Chapters 1-3

The Superintendent of Ins in ON is responsible for all of the following except one
a) supervising the terms and conditions of INS contracts
b) licensing of Insurers
c) monitoring financial stability of provincially licensed insurers
d) licensing of insura

d) licensing of insurance brokers

When an insurer claims bankruptcy and can not pay the claims of it policy holders, the PACICC does so on the bankrupt insurers behalf. What are maximum amounts that can be claimed from PACICC.
a) $250,000 for single occurrence and up to 70% unearned premi

a) $250,000 for single occurrence and up to 70%

According to the Insurance Act, a Fire policy expires at?
a) 12:01 am standard time at address of insured
b) 12:01 pm local time at the address of the insured
c) 12:01 am standard time at the mailing address of the insurer
d) 12:01 am local time at the ad

c) 12:01 am standard time at the mailing address of the insurer

Insurance Act states Removal of Property extension on fire policy provides coverage for maximum period of:
a) 7 days
b) 14 days
c) 30 days
4) 90 days

a) 7 days

Insurance Act states an insurer will settle a claim under a fire policy by paying the:
a) Actual Cash Value of damaged goods
b) Insureds interest in the property
c) Amount of insurance applicable to item
d) Least of answer A,B,C.

d) Least of answer A,B,C

A misrepresentation made at the point of the application for a policy
a) subjects the policy to a ten percent surcharge
b) forces the insurer to cancel the policy
c) makes the policy voidable at option of insurer
d) is of little consequence to the insurer

c) makes the policy voidable at option of insurer

Who controls application forms and policy wordings in ON
a) INS companies
b) INS brokerages
c) Superintendent of INS at FSC of ON
d) Federal GOV

c) Superintendent of INS at Financial Services Commision of ON

Statutory Conditions:
a) are sections of the insurance act which must be printed in cospicious type on all fire and automobile insurance policies
b) are rules created by the collective body of insurers in the province of ontario who have agreed to include

a) sections of the INS act which must be printed in conspicuous type on all fire and automobile insurance policies

Which of the following is a peril
a) wet floor in supermarket
b) leaky gas main in building
c) smoke from a fire in a neighbouring apt that enters your apt though vents
d) leaving a property vacant for 35 days while on vacation

c) smoke from neighbouring apt

Which type of loss would be covered under a fire policy as required under INS act
a) vandalism and glass breakage to your home
b) theft of suitcase while away
c) explosion of propane tank under your bbq that damages exterior wall
d) electrical appliances

c) explosion

According to the fire stat conditions after a fire loss, the insured must submit a proof of loss form:
a) within 30 days of loss
b) within 60 days of loss
c) within 90 days of loss
d) as soon as practicable

d) as soon as practicable

Should the insurer exercise their option to rebuild a property after loss, the work must begin
a) 15 days after receipt of proof
b) 30 days after receipt of proof
c) 45 days after receipt of proof
d) 60 days after receipt of proof

c) 45 days after receipt of proof

Salvage is:
a) Property remaining after a loss which still has some value
b) Property damaged or destroyed after the loss
c) Property remaining after a loss which has no value

a) Property remaining after a loss which still has some value

indemnity
a) is replacing a damaged item with a new one
b) is paying cash for the loss
c) ensures an insured neither gains nor loses from an insured loss
d) is sharing the losses of a few among many

c) ensures an insured neither gains nor loses from an insured loss

which of the following is not an element required to be present to make all contracts enforceable by law
a) consideration
b) legal capacity of all parties to the contract
c) the object of the contract must be legal
d) utmost good faith between all parties

d) utmost good faith

Which of the following does not have the legal capacity to contract
a) sonia sutter aka Sonia Sports
b) Mike's fishing supplies and skating stores
c) Friendly insurance brokers LTD
d) Normas garden centre INC

b) Mike's

The insurance act states that a fire policy must include 3 perils which are
a) fire, theft and vandalism
b) fire, lightning, and limited explosion
c) fire, explosion and smoke damage
d) fire, lightning and smoke damage

b) fire, lightning and limited explosion

a contract which is against public policy
a) is unenforceable and void
b) is uninsurable
c) requires approval of the superintendent of the FSCO
d) must contain 5 elements of common law contracts to be enforceable at law

a) is unenforceable and void

insurance contracts require 3 elements to be enforceable by law. which is not one of them
a) insurable insight
b) unconditional agreement
c) utmost good faith
d) indemnity

b) unconditional agreement

a reinsurer who is taking on a portion of a risk that has already been reinsured is sometimes called
a) cessionaire
b) retrocessionaire
c) retroinsurer
d) cession

b) retrocessionaire

treaty reinsurance exists when
a) companies have standard agreements to share particular classifications of risk
b) companies reinsure very large risks and need to discuss specific details of each policy
c) there is an equal division of risk and premium b

a) companies have agreements to share risk

who would not be considered to have insurable interest
a) the owner of a home
b) a mortgagee of a property
c) the owner of a building that is totally rented to others
d) a person who expects to inherit property after fathers death

d) inheritance

a basic fire policy will automatically cover all of the following except one. mark exception
a) trustee in bankruptcy
b) heir to property after death of original insured
c) spouse of the named insured and who is named in policy
d) purchaser of a builing a

d) purchaser of a bulding after the building has been transferred from original.

Which of the followning is not a generally accepted practice for dealing with risk
a) ignoring the risk
b) controlling the risk
c) transferring the risk
d) avoiding the risk

a) ignoring the risk

Which of the following is false with regard to subrogation
a) the pursuing of payment from the responsible 3rd party
b) can be pursued by the insurer only after payment of a claim under contract
c) can be pursued by the insured after a claim has been paid

c) can be pursued by the insured after a claim has been paid b insurer