LEVEL 1 GENERAL INSURANCE EXAM

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LEVEL 1 GENERAL INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Valued Policies

Answer:

Irreplaceable objects.Usually requires an appraiser to determine value of loss.ex. Antiques

Question 2: Superintendent of Insurance

Answer:

Provincial Government -Supervises terms and conditions of insurance contracts -Licenses insurers -Monitors financial stability of provincially licensed insurers (Financial solvency) Question 3: Statutory Condition 8: Who may give notice and proof

Answer:

If insured is unable to give notice (for good reason), an agent of the insured may do so for them.Ex, if in extended hospital stay, spouse may make claim for them.

Question 4: Replacement Cost Coverage

Answer:

-CRS -4 or lower -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

Question 5: Parts Clause

Answer:

When loss to one part of property which consists of several parts, the settlement pays for the value of lost part and the installation cost.ex. Corner of carpet

Question 6: 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

Question 7: Hostile Fire

Answer:

a fire that leaves its intended place, such as a spark that escapes a fireplace and sets the carpet on fire

Question 8: What are ICBC's schedule of limitations for accident benefits?

Answer:

Medical & Rehab $150,000 Death Benefits $5000 Funeral Expenses $2500 Loss Wage Benefits 75% of avg. weekly earnings, max $300/week

Question 9: Base Rate Rule

Answer:

If CRS level 0 or higher before claim, if you go 3 consecutive claim-free years, you return to base rate (0).Question 10: Statutory Condition 13: Replacement

Answer:

-Insurer can repair/replace/rebuild any loss -If they choose to repair, must notify insured of intentions within 30 days of proof of loss -Must begin action 45 days after proof of loss

Question 11: Unintentional Torts (Negligence)

Answer:

failure to do something which a reasonable person would do, or doing something which a prudent and reasonable person would not do -Acts of carelessness that cause loss/damage

Question 12: What are the 3 types of newer vehicle protection?

Answer:

-Enhanced replacement cost coverage -Replacement cost coverage -Limited depreciation coverage Question 13: Statutory Condition 1: Misrepresentation

Answer:

-False description of the property to the prejudice of the insurer.-Misrepresentation of a material fact -Fraudulent omission of a material fact

Question 14: Underwriter's possible decisions for assessing risks

Answer:

-Reject the risk -Accept the risk unconditionally -Accept risk w/ increased rate -Accept risk w/ increased deductible -Accept risk subject to conditions

Question 15: Rate Class

Answer:

Used to describe what the vehicle's purpose is.Example) The client uses their vehicle to commute to the sky train station daily.

Question 16: What 8 things make up the Code of Conduct/Ethics for brokers?

Answer:

• Integrity

• Competence

• Quality of Service

• Advising Clients

• Confidentiality
• Fee Disclosure
• Encouraging Public Respect
• Maintaining Integrity of Profession

Question 17: What factors influence depreciation?

Answer:

-Condition of object -Obsolescence -Resale value -Normal life expectancy

Question 18: How does insurance differ from a commodity like groceries or gas?

Answer:

-An application is required -Cost is not the same for everyone

Question 19: E&O Claim

Answer:

Errors & Omissions Claim -When a client suffers financial loss due to broker's mistake, E&O claim filed against brokerage.-Most common claim is inadequate coverage

Question 20: Benefits of having a good broker/underwriter relationship

Answer:

-Underwriter's more co-operative w/ brokers they know and trust -Underwriters can speed up process and help brokers with deadlines -Underwriters have high degree of knowledge to share w/ broker.

Question 21: 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