AIC All Chapters Practice Questions Latest
Update 2025-2026 225 Questions and 100%
Verified Correct Answers Guaranteed A+
1) The philosophy behind insurance is to
a) provide a vehicle through which wealthy individuals and corporations may protect
their property against catastrophic loss
b)allow insurers to grow larger and more stable, thus creating jobs and supporting the
economy
c) spread the losses of the few amongst the premiums of the many
d) spread the losses of the many amongst the premiums of the few - CORRECT
ANSWER: c
10-1) A tenant package policy is issued to an insured who
a) owns his or her own home which is occupied by tenants
b)owns his or her own home and wants insurance on the building only
c) rents accommodation from others and wants contents and liability coverage
d) wishes to insure his or her household goods which are temporarily in a storage
warehouse - CORRECT ANSWER: c
10-2) Which of the following is an underwriting concern with respect to rented
dwellings?
a) The owner and renter may not be forthcoming about their financial status
b)The owner maintains and reports the condition of the premises to the insurer
c) When short-term occupancies are the norm
d) All of the above - CORRECT ANSWER: c
,10-3) What is a bare land condominium unit and how is it insured? - CORRECT
ANSWER: A bare land condominium unit owner owns a lot on which a dwelling building
has been or will be built. The owner owns everything within the boundaries of the lot. It
is usually insured with a homeowners form, adding coverages for any common property
as required.
10-4) For which of the following reasons would you recommend that your insured
purchase the Condominium Unit Owners Unit Additional Protection coverage?
a) It adds the condominium corporation as an additional named insured with respect to
liability coverage
b)It provides additional insurance protection for the condominium corporation in the
event of an uninsured loss
c) It amends the tenant package policy to include that property which is usual to a
condominium
d) It provides all-risk coverage for damage to the insured unit in the event that the
condominium corporation's policy is inadequate and will offer less than full indemnity -
CORRECT ANSWER: d
10-5) Which of the following is TRUE of the mobile homeowners package form?
a) Losses are settled on a replacement cost basis except for windstorm and/or hail
claims
b)All furnishings are considered to be part of the building
c) It is identical to the basic homeowners form except it covers mobile homes
d) Loss or damage that occurs while the building is being moved is not covered -
CORRECT ANSWER: d
10-6) The basic seasonal residence insurance form is a named perils form. Which of the
following perils are generally not included but may be added by endorsement?
,a) Fire, windstorm, and hail
b)Vandalism and malicious acts
c) Glass breakage
d) Both b) and c) - CORRECT ANSWER: d
10-7) On a farm insurance policy, if an outbuilding is damaged to more than two-thirds
of its value, an initial payment of 50% will be made. The remaining balance is payable if
a) it is repaired or replaced within three months of the date of the loss or damage
b)it is replaced with a building designed for the same purpose
c) it is repaired or replaced in the exact location where the damaged building was
situated
d) all of the above - CORRECT ANSWER: b
11-1) A commercial building insurance form
a) Is designed to insure commercial buildings such as offi ce towers
b) Provides coverage for mercantile risks only
c) Provides coverage for manufacturing risks, but not industrial risks
d) Does not provide coverage for restaurants or bakeries - CORRECT ANSWER: a
11-2) Identify and briefl y describe fi ve additional coverage options found on the
Building, Equipment, and Stock Broad Form. - CORRECT ANSWER: The five optional
extensions are for
i. temporary locations which covers property at an unspecified location in Canada,
temporarily except while in transit, as long as such location is not owned, rented, or
controlled by the insured;
, ii. building at a newly acquired location in Canada, up to 30 days from the date of
acquisition, unless the building is in the course of construction;
iii. contents at a newly acquired location in Canada, up to 30 days from the date of
acquisition, if the building is owned, rented, or controlled by the insured;
iv. property in transit within Canada or continental USA, while in transit until delivered;
and
v. where property is in the custody of a sales representative, including while in transit,
while in Canada or continental USA.
11-3) Which of the following is NOT included in the defi nition of "equipment" on the
Commercial Building, Equipment, and Stock Form?
a) Building maintenance supplies
b) Machinery and tools
c) Furniture and appliances
d) Contents of every description usual to the insured's business, except stock -
CORRECT ANSWER: a
11-4) On a Commercial Building, Equipment and, Stock policy, loss or damage to
animals, fish, or birds
a) is excluded unless the loss or damage is caused directly by a named peril
b)is excluded unless the loss or damage is caused directly by theft and/or attempted
theft or a named peril
c) is excluded without exception
d) is covered because insurers prefer commercial risks that have guard dogs -
CORRECT ANSWER: b
11-5) Which of the following exclusions apply to a Commercial Building, Equipment, and
Stock Form?
Update 2025-2026 225 Questions and 100%
Verified Correct Answers Guaranteed A+
1) The philosophy behind insurance is to
a) provide a vehicle through which wealthy individuals and corporations may protect
their property against catastrophic loss
b)allow insurers to grow larger and more stable, thus creating jobs and supporting the
economy
c) spread the losses of the few amongst the premiums of the many
d) spread the losses of the many amongst the premiums of the few - CORRECT
ANSWER: c
10-1) A tenant package policy is issued to an insured who
a) owns his or her own home which is occupied by tenants
b)owns his or her own home and wants insurance on the building only
c) rents accommodation from others and wants contents and liability coverage
d) wishes to insure his or her household goods which are temporarily in a storage
warehouse - CORRECT ANSWER: c
10-2) Which of the following is an underwriting concern with respect to rented
dwellings?
a) The owner and renter may not be forthcoming about their financial status
b)The owner maintains and reports the condition of the premises to the insurer
c) When short-term occupancies are the norm
d) All of the above - CORRECT ANSWER: c
,10-3) What is a bare land condominium unit and how is it insured? - CORRECT
ANSWER: A bare land condominium unit owner owns a lot on which a dwelling building
has been or will be built. The owner owns everything within the boundaries of the lot. It
is usually insured with a homeowners form, adding coverages for any common property
as required.
10-4) For which of the following reasons would you recommend that your insured
purchase the Condominium Unit Owners Unit Additional Protection coverage?
a) It adds the condominium corporation as an additional named insured with respect to
liability coverage
b)It provides additional insurance protection for the condominium corporation in the
event of an uninsured loss
c) It amends the tenant package policy to include that property which is usual to a
condominium
d) It provides all-risk coverage for damage to the insured unit in the event that the
condominium corporation's policy is inadequate and will offer less than full indemnity -
CORRECT ANSWER: d
10-5) Which of the following is TRUE of the mobile homeowners package form?
a) Losses are settled on a replacement cost basis except for windstorm and/or hail
claims
b)All furnishings are considered to be part of the building
c) It is identical to the basic homeowners form except it covers mobile homes
d) Loss or damage that occurs while the building is being moved is not covered -
CORRECT ANSWER: d
10-6) The basic seasonal residence insurance form is a named perils form. Which of the
following perils are generally not included but may be added by endorsement?
,a) Fire, windstorm, and hail
b)Vandalism and malicious acts
c) Glass breakage
d) Both b) and c) - CORRECT ANSWER: d
10-7) On a farm insurance policy, if an outbuilding is damaged to more than two-thirds
of its value, an initial payment of 50% will be made. The remaining balance is payable if
a) it is repaired or replaced within three months of the date of the loss or damage
b)it is replaced with a building designed for the same purpose
c) it is repaired or replaced in the exact location where the damaged building was
situated
d) all of the above - CORRECT ANSWER: b
11-1) A commercial building insurance form
a) Is designed to insure commercial buildings such as offi ce towers
b) Provides coverage for mercantile risks only
c) Provides coverage for manufacturing risks, but not industrial risks
d) Does not provide coverage for restaurants or bakeries - CORRECT ANSWER: a
11-2) Identify and briefl y describe fi ve additional coverage options found on the
Building, Equipment, and Stock Broad Form. - CORRECT ANSWER: The five optional
extensions are for
i. temporary locations which covers property at an unspecified location in Canada,
temporarily except while in transit, as long as such location is not owned, rented, or
controlled by the insured;
, ii. building at a newly acquired location in Canada, up to 30 days from the date of
acquisition, unless the building is in the course of construction;
iii. contents at a newly acquired location in Canada, up to 30 days from the date of
acquisition, if the building is owned, rented, or controlled by the insured;
iv. property in transit within Canada or continental USA, while in transit until delivered;
and
v. where property is in the custody of a sales representative, including while in transit,
while in Canada or continental USA.
11-3) Which of the following is NOT included in the defi nition of "equipment" on the
Commercial Building, Equipment, and Stock Form?
a) Building maintenance supplies
b) Machinery and tools
c) Furniture and appliances
d) Contents of every description usual to the insured's business, except stock -
CORRECT ANSWER: a
11-4) On a Commercial Building, Equipment and, Stock policy, loss or damage to
animals, fish, or birds
a) is excluded unless the loss or damage is caused directly by a named peril
b)is excluded unless the loss or damage is caused directly by theft and/or attempted
theft or a named peril
c) is excluded without exception
d) is covered because insurers prefer commercial risks that have guard dogs -
CORRECT ANSWER: b
11-5) Which of the following exclusions apply to a Commercial Building, Equipment, and
Stock Form?
