Level 1 General Insurance Exam Study Guide – 2025-2026
Complete Practice Questions and Correct Answers||Latest
Version!!! Already Graded A+
What 6 things must appear on every insurance policy? (Insurance Act)
- Answer -1. Parties to the contract
2. Policy Period
3. Loss payable or payee, if any
4. Type and amount of coverage
5. Rate and premium charged
6. Subject matter of insurance
What 2 things does the Subject matter of insurance need to include? -
Answer -1. Item insured
2. Location of insured item
Removal Coverage Legislated - Answer -Coverage is restricted to
named location on the policy
UNLESS
Property is removed to avoid loss/damage, then it is insured at
unnamed location for 7 days.
Subrogation - Answer -The process by which an insurer can, after it
has paid a loss under the policy, recover the amount paid from any
party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
Effect of delivery of policy - Answer -If insurance policy is delivered
but not yet paid, coverage is still applied.
How was a "reasonable person" defined? - Answer -Arland v Taylor
What does the Workers Compensation Act do for the liability of
injuries in the workplace? - Answer -Provides employees with no
fault job injuries benefits and in exchange they cannot sue their
employer for injury.
pg. 1
,Parents aren't generally required to pay for their children's torts
unless: - Answer –
-They were unsupervised
-They shouldn't have had dangerous item(s) given to them by parents
that caused the damage
-Instructed to do so by parent
-Employed by parent
Liability of Children: Children are responsible for damages unless
what can be proven? - Answer -That they were incapable of
understanding the consequences.
Liability for animals & Legal duty owed - Answer -Domestic: Liable
Wild: If it is common knowledge that animal is dangerous, they are
held strictly liable for any damage/injury.
What happens if equal liability is disputed? - Answer -The law holds
both tortfeasor’s liable for the entirety of the award.
Invitee & Occupier's legal duty owed - Answer –
-Not in AB, BC, ON, NS
Enters by expressed or implied invitation, or connected w/ business or
activity conducted on property. OR has financial/material interest in
the property.
-Must protect invitee's from not only known dangers, but also those
which with reasonable care he might discover.
Tortfeasor/Joint tortfeasors - Answer –
-The person who commits a wrong (tort) against an innocent party.
- If 2 or more, referred to as joint tortfeasors
What are the 4 sanction levels? – Answer
-0/-3 = +6
pg. 2
,-4/-8 = +5
-8/-15 = +4
-15/-20 = +3
Limited Depreciation Coverage - Answer –
-First 3 model years
-If damage is considered a "total loss" (write off), insured receives the
value of the vehicle when purchased.
-Cash payout is only option
What are the exceptions of limited depreciation coverage? - Answer -
Claim mode for loss due to:
-Fire
-Theft
-Vandalism
-Malicious mischief
What are the 3 types of newer vehicle protection? - Answer –
-Enhanced replacement cost coverage
-Replacement cost coverage
-Limited depreciation coverage
Enhanced Replacement cost coverage - Answer –
-CRS -4 or lower
-1st or 2nd model year
-If the estimated cost to repair the vehicle is more than 50% of
vehicle's market value, total loss is assumed.
-Insured can receive the new make/model, or cash payout
Replacement Cost Coverage - Answer –
-CRS -4 or lower
pg. 3
, -First 3 model years
-If estimated repair cost is "very high", ICBC decides of it is a total
loss
-Insured can receive new make/model or cash payout
Loss of Use Coverage - Answer -Pays for car rentals, taxi fares, and
public transportation fares if the insured can't use their vehicle after an
own-damage claim
Automatic Loss of Use Coverage - Answer –
-Included in comprehensive/specified perils coverage
-Only covered if entire vehicle is stolen
-If just tires or motor stolen, loss of use is not covered.
-Can also purchase excess loss of use coverage
What are the exclusions of Own-Damage Coverage? - Answer –
-Tires
-Wear + Tear
-Vehicle contents
-Insider theft
-Some types of industrial vehicles
(Cranes, logging machinery)
What are autoplan basic's 5 compulsory coverages? - Answer –
1. Third Party liability
2. Accident Benefits
3. Underinsured Motorist protection (UMP)
4. Unidentified or uninsured motorist (Hit+Run)
5. Inverse-liability coverage
pg. 4
Complete Practice Questions and Correct Answers||Latest
Version!!! Already Graded A+
What 6 things must appear on every insurance policy? (Insurance Act)
- Answer -1. Parties to the contract
2. Policy Period
3. Loss payable or payee, if any
4. Type and amount of coverage
5. Rate and premium charged
6. Subject matter of insurance
What 2 things does the Subject matter of insurance need to include? -
Answer -1. Item insured
2. Location of insured item
Removal Coverage Legislated - Answer -Coverage is restricted to
named location on the policy
UNLESS
Property is removed to avoid loss/damage, then it is insured at
unnamed location for 7 days.
Subrogation - Answer -The process by which an insurer can, after it
has paid a loss under the policy, recover the amount paid from any
party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
Effect of delivery of policy - Answer -If insurance policy is delivered
but not yet paid, coverage is still applied.
How was a "reasonable person" defined? - Answer -Arland v Taylor
What does the Workers Compensation Act do for the liability of
injuries in the workplace? - Answer -Provides employees with no
fault job injuries benefits and in exchange they cannot sue their
employer for injury.
pg. 1
,Parents aren't generally required to pay for their children's torts
unless: - Answer –
-They were unsupervised
-They shouldn't have had dangerous item(s) given to them by parents
that caused the damage
-Instructed to do so by parent
-Employed by parent
Liability of Children: Children are responsible for damages unless
what can be proven? - Answer -That they were incapable of
understanding the consequences.
Liability for animals & Legal duty owed - Answer -Domestic: Liable
Wild: If it is common knowledge that animal is dangerous, they are
held strictly liable for any damage/injury.
What happens if equal liability is disputed? - Answer -The law holds
both tortfeasor’s liable for the entirety of the award.
Invitee & Occupier's legal duty owed - Answer –
-Not in AB, BC, ON, NS
Enters by expressed or implied invitation, or connected w/ business or
activity conducted on property. OR has financial/material interest in
the property.
-Must protect invitee's from not only known dangers, but also those
which with reasonable care he might discover.
Tortfeasor/Joint tortfeasors - Answer –
-The person who commits a wrong (tort) against an innocent party.
- If 2 or more, referred to as joint tortfeasors
What are the 4 sanction levels? – Answer
-0/-3 = +6
pg. 2
,-4/-8 = +5
-8/-15 = +4
-15/-20 = +3
Limited Depreciation Coverage - Answer –
-First 3 model years
-If damage is considered a "total loss" (write off), insured receives the
value of the vehicle when purchased.
-Cash payout is only option
What are the exceptions of limited depreciation coverage? - Answer -
Claim mode for loss due to:
-Fire
-Theft
-Vandalism
-Malicious mischief
What are the 3 types of newer vehicle protection? - Answer –
-Enhanced replacement cost coverage
-Replacement cost coverage
-Limited depreciation coverage
Enhanced Replacement cost coverage - Answer –
-CRS -4 or lower
-1st or 2nd model year
-If the estimated cost to repair the vehicle is more than 50% of
vehicle's market value, total loss is assumed.
-Insured can receive the new make/model, or cash payout
Replacement Cost Coverage - Answer –
-CRS -4 or lower
pg. 3
, -First 3 model years
-If estimated repair cost is "very high", ICBC decides of it is a total
loss
-Insured can receive new make/model or cash payout
Loss of Use Coverage - Answer -Pays for car rentals, taxi fares, and
public transportation fares if the insured can't use their vehicle after an
own-damage claim
Automatic Loss of Use Coverage - Answer –
-Included in comprehensive/specified perils coverage
-Only covered if entire vehicle is stolen
-If just tires or motor stolen, loss of use is not covered.
-Can also purchase excess loss of use coverage
What are the exclusions of Own-Damage Coverage? - Answer –
-Tires
-Wear + Tear
-Vehicle contents
-Insider theft
-Some types of industrial vehicles
(Cranes, logging machinery)
What are autoplan basic's 5 compulsory coverages? - Answer –
1. Third Party liability
2. Accident Benefits
3. Underinsured Motorist protection (UMP)
4. Unidentified or uninsured motorist (Hit+Run)
5. Inverse-liability coverage
pg. 4
