OTL Practice Exam A ACTUAL
UPDATED QUESTIONS AND CORRECT
ANSWERS
a) It does not certify the existence of insurance. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT
ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅"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.
UPDATED QUESTIONS AND CORRECT
ANSWERS
a) It does not certify the existence of insurance. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT
ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅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. - CORRECT ANSWERS✅✅"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.
