[Insurance Companies / Reinsurance]

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?

[Risk Management – Pre-Loss Objectives]

Which is a pre-loss objective of risk management for an organization?

[Underwriting and Rating: Setting Insurance Rates]

If thenet premiumis $4,000 and thebroker’s commissionis 20%, what is thepolicy premium?

[Claims]

Which statement describes a primary function of a telephone adjuster?

[Insurance as a Contract: The Insurance Policy]

A person applies for fire insurance on their house but fails to mention that in winter they leave the house unoccupied for two months while vacationing. What is this an example of?

[Insurance as a Contract: The Insurance Policy]

If a dispute arises between the insurer and insured over a claim, which party is responsible for satisfying the courts that a concealment of material facts has occurred?

[Insurance Categories and Functions]

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?

Which insurance industry impact is an example of a surety?

[Regulatory Framework]

Huronial Insurance Company submitted incorporation documents and received approval to sell personal-lines property and automobile policies. Which document will the Office of the Superintendent of Financial Institutions (OSFI) issue?

[Insurance Documents and Processes]

What type of wording is written on a custom basis for a specific situation?

[Introduction to Risk and Insurance – Benefits of Insurance]

How would a moving and storage company benefit from purchasing insurance to cover customers’ goods while in transit?

[Claims]

Mark was involved in an at-fault accident one year ago. As there was minimal vehicle damage and no apparent injuries, Mark settled with the third party and did NOT report the accident to his insurer. Today, Mark has been served a statement of claim alleging long-term injuries. Which action will Mark's insurer MOST LIKELY take, and why?

[Sales and Distribution of Insurance]

Why would a policyholder use an intermediary?

What is binding authority?

[Insurance Companies]

An insurer’s agency or production department is the equivalent of which department in other businesses?

[Regulatory Framework]

Which legal term describes the time in which a claim may be brought by the policyholder?

[Insurance Documents and Processes]

Rashida claims she told her broker about the swimming pool when binding coverage. The adjuster disputes coverage because the insurer was not informed. What should have been done to prevent this dispute?

[Introduction to Risk and Insurance]

Which action reduces a hazard?

[Insurance as a Contract]

Which statement best explains the concept of utmost good faith?

[Insurance as a Contract: The Insurance Policy]

With respect to an insurance contract, what is the best example ofconsideration?

[Risk Management – Post-Loss Objectives]

What is a post-loss objective of risk management for an organization?

[Underwriting and Rating: Setting Insurance Rates]

If one in every five houses suffers a $50,000 loss each year, and all houses have the same value, what would the pure premium be for each homeowner?

[Insurance Companies / Broker Agreements]

Original Insurance Company terminated its broker agreement with TOY Insurance Brokers. Which situation likely resulted in this termination?

[Introduction to Risk and Insurance]

Which scenario is an example of insurable interest?

[Industry Organizations; The Customer – Communication Skills]

Patrice works as a broker meeting a new client. He is building rapport by performing similar actions to those of his client. Which form of in-person communication is he engaging in?

[Insurance Categories and Functions]

Which risk could be insured bychattel coverage?

[Introduction to Risk and Insurance – Perils & Loss Types]

What best describes a direct loss?

Dominika's house sustains a fire resulting in a $500,000 total loss to the house and contents. Some pieces of furniture are salvageable and valued at $4,000 by the insurer. Dominika chooses to keep these items for her next home. Dominika’s policy has a guaranteed replacement cost clause with a limit of $500,000 and a deductible of $1,000. What settlement amount will Dominika recover from the loss?

[Introduction to Risk and Insurance]

What is a disadvantage of loss retention through borrowing?

[Claims]

Ivana is in an auto accident. The agreed market value of her vehicle is$17,000.

Her policy deductible is$1,500.

A wrecking company offers$3,000for the salvage.

Ivana chooses tokeep the salvage.

What amount will Ivana receive?