OTL Practice Exam Four Master Copied January 12 2025 – TBT

The insured leaves a bar, gets into his car in an intoxicated state and causes an accident on the way home causing damage to a telephone pole and a parked car. Which of the following would not be covered?

Under the Commercial General Liability Policy which statement is true?

The Accident Benefits coverage of an automobile insurance policy does NOT pay for:

Which of the following theories help insurers determine probability of loss in the future?

Which of the following is a FALSE statement? In Canada, automobile insurance is marketed

Which of the following is a true statement?

Which of the following is not a correct definition in the Homeowners Policy?

The minimum limits under the Third Party Liability coverage are $200,000 in almost every Canadian province and territory except for this province

Authority of an insurance agent is

Which of the following would be considered “Persons Insured” under Uninsured Automobile Coverage?

Which of the following is included under the Specified Perils section (Loss of or Damage to the Insured Automobile)?

In the event your vehicle is stolen , a personal auto policy will provide coverage for transportation expenses up to what value?

The insured is doing a renovation to their home and need to move into a hotel while the home is under construction. The Comprehensive Homeowners Policy would pay

Under third party liability coverage, the insured is entitled to:

You have a Comprehensive Homeowners policy for $200,000 with a $250 deductible. Your home suffers a total loss, what would the insurer pay?

Which of the following is correct with respect to condominium insurance?

You may be guilty of misrepresentation if you sign an automobile application and do not disclose the following:

Exclusions under all risk policies can be divided into several different groups. Which of the following is not one of these groups?

An unidentified automobile is one

One of your commercial clients asks how he can keep his insurance premium down without jeopardizing coverage. What do you recommend?

Which of the following type of insurance does not fall under “General Insurance”

Which of the following statements is true?

Which of the following statements are correct with reinsurance?

Which of these scenarios would not be covered under a Comprehensive Homeowners Policy?

Which of the following would not be considered to have a fiduciary duty?

Under a personal article endorsement

What time of day does a fire policy expire?

Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?

Insurance is a mechanism used to manage which of the following types of risk?

Which of the following could be covered under the Liability section of a named insured’s Personal Auto policy?

The most common use of this policy is to facilitate filing proof of financial responsibility to obtain a driver’s license for commercial purposes.

Under liability insurance policies, what does the term “personal injury” usually mean?

Liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within what date?

Which of the following losses could be paid under Uninsured Motorists coverage?

With respect to automobile insurance, the insurer can cancel for which reason(s)?

Which dwelling policy forms are named peril forms?

Which of the following could not be covered under a homeowners policy?

John works as a carpenter. If he were to bring his tools home one evening and they were stolen from the condo would coverage apply under the condo policy?

Under a personal auto policy, which of the following is not a collision loss?

Under the Homeowners Form, each of the following types of property would be insured under Coverage A (dwelling coverage) except which one?

A contract is an agreement enforceable at law. Under common law, which 3 of the 5 conditions of a contract determine it’s enforceability:

Each and every automobile policy expires at the same time. What is that?

The name of the coverage that provides legal liability insurance for damage to customers’ autos that are left with the insured for service, repair, or storage is which of the following?

On homeowners policies, “premises” is a broad term describing where liability coverages apply. It includes each of the following except which one?

Your client goes to Texas in the winter for 5 months. Would they be insured if while they were away and a pipe in the garage froze and burst?

This type of loss is defined as a payment for loss or harm that is not assessable in money.

Which of the following is not true about insurance binders?

The most common definition of actual cash value (ACV) in the property insurance field is which of the following?

You lend your vehicle to a friend, that friend drinks and drives and causes an accident without your knowledge. How will your policy respond?

The name of a liability insurance policy that provides high limits of coverage above underlying coverage and may fill a number of insurance gaps is

The taking of money or other property from inside a premises by someone who has unlawfully and forcefully entered or exited is an example of what kind of crime?

Which of the following is correct:

Specified perils under your personal automobile would cover:

Something that might increase the likelihood that a loss will occur, is called what ?

Which method of risk management best describes the use of high deductibles or elements of self-insurance to reduce insurance costs?

A comprehensive homeowners policy does not exclude:

An employee who drives your car or someone where you service the vehicle damages it or steals it would be covered under:

A homeowners policy is deemed vacant, and the client purchases a vacancy permit. Which peril is not covered under the vacancy permit?

Each of the following is true about farm coverages except which one?

Who is the mortgagor?

A single earthquake means all earthquake shocks which occur within how many consecutive hours during the policy period?

The only significant difference between the occurrence and claims-made forms of general liability insurance is found in which of the following?

Under which policy provision is an insured’s right to recover for a loss from a third party transferred to the insurance company?

Homeowners coverage for loss of personal property because of “mysterious disappearance” is provided by what?

Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?

Which part of an insurance policy describes what property and/or perils will be covered by the contract?

In legal terms, the actions by one party might have the effect of giving up a known right. When this occurs, the party has created which of the following?

What is the consideration that an insurer gives to the insured under an insurance contract?

Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?

Under liability insurance policies, what does an “aggregate limit” mean?

Which of the following describes the principle of indemnity?

Which of the following is not a requirement for forming a valid contract?

With respect to the Rebuilding Clause – Deferred Payment on farm policies, the loss has to be built within:

Under the dwelling property forms, personal property moved to a new principal residence will be automatically covered at the new location (subject to policy expiration) for a period of how long?

Withholding, rather than misstating, a material fact on an insurance application is an act of which of the following?

Farm Machinery and Equipment Floaters cover all but one

Most liability claims are based on negligence that results in injury or damage. An act of negligence is considered to be a tort. What does the term “tort” mean?

Which of the following losses is not excluded under the physical damage coverage of a personal auto policy?

Ann’s auto was damaged when it was struck by another car whose driver ran a stop sign. She was deemed to be not at fault. Which part of Ann’s Personal Auto policy will cover the damage to her car?

This premium can move up and down over time based on a policy that is agreed to at the outset of an insurance contract

Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?

Under a homeowners liability policy, in addition to any payments for damages awarded against an insured, the insurance company will reimburse the insured for reasonable expenses incurred at the company’s request, including loss of earnings of up to how much per day?

With respect to travel insurance, an involuntary extension may be offered to:

If a broker is found guilty of misconduct, the fine for this action for the individual can be:

When co-ordinating benefits with other insurance plans and the travel policy, which plans could be considered in adjusting the claim?

Trip cancellation insurance covers costs related to all of the following circumstances except

The cost to have a private duty nurse by a registered nurse would be covered under what section of a travel policy

Every member placing contracts of insurance with one or more insurers shall

What is one of three ways to calculate Actual Cash Value?

Most homeowners policies consider a building where all occupants have moved out with no intention of returning to be which of the following:

Choose the true statement regarding insurance markets.

ABC Trucking is a client of your brokerage. From time to time, they have non-owned vehicles in their care, custody, and control. You recommend to ABC Trucking Ltd. that they add an SEF 27—Legal Liability for Damage to Non-owned Automobiles to their policy. Which of the following statements is TRUE about this endorsement?

You are in an accident and you are 40% at fault. You have Collision coverage with a $1000 deductible and DCPD coverage with a $1000 deductible. There is $1600 in damage to your vehicle. How much will your policy pay under DCPD?

You are getting married and moving to Toronto, where your spouse is employed. You have resigned from your position as a broker in Ottawa and have accepted a position with a brokerage in Toronto. What do you have to do in regards to maintaining your license?

Two friends, Jacob & Winnie purchased a home together. Jacob contributed $25,000 while Winnie contributed $75,000 toward the total purchase. They insured it on a joint policy for $80,000 but that did meet the co-insurance requirement. Six months after they moved in a fire destroyed the property. How much would Jacob receive after the loss?