Book 2 Study 3

Question 1

True or False: Federal legislation is concerned only with supervision and control of the financial aspects of insurance companies.

Answer 1

True

Question 2

True or False: The Insurance Companies Act regulates the incorporation of foreign insurance companies.

Answer 2

False

Question 3

True or False: Insurance companies must have at least five million dollars in capitalization.

Answer 3

False

Question 4

True or False: All insurance companies must file deposits which are held in trust by the government.

Answer 4

False

Question 5

True or False: Insurance companies are restricted in the type of investments they can make.

Answer 5

True

Question 6

True or False: Insurance companies must file financial returns with the government, in addition to their income taxes

Answer 6

True

Question 7

True or False: The OSFI is responsible for the supervision of federally chartered and foreign insurance companies.

Answer 7

True

Question 8

True or False: All Insurance companies are federally regulated.

Answer 8

False

Question 9

True or False: Brokers are regulated by all provincial governments.

Answer 9

False

Question 10

True or False: Independent insurance adjuster do not require licenses.

Answer 10

False

Question 11

True or False: There is no regulation of actual insurance policies

Answer 11

False

Question 12

True or False: The Insurance Institute of Canada is the body responsible for a national insurance education program.

Answer 12

True

Question 13

True or False: Insurance Bureau of Canada is an organization of insurers.

Answer 13

True

Question 14

True or False: Insurers’ Advisory Organization monitors fraudulent claims.

Answer 14

False

Question 15

True or False: Underwriters’ Laboratories is sponsored by IBC.

Answer 15

False

Question 16

True or False: IBC’s Investigative Services works to detect and prevent insurance fraud.

Answer 16

True

Question 17

True or False: The Insurance Brokers’ Association of Canada is open to membership to anyone.

Answer 17

False

Question 18

True or False: Canadian Independent Adjusters’ Association is composed of individual members.

Answer 18

False

Question 19

True or False: The Centre for Study of Insurance Operations is involved with computer communication between insurers and brokers.

Answer 19

False

Question 20

True or False: The facility insures only automobile business

Answer 20

True

Question 21

True or False: All provinces have a Facility Association

Answer 21

False

Question 22

True or False: British insurance companies are treated the same as Canadian companies in all respects.

Answer 22

False

Question 23

True or False: Insurance companies are big investors in common stocks

Answer 23

False

Question 24

True or False: Insurance companies are subject to special government audits at least every three years.

Answer 24

True