FUNDAMENTALS OF INSURANCE (Business)
EXAM STUDY GUIDE COMPLETE LATEST
UPDATED.
Three conditions of coverage under Part II - Loss of Income:
✔✔-benefits payable on a weekly basis, subject to a 7-day waiting period
-insureds must be able to establish that they were employed at the time of
the accident...or, if 18 years of age or older, employed for any 6 months
during the preceding 12 month period
-benefits cease at the end of 104 weeks
Four physical damage coverage options available under a policy of
automobile insurance:
✔✔-All Perils
-Collision or Upset
-Comprehensive
-Specified Perils
Three examples of claims for which the deductible wouldn't be applied:
✔✔-Fire
-Lightning
-Theft of the entire vehicle
-Collision with wildlife
,Coverage provided for damage caused to the automobile when the insured
was intoxicated at the time of the accident:
✔✔-when bodily injury and property damage is caused by an insured who
was under the influence of intoxicating liquor or drugs
The intent of the following "Additional Agreements of Insurer":
Salvage
✔✔-Insurer agrees to pay all costs incurred by insured to save a vehicle
from further loss after an accident.
-Ex: Tow truck, storage compound charges
The intent of the following "Additional Agreements of Insurer":
Customs duties
✔✔-If the vehicle is damaged in an accident in the US, costs for repairs
made there are subject to customs duties.
The intent of the following "Additional Agreements of Insurer":
Waiver of Subrogation
✔✔-Insurer agrees not to subrogate when vehicle is damaged by someone
who had the owner's consent to use it.
*Exclusions:
-Those having possession for the purposes of garaging
-Drivers/operators convicted of an alcohol-related offense at the time the
damage was caused.
The intent of the following "Additional Agreements of Insurer":
,Coverage for temporary substitute automobile
✔✔-Insurer agrees to cover damage to a "temporary substitute vehicle"
which insured vehicle is being repaired.
Briefly summarize the intent of the following "Additional Agreements of
Insurer":
Loss of use by theft
✔✔-Insurer agrees to reimburse loss of use arising directly as a result of
theft of the entire automobile. Limit may vary between insurers.
(The General Provisions, Definitions and Exclusions apply to the entire
policy unless stated otherwise)
State the territorial limits insured by the policy:
✔✔-Coverage is restricted to Canada, the US, and vessels plying between
the ports of those countries.
(The General Provisions, Definitions and Exclusions apply to the entire
policy unless stated otherwise.)
Coverage, if any, provided for persons using the insured automobile without
the insured's consent:
✔✔-Persons operating the vehicle without the owner's consent are not
entitled to any coverage under the policy.
(The General Provisions, Definitions and Exclusions apply to the entire
policy unless stated otherwise.)
Coverage provided for a newly acquired automobile:
✔✔-Automatically covered for 14 days pending insurance when:
, *it replaces the automobile described on the policy
*Is in addition to others owned by the insured and which all are insured by
the same insurer.
Rules applicable to your province:
Examination results required
✔✔-Applicants must be sponsored by the brokerage firm or insurer
employing them.
-For auto insurance in BC, you must pass Autoplan Basics for Brokers in
addition to Fundamentals of Insurance.
State the rules applicable to your province:
Class of License (types of insurance which can be sold)
✔✔BC Brokers:
-Level I - General Insurance Salesperson License.
-Level II - General Insurance Agent's License (commercial lines, personal
lines supervisors)
Three people who are eligible to purchase automobile insurance from ICBC:
✔✔-Automobile owners
-People who drive automobiles they don't own
-People without a vehicle or driver's license
EXAM STUDY GUIDE COMPLETE LATEST
UPDATED.
Three conditions of coverage under Part II - Loss of Income:
✔✔-benefits payable on a weekly basis, subject to a 7-day waiting period
-insureds must be able to establish that they were employed at the time of
the accident...or, if 18 years of age or older, employed for any 6 months
during the preceding 12 month period
-benefits cease at the end of 104 weeks
Four physical damage coverage options available under a policy of
automobile insurance:
✔✔-All Perils
-Collision or Upset
-Comprehensive
-Specified Perils
Three examples of claims for which the deductible wouldn't be applied:
✔✔-Fire
-Lightning
-Theft of the entire vehicle
-Collision with wildlife
,Coverage provided for damage caused to the automobile when the insured
was intoxicated at the time of the accident:
✔✔-when bodily injury and property damage is caused by an insured who
was under the influence of intoxicating liquor or drugs
The intent of the following "Additional Agreements of Insurer":
Salvage
✔✔-Insurer agrees to pay all costs incurred by insured to save a vehicle
from further loss after an accident.
-Ex: Tow truck, storage compound charges
The intent of the following "Additional Agreements of Insurer":
Customs duties
✔✔-If the vehicle is damaged in an accident in the US, costs for repairs
made there are subject to customs duties.
The intent of the following "Additional Agreements of Insurer":
Waiver of Subrogation
✔✔-Insurer agrees not to subrogate when vehicle is damaged by someone
who had the owner's consent to use it.
*Exclusions:
-Those having possession for the purposes of garaging
-Drivers/operators convicted of an alcohol-related offense at the time the
damage was caused.
The intent of the following "Additional Agreements of Insurer":
,Coverage for temporary substitute automobile
✔✔-Insurer agrees to cover damage to a "temporary substitute vehicle"
which insured vehicle is being repaired.
Briefly summarize the intent of the following "Additional Agreements of
Insurer":
Loss of use by theft
✔✔-Insurer agrees to reimburse loss of use arising directly as a result of
theft of the entire automobile. Limit may vary between insurers.
(The General Provisions, Definitions and Exclusions apply to the entire
policy unless stated otherwise)
State the territorial limits insured by the policy:
✔✔-Coverage is restricted to Canada, the US, and vessels plying between
the ports of those countries.
(The General Provisions, Definitions and Exclusions apply to the entire
policy unless stated otherwise.)
Coverage, if any, provided for persons using the insured automobile without
the insured's consent:
✔✔-Persons operating the vehicle without the owner's consent are not
entitled to any coverage under the policy.
(The General Provisions, Definitions and Exclusions apply to the entire
policy unless stated otherwise.)
Coverage provided for a newly acquired automobile:
✔✔-Automatically covered for 14 days pending insurance when:
, *it replaces the automobile described on the policy
*Is in addition to others owned by the insured and which all are insured by
the same insurer.
Rules applicable to your province:
Examination results required
✔✔-Applicants must be sponsored by the brokerage firm or insurer
employing them.
-For auto insurance in BC, you must pass Autoplan Basics for Brokers in
addition to Fundamentals of Insurance.
State the rules applicable to your province:
Class of License (types of insurance which can be sold)
✔✔BC Brokers:
-Level I - General Insurance Salesperson License.
-Level II - General Insurance Agent's License (commercial lines, personal
lines supervisors)
Three people who are eligible to purchase automobile insurance from ICBC:
✔✔-Automobile owners
-People who drive automobiles they don't own
-People without a vehicle or driver's license
