RIBO Exam Package Quiz 1 Copy

Question 1 of 21

An exceptionally high standard of honesty is implied by

Misrepresentation
Utmost good faith
An Application
Indemnity

Question 2 of 21

Which of the following is a Moral Hazard?

A slippery set of stairs
A bare electrical wire
An insured who regularly gets intoxicated and smokes in bed
An improperly installed wood stove

Question 3 of 21

Which of the following does not have an Insurable Interest?

The owner of a home
The bank holding the mortgage on a home
The leasing company leasing the 2002 Audi to the homeowner
A prospective purchaser of the home

Question 4 of 21

Gambling is a good example of

Pure Risk
Speculative Risk
Insurable Risk
Personal Risk

Question 5 of 21

Which of the following statements is FALSE?

An insurance policy is evidence of a contract
An insurance broker is an intermediary who arranges insurance contracts
Insurance agents and brokers represent numerous insurance companies
All types of adjusters have the same basic function – to investigate claims and bring forth settlement

Question 6 of 21

The Proximate Cause is

The first cause in a chain of events that results in a loss
The cause that sets a remote cause of loss into motion
The suspected cause of a loss
The immediate and effective cause of loss

Question 7 of 21

Risk is

An insured peril
Speculative in nature
The uncertainty regarding a loss
The same as a hazard

Question 8 of 21

Persons who stand in such a legal relationship to property that they may be financially prejudice by its loss and financially benefit from its continued existence are said to have a(n)

Insurable interest in the property
Legal liability in the property
A right of subrogation in the property
A mortgage on the property

Question 9 of 21

Insurance is mostly concerned with

Criminal Law
Civil Law
Common Law
International Law

Question 10 of 21

Actual cash value is which of the following?

The original price paid for an item
The value of the item to be insured
The current cost of replacing an item with one of the same kind and condition minus depreciation.
All of the above

Question 11 of 21

Silence where there is an obligation to speak is known as

Negligence
Representation
Contribution
Concealment

Question 12 of 21

Who is the first party of an insurance contract?

Insured
Insurer
Claimant
None of the above

Question 13 of 21

What forms the basis of most insurance contracts?

Indemnity
Subrogation
Contribution
Prevention of Risk

Question 14 of 21

Which of the following is not an insurable risk?

The loss of business profits while a business is closed for reconstruction after a fire
The loss of capital due to the failure of the insured's business
A loss arising out of damage to a stranger's property because of an insured's carelessness
All of the above

Question 15 of 21

Insurers achieve a spread of risk by

Having customers distributed over many locations
Limited their volume of business to avoid exposure to loss
By writing insurance on as few classes of risk as possible
None of the above

Question 16 of 21

Which of the following is a Legal Person?

Adnan's Repair Shop
Adnan, Khalid & Bill Orono operating as Adnan's Repair Shop
Adnan's Repair Shop Limited
Adnan & Khalid's Repair Shop

Question 17 of 21

Of the following who as legal capacity?

A person who is impaired
A person who is legally insane
A 12 year old
A 20 year old male buying a car

Question 18 of 21

Fortuitous means

Fortunate
Accidental
In the future
Compensatory

Question 19 of 21

Jane Smith bought a new car in 1989 for $15,000. Today the car sells for $28,000. What amount would the insurer pay if that car were destroyed today?

$15,000 and the insurer keeps the salvage
$30,000 and the insurer keeps the salvage
Today's market value and the insured keeps the salvage
Today's market value and the insurer keeps the salvage

Question 20 of 21

The main purpose of insurance is

To spread the losses of the many among the few
To provide a fund from which all losses will be paid
To spread the losses of the few among the many
None of the above

Question 21 of 21

Common Law is

The expressed will of the common people governing relationships among all members of the society regardless of their status.
A body of well-defined legal principles set out in thousands of court decisions over hundreds of years.
Written law upon which judges make their decisions without being bounded by what other judges have done in the past.
Written or codified law in the form of acts or statutes created by the Acts of the Federal of Provincial legislators.

RIBO Exam Package Quiz 1 Copy

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