OTL Practice Exam A 2023| Complete Verified Solution 100%

OTL Practice Exam A 2023| Complete Verified Solution 100% a) It does not certify the existence of insurance. 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. 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. 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. 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. 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. 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. 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. 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 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. 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. "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. 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 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. Under a fire policy the insurer will pay: a) Actual cash value. b) Amount applicable to the item. c) Interest of insured in the property. d) The least of A, B or C .c) Additional living expenses. The basic homeowner policy will cover: a) Summer cottage. b) Replacement cost of loss. .c) Additional living expenses. d) Scheduled articles a) None of the expenses. The person decides to renovate their home, as a result they have to obtain temporary residence until the work is complete. The homeowner's policy will pay: a) None of the expenses. b) As stated in the policy. c) Will cover nominal living expenses. d) Will cover only a percent of the expenses c) It is the same as a homeowner's policy, except it does not cover the building. Which of the following best describes a Tenant's Package Form? a) No coverage for personal property. b) It covers building and liability. c) It is the same as a homeowner's policy, except it does not cover the building. d) It does not cover theft. b) It insures the unit, personal property and includes coverage's for improvements and betterment's. A Condominium Unit Package covers which of the following? a) Shares with the Condo Corporation in insuring the building. b) It insures the unit, personal property and includes coverage's for improvements and betterment's. c) Insures unit, building and includes coverage for improvements and betterment's. d) All of the above. b) $66,667. The property was insured for $100,000., and valued at $150,000., with a 80% co-insurance, the loss was $80,000. The amount the client would receive is: a) $80,000. b) $66,667. c) $96,000. d) $100,000. d) Earthquake Under a Fire and Extended Coverage policy, which item is not included? a) Riot b) Explosion c) Smoke d) Earthquake c) Same as B above, without deduction for depreciation. Personal line property insurance may be written on a replacement cost basis which is: a) Same as actual cash value replacement. b) Replacement or repair of the damaged property as it cost at the time of the loss with property of like kind and quality, with a deduction for depreciation. c) Same as B above, without deduction for depreciation. d) Is not an endorsement. b) Loss, destruction or damage to goods undergoing the process involving the application of heat is excluded. Under the fire policy in regards to exclusions, which statement is CORRECT? a) Accidental fire damage resulting from the application of heat is excluded. b) Loss, destruction or damage to goods undergoing the process involving the application of heat is excluded. c) If the building insured has been vacant or unoccupied for the last twenty-five (25) days loss is excluded. d) All of the above are excluded. b) Building, detached private structures, additional living expenses. The Basic Homeowner policy covers: a) Building, personal property, summer cottage. b) Building, detached private structures, additional living expenses. c) Building, legal liability, increased personal property. d) Building, personal property and fine arts endorsements. c) Fine arts endorsement. Your parents have given you a very old and expensive painting, it should be covered under: a) Schedules Article endorsement. b) Under Additional coverage of your Homeowner's policy. c) Fine arts endorsement. d) Under personal property of the policy. c) States the risks that are insured.