Question 1

Samuel is a broker who does NOT have claims-handling authority. He received a call from an insured at the scene of an auto accident. The insured was upset, and Samuel reassured her that everything would be fine because she had coverage. Later, the insurer denied the claim due to impaired driving. What should Samuel have done differently?

Options :

A : Told the insured that the insurer would have to investigate before he could answer her concerns

B : Told the insured to take immediate responsibility for the accident to uphold utmost good faith

C : Asked to speak to the police officer at the scene to determine legal implications

D : Asked the insured more details and informed her the claim would not be covered

Answer: A

Question 2

In a non-proportional (excess of loss) reinsurance contract, the reinsurer agrees to pay the portion of any loss thatexceeds $80,000, up to an additional$100,000. How much would the primary insurer pay for an insured loss of$60,000?

Options :

A : $0

B : $20,000

C : $36,000

D : $60,000

Answer: D

Question 3

Which type of policy must be signed by a member of each participating insurer?

Options :

A : Prescription

B : All-inclusive

C : Subscription

D : Subrogation

Answer: C

Question 4

MacMan Inc. employs several salespersons who travel throughout Canada with samples of its products. Which type of coverage does MacMan Inc. require to protect its samples while in the salespersons' possession?

Options :

A : Aviation Insurance

B : Accident Insurance

C : Personal Property Floater

D : Commercial Property Floater

Answer: D

Question 5

Which action reduces a hazard?

Options :

A : Installing anti-slip floor tile in the hallway

B : Using high beams at night on a busy highway

C : Shutting off sprinkler systems during renovations

D : Removing protective packaging around items being moved

Answer: A

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