General Insurance Licensing Level 1
BC Latest Exam And 100% Correct
Answers 2025-2026 Updated.
Risk Sharing - Answer a way of helping to ensure that a loss does not spell financial ruin for a
person or business
Insurance - Answer *a mechanism for sharing the losses of the few among the many
*the undertaking by one person to indemnify another person against loss or liability for loss
Risk - Answer chance of financial loss as a result of loss or damage that the object of
insurance may be exposed to
Personal risk - Answer the risk of injury to body resulting in death, serious illness, disability,
or unemployment
Property Risk - Answer the risk of loss or damage to property owned, rented or leased
Liability Risk - Answer risk of being held financially responsible for bodily injury or property
damage caused to others
Speculative Risk - Answer A chance of loss, no loss, or gain. Not insurable.
Pure Risk - Answer Risk that presents the chance of loss but no opportunity for gain
Purpose of insurance - Answer to put the insured back into the financial position he or she
was immediately prior to the loss
Reason underwriters review all applications - Answer to ensure insurance is provided only
for pure risks
how term "risk" is used in insurance business - Answer term commonly used to refer to the
, Risk Retention - Answer Assuming financial responsibility for loss
Risk Control - Answer A conscious act or decision not to act that reduces the frequency
and/or severity of losses or makes losses more predictable.
Risk Transfer - Answer Transferring or shifting the risk of loss through means such as
insurance or a warranty.
Fortuitous Event - Answer An event that at the time the contract was made could not have
been reasonably foreseen.
Method of Indemnity - Answer Payment to insured or costs to replace, rebuild, or repair
damaged property; may be made directly to supplier of goods or services on behalf of the
insured
Insurance Companies - Answer They provide financial protection to individuals and
businesses for life, property, liability, and health uncertainties
Stock Companies - Answer Companies owned by the stockholders whose investments
provide the capital necessary to establish and operate the insurance company.
Policy Holders - Answer the person or company buying the policy; pay a fixed premium
Mutual Insurance Company - Answer A type of insurance company owned by its
policyholders; premiums may change based on operating costs
Government Insurers - Answer Government based corporations which offer compulsory
insurance such as ICBC, EI, CPP
Insurance Corporation of BC - Answer provides compulsory auto insurance
Board of Directors - Answer At least 3 people whose main responsibility is to ensure that the
company is operated in accordance with the law and its bylaws
BC Latest Exam And 100% Correct
Answers 2025-2026 Updated.
Risk Sharing - Answer a way of helping to ensure that a loss does not spell financial ruin for a
person or business
Insurance - Answer *a mechanism for sharing the losses of the few among the many
*the undertaking by one person to indemnify another person against loss or liability for loss
Risk - Answer chance of financial loss as a result of loss or damage that the object of
insurance may be exposed to
Personal risk - Answer the risk of injury to body resulting in death, serious illness, disability,
or unemployment
Property Risk - Answer the risk of loss or damage to property owned, rented or leased
Liability Risk - Answer risk of being held financially responsible for bodily injury or property
damage caused to others
Speculative Risk - Answer A chance of loss, no loss, or gain. Not insurable.
Pure Risk - Answer Risk that presents the chance of loss but no opportunity for gain
Purpose of insurance - Answer to put the insured back into the financial position he or she
was immediately prior to the loss
Reason underwriters review all applications - Answer to ensure insurance is provided only
for pure risks
how term "risk" is used in insurance business - Answer term commonly used to refer to the
, Risk Retention - Answer Assuming financial responsibility for loss
Risk Control - Answer A conscious act or decision not to act that reduces the frequency
and/or severity of losses or makes losses more predictable.
Risk Transfer - Answer Transferring or shifting the risk of loss through means such as
insurance or a warranty.
Fortuitous Event - Answer An event that at the time the contract was made could not have
been reasonably foreseen.
Method of Indemnity - Answer Payment to insured or costs to replace, rebuild, or repair
damaged property; may be made directly to supplier of goods or services on behalf of the
insured
Insurance Companies - Answer They provide financial protection to individuals and
businesses for life, property, liability, and health uncertainties
Stock Companies - Answer Companies owned by the stockholders whose investments
provide the capital necessary to establish and operate the insurance company.
Policy Holders - Answer the person or company buying the policy; pay a fixed premium
Mutual Insurance Company - Answer A type of insurance company owned by its
policyholders; premiums may change based on operating costs
Government Insurers - Answer Government based corporations which offer compulsory
insurance such as ICBC, EI, CPP
Insurance Corporation of BC - Answer provides compulsory auto insurance
Board of Directors - Answer At least 3 people whose main responsibility is to ensure that the
company is operated in accordance with the law and its bylaws
