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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Management and Application | 15–20% | - Risk identification, assessment, treatment - Application of principles to personal and commercial contexts - Ethics and professional conduct |
| Topic 2: Introduction to Insurance | 10–15% | - Role of insurance in economy and society - Basic concepts: risk, peril, hazard - Purpose and function of insurance |
| Topic 3: Insurance Industry Structure and Stakeholders | 15–20% | - Legislation and regulation in Canada - Roles: underwriting, claims, reinsurance - Insurers, intermediaries, regulators |
| Topic 4: Insurance Policy Structure and Provisions | 20–25% | - Interpretation of policy wording - Endorsements and modifications - Policy components: declarations, insuring agreement, exclusions, conditions |
| Topic 5: Legal Principles of Insurance | 20–25% | - Subrogation and contribution - Insurable interest, utmost good faith - Principle of indemnity - Contract law fundamentals |
1. What is the correct placement of statutory conditions to their respective insurance policy?
A) A: accident & sickness, B: fire, C: automobile
B) A: automobile, B: accident & sickness, C: fire
C) A: accident & sickness, B: automobile, C: fire
D) A: fire, B: accident & sickness, C: automobile
2. Samuel is a broker who does NOT have claims-handling authority. He received a call from an insured at the scene of an auto accident. The insured was upset, and Samuel reassured her that everything would be fine because she had coverage. Later, the insurer denied the claim due to impaired driving. What should Samuel have done differently?
A) Asked the insured more details and informed her the claim would not be covered
B) Asked to speak to the police officer at the scene to determine legal implications
C) Told the insured to take immediate responsibility for the accident to uphold utmost good faith
D) Told the insured that the insurer would have to investigate before he could answer her concerns
3. Tame Insurance Company recently decided to terminate its broker agreement with XYZ Insurance Brokers.
Which situation would likely have resulted in this termination?
A) Tame Insurance Company set a standard deductible for certain classes of business
B) XYZ Insurance Brokers did not remit commissions owed to the insurer immediately after issuing a policy
C) Tame Insurance Company provided quotes on all applications received from the broker
D) XYZ Insurance Brokers did not keep handled premiums in a trust account and instead used them to pay expenses
4. What best describes a direct loss?
A) A loss covered by an insured peril, but not caused directly by the peril
B) A loss not covered on the policy but covered by an endorsement
C) Damage to property caused directly by the insured
D) Damage to property by direct action of a peril insured against
5. Orianna is an insurance professional who acts on behalf of the insurerandthe insured. She owns her client list and is paid commission once policies are arranged. What is her profession?
A) Underwriter
B) Broker
C) Exclusive agent
D) Independent adjuster
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |
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