Fundamentals of Insurance (BC) – British Columbia
Insurance Licensing Exam – Complete Practice Questions
with Correct Answers
Introduction
This document contains a complete collection of multiple-
choice practice questions with correct answers for the
Fundamentals of Insurance (BC) examination. It covers core
insurance concepts including homeowners insurance,
commercial property, liability insurance, automobile
insurance (Autoplan), travel insurance, underwriting, risk
management, insurance law, policy conditions, claims
handling, and business interruption insurance. The material
follows the style of the British Columbia insurance licensing
exam and serves as a comprehensive revision resource for
students preparing for certification.
Exam Questions and Answers
Civil law, also called private law, is the body of law that
addresses disputes between individuals and other legal
entities. Civil law is divided into two branches, contract law
and tort law. Civil law defines a tort as:
a. a failure to meet obligations under a contract
,b. a private wrong or injury other than a breach of contract.
c. a criminal wring that must be punished.
d. a failure to exercise that degree of care, which an ordinary
person with reasonable prudence would under the same
circumstances. --- correct precise answer ---b. a private
wrong or injury other than a breach of contract.
Most liability policies provide coverage on an occurrence basis.
All of the following statememts, except one, correctly
describes what the policy covers. Select the statement which
is incorrect.
a. the amount of insurance stated on the policy is the
maximum amount payable for all occurrences, which
happened during the policy period.
b. the policy covers bodily injury or property damage resulting
from an accident.
c. the policy covers bodily injury or property damage caused
by an exposure to a harmful condition over a long period of
time.
d. the amount of insurance stated on the policy is available for
each occurrences during the policy period. --- correct precise
answer ---a. the amount of insurance stated on the policy is
the maximum amount payable for all occurrences, which
happened during the policy period.
All home owners forms insure the personal liability of the
insured arising out of:
,a. the insured's private actions anywhere in the world and
business related actions in north America only
b. the insured's action as private citizen anywhere in the
world
c. the insured's private and business actions anywhere in the
world
d. the insured;s private actions in Canada and USA --- correct
precise answer ---b. the insured's action as private citizen
anywhere in the world
All Homeowners and Habitational package policies include
liability insurance. Coverage E would respond to all of the
following instances, except 1.
a. bodily injury or property damage caused by the insured
arising out a personal non-business activity.
b. bodily injury suffered by a resident employee as a direct
result of the insured's negligence.
c. fire damage to a cottage rented by the insured when a
burning log rolled out of a fire place.
d. property damage to a third party resulting from the
personal actions of a named insured who does not reside at
the insured premises. --- correct precise answer ---d. property
damage to a third party resulting from the personal actions of
a named insured who does not reside at the insured premises.
Your client is considering hiring a contractor to perform
renovations to a building. She would share in any liability for
, injury or damage caused by such contractor in all of the
following instances, except one.
a. when the work being contracted is inherently dangerous
b. when she supplies "blue prints" and leaves the contractor
to his own resources to arrive at the desired results.
c. when she supplies defective machinery or equipment form
which injury or damage arises.
d. when she provides on site direction and on-going
supervision of work. --- correct precise answer ---b. when she
supplies "blue prints" and leaves the contractor to his own
resources to arrive at the desired results.
The personal injury liability coverage, in the commercial
general liability would respond to all of the following torts,
except one.
a. negligence
b. false arrest
c. libel or slander
d. wrongful entry or eviction --- correct precise answer ---a.
negligence
The personal liability coverages, provided on homeowners
forms are designed to insure:
a. the legal liability for private citizens for their actions.
b. the legal liability for insureds arising out of their business
pursuits.
c. the legal liability of insureds arising out of the operation of
all owned and non-owned automobiles.
Insurance Licensing Exam – Complete Practice Questions
with Correct Answers
Introduction
This document contains a complete collection of multiple-
choice practice questions with correct answers for the
Fundamentals of Insurance (BC) examination. It covers core
insurance concepts including homeowners insurance,
commercial property, liability insurance, automobile
insurance (Autoplan), travel insurance, underwriting, risk
management, insurance law, policy conditions, claims
handling, and business interruption insurance. The material
follows the style of the British Columbia insurance licensing
exam and serves as a comprehensive revision resource for
students preparing for certification.
Exam Questions and Answers
Civil law, also called private law, is the body of law that
addresses disputes between individuals and other legal
entities. Civil law is divided into two branches, contract law
and tort law. Civil law defines a tort as:
a. a failure to meet obligations under a contract
,b. a private wrong or injury other than a breach of contract.
c. a criminal wring that must be punished.
d. a failure to exercise that degree of care, which an ordinary
person with reasonable prudence would under the same
circumstances. --- correct precise answer ---b. a private
wrong or injury other than a breach of contract.
Most liability policies provide coverage on an occurrence basis.
All of the following statememts, except one, correctly
describes what the policy covers. Select the statement which
is incorrect.
a. the amount of insurance stated on the policy is the
maximum amount payable for all occurrences, which
happened during the policy period.
b. the policy covers bodily injury or property damage resulting
from an accident.
c. the policy covers bodily injury or property damage caused
by an exposure to a harmful condition over a long period of
time.
d. the amount of insurance stated on the policy is available for
each occurrences during the policy period. --- correct precise
answer ---a. the amount of insurance stated on the policy is
the maximum amount payable for all occurrences, which
happened during the policy period.
All home owners forms insure the personal liability of the
insured arising out of:
,a. the insured's private actions anywhere in the world and
business related actions in north America only
b. the insured's action as private citizen anywhere in the
world
c. the insured's private and business actions anywhere in the
world
d. the insured;s private actions in Canada and USA --- correct
precise answer ---b. the insured's action as private citizen
anywhere in the world
All Homeowners and Habitational package policies include
liability insurance. Coverage E would respond to all of the
following instances, except 1.
a. bodily injury or property damage caused by the insured
arising out a personal non-business activity.
b. bodily injury suffered by a resident employee as a direct
result of the insured's negligence.
c. fire damage to a cottage rented by the insured when a
burning log rolled out of a fire place.
d. property damage to a third party resulting from the
personal actions of a named insured who does not reside at
the insured premises. --- correct precise answer ---d. property
damage to a third party resulting from the personal actions of
a named insured who does not reside at the insured premises.
Your client is considering hiring a contractor to perform
renovations to a building. She would share in any liability for
, injury or damage caused by such contractor in all of the
following instances, except one.
a. when the work being contracted is inherently dangerous
b. when she supplies "blue prints" and leaves the contractor
to his own resources to arrive at the desired results.
c. when she supplies defective machinery or equipment form
which injury or damage arises.
d. when she provides on site direction and on-going
supervision of work. --- correct precise answer ---b. when she
supplies "blue prints" and leaves the contractor to his own
resources to arrive at the desired results.
The personal injury liability coverage, in the commercial
general liability would respond to all of the following torts,
except one.
a. negligence
b. false arrest
c. libel or slander
d. wrongful entry or eviction --- correct precise answer ---a.
negligence
The personal liability coverages, provided on homeowners
forms are designed to insure:
a. the legal liability for private citizens for their actions.
b. the legal liability for insureds arising out of their business
pursuits.
c. the legal liability of insureds arising out of the operation of
all owned and non-owned automobiles.
