FUNDAMENTALS OF INSURANCE BC EXAM 100% QUESTIONS AND ANSWERS

RISK - ANSWERS IS THE CHANCE OF FINANCIAL LOSS PERIL - ANSWERS IS THE CAISE OF FINANCIAL LOSS FOR EXAMPLE- FIRE WATER AND EARTHQUAKE WHAT IS THE MAIN PURPOSE OF INSURANCE - ANSWERS IS TO ALLOW THE SPREAD OF RISK INDEMNITY - ANSWERS MEANS RESTORING THE INSUREDS TO THE SAM FINANCIAL POSITION AS THEY WERE IN IMMEDIATELY PRIOR TO THE LOSS. WHOSE OPTION IS TO OF HOW THEY WANT TO SETTLE A CLAIM? - ANSWERS THE INSURER INSURANCE INDEMNIFIES - ANSWERS FUTURE AND ACCIDENTAL LOSSES ONLY, NOT THE PLANNED LOSSES DIRECT WRITERS - ANSWERS IN THIS METHOD PRODUCERS ARE EMPLOYEES OF THE INSURER. THEY ARE PAID REMUNERIATION BY THE WAY OF SALARY. INSURER OWNS CUSTOMER FILES INDEPENDANT BROKERAGES - ANSWERS THEY ARE SELF EMPLOYED, THEY ARE NOT EMPLOYEES OF THE INSURANCE COMPANY THEY REPRESENT. THEY ARE PAID COMMISSION. THE CUSTOMER FILES ARE OWNED BY THE BROKERAGE PURE RISK - ANSWERS THERE IS ONY A CHANDE OF FINANCIAL LOSS WITH NO CHANCE OF PROFITING FROM IT FOR EXAMPLE, FIRE LOSS SPECULATIVE RISK - ANSWERS THERE IS A CHANCE OF FINANCIAL LOSS AS WEL AS A CHANCE OF FINANCIAL GAIN WHAT ARE THE 4 WAYS OF LIVING WITH RISK - ANSWERS AVOIDANCE OF RISK- ACTING LIKE ITS NOT THERE CONTROLLING OF RISK- GETTING THINGS INSTALLED TO LESSON THE RISK RETENTION OF RISK- SAVING MONEY TO DEAL WITH RISKS AS THEY COME TRANSFER OF RISK- PURCHASING INSURANCE CONTRACT - ANSWERS IS A LEGAL PROMISE MADE BY TWO OR MORE PARTIES WHICH CAN BE ENFORCED THROUGH THE COURT OF LAW WHAT ARE THE FIVE ELEMENT OF A CONTRACT - ANSWERS AGREEMENT CONSIDERATION LEGALITY OF OBJECT LEGAL CAPACITY OF PARTIES GENUINE INTENTION THE AGREEMENT OF AN INSURANCE CONTRACT - ANSWERS WHEN BOTH PARTIES AGREE ON PARTICULAR POINT CONSIDERATION OF AN INSURANCE CONTRACT - ANSWERS AN EXCHANGE OF SOMETHING OF VALUE BETWEEN THE PARTIES TO A CONTRACT LEGALITY OF OBJECT - ANSWERS FOR WHICH A CONTRACT IS WRITTEN SHOULD BE LEGAL OBJECT LEGAL CAPACITY OF PARTIES - ANSWERS ALL PARTIES TO CONTRACT SHOULD HAVE LEGAL CAPACITY TO ENTER INTO A CONTRACT GENUINE INTENTION - ANSWERS NO INFLUENCE OR VIOLENCE IS USED ON EITHER PARTY TO ENTER INTO A CONTRACT BINDER - ANSWERS THE BROKER HAS COMMITTED AN INSURER TO A CONTRACT OF INSURANCE ON ANY RISK ENDORSEMENT - ANSWERS IT MEANS TO CHANGE THE TERMS AND CONDITIONS OF AN EXISTING INSURANCE POLICY RIDER - ANSWERS THE COVERAGE OF AN ADDITIONAL PERIL OVER AND ABOVE THE EXISTING PERILS COVERED IN THE POLICY WHAT DOES THE FEDERAL GOVERNMENT DO - ANSWERS IT MONITORS THE FINANCIAL HEALTH OF FEDERALLY LICENSED INSURERS WHAT DOES INSOLVENT MEAN - ANSWERS THOSE WHO ARE NOT ABLE TO PAY ALL INSURED LOSSES WHAT DOES SOLVENT MEAN - ANSWERS THOSE WHO ARE ABLE TO PAY ALL INSURED LOSSES WHAT HAPPENS WHNE AN INSURED BECOMES INSOLVENT - ANSWERS THE PROPERTY AND CAUSALITY INSURANCE COMPENSATION CORPORATION TAKES OVER THE BUSINESS AND PAYS THE LOSSES WHAT DOES THE PROVINCIAL GOVERNMENT DO - ANSWERS THRY APPROVE THE CONTENT OF INSURANCE CONTRACTS IT LICENSES THE INSURERS OPERATING WITHIN THE PROVINCE INCLUDING FEDERALLY LICENSED INSURER IT ALSO MONITORS THE FINANCIAL HEALTH OF THE INSURERS WHICH OPERATE IN THE PROVINCE ONLY WHAT IS A FIDUCIARY - ANSWERS SOMEONE THATNHANDELS SOMEONE ELSES MONEY WHO ARE FIDUCIARIES - ANSWERS INSURERS AND BROKERS WHY SHOULD BROKER NOT USED UNEARNED COMMISSIONS - ANSWERS SO THAT IT IS AVAILABLE IN THE TRUST ACCOUNT TO BE REFUNDED TO THE CLIENT IN CASE THE POLICY IS CANCELLED WHO HAS THE AUTHRITY TO MAKE ALTERATIONS TO THE POLICY - ANSWERS A PERSON WHO IS AUTHORIZED BY THE INSURER, BROKERS ARE GENERALLY NOT AUTHORIZED WHAT IS THE REMOVAL CLAUSE - ANSWERS WHEN A PROPERTY IS REMOVED TO AN UNNAMED LOCATION TO PROTECT IF FROM DAMAGE OR FROM FURTHER DAMAGE IS COVERED UP TO 7 DAYS OR FOR THE REMAINDER OF THE POLICY, WHICH EVER ONE IS SHORTER WHEN DOES AN INSURANCE POLICY TAKE EFFECT - ANSWERS AN INSURANCE POLICY STARTS AT 1201AM STANDARD TIME AT THE ADDRESS OF THE NAMED INUSRED AS STATED HEREIN. WHAT IS SUBROGATION - ANSWERS WHEN THE INUSRERS CAN SUE THE PARTY RESPONSIBLE FOR THE LOSS OF THEIR CLIENT TO RECOVER MONEY AFTER PAYING THE CLAIM. WHAT IS SUBROGATION LIKE? - ANSWERS ITS LIKE PUTTING SOMEONE IN ANOTHER PERSONS SHOES EFFECT OF A DELIVERY OF AN INSURANCE POLICY - ANSWERS THE INSURED IS ELIGIBLE FOR A CLAIM IF THE DOCUMENTS HAVE BEEN DELIVERED TO HIM OR HER EVEN IF NO PAYMENT HAS BEEN MADE. WHAT ARE THE TWO TYOES OF FIRE - ANSWERS FRIENDLY FIRE AND HOSTILE FIRE WHAT IS FRIENDLY FIRE - ANSWERS WHEN A FIRE STAYS WHERE IT BELONGS, IT IS CALLED FRIENDLY FIRE