Page 1 of 78
FUNDAMENTALS OF INSURANCE (BC) PREP
EXAM | {LATEST 2026/ 2027 UPDATE}
COMPLETE ACTUAL AND AUTHENTIC EXAM |
BRAND NEW!
In the event of an occurrence, claim or action, the insured under
a liability policy must do of the following, except one.
a. provide the insurer with prompt notification of any accident or
occurrence which may lead to a claim.
b. immediately forward to the insurer copies of any legal paper
received.
c. make such voluntary payments on behalf of the insurer as are
required interim to satisfy the plaintiff.
d. assist the insurer in in the investigation, settlement or defence
of the claim or action
c. make such voluntary payments on behalf of the insurer as are
required interim to satisfy the plaintiff.
,Page 2 of 78
Professionals require a special liability policy, which covers
claims arising out of the rendering or failure to render
professional services. A doctor would require this particular
liability insurance:
A. Personal Injury Liability Policy
B. Malpractice Liability Insurance
C. Errors and Omissions Liability Insurance
D. Medical Expenses Insurance
B. Malpractice Liability Insurance
While in the majority of cases law considers a person "innocent
until proven guilty" there are circumstances in which the courts
deem the defendant " guilty until proved innocent" . this approach
is referred to as "strict liability and apply to all of the following
actions , except one.
a. the defendant made a fire on his property to burn yard waste
and the fire spread to neighbouring property where it destroyed
an outbuilding.
b. the defendant set off fireworks, which seriously injured a
bystander.
,Page 3 of 78
c. the defendant, who lives in a multi - storey building, caused
serious water damage to the unit below when the bathtub
overflowed.
d. the defendant, who piloted an airplane, crashed into a building.
c. the defendant, who lives in a multi - storey building, caused
serious water damage to the unit below when the bathtub
overflowed.
When an applicant for supplementary travel insurance has pre -
existing condition, coverage is:
a. unavailable in all situations
b. may be available in Canada only
c. may be available only if the applicant has returned to work
d. maybe available if the condition had been under control for a
period of time, three or six months depending on the condition.
d. maybe available if the condition had been under control for a
period of time, three or six months depending on the condition.
, Page 4 of 78
A doctor's visit or hospitalization while travelling outside the
provinces of Canada could be catastrophic if there is no
insurance to cover medical expenses. As a broker you would
strongly advise our clients to purchase travel insurance, which is
designed to pay all of the following expenses, except 1.
a. the cost of X - ray and other diagnostics related to an accident.
b. the cost of pre - arranged medical procedure at a health clinic
abroad
c. the cost of prescription drugs
d. the cost of the air ambulance t o transfer the person to a
hospital in their home province.
b. the cost of pre - arranged medical procedure at a health clinic
abroad
The insurance act requires that all people who sell insurance be
licensed. All of the following statements are true except one.
a. to obtain an initial license an applicant must pass an approved
examination
b. the initial license authorizes the licensee to sell any and all
classes of insurance.
c. brokers / salespersons must be licensed in each province in
which they do business
FUNDAMENTALS OF INSURANCE (BC) PREP
EXAM | {LATEST 2026/ 2027 UPDATE}
COMPLETE ACTUAL AND AUTHENTIC EXAM |
BRAND NEW!
In the event of an occurrence, claim or action, the insured under
a liability policy must do of the following, except one.
a. provide the insurer with prompt notification of any accident or
occurrence which may lead to a claim.
b. immediately forward to the insurer copies of any legal paper
received.
c. make such voluntary payments on behalf of the insurer as are
required interim to satisfy the plaintiff.
d. assist the insurer in in the investigation, settlement or defence
of the claim or action
c. make such voluntary payments on behalf of the insurer as are
required interim to satisfy the plaintiff.
,Page 2 of 78
Professionals require a special liability policy, which covers
claims arising out of the rendering or failure to render
professional services. A doctor would require this particular
liability insurance:
A. Personal Injury Liability Policy
B. Malpractice Liability Insurance
C. Errors and Omissions Liability Insurance
D. Medical Expenses Insurance
B. Malpractice Liability Insurance
While in the majority of cases law considers a person "innocent
until proven guilty" there are circumstances in which the courts
deem the defendant " guilty until proved innocent" . this approach
is referred to as "strict liability and apply to all of the following
actions , except one.
a. the defendant made a fire on his property to burn yard waste
and the fire spread to neighbouring property where it destroyed
an outbuilding.
b. the defendant set off fireworks, which seriously injured a
bystander.
,Page 3 of 78
c. the defendant, who lives in a multi - storey building, caused
serious water damage to the unit below when the bathtub
overflowed.
d. the defendant, who piloted an airplane, crashed into a building.
c. the defendant, who lives in a multi - storey building, caused
serious water damage to the unit below when the bathtub
overflowed.
When an applicant for supplementary travel insurance has pre -
existing condition, coverage is:
a. unavailable in all situations
b. may be available in Canada only
c. may be available only if the applicant has returned to work
d. maybe available if the condition had been under control for a
period of time, three or six months depending on the condition.
d. maybe available if the condition had been under control for a
period of time, three or six months depending on the condition.
, Page 4 of 78
A doctor's visit or hospitalization while travelling outside the
provinces of Canada could be catastrophic if there is no
insurance to cover medical expenses. As a broker you would
strongly advise our clients to purchase travel insurance, which is
designed to pay all of the following expenses, except 1.
a. the cost of X - ray and other diagnostics related to an accident.
b. the cost of pre - arranged medical procedure at a health clinic
abroad
c. the cost of prescription drugs
d. the cost of the air ambulance t o transfer the person to a
hospital in their home province.
b. the cost of pre - arranged medical procedure at a health clinic
abroad
The insurance act requires that all people who sell insurance be
licensed. All of the following statements are true except one.
a. to obtain an initial license an applicant must pass an approved
examination
b. the initial license authorizes the licensee to sell any and all
classes of insurance.
c. brokers / salespersons must be licensed in each province in
which they do business
