Chapter 2 Legislation and General Principles

Question 1

The Freedom of Information and Protection of Privacy Act (FOIPPA) applies to which jurisdiction?

a. Quebec
b. Nunavut
c. Yukon
d. Saskatchewan

Answer 1

d. Saskatchewan

Question 2

Under Statutory Condition 3, Change of Interest, the insurer is obliged to insure a new interest replacing the named insured’s interest, except

a. when the owner sells the home to a relative.
b. by change in title due to succession.
c. by change in title due to the death of the named insured.
d. with authorized assignment under the Bankruptcy and Insolvency Act.

Answer 2

a. when the owner sells the home to a relative.

Question 3

What action must the insurer take when it opts to repair, rebuild, or replace damaged property rather than make payment in the form of a cash settlement?

a. First provide the insured with the option of accepting or rejecting the proposed basis of settlement
b. Provide the insured with written notice of its intention to do so within 30 days after receipt of proof of loss
c. Seek the consent of the insured’s mortgagee
d. Advise the insured’s broker or agent of its decision

Answer 3

b. Provide the insured with written notice of its intention to do so within 30 days after receipt of proof of loss

Question 4

What are the two types of legal system in Canada?

a. Private law and common law
b. Administrative law and common law
c. Common law and the Civil Code of Québec
d. Procedural law and the Civil Code of Québec

Answer 4

c. Common law and the Civil Code of Québec

Question 5

What does the acronym PIPEDA stand for?

a. Personal Information and Electronic Documents Act
b. Private Information and Electronic Documents Act
c. Property Information and Electronic Documents Act
d. Personal Information and Email Documents Act

Answer 5

a. Personal Information protection and Electronic Documents Act

Question 6

What is a legal decision that serves as a basis to resolve subsequent disputes in similar cases?

a. Case law
b. Precedent
c. Insurance law
d. Civil Code of Québec

Answer 6

b. Precedent

Question 7

When the insured terminates or cancels a policy prior to the expiry date of his or her policy, the insurer will refund the unearned premium based on a

a. pro rata basis.
b. short-rate basis.
c. full premium basis.
d. minimum retained premium basis.

Answer 7

b. short-rate basis.

Question 8

Which of the following reactions arises from the statutory condition that provides that the insured must promptly notify the insurer of any material change?

a. A new feature is introduced that increases the chance of loss.
b. It results in damage to buildings/contents caused by alterations or additions.
c. It results in damage to goods caused by their undergoing a process involving the application of heat.
d. Due to a bylaw change, it provides for use of materials inferior to those that existed at the time the insurance policy was purchased.

Answer 8

a. A new feature is introduced that increases the chance of loss.

Question 9

Which of the following statements is correct as it relates to the Personal Information Protection Act (PIPA)?

a. It applies to Quebec.
b. It applies to Yukon, the Northwest Territories, and Nunavut.
c. It governs private-sector organizations in the course of commercial business activities.
d. It regulates public bodies such as provincial government departments, municipalities, universities, school boards and Crown corporations.

Answer 9

c. It governs private-sector organizations in the course of commercial business activities.

Question 10

Which system of law originated in England by judges based on court decisions; also known as case law?

a. Statute law
b. Common law
c. Judgment law
d. Civil Code of Québec

Answer 10

b. Common law

Question 11

Civil Law is concerned with

a. traffic tickets
b. case law
c. the law
d. settling disputes

Answer 11

d. settling disputes

Question 12

How many days does the Insurer have to respond and make payments regarding a claim after receiving the proof of loss?

a.30 days
b 21 days
c. 60 days
d. 7 days

Answer 12

c. 60 days

Question 13

How many Statutory conditions are there in Property insurance policies?

a. ten
b. fourteen
c. fifteen
d. twelve

Answer 13

c. fifteen

Question 14

If an insurer states that failure to comply with one particular policy condition forfeits an entire claim and the insured feels that the policy condition is unjust and unreasonable, they can:

a. Contact the ombudsman
b. Sue the insurance company
c. Apply to the courts for relief from forfeiture
d. Hire their own appraiser

Answer 14

c. Apply to the courts for relief from forfeiture

Question 15

The definition of Mitigation is:

a. Non-arbitrary settling of disputes
b. Protection property from further damage
c. The appraisal process for loss settlement
d. Legal Context for property insurance

Answer 15

b. Protection property from further damage

Question 16

Flooding caused by rain is:

a. Fluvial
b. Pluvial
c. Groundwater
d. flashpoint

Answer 16

b. Pluvial

Question 17

A duty of payment of money or service is?

a. warrantee
b. premiums
c. deductible
d. prestation

Answer 17

d. prestation

Question 18

The legal process by which an insurance company after the payment of a loss is assigned the rights of the insured.

a. common law
b. subrogation
c. settlement
d. PIPDA

Answer 18

b. subrogation

Question 19

Flooding caused by the overflow of a river

a. Fluvial
b. Pluvial
c. groundwater
d. flashpoint

Answer 19

a. Fluvial

Question 20

The subject matter of insurance is

a. identity
b. risk
c. mitigation
d. premises

Answer 20

b. risk

Question 21

Accumulation of snow or ice on the roof or eavestrough is

a. snow buildup
b. fluvial
c. ice damming
d. pluvial

Answer 21

c. ice damming

Question 22

risk, peril, or preparties defined in the policy as not covered

a. perils
b exception
c. exclusion
d. indemnity

Answer 22

c. exclusion

Question 23

Void from the beginning is

a. precedent
b. exclusion
c. ab initio
d. void

Answer 23

c. ab initio

Question 24

In Canada What is civil law concerned with

a. settling matters of law enforcement
b. setting the obligations of citizenship
c. Setting disputes and assessing compensation
d. setting the consequences of criminal offices

Answer 24

c. Setting disputes and assessing compensation

Question 25

Which of the following is NOT true about statutory conditions in common law provinces and territories

a. the conditions must be printed in all fire policies
b. insurers often extend the fire condition to all perils.
c. conditions omitted from a policy are not binding
d. They cannot be amended unless it results in better coverage.

Answer 25

c. conditions omitted from a policy are not binding

Question 26

What is the name of the federal privacy legislation that sets out requirements for how information may be collected, used or disclosed?

a. Personal information and digital documents protection act
b. personal identity protection and digital documents act.
c. privacy information protection and electronic documents ack
d. personal information protection and electronic documents act

Answer 26

d. personal information protection and electronic documents act

Question 27

Common Law is based on which historical legal traditions?

a. Ancient Rome and the code of Justinian
b Revolutionary America and the Napoleonic code
c. England and France
d. England and Ancient Roman

Answer 27

d. England and Ancient Roman

Question 28

The civil Code of Quebec is based in which historical legal tradition?

a. Holy Roman Empire and code of Justinian
b. England and France
c. Code of Justinian and the Napoleonic Code
d. Revolutionary America and Swiss Law

Answer 28

c. Code of Justinian and the Napoleonic Code

Question 29

When a homeowner decides to leave her home vacant for six months while she goes on a trip around the world, which of the statutory conditions requires her to notify her insurer?

a. Statutory condition 1 Misrepresentation
b. Statutory condition 3 Change of interest
c. Statutory condition 5 Termination
d. Statutory condition 6 Material change

Answer 29

d. Statutory condition 6 Material change

Question 30

What is it called when a court excuses an insured from a policy condition it deems is unjust or unreasonable?

a. relief from compliance
b. relief from policy
c. relief from forfeiture
d. relief from conditions

Answer 30

c. relief from forfeiture

Question 31

After a house fire, the insurer will determine if the homeowner should tear down the home and rebuild or simply fix the damage. Which statutory condition allows for this.

a. Statutory condition 13 replacement
b. Statutory condition 11 Appraisal
c. Statutory condition 12 When loss payable
d. Statutory condition 10 Entry, control, abandonment

Answer 31

a. Statutory condition 13 replacement

Question 32

What happens when an insured decides to cancel a policy before the end of the term?

a. Statutory condition 5. Termination does not allow the insured to cancel a policy
b. premiums paid by unearned are refunded, minus administrative cost
c. The insurer must send written notice via registered mail within 15 days
d. The insured forfeits his or her premiums.

Answer 32

b. premiums paid by unearned are refunded, minus administrative cost

Question 33

Which is NOT true about statutory conditions in common law provinces and territories?

a They cannot be amended unless it results in better coverage
b. insurers often extend the fire conditions to all perils
c. The conditions must be printed in all fire policies
d. Conditions omitted from a policy are not binding

Answer 33

d. Conditions omitted from a policy are not binding

Question 34

What is the name of the federal privacy legislation that sets out requirements for how information may be collected used or disclosed?

a. personal information and digital documents protection act.
b privacy information protection and electronic documents act
c. personal identity protection and digital documents act
d. Personal information protection and electronic documents act

Answer 34

d. Personal information protection and electronic documents act

Question 35

Which of the following provinces or territories does Freedom of information and protection of privacy act (FOIPPA) apply?

a. NS QC, ON
b. ON, MN and AB
c. QC, AB AND YK
D. NWT, YK AND BC

Answer 35

b. ON, MN and AB

All provinces except, Quebec and the Territories.

Question 36

Which of the following is NOT considered personal information under the privacy act?

a. race, national or ethnic origin
b. financial transactions
c. social media handles
d. employment history

Answer 36

c. social media handles

Question 37

Which of the following is TRUE regarding the privacy of personal information in the insurance industry?

a. A privacy statement is included as part of the application process.
b. If the insured requests information collected by insurers, the insurer cannot comply.
c. Insurers are not required to implement their own privacy policies and procedures
d. The insurer has no obligation to protect clients against unsolicited marketing.

Answer 37

a. A privacy statement is included as part of the application process

Question 38

list the statutory conditions

Answer 38

Misrepresentation
Property of others
Change of interest
material change
termination
Requirements after loss
Fraud
Who may give notice and proof
Salvage
Entry, control, abandonment
Appraisal
When loss payable
Replacement
Action
Notice