OTL Practice Exam Five Master Copied January 12 2025

1. Question

The Facility Association is:

A reinsurance pool for accompanying auto policy holders who desire particularly high liability limits

An insurance pool subscribed to by auto insurance companies who share the writing of risks that are not ordinarily written on the normal insurance market.

A group of insurance carriers who write business on auto owned by brokers and their staff

The provincial government insurance office which is charged with the responsibility of accepting applications from auto owners who cannot get Insurance anywhere else.

2. Question

What is the priority of payment in Alberta for Property damage

$10,000

$5000

$190,000

$200,0

3. Question

Choose the most correct statement.

a Mortgagee is similar to a lessee

a mortgagor is similar to a lessor

a bailee is similar to lessees

a mortgagor is similar to a lessee

4. Question

Special limits apply to the following items if the loss or damage to such property was not caused by a specified peril.

Jewellery. furs, stamp & coin collections, manuscripts, collectible cards, bicycles, boats & seadoos.

Jewellery, furs, stamp & coin collections, manuscripts, collectible cards, bicycles and their related property.

Jewellery, furs, stamp & coin collections, manuscripts, collectible cards, kayaks, bicycles and their related property.

Jewellery, furs stamp & coin collections, manuscripts, collectible cards, canoes, bicycles and their related property

5. Question

Which of the following items could not be scheduled under a Personal Article Coverage?

Diamond necklace

Cell phone

Fur coat

Antique motorcycle

6. Question

The owners application for auto insurance must be sent to the insurance company

Within 7 days

Within 21 days

Before the end of the business day

As soon as possible or practicable

7. Question

Injured persons may not sue a liable third party no matter how serious their injury or even if
death occurs. What province is this one of the restriction for bodily injury?

Quebec

Ontario

Alberta

Manitoba

8. Question

Your insured is a tenant and has purchased a tenants package policy for $32,000 with a $200 deductible. Which is the correct statement?

premises would include the locker in the basement

the replacement cost would automatically apply if they had a loss

there is a limit for improvements and betterments

the deductible is waived if the loss is total

9. Question

What are the three coverages that are specific to condominium unit owners’ insurance needs.

Improvements and Betterments, Loss Assessment and Individual Unit Improvement and Depreciation Coverage.

Improvements and Betterments, Unit Additional Protection Coverage and Loss Assessment.

Improvements and Betterments, Individual Unit Betterment Guarantee Coverage and Loss Assessment.

Loss Assessment, Unit Additional Protection and Improvements and Interior Design Coverage.

10. Question

Which of the following perils are covered under the glass policy?

Riot

Fire

War

Nuclear

11. Question

Who is the insured person on your SPF 1 under Accident Benefits?

an occupant of your auto while you are on vacation in Florida. the occupant has his own auto insurance policy

your sister in law while driving the car that you lent her, who does not have a car of her own, or any insurance

a pedestrian struck by your car while crossing between parked cars and the pedestrian is a driver on his parent's auto insurance

all of the above

12. Question

When an insurer cancels the policy they must

comply with RIBO act

send back the lnsured's premium by priority post

comply with the statutory conditions of the policy

give back the short rate portion of the premium

13. Question

An umbrella policy

Contributes proportionately along with other liability policies the insured may have covering the same risk.

Is only available for commercial and business risks.

Contains a large self insured retention that acts similar to a deductible.

Provides coverage more restricted than the primary policy but provides worldwide coverage.

14. Question

If a person is unable to work due to an injury in an auto accident their SPF 1 could potentially;

pay any lost wages up to 2 years

pay up to 90% of net income up to $1000

pay any or all amounts until age 65

pay up to 80% of gross income up to $600 weekly

15. Question

After theft of the insured’s auto is reported to the police, the insurer will reimburse the necessary transportation expense in the following manner:

limit $300 after 2 weeks

limit $750 after 72 hours

limit $450 after 48 hours

maximum of $300 commencing as soon as the theft is reported

16. Question

Which of the following is true?

lightning damage to electrical devices is not included under the Fire Extended Coverage Endorsement

explosion damage to the insured's property is covered under the Extended Coverage Endorsement when caused by a boiler in a neighbouring building

when the insured, under a Fire Policy closes his business operation for a three week holiday, his premises are regarded as vacant and his coverage under the Fire Policy is void

any one of several people, who together own a building may protect the financial interest of the others, by insuring the property in his/her name, and simply make sure that the amount of insurance is adequate to cover the financial interest of all of them.

17. Question

A neighbouring tree damages your house when it falls during a storm. Your insurer

pays the claim and ignores your deductible

refuses to pay because it was a neighbour's tree

pays but subrogates against the neighbour

pays the claim subject to your deductible

18. Question

The damages that are not normally covered under the liability policy are

General damages

Special damages

Compensatory damages

Exemplary damages

19. Question

The coverage for Replacement Transportation (SEF 20) provides coverage for which of the following:

all expenses incurred for the rental of a substitute auto due to the loss or damage to the insured auto no matter how caused

80% of all expenses incurred for the rental of a substitute auto

provides a replacement auto but does not cover expenses

reasonable expenses incurred for rental of a substitute auto or costs of taxicabs and public transportation

20. Question

The insured has an SPF 1 with a $300 deductible on both Comprehensive and Collision Coverage. Lightning strikes through the window and catches the car seat on fire causing $500 damage. How much will the insurer pay:

$500

$200

$50

Nothing

21. Question

Which of the following statements found in the Homeowners/Tenant/Condo Policy is correct?

personal property is Insured, against the peril of fire when temporarily removed and stored in a warehouse for 45 days

loss of the lnsured's valuable dog by theft is covered,

the deductible clause does not apply in connection to fire losses

the Insured may have the option of a ''replacement cost" basis settlement on his building(s) as long as it is on the same location and is done within a reasonable time, but the Insured may be penalized in the amount of the settlement if the lnsured 's building is insured for less than 80% of its value.

22. Question

There are different basis of settlement

agreed value, disputed value and ACV

replacement cost, agreed value, ACV and stated amount

stated amount, ACV and replacement cost

replacement cost, vacant and Actual Cash Value

23. Question

The victims of uninsured and unidentified motorists may recover indemnity for their losses. What is the name of the Fund?

Highway Victims Fund

Highway Accident Victims Fund

Highway Victims' Indemnity Fund

None of the above

24. Question

Liability coverage provided on an accident basis provides includes injury or damage

Due to an event that is sudden, unintentional and unexpected

Caused by repeated exposure to the same harmful thing

From an event that occurs over a period of time, is unintentional and unexpected

From an intentional action where the outcome is unintentional and unexpected

25. Question

In liability under defense costs the insured is covered for which of the following:

legal fees over and above your limit of liability arising out of loss or damage to a person or property as a result of an auto accident

legal fees within your limit of liability for a lawyer that you hired on your own

costs paid by the insurer due to provisions of a statue relating to auto insurance which the insurer would not otherwise be liable to pay

any Interest accruing after judgment on the part of the judgment which exceeds the limit of liability

26. Question

In the case of a tenant package policy

tenant improvements and betterments may be added by endorsement for an additional premium.

the insured may apply up to $500 of the insurance to any type of damage caused by others than the "Insured" to any part of the landlord's building.

coverage on outdoor trees and shrubs is included, to a limit of 5% of the contents amount of insurance

"dwelling' means the portion of the building occupied by the Insured as a private residence

27. Question

What perils are you insured for under specified perils of an automobile policy?

Fire

Lightning

Riot

All of the above

28. Question

Under a Boiler and Machinery policy, an example of a boiler would include a device designed to

Store hot water

Process food

Product steam for power

Sterilize equipment

29. Question

Which of the following is correct with respect to Homeowners/Tenant/Condo policy?

coverage on personal property of visitors is included as long as it is on or in the lnsured's private residence

unscheduled jewellery. watches, gems and furs are limited to $2,000 in all for loss caused by fire and theft

coverage on personal property of visitors is included as long as it is on or in the lnsured 's private residence premises, provided the visitor does not have his/her own applicable insurance

there is automatic protection for additional living expense, if an insured peril occurs making the premises unfit for occupancy, the Indemnity period for this protection being limited to two weeks

30. Question

Your client will be keeping half of her contents in a storage warehouse as she finds her condominium too cluttered. You advise her

you no longer wish lo deal with her as this is a material change in risk

there would be fire damage only

personal property stored in a controlled access storage facility is only insured for 30 days from the date that the property is first put in storage, unless the loss is caused by theft.

that no changes were necessary everything was fine

31. Question

Which of the following statements is incorrect?

Unearned premium reserves consist of that portion of the premium that is not yet earned

Stock companies operate for the benefit of their members only

IBNR reserves mean reserves set aside for losses that have occurred but have not yet been reported.

Stock companies achieve a profit from two sources.

32. Question

Which of the following business interruption policies does not insure loss of income or profit

Earnings Form

Profits Form

Extra Expense Form

Contingency Form

33. Question

If an insured is charged and convicted of impaired driving. With respect to Accident Benefits which of the following would be paid?

only weekly income benefits would be paid

all basic accident benefits, except weekly income benefits, non earner benefit and compensation for other benefits would be paid

all Accident Benefits would be paid

nothing would be paid

34. Question

The insured, for reasons of his own, sold his auto and contacts you by phone as to what should be done about his OAP policy. You should advise the following:

Send the insured a cancellation form or a lost policy voucher, instructing him to insert the effective cancellation date, sign it and return it to your office for a pro rata refund.

Tell him the premium, due to the sale of the car Is fully earned and he can discard the policy

Send the insured a cancellation form or lost policy voucher or ask him to sign off the policy, with the effective dale of cancellation and return it to your office lo be passed along to the insurer for a short rate refund of the unearned premium

Advise the insured that you will send an immediate refund

35. Question

Losses or increased cost of repairs due to operation of any zoning, demolition, repair or construction law

are insured on all homeowners policies

are not insured, but a special policy, known as a Municipal Risk Policy, can be issued that will provide the insured with the needed protection, for a nominal premium

are not insured, but various building by-laws endorsements are available, at an additional premium, which may provide the Insured with additional coverage to bring his building into compliance with the by-law requirements

are insured and included in the protection under this policy

36. Question

Improvements and betterments under a condo policy are

automatically covered up to the limits of the contents

covered under the "Condominium Unit Owners Additional Protection Insurance"

not covered up to $2000 automatically

covered for any amount that has been specified in the Declarations

37. Question

With regards to contract law, a meeting of the minds is required to fulfill the element of

Agreement

Genuine Intent

Legal Capacity

Consideration

38. Question

Under the Basic Fire Policy, loss or damage to goods undergoing a process that involves the application of heat is covered if that loss or damage resulted

because the goods became so hot that they caught fire.

from a fire starting elsewhere in the insured premises.

from inattention on the part of the attending individual.

from the heat process itself.

39. Question

The recreational vehicle endorsement (SEF 32) provides coverage for which of the following:

a motorcycle, snowmobile, and trail bike

motor scooter, plane and motorboat

snowmobile, trail bike, minicycle and dune buggy

Both a and b

40. Question

The standard SPF 1 is

forerunner for all other automobile policies

the same for all provinces

is an Alberta specific policy

is used by the government insurance plan

41. Question

What statement is incorrect?

Commercial property policies may be written on a Fire & EC, Named Perils or All Risks coverage.

Building coverage includes growing plants used for decorative purposes when the insured owns the building.

Equipment includes fittings, fixtures, tools and contents of every description except stock.

Stock includes merchandise of every description but excludes packaging, wrapping and advertising materials.

42. Question

The General Conditions

apply only to fire insurance risks.

are identical to Statutory Conditions in other provinces.

are established by court precedents.

may include sections of the Civil Code that govern insurance policies.

43. Question

The Family Protection Endorsement (SEF 44) provides coverage for which of the following

the third party's inadequate liability coverage of the insured

the insured's extended family for losses or damage due to a not a fault accident as a result of pain and suffering

loss of income for any member of the insured's family

the Insured amount that he or she is legally entitled to recover for an inadequately insured motorist for compensatory damages in respect to bodily injury or death of an insured person up to their own limits

44. Question

No Insurer shall use a form of application, policy, endorsement, or renewal or continuation certificate in respect of automobile insurance other than:

An approved FSRA (formerly FSCO) form

A form published by RIBO

A form approved by the Superintendent

A form approved by the Lieutenant Governor

45. Question

The general purpose of the Liability Coverage Section is to give the Insured protection for

injuries caused to others when the Insured is negligent and held legally liable

careless use of other peoples property which the insured borrows

claims for injuries done to others whether or not the Insured is negligent

negligently caused damage to his/her own property

46. Question

The policy that covers virtually any contents at specified locations, newly acquired locations, in transit and in the custody of sales people is

Small Retail Business Package

Commercial Property Floater

Commercial Building, Equipment and Stock form

Office Equipment Floater

47. Question

Insurance to value means coverage is

subject to a Stated Amount Clause.

based on 80% of the item's value.

based on higher limits reflecting the replacement value.

to the full value of the property.

48. Question

With this endorsement, the insurer agrees that no depreciation will be applied in the event of the repair or total loss of the insured vehicle. The coverage is subject to a deductible.

SEF 20

SEF 38

SEF 43R

SEF 44

49. Question

A broker sold an auto policy to his client. The client wanted to know the period of time during which the insurance is to apply. This is called the

Effective date

Policy period

Due date

Expiry date

50. Question

What statement is correct with respect to surety bonds?

A bid bond is required as evidence that the construction job will be properly completed in accordance with the specifications.

A labour and material bond is provided by suppliers of labour and material on a project to ensure they are both there in a timely fashion.

An administration bond falls under the category of a Fiduciary bond.

Examples of fiduciaries include contractors.

51. Question

Statutory Condition 13, Replacement: Under this Statutory Condition,

an insured may elect to have damaged property repaired, rebuilt, or replaced.

an insurer may elect to have damaged property repaired, rebuilt, or replaced.

when the replacement option is chosen, it is still subject to the amount of insurance.

when the replacement option is chosen, there is unlimited time for completion of the work.

52. Question

On the Standard Auto Policy Application which of the following areas are not common rating factors that affect the rates:

Age, gender and marital status, driving record and vehicle usage

Territory and distance driven annually, vehicle usage, and driving experience.

Vehicle description, other regular drivers and coverages

Third party liability, Accident benefits and Uninsured motorist

53. Question

With respect to reinsurance, which statement is incorrect?

The sole reason for reinsurance is to share the insurer's risk

Treaty reinsurance is automatic

Facultative reinsurance is arranged on individual risks

The two methods of reinsurance is proportional and non-proportional

54. Question

Direct loss

is the loss that arises from the loss or damage to the property

cannot be covered under a fire policy

refers to the value of the physical property that is damaged or destroyed

is similar to a loss of rental income, which occurs as a result of an insured peril

55. Question

Insurance companies must make settlement payments to an insured:

within 60 days of receipt of application for accident benefits in the case of medical, rehabilitation and attendant care benefits

within 1O weeks of receipt of a completed application for no fault weekly benefits

within a reasonable time after receipt of an accident benefits claims, but no later than one year

within 30 days of receiving the application for accident benefits in the case of death, funeral and compensation for other expenses

56. Question

Barbara has a vehicle that is not licensed under the Highway traffic Act in Alberta. What is name of the form used to write this type of policy on.

Owner's form

The application

The cover note

Liability card

57. Question

The Comprehensive Homeowner’s policy is a package that provides insurance protection with respect to the following:

Dwelling building, Detached Private Structures, Personal Property, Additional Living Expenses, Liability and Extensions of the above coverages, or additional personal property coverages. or both, at the insured's option.

Dwelling building, Detached Private Structures, Personal Property, Increased Living Expenses, Liability and Extensions of the above coverages, or additional personal property coverages, or both, at the insured's option.

Dwelling building, Attached Private Structures, Personal Property, Additional Living Expenses, Liability and Extensions of the above coverages, or additional personal property coverages, or both, at the insured's option.

Dwelling building, Detached Private Structures, Personal Property, Additional Living Expenses, Third Party Liability Only and Extensions of the above coverages, or additional personal property coverages, or both, at the insured's option.

58. Question

Which statement is not true about Commercial General Liability policies

It can be a claims made policy or an occurrence policy

It is a flexible policy, designed to take care of most commercial liability exposures

It has an aggregate and an occurrence limit

It covers Tenants Legal Liability for any kind of loss to rented premises for which the insured is legally liable

59. Question

What type of insurance policy would cover a case of libel or slander brought against the insured?

This would be covered under the legal expenses of the homeowners policy.

This would be covered under a Crime Policy.

This would be covered under a Liability policy.

This would not be covered as it is considered uninsurable.

60. Question

Either the failure to do what a reasonable and prudent person would do in a given situation, or what such a person wouldn’t do in a given situation.

Gross negligence

Onus of proof

Negligence

Priorities of payment

61. Question

Which of the following is not true?

A friendly fire is a fire intentionally kindled in a place provided for it.

Fires unintentionally kindled and occurring in places where there should not be a fire are also known as hostile fires.

When a fire leaves the place provided for it and ignites something outside, the original fire is a hostile fire.

When a fire leaves the place provided for it and ignites something outside, the secondary fire is a hostile fire

62. Question

Which of the following is not correct with Umbrella Insurance?

They either require other underlying liability coverage in place, or if they become a primary policy a large deductible will apply.

The main purpose is to supply high liability limits

They are written on a claims made or occurrence basis

They may be useful when world wide liability coverage is required

63. Question

Your client calls and asks you to suspend coverage from his vehicle while he Is going South for four months in the winter. As an educated broker, you would advise which of the following:

request that his insurer suspend coverage by using the Suspension of Coverage Endorsement (OPCF 16)

cancel his policy

have collision coverage and comprehensive coverage deleted from the policy but leave the rest of the policy in tact.

Advise the client to leave all coverage in place.

64. Question

Co-insurance is the clause that:

is in the homeowners/condominium/tenant policies

encourages insureds to carry adequate amounts of insurance

is in auto insurance policies

is in the Insurance Act of the Province of Ontario

65. Question

The insurer will pay the least of the following:

The actual cash value of the property at the time of the loss or the original purchase price of the property, the financial interest the insured has in the property and the amount of the insurance applicable to the item.

The actual cash value of the property at the lime of the loss, but not the original purchase once of the property, the financial interest the insured has in the property and the amount of the insurance applicable to the item.

The actual cash value of the property at the time of the loss or the original purchase price of the property, the financial interest the insured had In the property before he/she purchased the policy and the amount of the insurance applicable to the Item.

The actual cash value of the property before the loss occurred, the financial interest the Insured has in the property and the amount of insurance applicable to the item plus taxes.

66. Question

The minimum limit of auto liability in Quebec is

$50,000

$200,000

$500,000

$1,000,000

67. Question

What is the priority of payment in Ontario for Bodily injury

$10,000

$180,000

$190,000

$200,000

68. Question

Perils under a Homeowners which are non-standard and could be endorsed onto the policy are

Seepage and Leakage

Earthquake

War

Terrorism

69. Question

Following a loss, the insured must:

Notify the Insurance company immediately, de liver to the Insurer, as soon as possible, a proof of loss form, state the amount claimed, state the interest of the insured and all others in the property, give details of any other applicable insurance and if required, provide an inventory or undam aged property with documentation.

Notify the insurance company immediately, deliver to the insurer, within 30 days, a proof of loss form, state the amount claimed, state the interest of the insured and all others in the property and give details of any other applicable insurance.

Notify the insurance company within 7 days, deliver to the insurer, as soon as possible, a proof of loss form, state the amount claimed, state the interest of the insured and all others in the property and give details of any other applicable insurance.

Notify the insurance company Immediately, deliver to the insurer, within 45 days, a proof of loss form. state the amount claim ed, state the interest of the insured and all others in the property, give details of any other applicable insurance and if required, provide an inventory of undamaged property with documentation

70. Question

Which of the following is not a legal person

MRD Training & Consulting

MRD Training & Consulting Inc.

MRD Training & Consulting Ltd.

Melanie Needham o/a MRD Training & Consulting

71. Question

Which term is used in the insurance industry to refer to insurance that includes Property and Casualty?

General Insurance

Commercial Insurance

Specialty Insurance

Other Than Life Insurance

72. Question

What are the five secondary functions of insurance?

Aiding security, aiding credit, promoting loss prevention, providing capital, encouraging diversity of location

Aiding security, aiding credit, promoting loss prevention, providing capital, encouraging diversity of risk

Aiding security, aiding credit, promoting loss prevention, providing capital, providing employment

Aiding security, aiding credit, promoting loss prevention, providing capital, writing large volumes of business

73. Question

What type of insurance would assist an engineer that made a mistake in the direction of a contract he was responsible for?

Director's & Officers Insurance

Professional Liability Insurance (E&O)

Commercial General Liability Insurance

Surety Bonds

74. Question

Which type of insurance company uses salaried employees to sell and service their insurance policies to the general public?

Independent Brokerage Organization

Exclusive Agency Organization

Direct Writer Organization

Independent Agency Organization

75. Question

What is the process that allows a broker or agent to identify and analyze risks a client is exposed to?

Policy Management

Claims Management

Risk Management

IT Management

76. Question

Indemnity is calculated in two standard methods when it comes to property policies, what are the methods?

Replacement Cost and Guaranteed Replacement Cost

Actual Cash Value and Guaranteed Replacement Cost

Fair Market Value and Actual Cash Value

Actual Cash Value and Replacement Cost

77. Question

Which policy section includes the amounts to be insured?

Coverage Summary

Policy Conditions

Insuring Agreements

Additional Conditions

78. Question

What is the statute of limitations?

A law that determines how much an insured can recover from their insurer.

A law that determines the period of time that an insured can take legal action.

A law that determines the period within which the insurer can finalize the claim submitted by the insured.

The time frame dictated in the policy outlining the time frame that a claim can be submitted by the insured.

79. Question

If an insured had a concern regarding a broker, agent or insurer which organization would they approach for help?

Canadian Insurance Adjusters Association (CIAA)

Registered Insurance Brokers of Ontario (RIBO)

Consumer Information Centre of the Insurance Bureau of Canada (IBC)

The Insurance Institute of Canada (IIC)

80. Question

Who enforces the Insurance Companies Act?

The Financial Services Regulatory Authority (FSRA)

The Financial Services Commission of Ontario

The Office of the Superintendent of Financial Institutions (OSFI)

The Insurance Institute of Canada (IIC)

81. Question

If sewer drains within a home back up, what other condition must also exist for sewer back up coverage to apply?

The back up must have occurred within 24 hours of a recorded storm.

Ground and/or surface waters are on the insured's property or outside the home.

Ground and/or surface waters are not on the insured's property or outside the home.

Maintenance or lack thereof with respect to the sewer systems must be proven to access coverage.

82. Question

What sections are included in a Comprehensive Tenants Policy?

Personal Liability, Personal Property and Loss Assessment Coverage

Personal Property, Personal Liability, Detached Private Structures

Personal Property, Personal Liability, Additional Living Expenses

Personal Property, Personal Liability, Extensions of Coverage

83. Question

What are the two main types of Business Interruption Insurance?

Profits and Actual Loss Sustained

Income Replacement and Extra Expense

Earnings Coverage and Profits Coverage

Gross Earnings and Actual Loss Sustained

84. Question

What is the purpose of the Minor Injury Guideline?

To assist in diagnosing insurable injuries.

To establish the accident benefits available for all injuries.

To provide a treatment framework for minor injuries.

Provides a list of minor injuries that would be considered insurable.

85. Question

The Non-Owned Automobile policy provides protection for which type of liability?

Personal Liability

Cross Liability

Commercial Liability

Vicarious Liability

86. Question

What is the last link in a chain of events referred to as?

Proximate Cause

Remote Cause

Immediate Cause

Effective Cause

87. Question

What is an example of an endorsement that provides permission?

OPCF 19A- Agreed Value

OPCF20 – Transportation Replacement

OPCF6D – Driving Training School

OPCF43A – Waiver of Depreciation

88. Question

What does the term flood actually refer to?

Overland Water

A body of salt water

Sewer water and waste water

A body of fresh water

89. Question

What benefit would an insured receive if they were to participate in an insurance companies telematic initiative?

Premium refund when safe driving is proven.

Premium discount for safe driving.

Premium refunds each year the client is claims free.

Various inducements that change from company to company.

90. Question

After a privacy breach has occurred, what should an organization do to learn from the experience and prevent future breaches from occurring?

Determine the cause and discuss it with the team as a lesson learned.

Discuss with the insurer how to obtain better coverage for future events.

Write a privacy policy and share it with internal staff.

Determine how it happened, identify was it something that could have been prevented and take appropriate steps to reduce the chances of it happening again.

91. Question

A liability policy typically covers what type of damages?

General damages

Compensatory damages

Punitive damages

Special damages

92. Question

Which endorsement when applied to an automobile policy will limit the total amount payable to a value predetermined at the time the endorsement is applied?

SEF 19B – Limitation of Amount Endorsement

SEF 35 – Emergency Service Expenses

SEF 27 – Legal Liability for Damage to Non-Owned Automobile Endorsement

SEF 20 – Loss of Use Endorsement

93. Question

Which party brings legal action against another?

The Defendant

The Plaintiff

The First Party

The Insurer

94. Question

Water that is found beneath the earth’s surface is the description of which type of water damage?

Ground Water

Overland Water

Sewer Back Up

Flood Water

95. Question

What is the risk exposure of storing manure for future use as either fertilizer or fuel?

Explosion or rupture

Fatality of livestock residing close to the manure.

Power disruption leading to improper ventilation.

The values of the manure that is not reported to the insurer.

96. Question

Does an injury need to meet a verbal threshold to sue for economic loss?

Yes, the verbal threshold is always required to sue.

No, the Insurance Act prevents people from suing for economic loss.

No, it is not required to sue for economic loss.

Yes, the verbal threshold is required to sue for economic and non-economic loss.

97. Question

What is the limit for physical damage coverage under OAP 1 – Uninsured Automobile Coverage?

There is no physical damage coverage under this section of the policy. This means that if you're in an accident with an uninsured driver, you'll likely only be covered if you have collision coverage on your policy.

$25,000

$30,000