Question 1

According to the Statutory Conditions of a Fire Policy, Statutory Condition 2 - Property of Others states that the insurer is NOT liable for property owned by others unless:

Options :

A : The property is worth less than $500.

B : The interest of the insured in that property is specifically stated in the contract.

C : The property is located in the insured’s backyard.

D : The owner of the property also has their own insurance.

Answer: B

Question 2

According to the Statutory Conditions of an Automobile Policy (O.A.P. 1), if the insurer chooses to terminate the policy, they must provide a refund of the unearned premium. How must this refund be calculated?

Options :

A : On a short-rate basis, allowing the insurer to keep an administrative fee.

B : On a pro-rata basis, representing the exact proportion of the unused premium.

C : On a flat-rate basis, regardless of the time remaining in the policy term.

D : The insurer is not required to provide a refund if the termination is due to a claim.

Answer: B

Question 3

A broker discovers the client does not have sewer back up coverage, and that the location now qualifies for it. What should the broker do next?

Options :

A : Notify the client 30 days prior to renewal, offer to quote & add.

B : Immediatley add the coverage, notify the client.

C : Notify the client immediately, quote sewer backup, offer to add.

D : Notify the client 60 days prior to renewal, offer to quote & add.

Answer: C

Question 4

Which is NOT a document delivering method to an insured?

Options :

A : Email.

B : Mail.

C : Fax.

D : Electronic Data Interchange (EDI).

Answer: D

Question 5

Many automobile insurers have introduced User-Based Insurance (UBI) programs (e.g., Telematics) to help determine rating and insurance premiums. Which MOST accurately describes elements that a UBI program tracks?

Options :

A : Time of day driven and rapid acceleration.

B : Number of drivers in the vehicle and hard braking.

C : Where the vehicle is driven and gross vehicle weight.

D : Number of kilometers driven and occupation.

Answer: A

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