OTL: Practice Exam A Test Questions
with All Correct/Verified Answers 2026
Update.
a) It does not certify the existence of insurance. - Answer Which of the following is not a
definition of "Certificate of Insurance"?
a) It does not certify the existence of insurance.
b) May be a modified form of a policy.
c) Issued as a convenience to a party who may have interest in the insurance.
d) None of the above.
d) Accident and Sickness, Crime and Robbery. - Answer The Casualty Department
underwrites:
a) Homeowner policies.
b) Marine risks.
c) Business property and stock.
d) Accident and Sickness, Crime and Robbery.
d) Today's market value of the property. - Answer Which statement best defines the term
Actual Cash Value?
a) It is the same as replacement cost.
b) Is the replacement value of the property.
c) Same as B above, less any accumulated depreciation.
d) Today's market value of the property.
b) Is the failure to do what a reasonable person would do in a given situation. - Answer A
definition of Ordinary negligence:
a) Will always refer to bodily injury to a third party.
b) Is the failure to do what a reasonable person would do in a given situation.
c) Is basically the same as gross negligence.
d) Would always include reference to impaired driving.
,b) Mental attitude and character of the person. - Answer Which statement is CORRECT
pertaining to Moral Hazard?
a) Untidy general housekeeping.
b) Mental attitude and character of the person.
c) It does not relate to conditions attributable to the human elements of risk.
d) It relates to the property and may lead to the occurrence of a peril.
c) Labor problems, obsolescence of plant. - Answer Which of the following is NOT TRUE in
reference to a Physical Hazard?
a) Slippery floors, loose tiles.
b) Dangerous manufacturing practices.
c) Labor problems, obsolescence of plant.
d) Preventative methods can usually be implemented and thereby reducing or even completely
remove the risk.
b) Agent and the insurer. - Answer The Principal-Agent relationship which is governed by law,
is one between the:
a) Agent and the insured.
b) Agent and the insurer.
c) Contract between the agent and insured.
d) Has no legal binding by law.
d) The premium to be paid. - Answer Which of the following is NOT part of the insuring
agreement?
a) Circumstances under which the insured may receive the proceeds of the insurance.
b) The exclusions.
c) The perils insured against.
d) The premium to be paid.
b) Mutual and Stock - Answer What are the different types of insurance companies?
a) Mutual
, b) Mutual and Stock
c) Mutual, Stock and Lloyds
d) Stock
a) Service and settle claims. - Answer Which of the following would NOT be considered as
part of the agents' duties?
a) Service and settle claims.
b) Represent the client and client's interest.
c) Represent the insurer.
d) Deposit the premiums in the trust account and transfer the proceeds to the insurer at a later
date.
c) Set out in the Provincial Insurance Act. - Answer "Statutory Conditions" are:
a) Frequently part of a fire policy.
b) The same as the "Insuring Clause".
c) Set out in the Provincial Insurance Act.
d) Legislated by the Federal Insurance Department.
a) Omission to do something a reasonable person would do. - Answer Negligence can be
defined as:
a) Omission to do something a reasonable person would do.
b) To do something a reasonable person would do.
c) Acting under normal circumstance.
d) None of the above.
c) The event, which may cause a loss - Answer A "Peril" is best defined as:
a) A chance of loss.
b) The occurrence of a loss.
c) The event, which may cause a loss.
d) The result of a loss.
d) The least of A, B or C. - Answer Under a fire policy the insurer will pay:
with All Correct/Verified Answers 2026
Update.
a) It does not certify the existence of insurance. - Answer Which of the following is not a
definition of "Certificate of Insurance"?
a) It does not certify the existence of insurance.
b) May be a modified form of a policy.
c) Issued as a convenience to a party who may have interest in the insurance.
d) None of the above.
d) Accident and Sickness, Crime and Robbery. - Answer The Casualty Department
underwrites:
a) Homeowner policies.
b) Marine risks.
c) Business property and stock.
d) Accident and Sickness, Crime and Robbery.
d) Today's market value of the property. - Answer Which statement best defines the term
Actual Cash Value?
a) It is the same as replacement cost.
b) Is the replacement value of the property.
c) Same as B above, less any accumulated depreciation.
d) Today's market value of the property.
b) Is the failure to do what a reasonable person would do in a given situation. - Answer A
definition of Ordinary negligence:
a) Will always refer to bodily injury to a third party.
b) Is the failure to do what a reasonable person would do in a given situation.
c) Is basically the same as gross negligence.
d) Would always include reference to impaired driving.
,b) Mental attitude and character of the person. - Answer Which statement is CORRECT
pertaining to Moral Hazard?
a) Untidy general housekeeping.
b) Mental attitude and character of the person.
c) It does not relate to conditions attributable to the human elements of risk.
d) It relates to the property and may lead to the occurrence of a peril.
c) Labor problems, obsolescence of plant. - Answer Which of the following is NOT TRUE in
reference to a Physical Hazard?
a) Slippery floors, loose tiles.
b) Dangerous manufacturing practices.
c) Labor problems, obsolescence of plant.
d) Preventative methods can usually be implemented and thereby reducing or even completely
remove the risk.
b) Agent and the insurer. - Answer The Principal-Agent relationship which is governed by law,
is one between the:
a) Agent and the insured.
b) Agent and the insurer.
c) Contract between the agent and insured.
d) Has no legal binding by law.
d) The premium to be paid. - Answer Which of the following is NOT part of the insuring
agreement?
a) Circumstances under which the insured may receive the proceeds of the insurance.
b) The exclusions.
c) The perils insured against.
d) The premium to be paid.
b) Mutual and Stock - Answer What are the different types of insurance companies?
a) Mutual
, b) Mutual and Stock
c) Mutual, Stock and Lloyds
d) Stock
a) Service and settle claims. - Answer Which of the following would NOT be considered as
part of the agents' duties?
a) Service and settle claims.
b) Represent the client and client's interest.
c) Represent the insurer.
d) Deposit the premiums in the trust account and transfer the proceeds to the insurer at a later
date.
c) Set out in the Provincial Insurance Act. - Answer "Statutory Conditions" are:
a) Frequently part of a fire policy.
b) The same as the "Insuring Clause".
c) Set out in the Provincial Insurance Act.
d) Legislated by the Federal Insurance Department.
a) Omission to do something a reasonable person would do. - Answer Negligence can be
defined as:
a) Omission to do something a reasonable person would do.
b) To do something a reasonable person would do.
c) Acting under normal circumstance.
d) None of the above.
c) The event, which may cause a loss - Answer A "Peril" is best defined as:
a) A chance of loss.
b) The occurrence of a loss.
c) The event, which may cause a loss.
d) The result of a loss.
d) The least of A, B or C. - Answer Under a fire policy the insurer will pay:
