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OTL Practice Exam A Questions and
Answers Already Passed
Which of the following is not a definition of "Certificate of Insurance"?
a) It does not certify the existence of insurance.
b) May be a modified form of a policy.
c) Issued as a convenience to a party who may have interest in the insurance.
d) None of the above. โโa) It does not certify the existence of insurance.
The Casualty Department underwrites:
a) Homeowner policies.
b) Marine risks.
c) Business property and stock.
d) Accident and Sickness, Crime and Robbery. โโd) Accident and Sickness, Crime and Robbery.
Which statement best defines the term Actual Cash Value?
a) It is the same as replacement cost.
b) Is the replacement value of the property.
c) Same as B above, less any accumulated depreciation.
d) Today's market value of the property. โโd) Today's market value of the property.
A definition of Ordinary negligence:
a) Will always refer to bodily injury to a third party.
b) Is the failure to do what a reasonable person would do in a given situation.
c) Is basically the same as gross negligence.
d) Would always include reference to impaired driving. โโb) Is the failure to do what a reasonable person would do in a given situation.
Which statement is CORRECT pertaining to Moral Hazard?
a) Untidy general housekeeping.
b) Mental attitude and character of the person.
Which of the following is NOT part of the insuring agreement?
a) Circumstances under which the insured may receive the proceeds of the insurance.
b) The exclusions.
c) The perils insured against.
d) The premium to be paid. โโd) The premium to be paid.
What are the different types of insurance companies?
a) Mutual
b) Mutual and Stock
c) Mutual, Stock and Lloyds
d) Stock โโb) Mutual and Stock
Which of the following would NOT be considered as part of the agents' duties?
a) Service and settle claims.
b) Represent the client and client's interest.
c) Represent the insurer.
d) Deposit the premiums in the trust account and transfer the proceeds to the insurer at a later date. โโa) Service and settle claims.
"Statutory Conditions" are:
a) Frequently part of a fire policy.
b) The same as the "Insuring Clause".
c) Set out in the Provincial Insurance Act.
d) Legislated by the Federal Insurance Department. โโc) Set out in the Provincial Insurance Act.
Negligence can be defined as:
a) Omission to do something a reasonable person would do.
b) To do something a reasonable person would do.
c) Acting under normal circumstance.
a) Summer cottage.
b) Replacement cost of loss.
.c) Additional living expenses.
d) Scheduled articles โโ.c) Additional living expenses.
The person decides to renovate their home, as a result they have to obtain temporary residence until the work is complete. The homeowner's policy will pay:
a) None of the expenses.
b) As stated in the policy.
c) Will cover nominal living expenses.
d) Will cover only a percent of the expenses โโa) None of the expenses.
Which of the following best describes a Tenant's Package Form?
a) No coverage for personal property.
b) It covers building and liability.
c) It is the same as a homeowner's policy, except it does not cover the building.
d) It does not cover theft. โโc) It is the same as a homeowner's policy, except it does not cover the building.
A Condominium Unit Package covers which of the following?
a) Shares with the Condo Corporation in insuring the building.
b) It insures the unit, personal property and includes coverage's for improvements and betterment's.
c) Insures unit, building and includes coverage for improvements and betterment's.
d) All of the above. โโb) It insures the unit, personal property and includes coverage's for improvements and betterment's.
The property was insured for $100,000., and valued at $150,000., with a 80% co-insurance, the loss was $80,000. The amount the client would receive is:
a) $80,000.
b) $66,667.
c) $96,000.
d) $100,000. โโb) $66,667.
a) Accidental fire damage resulting from the application of heat is excluded.
b) Loss, destruction or damage to goods undergoing the process involving the application of heat is excluded.
c) If the building insured has been vacant or unoccupied for the last twenty-five (25) days loss is excluded.
d) All of the above are excluded. โโb) Loss, destruction or damage to goods undergoing the process involving the application of heat is excluded.
The Basic Homeowner policy covers:
a) Building, personal property, summer cottage.
b) Building, detached private structures, additional living expenses.
c) Building, legal liability, increased personal property.
d) Building, personal property and fine arts endorsements. โโb) Building, detached private structures, additional living expenses.
Your parents have given you a very old and expensive painting, it should be covered under:
a) Schedules Article endorsement.
b) Under Additional coverage of your Homeowner's policy.
c) Fine arts endorsement.
d) Under personal property of the policy. โโc) Fine arts endorsement.
The term "Insuring Agreement" in a Fire policy:
a) Refers to the inception and expiry dates of the coverage.
b) Is quite complex and hard to follow.
c) States the risks that are insured.
d) Is the same as the "Declarations" in an auto policy. โโc) States the risks that are insured.
The "All Risks" policy:
a) Applies when every kind of loss or damage is covered.
b) Is basically the same as a fire policy with EC.
c) Has exclusions stated in the policy.
d) Covers the same risks as the Named perils policy. โโc) Has exclusions stated in the policy.
d) Damage caused by continuous or repeated seepage or leakage is covered. โโd) Damage caused by continuous or repeated seepage or leakage is covered.
Which definition(s) best describes co-insurance?
a) Designed to encourage the insured's to carry adequate amount of insurance.
b) To bear a portion of every loss if under insurance exists.
c) Mostly applied to commercial buildings and residential dwellings.
d) All of the above. โโd) All of the above.
Which is NOT considered an insured peril?
a) Impact by aircraft or land vehicle.
b) Smoke.
c) War.
d) Water escape, rupture, freezing โโc) War.
Glass breakage coverage does not include:
a) Storm windows and doors.
b) Buildings under construction or vacant even if permission for construction or vacancy has been given by the insurer.
c) Insured's rented dwelling.
d) Detached private structures. โโb) Buildings under construction or vacant even if permission for construction or vacancy has been given by the insurer.
Named perils coverage under the Boat and Motor Form, does not include:
a) Fire or lightning.
b) Cyclone, tornado or windstorm only while on land.
c) Collision of boat or motor with another boat or motor, while the insured property is in the water.
c) Fire damage to the insured's seasonal residence is covered.
d) Two weeks hotel expenses for the insured while the house is repaired; following collapse of the roof due to ice is covered. โโc) Fire damage to the insured's seasonal residence is covered.
Which of the following statements is CORRECT in connection with Homeowner's insurance?
a) Only property belonging to the named insured is covered.
b) Actual cash value is not a consideration after total loss of property.
c) There is usually no requirements concerning the amount of insurance on the contents.
d) There is no co-insurance requirement by the insurer. โโd) There is no co-insurance requirement by the insurer.
Condominium insurance, which of the following is CORRECT?
a) The Condo unit package does not insure contents.
b) The Condo unit owner must buy insurance for their part of the building's common elements.
c) The Condo Corporation does not own the land where the building is located.
d) The Condo unit owner owns the space inside the unit, the contents and improvements by the owner. โโd) The Condo unit owner owns the space inside the unit, the contents and improvements by the owner.
Under the Entry, Control, Abandonment, the insurer is not entitled to:
a) Enter to survey damage without the consent of the insured.
b) The control or possession of the property.
c) Enter property after it has been secured.
d) Right of access to make appraisement. โโb) The control or possession of the property
Which of the following is covered by the Basic Fire policy?
a) Loss to goods caused by a process involving the application of heat.
b) Damage to an electrical device caused by a short circuit.
c) Fire damage caused by a fire which followed a short circuit.
Which of the following clauses or endorsements would have to be attached to a policy, if loss settlement is to be made without deduction for depreciation?
a) Rebuilding clause.
b) Extended coverage endorsement.
c) Loss clause.
d) Replacement cost endorsement. โโd) Replacement cost endorsement.
Which of the following automobile documents must be approved by the Superintendent of Insurance?
a) Application forms
b) Policy forms
c) Endorsement forms
d) All of the above โโd) All of the above
Provincial Insurance Acts governing automobile insurance applications state that
a) A signed application must be obtained before a policy can be issued
b) A signed application must be obtained after the policy is issued
c) No application is required unless the insured wants it
d) A "true' copy of the application may be signed after the policy has been issued โโd) A "true' copy of the application may be signed after the policy has been issued
All accidents and claims within the following time period immediately preceding the application must be disclosed
a) 3 years
b) 4 years
c) 5 years
d) 6 years โโd) 6 years
Who, from among the following, would NOT be covered under the Third Liability coverage of an automobile insurance policy?
a) Anyone who has the permission of the named insured to drive the automobile
b) A passenger who operates a part of the automobile
