Fundamentals of Insurance BUNDLED exam 2023 with 100% correct answers

Insurance - correct answerassurance given to the insured by the insurer to lessen the financial damage suffered during an insured occurrence Peril - correct answerthe cause of a financial loss (ie. fire, water, earthquake) Risk - correct answerthe chance of financial loss Purpose of insuran...

Insurance - correct answerA Contractual arrangement that protects against lost Insurer - correct answerThe party who agrees to indemnify (Geico) Indemnify - correct answerTo make good the loss of a suffering party Insured - correct answerThe party covered or protected by insurance Benefi...

Chapter 1 - Intro - correct answer List the 5 functions of insurance: - correct answer1) Spread of risk 2) Basis of credit system 3) Eliminate worry and develop entrepreneurship 4) Loss reduction and prevention (road safety, alarms, etc.) 5) Employment opportunity Definition of insurance (...

TRUE OR FALSE: In private automobile insurance provinces, they use The Standard Application Form (SAF #1) to apply for auto insurance - correct answerTrue TRUE OR FALSE: Once a private auto insurer approves the application the policy will be issued of the Standard Policy Form (SPF #1 ) Owners For...

Spread of Risk - correct answer- "The losses of few are shared among the many" - A large pot into which all insureds place their premiums - This pot provides for payment for the losses of those who have claims Basis of Credit System - correct answerConsumer access to insurance frees up credit...

Road infrastructure and laws are managed:... - correct answerprovincially. Man., Sask. and BC coverage is provided by compulsory gov't. insurance plans. Quebec is hybrid. THIRD PARTY LIABILITY is a legal responsibility for:... - correct answerLoss, property damage or injury to a third party I...

The coverage limits on Homeowners Insurance Policies are determined after calculating the Replacement Cost of the dwelling building. Once this value is determined, the rest of the coverage limits are calculated. Which of the following coverage limits is correct? a) Personal Property- 100% of Covera...

The major function of insurance is: a. To reduce the cost of the losses b. To share the losses of the few among the many c. The safeguard the interest of mortgages d. To serve as a basis of existing credit system - correct answerb. To share the losses of the few among the many A peril if be...

What are the legal requirements of an insurance contract? - correct answerOffer and Acceptance Legal Competency of both parties Consideration is given Lawful Purpose What are the elements of an insurable risk? - correct answerLarge number of homogenous exposures Losses must be accidental Los...

A loss exposure is defined as: (A) a loss that might occur (B) an undesirable end result of a risk (C) the largest possible loss (D) the probability of a loss - correct answerThe answer is (A) by definition Which of the following statements concerning the beneficiary provisions in a life insu...

every policy of fire insurance ly covers fire,smoke, and specified types of explosions required by law to cover fire, windstorm,and lightning s fire,explosion, and windstorm required by law to cover at least fire, lightning, and specified types of explosions - correct required by law to cov...

Chapter 1 - correct answerIntroduction to General Insurance The major function of insurance is to achieve a spread of risk. Explain what is meant by spread of risk. - correct answerthe major function of insurance is to share the losses of the few among the many What are the five functions of i...

Identify four persons including the definition of "you' or "your" and who would be Insureds under the policy. - correct answerSpouse or common law living in the same household, relatives of either spouse or insured, any person under 21 in the care of named insured, and students can be over the a...

What is the role of Agents? - correct answerRepresent insurers interests, only represent one insurance company. What is the role of Brokers? - correct answerRepresent client's interests. Often represent various insurance companies. Who is party to contract? - correct answerInsured and insurer...