance building wordings Signup and view all the answers

A legal entity is one who:

Acts within the boundaries of the law in all things Signup and view all the answers

When you or others benefit from the existence or financially hurt by the non existence of something, you have?:

Insurable interest Signup and view all the answers

Insurance under more than one policy is?

Sharing of loss or liability between two or more insurance companies Signup and view all the answers

What is proximate cause?

The cause that sets a remote cause into motion Signup and view all the answers

With respect to salvage:

The value of what is determine after something has been damaged Signup and view all the answers

Insurance is:

A promise to pay only when the premium has been received Signup and view all the answers

Risk is:

The chance of loss Signup and view all the answers

When discussing Property and Casualty Insurance?

Insurance other than Life and Health Insurance Signup and view all the answers

All Brokerages must have?

A trust account and general account Signup and view all the answers

One way an insurer can cancel a policy is by doing what?

Giving the insured 15 days notice by registered mail and refunding the unearned premium Signup and view all the answers

Non-disclosure or Concealment has been determined by the insurer. To void the policy the insurer must?

The misrepresented fact was material to the risk Signup and view all the answers

If an insured is bankrupt under a policy and has an insured loss, what must the insurer do?

The insurer is liable to pay the loss to the Trustee in Bankruptcy Signup and view all the answers

Any policy that has the peril of Fire must have Statutory Conditions attached to the policy wording and they are to protect?

The broker Signup and view all the answers

Misrepresentation by the insured:

Voids the policy at the option of the insurer Signup and view all the answers

The Standard Mortgage Clause has 6 paragraphs to outline:

The rights of the insurer, the obligations of the mortgagee, and the rights of the mortgagee Signup and view all the answers

Improvements and Betterments made to a Condominium Unit by its owner are:

Under Coverage A3 of the individual Unit Owners Comprehensive Policy Signup and view all the answers

The contents of a building are insured for $90 000 but valued at $200 000. The policy contains a 90% co-insurance clause with a $500 deductible. A fire damages the contents to the extent of $20 000. How much would the policy pay?

$9,500 Signup and view all the answers

A Client has a Condominium Policy and starts a home-based business within the unit. What could this do?

It is a change material to the risk and coverage could be impaired because of failure to notify the insurer Signup and view all the answers

Additional Living Expense under a Tenants policy is payable when the premises become unfit for occupancy in which one of the following circumstances?

The insured's apartment had a fire Signup and view all the answers

The Condominium Unit Owners Comprehensive Policy include?

It provides additional coverage for the owner of the Condominium unit if the Condominium Corporation's insurance is inadequate or is not effective Signup and view all the answers

A client is storing Personal Property in a Mini Storage unit for 5 months, what will happen?

All coverages under their present policy will continue to apply Signup and view all the answers

Your client has a Home policy and installing a recreation room over the next few months and buys materials and supplies from a hardware store. Since he has a shared driveway and does not have enough space, he is storing some of the materials at his brothers garage and a tornado hits the area and destroys all of the materials and the clients' loss is $2800. How much will be paid?

Nothing Signup and view all the answers

Your client was visiting his friends home and breaks an expense vase while taking off his shoes at the front door. The client is very embarrassed and wants to know if this is covered.

Yes, coverage is afforded under the Voluntary Property Damage section, subject to the deductible Signup and view all the answers

Which of the following coverages under a Homeowners policy is not automatically increased in amount at the anniversary of the policy?

Liability Coverage Signup and view all the answers

In claiming for damage to a building under a Homeowners Comprehensive policy, the insured has two options: (A) replacement cost settlement: or (B) actual cash value settlement. If the insured opts for (A), which (1) of the following requirements does NOT apply?

The amount of the loss will be based upon the relationship between the amount of the insurance and 80% of the actual cash value of the building Signup and view all the answers

Your insured owns one of each of the vehicles listed and seeks advice concerning coverage. Which one (1) is covered under the Liability section of the Homeowners Comprehensive policy?

Motorized wheel chair Signup and view all the answers

Your client has a $60,000 Tenants policy. Due to a water damage claim, the insured has to move out for 2 months and has a motel bill for $6,000 and rent of $2,400 for the apartment. How much will the Additional Living Expense pay?

$6000 Signup and view all the answers

The "pair and sets" clause in an insurance policy means:

Settlement of a loss with respect to an article which is part of a set, shall be based upon the basis that the entire set has been destroyed or damaged Signup and view all the answers

In Section 2 Liability Coverage of the Homeowners Comprehensive policy, coverage is provided for Voluntary Payment for Damage to Property in which one of the following situations?

Property of others damaged intentionally by the insured's 10 year old son, which he is not legally liable. Signup and view all the answers

Your insured has a Tenants Comprehensive Policy through your brokerage. He has signed a waiver which releases the landlord from liability for injury or damage occurring on the premises being rented. A fire in the building damages your insured's contents. It is established that the landlord was responsible for the fire. Which of the following statements is correct regarding coverage under the policy?

The insurer will pay the loss but would be unable to subrogate. Signup and view all the answers

Your client has a Condominium policy subject to a $500 deductible. The common areas of the building suffer severe damage which is not covered by the Condominium Corporations Master Policy. Under the Governing Rules of the Corporation has assessed your client $1,500 of the damages. How will be paid under the policy?

$1,000 Signup and view all the answers

The liability section of a Condominium policy does not provide coverage for which one of the following properties?

Farms Signup and view all the answers

If an insurer discovers a non-disclosure on an application, what can the insurance company do?

oid the contract and return the paid premium in full. Signup and view all the answers

Your insured owns a secondary residence and rents one out for $1,200 per month. A fire destroys the entire building. The Secondary policy covers the building for $500,000 subject to a $1000 deductible. How much would Optional Additional Coverages pay for this loss?

Nothing as the Rental Value section is included in the policy limit. Signup and view all the answers

To what extent does A2 Loss Assessment Coverage in the Comprehensive Condominium Unit Owners policy cover an assessment against a Unit owner?

Any assessment made by the Corporation as long as it is not from the Master policy deductible. Signup and view all the answers

Your client has closed their seasonal residence for the winter and is not intending to return until spring. What is the status of the premises?

Unoccupied Signup and view all the answers

Following registration as an insurance broker, an individual

Must notify the Registered Insurance Brokers of Ontario if any information on the original application for registration or renewal has become obsolete, including a change in employer, and file a notice correcting that information within thirty (30) days of the change. Signup and view all the answers

Upon successful completion of the examination you may qualify for registration as an insurance broker. If issued, the registration will be "restricted to acting under supervision". Which one (1) of the following most accurately describes the conditions under which you may act as an insurance broker under supervision?

You may operate a trust account in your own name into which you may deposit premiums you receive from policyholders. Signup and view all the answers

The RIBO Code of Conduct is stated in Ontario Regulation 991, Section 14. Three (3) of the following four (4) provisions are contained in the Code. Indicate the one. (1) which is NOT.

To be both candid and honest when advising the member's client. Signup and view all the answers

An individual who acts or aids in any manner in soliciting, negotiating or procuring the making of any contract of insurance is required to be registered as an insurance broker if he or she:

Performs these duties as a favour to a friend who does not understand English. Signup and view all the answers

RIBO Regulations stipulate that brokers must provide a policy or certificate of insurance to an insured within a certain period after insurance has been placed. What is the length of that period?

Immediately Signup and view all the answers

An Insurance Broker whose registration is restricted to acting under supervision may:

Solicit insurance from members of the public anywhere in Ontario. Signup and view all the answers

An Individual is required to be registered as an insurance broker if he/she:

For remuneration, transacts insurance solely on behalf of one insured and a facility association carrier Signup and view all the answers

The RIB Act grants to the Discipline Committee of RIBO power to impose penalties on members found guilty of misconduct, which is defined under Section 15(1) of Ontario Regulation 991. Which one (1) of the following is NOT defined as "misconduct"?

The payment of any referral fee or finder's fee to any person who is not a registered insurance broker or who is not registered or licensed under the laws of any jurisdiction to act as an intermediary for insurance, other than life insurance. Signup and view all the answers

Which one (1) of the following would NOT be considered a peril under a Tenant's Comprehensive Policy:

Storage of explosives Signup and view all the answers

Which one (1) of the following does NOT have an insurable interest in a building owned by the insured which is mortgaged?

A Prospective purchaser of the property. Signup and view all the answers

Which one (1) of the following statements is TRUE about insurers?

Lloyd's of London is NOT an insurance company Signup and view all the answers

When an insured is indemnified by an insurer after a loss, it means:

The insured received the amount of his/her loss. Signup and view all the answers

Where there is a co-insurance clause in a replacement cost policy, it is necessary to determine:

The amount which could be obtained for the property in a sale. Signup and view all the answers

If an insured requests mid-term cancellation of a policy, the insurer will:

Make a note in the file not to renew. Signup and view all the answers

Which one (1) of the following is a hazard as it pertains to insurance?

Bare electrical wires. Signup and view all the answers

A fiduciary is:?

One who holds money or property in trust. Signup and view all the answers

Which one (1) of the following perils may be insured under a property insurance policy?

Loss or damage caused by the insured's criminal acts Signup and view all the answers

The Sue and Labour Clause in an insurance policy is designed to:

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. Signup and view all the answers

Laws regulating the zoning, demolition, repair or construction of buildings and their related services can increase costs of repair to buildings. These increased costs are:

Insurable if specified in a property policy. Signup and view all the answers

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?

$60,000. Signup and view all the answers

Freezer Foods coverage provides for payment of loss caused by spoilage of frozen foods contained in your food freezer on your premises.

It is provided on an "All Risks" basis. Signup and view all the answers

The Facility Association:

Is a pooling arrangement of all automobile insurers who share the loss experience of the pool Signup and view all the answers

Which one (1) of the following classes of insurance is intended to indemnify a business for loss of income due to fire damage to building, stock and equipment?

Business Interruption Insurance Signup and view all the answers

Which one (1) of the following would protect your client against a loss due to the dishonesty of an employee?

A burglary policy Signup and view all the answers

Replacement Cost and Actual Cash Value are two different bases of indemnification for loss. Which (1) ONE of the following statements is INCORRECT?

Actual Cash Value is the depreciated value shown in the Balance Sheet of a Financial Statement. Signup and view all the answers

An insurer wishing to terminate an insurance policy may do so by:

Refunding the entire policy premium. Signup and view all the answers

Subrogation is:

The percentage of risk taken by each insurer on a subscription policy. Signup and view all the answers

Nearly every insurance policy has Policy Conditions which are common to all policies issued in a particular class. Some policies contain Statutory Conditions. Which one (1) of the following types of insurance has Statutory Conditions?

Liability insurance policy Signup and view all the answers

An insurer believes an insured has deliberately misrepresented a risk which it would not have written had the insurer known the true facts. The premium has been paid in full and the policy has been in force for three months. In voiding the policy the insurer would:

efund the unearned premium as to the property to which the misrepresentation was made. Signup and view all the answers

What is the purpose of a contract between an insurer and an insurance broker (company/broker agreement)?

To satisfy the requirements of the Department of Insurance. Signup and view all the answers

The insurance industry is very particular about specific definitions describing various perils under crime coverages. Which one (1) of the following would be considered a robbery loss?

A group of violent people entered your insured's store, threatened the clerks on duty with a gun and carried away several items of stock and all the cash in the cash register Signup and view all the answers

The insured, under a property policy, goes bankrupt and there is a loss shortly thereafter. Which (1) one of the following statements is TRUE?

The loss would be paid by the Trustee in Bankruptcy. Signup and view all the answers

In insurance terms, a peril is frequently described as a cause of loss. Which one (1) of the following is NOT a peril.

Fire Signup and view all the answers

Where a loss occurs under an insurance binder before a policy has been issued, the insurer will:

Cancel the binder by registered letter and deny liability, Signup and view all the answers

The contents of a building are insured for $45,000 but valued at $100,000. The policy contains a 90% co-insurance clause along with a $2,500 deductible clause. If fire damages the contents to the extent of $8,000, how much would the insurer pay?

$8,000. Signup and view all the answers

The deductible clause in an insurance policy:

Always disappears when the loss exceeds a specified amount. Signup and view all the answers

A building owned by A. is sold for cash to B. Two days after the sale, a fire destroys the building causing a loss of $100,000. Neither the broker nor the insurer were notified of the change in ownership. The insurer would pay:

$50,000. Signup and view all the answers

A valued policy is one which:

Provides for replacement cost of the property irrespective of the amounts of the insurance. Signup and view all the answers

The lessor of an automobile is:

The automotive dealer who sold the vehicle which was subsequently leased. Signup and view all the answers

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 Homeowners Comprehensive policy covers:

The cost plus 25% for improvements and betterments. Signup and view all the answers

Which one (1) of the following is a type of Business Interruption Insurance?

Profits Insurance.. Signup and view all the answers

The insured decides to install a recreation room in the basement of the house. How may this affect coverage under the insured's Homeowners Comprehensive Policy?

Coverage under the policy will not be affected. Signup and view all the answers

Loss or damage caused by earthquake is:

A coverage which may be added to a property policy for an additional premium. Signup and view all the answers

What purpose does a Proof of Loss serve when filed by the insured following a fire loss?

None Signup and view all the answers

The agreement or contract between an insurance broker and an insurer usually authorizes the broker to do one (1) of the following. Which is it?

Bind the insurer on acceptable risks. Signup and view all the answers

Which one (1) of the following liability coverages is intended to protect an insured who is planning to build a new home and will be sub-letting part of the contract to subcontractors?

Personal injury insurance. Signup and view all the answers

A building worth $120,000 is insured for $60,000 under a fire policy with an 80% co-insurance clause. Fire damages the building to the extent of $104,000. How much would the insurer pay?

$52,000. Signup and view all the answers

Which one (1) of the following coverages under a Homeowners Comprehensive policy including Inflation Protection is NOT automatically increased in amount at the anniversary date of the policy?

Personal Property Coverage. Signup and view all the answers

Improvements and Betterments made to a Condominium Unit by its owner are insured:

Under coverage A3 of the individual Unit Owners Comprehensive Policy Signup and view all the answers

Your client, John Smith insures his Condominium Unit through your office on a Comprehensive form subject to a $200 deductible. He calls in a fire damage claim. Damage is estimated to be $750 to replace a dishwasher, $1000 for the marble countertop and $250 to clean the cabinets. How much will he recover under his policy?

$750 for the dishwasher, less the deductible Signup and view all the answers

Your clients advise you they have just purchased a set of matching antique candlesticks, valued at $2,500 each. They have Canadian historical significance and they wish to insure them specifically. You would recommend they:

Insure the items by means of a Fine Arts coverage endorsement added to the Homeowner policy. Signup and view all the answers

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?

10% of the amount of insurance on the dwelling divided by the number of structures. Signup and view all the answers

The Homeowners Comprehensive policy provides coverage for Voluntary Property Damage when caused unintentionally by an insured person. This extension of coverage does NOT apply where:

The damaged property is rented from an establishment which rents equipment on a daily basis Signup and view all the answers

Under the Tenants Comprehensive policy, all of the following, EXCEPT ONE covers the tenant's own property. Mark the EXCEPTION.

Personal property damaged by change of temperature resulting from physical damage by an insured peril. Signup and view all the answers

Which one (1) of the following does the Homeowners Comprehensive policy automatically cover?

Personal belongings temporarily stored in a storage warehouse for all listed perils of the policy. Signup and view all the answers

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?

Loss Assessment (Coverage A2). Signup and view all the answers

An insurer has issued a vacancy permit on a vacant property. Which one (1) of the following losses would continue to be insured by the policy covering the property?

Vandalism Signup and view all the answers

A Tenant's Comprehensive policy provides coverage for Voluntary Payment for Damage to Property. This applies to only one (1) of the following situations. Which is it?

Damage caused by a guest, who backed an automobile into a portable barbeque which the insured had borrowed from a neighbor. Signup and view all the answers

A claim for Additional Living Expenses under a Homeowners Comprehensive Policy would NOT be covered if which one of the following occurred?

The insured's home is infested with termites and insured has to move out during the extermination. Signup and view all the answers

Your insured owns one of each of the vehicles listed and seeks advice concerning coverage. Which one (1) is covered under the Liability section of the Homeowners Comprehensive policy?

A motorized wheelchair. Signup and view all the answers

Your insured advises he and his wife are moving to another city and intend to place their furniture in storage while they look for a new apartment. They ask for advice about coverage under the Tenants Comprehensive policy. You advise them:

Their policy will automatically cover their property in storage. Signup and view all the answers

Your client, Anna Thompson recently lost her husband. She has decided to sell her home an purchase a Condominium Unit. She is inquiring what changes she will need to make to her current Comprehensive Homeowners Policy. You would advise:

Any improvements made to the unit do not need to be included in her policy because they are insured by the Condominium Corporations master insurance policy. Signup and view all the answers

Which one (1) is NOT true of the Replacement Cost Coverage under a Homeowners Comprehensive policy?

Replacement must be made with property of similar quality Signup and view all the answers

To what extent does Loss Assessment Coverage A2 in a Comprehensive Condominium Unit Owners Policy cover an assessment against a unit owner?

Any covered assessment made by the Condominium Corporation, as additional insurance up to the limit specified on Unit Improvements and Betterments. Signup and view all the answers

A vacancy permit is required to continue fire insurance on a property where:

The occupant has taken a six-month vacation and left no one to take care of the residence and its contents. Signup and view all the answers

A client comes into your office to arrange for a Travel Health policy. Your questioning reveals he will be skydiving while on the trip. You tell him that he:

Will not be covered while skydiving. Signup and view all the answers

Travel Health insurance is based on O.H.I.P. being the primary payor. O.H.I.P. will normally cancel coverage:

After 212 days of absence. Coverage will not be reinstated until 90 days after the traveler has resumed residence in Ontario. Signup and view all the answers

Travel Health policies contain certain limitations which it is important to be explained to applicants for such insurance. Three (3) of the following are commonly found limitations. Indicate the one (1) EXCEPTION.

Continuing medical treatment if the insured is not medically fit to return to the country of residence following emergency treatment. Signup and view all the answers

Most travel health insurance providers may deny claims, or seriously curtail benefits if:

The attending physician has not submitted a bill in writing. Signup and view all the answers

When discussing travel health insurance with anyone, you would be wise to point out:

Travel health policies do not provide accidental death benefits. Signup and view all the answers

Is a snowmobile considered to be an automobile for insurance purposes in Ontario?

Not when being operated by an underage driver Signup and view all the answers

Your client calls to advise he/she needs insurance on a car leased from an automobile dealer. Which one (1) of the following policies is required?

O.P.F. #2 Driver's Form. Signup and view all the answers

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?

$170,000 Signup and view all the answers

Newly acquired automobiles are automatically covered under an O.A.P. 1 Owner's Form provided the insurer is notified:

Within 21 days Signup and view all the answers

Insurance under O.A.P. 1 Owner's Form, Section 7, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to damage caused by:

Explosion Signup and view all the answers

Uninsured Automobile coverage:

Provides coverage for third parties if the insured causes bodily injury and has breached a statutory condition Signup and view all the answers

Your insured belongs to a car pool and uses his/her automobile to transport the other three members to work every fourth week. One of the other members drives each of the other three weeks. As his/her insurance broker, what would you recommend to make sure your client is covered against claims from passengers for injures?

Advise the insurer to reclassify the vehicle to business use. Signup and view all the answers

Under the "What Automobiles Are Covered" section of O.A.P. 1 Owner's Form, a newly acquired automobile is automatically covered for a period of 14 days. This automatic coverage is limited to:

Vehicles which are chiefly used for pleasure purposes. Signup and view all the answers

All clients should be counseled regarding the availability of optional benefits available under O.A.P. 1 Owner's Form. Which one (1) of the following is NOT available?

Increased Income Replacement Benefit. Signup and view all the answers

O.P.F. #6, Non-Owned Automobile Insurance Form is designed to protect:

An employer whose employees drive their own vehicles in the course of his/her business. Signup and view all the answers

Indicate the correct way to insure a snowmobile.

By an endorsement to a Homeowners or Tenants policy to cover the Third Party Liability and a Personal Articles Floater for direct damage to the machine. Signup and view all the answers

An insured requests that the limit of liability in his/her automobile policy O.A.P. 1 be reduced. pe What is the minimum amount he/she must carry under Ontario Law.

$100,000/$300,000 - Bodily Injury, $50,000 - Property Damage Signup and view all the answers

A client phones to tell you he has bought a high-end stereo system costing $5,000 which has just been installed in his car. What should you tell him?

No further action is needed. The new system is automatically covered under the O.A.P. 1 Owner's Form as part of the car. Signup and view all the answers

In the following statements about Section 6- Direct Compensation - Property Damage - of the O.A.P. 1 Owner's Form, one (1) is INCORRECT. Indicate which one it is:

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. Signup and view all the answers

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?

Your insured's windshield was smashed by a falling boulder while driving through a rock-slide area. Signup and view all the answers

The basic Income Replacement Benefit payable under O.A.P. 1 Owner's Form, Section 4 - Accident Benefits Coverage is $400 per week. The actual amount is based on:

70% of Gross Income Signup and view all the answers

One of the following statements is correct. Which one (1) is it. Electronic accessories or equipment are covered under O.A.P. 1 Owner's Form:

For their full replacement cost. Signup and view all the answers

How would you describe to your policyholder the purpose of OPCF #44 Family Protection Coverage? It is designed to:

Provide flexibility in the insured's coverage in case it is inadequate to meet the costs resulting from the use or operation of the insured vehicle. Signup and view all the answers

Insurance under Section 7 of O.A.P. 1 Owner's Form, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to loss or damage caused by:

Windstorm Signup and view all the answers

Your insured calls to report while ice fishing on Lake Simcoe his/her automobile went through the ice. He/she has O.A.P. 1 Owner's Form with Liability, Accident Benefits and Comprehensive Coverages. The insurer:

Would not pay the claim as there is no coverage Signup and view all the answers

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Questions and Answers

The Federal Department of Insurance is most interested in which of the following?

Rules or agreements concerning the binding of coverage by brokers are:

The unearned premium reserve is a fund for the protection of the public that:

R.I.B.O (Registered Insurance Brokers of Ontario) is:

Who is protected by a mortgage clause in a property insurance policy?

In general, when an insurance company indemnifies an insured, it tries to:

In arranging an insurance contract the broker must always:

Your insured request that his automobile policy be cancelled part way through the term. The refund due to the insured would be calculated on:

In many ways an insurance contract is similar to a legal contract one might encounter. One feature that it does not share with any other contract is:

Of the following individuals, who has the legal capacity to contract:

Of the following persons or organizations who could have an insurable interest in a piece of real property (real estate)?

An insured owns a building valued at $200,000 and insures it for same amount subject to an 80% co-insurance clause. A fire does $100,000 damage. How much of the loss will the insurer pay?

An insured owns a building valued at $100 000 and insured it for $70,000 with a 90% co-insurance clause. The building is damaged by fire to an extent of $25,000. How much of the loss will the insurer pay for?

You insure your new home in the country. It is twelve miles from town and has no available fire protection. You write one policy for $1,000,000 All Risk and since none of your companies would write the whole amount you insure it using three companies. This is known as:

Pure premium is the:

A person wishing to buy insurance may complete:

A binder

A subscription policy differs from other policies in that:

A legal person is one who:

People who stand in such relationship to property that they may be financially prejudiced by its loss and financially benefit from its continuing existence are said to have:

Contribution is the:

The proximate cause is:

With respect to salvage:

Insurance is:

Risk is:

When we speak of General Insurance, we mean:

An independent agent or broker must maintain a trust account:

An insurer wishing to terminate an insurance policy may do so by:

Misrepresentation discovered by an insurer may result in the policy being voided. To do so successfully, the insurer must show:

The insured, under a Fire Policy, goes bankrupt and there is loss shortly afterward. Which one (1) of the following statements are true?

Statutory Conditions in a Fire Policy are primarily to protect the rights of:

Misrepresentation by the insured in applying for insurance:

The Standard Mortgage Clause approved by the Insurance Bureau of Canada and generally used throughout the insurance industry outlines:

Improvements and Betterments made to a Condominium Unit by its owner are:

The contents of a building are insured for $90 000 but valued at $200 000. The policy contains a 90% co-insurance clause with a $2 500 deductible. A fire damages the contents to the extent of $20 000. How much would the policy pay?

Your client has a Homeowners Comprehensive Policy through your office. She decides to go into business for herself and opens up a hairdressing salon in her home without telling you. She has no employees. How may this affect her insurance policy?

Additional Living Expense under a Homeowners Comprehensive policy is payable when the premises become unfit for occupancy in which one (1) of the following circumstances?

The Condominium Unit Owners Comprehensive Policy includes which one (1) of the following?

Your clients advise they are having their house renovated. Until it is ready for occupancy, they will be placing most of their goods in storage for six weeks. They ask you if coverage under their Homeowners Comprehensive policy will extend to the property in storage. You advise them that:

Your insured phones you and tells you that while visiting with his prospective in- laws, he accidentally burnt a small hole in their oriental rug. The insured wishes to know if the cost of repairing the rug is covered under his Tenants Comprehensive policy. You advise:

Which one (1) of the following coverages under a Homeowners Comprehensive policy including Inflation Protection is NOT automatically increased in amount at the anniversary of the policy?

In claiming for damage to a building under a Homeowners Comprehensive policy, the insured has two options: (A) replacement cost settlement: or (B) actual cash value settlement. If the insured opts for (A), which (1) of the following requirements does NOT apply?

Your insured owns one of each of the vehicles listed and seeks advice concerning coverage. Which one (1) is covered under the Liability section of the Homeowners Comprehensive policy?

The "pair and sets" clause in an insurance policy means:

In Section 2 Liability Coverage of the Homeowners Comprehensive policy, coverage is provided for Voluntary Payment for Damage to Property in which one of the following situations?

The liability section of a Homeowners Comprehensive policy does NOT provide coverage for which one of the following properties?

If an insurer discovers a misrepresentation has been made by an insured on a new application, which one of the following steps may the Insurer NOT take if the representation is material to the risk?

To what extent does A2 Loss Assessment Coverage in the Comprehensive Condominium Unit Owners policy cover an assessment against a Unit owner?

Your client has closed their seasonal residence for the winter and is not intending to return until spring. What is the status of the premises?

Risk is:

Insurers achieve a spread of risk by:

Actual Cash Value is:

An express contract between an agent and principal is one in which the:

Where there is a co-insurance clause in a replacement cost policy, it is necessary to determine:

If an insured requests mid-term cancellation of a policy, the insurer will:

Which one (1) of the following perils may be insured under a property insurance policy?

The Sue and Labour Clause in an insurance policy is designed to:

Laws regulating the zoning, demolition, repair or construction of buildings and their related services can increase costs of repair to buildings. These increased costs are:

A binder.

Proximate cause is:

Subrogation:

The basic perils Insured by each and every Basic Fire Policy include:

Which of the following is NOT an extended coverage peril.

Nearly every insurance policy has Policy Conditions, which are common to all policies issued in a particular class. Some policies contain Statutory Conditions. Which one (1) of the following types of insurance has Statutory Conditions?

Which one (1) of the following affects the amount of settlement of an insured loss?

The insured calls to report someone has broken into their unlocked seasonal dwelling. You would advise

The insured, under a property policy, goes bankrupt and there is a loss shortly thereafter. Which (1) one of the following statements is TRUE?

The contents of a building are insured for $45,000 but valued at $100,000. The policy contains a 90% co-insurance clause along with a $2,500 deductible clause. If fire damages the contents to the extent of $8,000, how much would the insurer pay?

Insurance under O.A.P. 1 Owner's Form, Section 7, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to damage caused by:

Uninsured Automobile coverage:

A client phones to tell you he has bought a high-end stereo system costing $5,000, which has just been installed in his car. What should you tell him?

One of the following statements is correct. Which one (1) is it? Electronic accessories or equipment are covered under O.A.P. 1 Owner's Form:

Insurance under Section 7 of O.A.P. 1 Owner's Form, Loss or Damage Coverages, is usually subject to a deductible. It does not apply to loss or damage caused by:

Your insured calls to report while ice fishing on Lake Simcoe his/her automobile went through the ice. He/she has O.A.P. 1 Owner's Form with Liability, Accident Benefits and Comprehensive Coverages. The insurer.

The Facility Association Is:

The insured's automobile is broken into and some articles are taken. Specified penils will cover.

If the insured drove his automobile in to his own garage door, what would be included under the Own Damage coverage of his automobile policy?