OTL PRACTICE EXAM 2025 QUESTIONS AND ANSWERS
Which exclusion is commonly found in the personal liability coverage of a homeowners policy?
a. Damage caused to a neighbour's home
b. Bodily injury caused because of negligence
c. Damage caused to a neighbour's automobile
d. Bodily injury caused by a criminal act - CORRECT ANSWER✅✅d. Bodily injury caused by a criminal act
What type of coverage does a mobile home policy provide?
a. Named perils on the building and contents, excluding damage while the building is being moved.
Mobile home policies provide named perils coverage for the building and contents which is similar to
the basic Homeowners policy but excludes coverage when the home is being moved.
b. Named perils on the building and all perils on the contents, because many of the contents are
considered part of the building.
c. Named perils on the building but no coverage for the contents, because many of the contents are
considered part of the building.
d. Named perils on the contents, but no coverage for the building, due to fast depreciation. - CORRECT
ANSWER✅✅a. Named perils on the building and contents, excluding damage while the building is being
moved.
A university student is seeking protection for her personal property while living in school residence.
Which coverage is available to her, if any?
a. She must purchase a tenants policy.
b. She does not have access to insurance protection and must self-insure.
c. She is covered under the university's residence contents insurance policy.
d. She is automatically covered, subject to certain restrictions, if her parents have a comprehensive
homeowners policy. - CORRECT ANSWER✅✅d. She is automatically covered, subject to certain
restrictions, if her parents have a comprehensive homeowners policy.
Coverage C—Personal Property of the comprehensive homeowners policy includes extension of
coverage, up to a certain limit, to include the personal property of a student insured under the policy
but temporarily living away from home to attend school. A student in residence would not require
tenant insurance and universities do not provide content coverage for students.
, What happens if the statutory conditions are not identified and printed in every automobile and fire
insurance policy?
Select one:
a. The insurer may incur a penalty and the statutory condition would still apply
b. The insurer would incur a penalty but wouldn't be required to comply with something that isn't
identified and printed
c. The insured will not be required to comply with them if they are not identified and printed If an
insurer fails to identify and print the statutory conditions in every automobile and fire policy, they may
incur a penalty and the conditions would still apply.
d. The insurer would not be required to comply with them if they are not identified and printed -
CORRECT ANSWER✅✅a. The insurer may incur a penalty and the statutory condition would still apply
When a loss is presented as a claim, the insurer has the right to investigate. How is this protected in the
agreements of insureds under Section 7—Loss or Damage Coverage?
Select one:
a. Not leave the insured to dispose of the automobile unless they agree to do so, or the insurer tells
them to
b. Allow insured to copy all documents in their possession that relate to the incident before turning
them over to the insurer.
c. Permit the insured to inspect the automobile at any reasonable time as determined by the insurer.
d. Insured agrees to make no repairs beyond those needed to protect the automobile, or remove
evidence of the damage, without the insurer's written consent. The insurer's right to investigate is
protected under the agreements of the Insureds as follows. The insured must make no repairs beyond
those needed for protection of the automobile, or remove evidence of the damage, without the
insurer's written - CORRECT ANSWER✅✅d. Insured agrees to make no repairs beyond those needed to
protect the automobile, or remove evidence of the damage, without the insurer's written consent.
What is the first principle of professional communication?
Select one:
a. To ensure that all communication, between parties, is approved by the adjuster
b. To treat each other in exactly the same manner to ensure consistency
c. To Treat each other courteously, pleasantly, professionally and respectfully
Which exclusion is commonly found in the personal liability coverage of a homeowners policy?
a. Damage caused to a neighbour's home
b. Bodily injury caused because of negligence
c. Damage caused to a neighbour's automobile
d. Bodily injury caused by a criminal act - CORRECT ANSWER✅✅d. Bodily injury caused by a criminal act
What type of coverage does a mobile home policy provide?
a. Named perils on the building and contents, excluding damage while the building is being moved.
Mobile home policies provide named perils coverage for the building and contents which is similar to
the basic Homeowners policy but excludes coverage when the home is being moved.
b. Named perils on the building and all perils on the contents, because many of the contents are
considered part of the building.
c. Named perils on the building but no coverage for the contents, because many of the contents are
considered part of the building.
d. Named perils on the contents, but no coverage for the building, due to fast depreciation. - CORRECT
ANSWER✅✅a. Named perils on the building and contents, excluding damage while the building is being
moved.
A university student is seeking protection for her personal property while living in school residence.
Which coverage is available to her, if any?
a. She must purchase a tenants policy.
b. She does not have access to insurance protection and must self-insure.
c. She is covered under the university's residence contents insurance policy.
d. She is automatically covered, subject to certain restrictions, if her parents have a comprehensive
homeowners policy. - CORRECT ANSWER✅✅d. She is automatically covered, subject to certain
restrictions, if her parents have a comprehensive homeowners policy.
Coverage C—Personal Property of the comprehensive homeowners policy includes extension of
coverage, up to a certain limit, to include the personal property of a student insured under the policy
but temporarily living away from home to attend school. A student in residence would not require
tenant insurance and universities do not provide content coverage for students.
, What happens if the statutory conditions are not identified and printed in every automobile and fire
insurance policy?
Select one:
a. The insurer may incur a penalty and the statutory condition would still apply
b. The insurer would incur a penalty but wouldn't be required to comply with something that isn't
identified and printed
c. The insured will not be required to comply with them if they are not identified and printed If an
insurer fails to identify and print the statutory conditions in every automobile and fire policy, they may
incur a penalty and the conditions would still apply.
d. The insurer would not be required to comply with them if they are not identified and printed -
CORRECT ANSWER✅✅a. The insurer may incur a penalty and the statutory condition would still apply
When a loss is presented as a claim, the insurer has the right to investigate. How is this protected in the
agreements of insureds under Section 7—Loss or Damage Coverage?
Select one:
a. Not leave the insured to dispose of the automobile unless they agree to do so, or the insurer tells
them to
b. Allow insured to copy all documents in their possession that relate to the incident before turning
them over to the insurer.
c. Permit the insured to inspect the automobile at any reasonable time as determined by the insurer.
d. Insured agrees to make no repairs beyond those needed to protect the automobile, or remove
evidence of the damage, without the insurer's written consent. The insurer's right to investigate is
protected under the agreements of the Insureds as follows. The insured must make no repairs beyond
those needed for protection of the automobile, or remove evidence of the damage, without the
insurer's written - CORRECT ANSWER✅✅d. Insured agrees to make no repairs beyond those needed to
protect the automobile, or remove evidence of the damage, without the insurer's written consent.
What is the first principle of professional communication?
Select one:
a. To ensure that all communication, between parties, is approved by the adjuster
b. To treat each other in exactly the same manner to ensure consistency
c. To Treat each other courteously, pleasantly, professionally and respectfully
