IBABC Fundamentals of Insurance - ICBC Auto Questions & Verified Answers
Business interruption pays for? -Expenses which continue after a loss.
-Lost profits
True or False.. Autoplan Basic's inverse liability coverage True
pays to repair a third party's vehicle if the law prohibits the
third party from suing the insured driver to recover the
costs.
List two laws that are incorporated with common law. -Case law precedent
-Statute law
Briefly explain Underinsured Motorist Coverage Compensated a crash victim when the at-fault driver doesn't have enough TPL
insurance to cover the victim's full claim.
What makes up a Rate Group? Assigned by ICBC, based on average claim costs, repair costs, engine size, vehicle
safety features and other factors
What is collision? It insures the automobile when it is damaged by upset or impact with another
vehicle, person, or object.
Also covers vehicle damage or loss caused by a crash with a hit & run driver
Which of the 2 methods of insurance distribution is the The independent brokerage system method is the most common with an estimate of
most common? over 80% of all property & casualty insurance is sold through this system.
Which of the following is not considered an indirect loss? Smoke damage to the insured's building caused by a neighbouring property that is
on fire.
3 multiple choice options
The Roadstar Package provides increased loss of use Lock, key, & remote keyless entry transmitter protection
coverage, rental vehicle coverage, vehicle travel
protection, and...?
What does being solvent mean? Solvent: When insurers are capable of fulfilling their financial obligations.
What is insolvent? Insolvent: When insurers are unable to meet financial obligations.
What is a tort? A wrongful act or infringement of a right, legally recognized as grounds for a lawsuit,
especially if it causes injury or harm.
Provide a brief summary of the coverages provided by E: Personal liability - insures the legal liability of insureds anywhere in the world.
insuring agreements E - H. F. Voluntary Medical Payments - provides for the payment of medical expenses
incurred within 1 year of the date of the accident.
G. Voluntary Damage to Property - Payment made when unintentionally caused and
insured would not be legally liable, or when intentionally caused by an insured 12
years or younger.
H. Voluntary Compensation for Residence Employees - Designed to provide all
occasional residence employees with limited benefits
What are the optional new vehicle coverages? New Vehicle Replacement Plus: original owner, min 20% discount. Cash settlement
can be taken.
Replacement Cost: first 3 model years, min 20% discount. No depreciation.
Limited Depreciation: write offs only. First 3 model years. No depreciations.
Stuvia 2026-2027 | Latest Version
, IBABC Fundamentals of Insurance - ICBC Auto Questions & Verified Answers
What type of coverage would respond? Underinsured Motorist Protection
A BC motorist is driving in Seattle when his car is hit by a
driver licensed in Washington, who runs a red light. The
BC driver is physically injured and his car is badly
damaged. The cost of the BC driver's medical care and car
repairs is well over $100,000, but the Washington driver
has only $25,000 in third party liability insurance.
One of the elements that determines whether a contract is An invoice for merchandise shipped to the order of Mandy's Souvenir and Gift Shop
legally enforceable or not is the "legal capacity of the 3 multiple choice options
parties."
In all of the following contracts, except one, are the parties
considered to have legal capacity. Select the one that does
not meet this element.
Would they be covered? No coverage. If he would have rolled his windows up before parking for the night,
An insured driver leaves his car windows down while he would have been.
parked outside his home. His leather jacket and some
money was stolen from the back seat. There is no damage
to the vehicle.
Which of the following is insured under the Homeowners Rupture of a heating, plumbing, or air conditioning system
Basic Form (IBC 1151)? 3 multiple choice options
An independent adjuster is? Adjusts loss on behalf of the insurer but is not an employee of the insurer.
3 multiple choice options
In the common law provinces, which of the following The Insurance Acts
regulates insurance contracts? 3 multiple choice options
What is the minimum coverage limit of Third Party $200,000
Liability? 3 multiple choice options
What is interim insurance for newly purchased vehicles? Coverage lasting 1-31 days for vehicles purchased outside BC only.
Binder for owners. Interim certificate of insurance.
State the basis of settlement applicant to 1. A deductible applies to all property losses
1. Personal Property 2,3. Insurer agrees to pay the cost of repairs or replacement (whichever is less)
2. Dwelling Building without deduction for depreciation
3. Detached Private Structures
What does the Roadstar package include? Roadstar: increased loss of use, rental vehicle coverage, vehicle travel protection,
What extras are included with Roadstar Plus? locks, keys and remote keyless entry transmitter protection.
Roadstar Plus: All above listed, destination assistance, theft deductible waiver,
emergency roadside expense repayment.
State the duties owed by the insured to the insurer in the 1. Provide the insurer with prompt notification of any occurrence which may lead to
event of an occurrence, claim, or action. a claim or action.
2. Immediately provide the insurer with copies of any legal documents received.
3. Assist in the investigation, settlement, or defense.
4. Authorize the insurer to obtain records and other information.
5. Do not, except at their own cost, voluntarily make a payment, assume any
obligation, other than for first aid, without consent of the insurer
The legal duty of care owed to an invitee is... To protect the invitee from any dangers the occupier is aware of, or should have
been aware of.
Stuvia 2026-2027 | Latest Version
Business interruption pays for? -Expenses which continue after a loss.
-Lost profits
True or False.. Autoplan Basic's inverse liability coverage True
pays to repair a third party's vehicle if the law prohibits the
third party from suing the insured driver to recover the
costs.
List two laws that are incorporated with common law. -Case law precedent
-Statute law
Briefly explain Underinsured Motorist Coverage Compensated a crash victim when the at-fault driver doesn't have enough TPL
insurance to cover the victim's full claim.
What makes up a Rate Group? Assigned by ICBC, based on average claim costs, repair costs, engine size, vehicle
safety features and other factors
What is collision? It insures the automobile when it is damaged by upset or impact with another
vehicle, person, or object.
Also covers vehicle damage or loss caused by a crash with a hit & run driver
Which of the 2 methods of insurance distribution is the The independent brokerage system method is the most common with an estimate of
most common? over 80% of all property & casualty insurance is sold through this system.
Which of the following is not considered an indirect loss? Smoke damage to the insured's building caused by a neighbouring property that is
on fire.
3 multiple choice options
The Roadstar Package provides increased loss of use Lock, key, & remote keyless entry transmitter protection
coverage, rental vehicle coverage, vehicle travel
protection, and...?
What does being solvent mean? Solvent: When insurers are capable of fulfilling their financial obligations.
What is insolvent? Insolvent: When insurers are unable to meet financial obligations.
What is a tort? A wrongful act or infringement of a right, legally recognized as grounds for a lawsuit,
especially if it causes injury or harm.
Provide a brief summary of the coverages provided by E: Personal liability - insures the legal liability of insureds anywhere in the world.
insuring agreements E - H. F. Voluntary Medical Payments - provides for the payment of medical expenses
incurred within 1 year of the date of the accident.
G. Voluntary Damage to Property - Payment made when unintentionally caused and
insured would not be legally liable, or when intentionally caused by an insured 12
years or younger.
H. Voluntary Compensation for Residence Employees - Designed to provide all
occasional residence employees with limited benefits
What are the optional new vehicle coverages? New Vehicle Replacement Plus: original owner, min 20% discount. Cash settlement
can be taken.
Replacement Cost: first 3 model years, min 20% discount. No depreciation.
Limited Depreciation: write offs only. First 3 model years. No depreciations.
Stuvia 2026-2027 | Latest Version
, IBABC Fundamentals of Insurance - ICBC Auto Questions & Verified Answers
What type of coverage would respond? Underinsured Motorist Protection
A BC motorist is driving in Seattle when his car is hit by a
driver licensed in Washington, who runs a red light. The
BC driver is physically injured and his car is badly
damaged. The cost of the BC driver's medical care and car
repairs is well over $100,000, but the Washington driver
has only $25,000 in third party liability insurance.
One of the elements that determines whether a contract is An invoice for merchandise shipped to the order of Mandy's Souvenir and Gift Shop
legally enforceable or not is the "legal capacity of the 3 multiple choice options
parties."
In all of the following contracts, except one, are the parties
considered to have legal capacity. Select the one that does
not meet this element.
Would they be covered? No coverage. If he would have rolled his windows up before parking for the night,
An insured driver leaves his car windows down while he would have been.
parked outside his home. His leather jacket and some
money was stolen from the back seat. There is no damage
to the vehicle.
Which of the following is insured under the Homeowners Rupture of a heating, plumbing, or air conditioning system
Basic Form (IBC 1151)? 3 multiple choice options
An independent adjuster is? Adjusts loss on behalf of the insurer but is not an employee of the insurer.
3 multiple choice options
In the common law provinces, which of the following The Insurance Acts
regulates insurance contracts? 3 multiple choice options
What is the minimum coverage limit of Third Party $200,000
Liability? 3 multiple choice options
What is interim insurance for newly purchased vehicles? Coverage lasting 1-31 days for vehicles purchased outside BC only.
Binder for owners. Interim certificate of insurance.
State the basis of settlement applicant to 1. A deductible applies to all property losses
1. Personal Property 2,3. Insurer agrees to pay the cost of repairs or replacement (whichever is less)
2. Dwelling Building without deduction for depreciation
3. Detached Private Structures
What does the Roadstar package include? Roadstar: increased loss of use, rental vehicle coverage, vehicle travel protection,
What extras are included with Roadstar Plus? locks, keys and remote keyless entry transmitter protection.
Roadstar Plus: All above listed, destination assistance, theft deductible waiver,
emergency roadside expense repayment.
State the duties owed by the insured to the insurer in the 1. Provide the insurer with prompt notification of any occurrence which may lead to
event of an occurrence, claim, or action. a claim or action.
2. Immediately provide the insurer with copies of any legal documents received.
3. Assist in the investigation, settlement, or defense.
4. Authorize the insurer to obtain records and other information.
5. Do not, except at their own cost, voluntarily make a payment, assume any
obligation, other than for first aid, without consent of the insurer
The legal duty of care owed to an invitee is... To protect the invitee from any dangers the occupier is aware of, or should have
been aware of.
Stuvia 2026-2027 | Latest Version
