OTL Exam Questions Solved Correctly Latest Update 2025-2026
List the five (5) elements of a contract. - Answers Agreement
Consideration
Genuine Intentions
Capacity to Contract
Legality of Purpose
Name the three (3) elements specific to insurance contracts. - Answers Indemnity
Insurable Interest
Utmost Good Faith
What are the three (3) ways Actual Cash Value (ACV) can be determined? - Answers Cost to repair or
replace less depreciation
Fair market value
Consideration of all relevant evidence of the value of the damaged property
List the three (3) conditions that must be met for an occurrence to be classified as a fire. - Answers
There must be an actual fire or ignition
Something is on fire that shouldn't be on fire
It must be accidental (casualty)
What are some factors and considerations that determine the amount of indemnity to be paid to an
insured? - Answers The type of contract: actual cash value (ACV) or replacement cost
The amount of insurance
Specific limits on certain items
Deductibles
Coinsurance
How is the special limit of insurance Coverage C—Personal Property for portable property (e.g.
jewellery) applied if the claim is caused by a specified peril? Explain how this is different if the claim is
caused by theft. - Answers If the cause of loss is a specified peril (e.g. fire) the special limit of insurance
does not apply. If, however, the cause of loss is from theft, then the special limit applies.
, List several items in Coverage C—Personal Property that are subject to special limits of insurance. -
Answers Business Property ($2,000): books, tools, and instruments pertaining to a business only while
on premises
Garden-type Tractors ($5,000): includes attachments and accessories
Watercraft ($1,000): includes the equipment, attachments, and accessories
Computer Software ($2,500): on or off premises; hardware does not have a limit
Spare Automobile Parts ($1,000)
List several items that are subject to special limits of insurance Coverage C—Personal Property, but the
limits do NOT apply if the claim is caused by a specified peril. - Answers Numismatic (of, relating to, or
consisting of coins, medals, paper money, etc.) property
Jewellery, watches, gems, fur garments
Manuscripts, stamps and philatelic (collects of stamps and other postal matter as a hobby or an
investment) property
Bicycle, it's equipment and accessories
Collectible cards
Personal property of any student insured by the policy who is temporarily living away from home
What are the four (4) property coverages in a Homeowners Comprehensive Policy? - Answers Dwelling
building
Detached private structures
personal property
additional living expense
List the six (6) sections of coverage found on a condominium unit owners policy. - Answers Personal
Property
Personal Liability
Additional Living Expenses
List the five (5) elements of a contract. - Answers Agreement
Consideration
Genuine Intentions
Capacity to Contract
Legality of Purpose
Name the three (3) elements specific to insurance contracts. - Answers Indemnity
Insurable Interest
Utmost Good Faith
What are the three (3) ways Actual Cash Value (ACV) can be determined? - Answers Cost to repair or
replace less depreciation
Fair market value
Consideration of all relevant evidence of the value of the damaged property
List the three (3) conditions that must be met for an occurrence to be classified as a fire. - Answers
There must be an actual fire or ignition
Something is on fire that shouldn't be on fire
It must be accidental (casualty)
What are some factors and considerations that determine the amount of indemnity to be paid to an
insured? - Answers The type of contract: actual cash value (ACV) or replacement cost
The amount of insurance
Specific limits on certain items
Deductibles
Coinsurance
How is the special limit of insurance Coverage C—Personal Property for portable property (e.g.
jewellery) applied if the claim is caused by a specified peril? Explain how this is different if the claim is
caused by theft. - Answers If the cause of loss is a specified peril (e.g. fire) the special limit of insurance
does not apply. If, however, the cause of loss is from theft, then the special limit applies.
, List several items in Coverage C—Personal Property that are subject to special limits of insurance. -
Answers Business Property ($2,000): books, tools, and instruments pertaining to a business only while
on premises
Garden-type Tractors ($5,000): includes attachments and accessories
Watercraft ($1,000): includes the equipment, attachments, and accessories
Computer Software ($2,500): on or off premises; hardware does not have a limit
Spare Automobile Parts ($1,000)
List several items that are subject to special limits of insurance Coverage C—Personal Property, but the
limits do NOT apply if the claim is caused by a specified peril. - Answers Numismatic (of, relating to, or
consisting of coins, medals, paper money, etc.) property
Jewellery, watches, gems, fur garments
Manuscripts, stamps and philatelic (collects of stamps and other postal matter as a hobby or an
investment) property
Bicycle, it's equipment and accessories
Collectible cards
Personal property of any student insured by the policy who is temporarily living away from home
What are the four (4) property coverages in a Homeowners Comprehensive Policy? - Answers Dwelling
building
Detached private structures
personal property
additional living expense
List the six (6) sections of coverage found on a condominium unit owners policy. - Answers Personal
Property
Personal Liability
Additional Living Expenses
