OTL Practice EXAM A 2025 NEWEST
COMPLETE EXAM QUESTIONS AND
CORRECT ANSWERS||100%
GUARANTEED PASS||A+ GRADED!!!
With regards to Liability insurance, which is CORRECT?
a) Designed to protect the insured against claims for which they are legally liable.
b) Insurer will pay all claims made by third party for damages claimed.
c) Will pay for damages to the insured's and third parties property.
d) Liability claim payment can be collected only when the amount has been
established - ANSWER ✓ a) Designed to protect the insured against claims for
which they are legally liable.
What items below would best describe the potential for liability claims?
a) The fact whether or not the premises are regularly inspected by qualified
personnel.
b) The amount of liability insurance carried.
c) The extent to which the insured has contact with the public.
d) Whether there have been previous claims made. - ANSWER ✓ c) The extent to
which the insured has contact with the public.
Which statement is TRUE regarding a Comprehensive General Liability policy?
a) Because it lacks flexibility, it is suitable for specialized businesses only.
b) It can cover premises, elevators, completed operations.
c) It must extend to cover "other hazards specified".
d) Coverage is not as broad as the owners and contractors. - ANSWER ✓ b) It can
cover premises, elevators, completed operations.
The farmers liability policy:
a) Is similar to the homeowners' policy, adapted to apply to farming.
b) Excludes coverage on owned animals killed by collision.
,c) Is issued in all parts of Canada in identical form.
d) All of the above - ANSWER ✓ a) Is similar to the homeowners' policy, adapted
to apply to farming.
The Commercial General liability differs from the Liabilities section of the
homeowner's policy in that:
a) Several different limits apply in the homeowner's form.
b) Both policies are the same.
c) There are five (5) different limits under the commercial form.
d) There is no clear distinction between the two (2) forms. - ANSWER ✓ c) There
are five (5) different limits under the commercial form.
Complete fire and EC policy on a commercial building consists of:
a) Basic fire, statutory conditions and Extended coverage's.
b) Basic fire policy.
c) Basic fire policy plus liability endorsement.
d) Basic fire, statutory conditions and Extended Liability endorsement. -
ANSWER ✓ a) Basic fire, statutory conditions and Extended coverage's.
Which one of the items below would be considered the key difference between the
"Profit" and "Gross Earnings" form?
a) The potential period of indemnity.
b) The method by which the net profits are calculated.
c) The fact the Form is used for small retailers only.
d) The co-insurance clause. - ANSWER ✓ a) The potential period of indemnity.
It is advisable for store owners to use the Premium Adjustment clause because:
a) Inventory levels vary during the year.
b) The number of customers varies during the year.
c) It is an additional endorsement, which really does not meet their requirements.
d) It only pertains to injury. - ANSWER ✓ a) Inventory levels vary during the
year.
Which of the following best describes a Commercial Property floater?
, a) Covers building, contents, and inventory.
b) Covers contents, newly acquired and in transit property.
c) Covers building, newly acquired and in transit property.
d) Covers none of the above. - ANSWER ✓ b) Covers contents, newly acquired
and in transit property.
In a business property policy, which section describes the insured property?
a) The wording.
b) The condition.
c) The insuring clause.
d) The EC endorsement. - ANSWER ✓ a) The wording.
Which policy would best suit the needs of accountants and real estate agents?
a) Office Equipment Floater.
b) Commercial Property Floater.
c) Commercial Building and Stock.
d) Small Retail Business Package. - ANSWER ✓ a) Office Equipment Floater.
Which best describes the Glass insurance and its coverage?
a) Fire, war and nuclear damage is not covered.
b) Scratching and defacement can be purchased at no additional premium.
c) Covers scratching.
d) All of the above. - ANSWER ✓ a) Fire, war and nuclear damage is not covered.
Which is NOT part of the Boiler and Machinery policy?
a) Covers Boilers and Pressure vessels.
b) Covers machinery if an accident does occur.
c) The major peril when insuring boilers and pressure vessels is breakdown.
d) An example of machinery would be electric motors. - ANSWER ✓ c) The major
peril when insuring boilers and pressure vessels is breakdown.
Which best describes an Extra Expense form?
a) A reduced operation for a period of time.
b) Insures loss of income and profit.
COMPLETE EXAM QUESTIONS AND
CORRECT ANSWERS||100%
GUARANTEED PASS||A+ GRADED!!!
With regards to Liability insurance, which is CORRECT?
a) Designed to protect the insured against claims for which they are legally liable.
b) Insurer will pay all claims made by third party for damages claimed.
c) Will pay for damages to the insured's and third parties property.
d) Liability claim payment can be collected only when the amount has been
established - ANSWER ✓ a) Designed to protect the insured against claims for
which they are legally liable.
What items below would best describe the potential for liability claims?
a) The fact whether or not the premises are regularly inspected by qualified
personnel.
b) The amount of liability insurance carried.
c) The extent to which the insured has contact with the public.
d) Whether there have been previous claims made. - ANSWER ✓ c) The extent to
which the insured has contact with the public.
Which statement is TRUE regarding a Comprehensive General Liability policy?
a) Because it lacks flexibility, it is suitable for specialized businesses only.
b) It can cover premises, elevators, completed operations.
c) It must extend to cover "other hazards specified".
d) Coverage is not as broad as the owners and contractors. - ANSWER ✓ b) It can
cover premises, elevators, completed operations.
The farmers liability policy:
a) Is similar to the homeowners' policy, adapted to apply to farming.
b) Excludes coverage on owned animals killed by collision.
,c) Is issued in all parts of Canada in identical form.
d) All of the above - ANSWER ✓ a) Is similar to the homeowners' policy, adapted
to apply to farming.
The Commercial General liability differs from the Liabilities section of the
homeowner's policy in that:
a) Several different limits apply in the homeowner's form.
b) Both policies are the same.
c) There are five (5) different limits under the commercial form.
d) There is no clear distinction between the two (2) forms. - ANSWER ✓ c) There
are five (5) different limits under the commercial form.
Complete fire and EC policy on a commercial building consists of:
a) Basic fire, statutory conditions and Extended coverage's.
b) Basic fire policy.
c) Basic fire policy plus liability endorsement.
d) Basic fire, statutory conditions and Extended Liability endorsement. -
ANSWER ✓ a) Basic fire, statutory conditions and Extended coverage's.
Which one of the items below would be considered the key difference between the
"Profit" and "Gross Earnings" form?
a) The potential period of indemnity.
b) The method by which the net profits are calculated.
c) The fact the Form is used for small retailers only.
d) The co-insurance clause. - ANSWER ✓ a) The potential period of indemnity.
It is advisable for store owners to use the Premium Adjustment clause because:
a) Inventory levels vary during the year.
b) The number of customers varies during the year.
c) It is an additional endorsement, which really does not meet their requirements.
d) It only pertains to injury. - ANSWER ✓ a) Inventory levels vary during the
year.
Which of the following best describes a Commercial Property floater?
, a) Covers building, contents, and inventory.
b) Covers contents, newly acquired and in transit property.
c) Covers building, newly acquired and in transit property.
d) Covers none of the above. - ANSWER ✓ b) Covers contents, newly acquired
and in transit property.
In a business property policy, which section describes the insured property?
a) The wording.
b) The condition.
c) The insuring clause.
d) The EC endorsement. - ANSWER ✓ a) The wording.
Which policy would best suit the needs of accountants and real estate agents?
a) Office Equipment Floater.
b) Commercial Property Floater.
c) Commercial Building and Stock.
d) Small Retail Business Package. - ANSWER ✓ a) Office Equipment Floater.
Which best describes the Glass insurance and its coverage?
a) Fire, war and nuclear damage is not covered.
b) Scratching and defacement can be purchased at no additional premium.
c) Covers scratching.
d) All of the above. - ANSWER ✓ a) Fire, war and nuclear damage is not covered.
Which is NOT part of the Boiler and Machinery policy?
a) Covers Boilers and Pressure vessels.
b) Covers machinery if an accident does occur.
c) The major peril when insuring boilers and pressure vessels is breakdown.
d) An example of machinery would be electric motors. - ANSWER ✓ c) The major
peril when insuring boilers and pressure vessels is breakdown.
Which best describes an Extra Expense form?
a) A reduced operation for a period of time.
b) Insures loss of income and profit.
