Chapter 5 Flashcards
In Ontario, automobile insurance is:
a) Sold by the government
b) Regulated by the Registered Insurance Brokers of Ontario.
c) Regulated by the Compulsory Automobile Insurance Act.
d) Sold by the Insurance Bureau of Ontario
C
In Ontario, which act contains the legal rules governing the operation of the insurance industry, as well as rules applying specifically to insurance contracts?
a) The Compulsory Automobile Insurance Act.
b) The Canadian Insurance Act.
c) The Registered Insurance Brokers Act.
d) The insurance Act
D
The Insurance act requires certain mandatory details be stated within every contract of insurance. What is the portion of the policy summarizing this mandatory information?
a) The declaration.
b) The statement.
c) The application.
d) The insurance contract.
A
Which of the following parties must be identified on an insurance policy, as mandated by the Insurance Act?
a) The insurer, the insured, and the brokerage firm.
b) The insurer and the insured.
c) The insurer, the insured, and the broker writing the policy.
d) The insurer, the insured, and the CEO of the insurer.
B
According to the insurance Act, when does a fire policy expire?
a) 12:01 a.am. standard time at the address of the named insured
b) 12:01 p.m. standard time at the address of the insurance broker.
c) 12:01 a.m. standard time at the mailing address of the insurer.
d) 12:01 a.m. local time at the address of the named insured.
D
To protect the insurable interest of others in the property insured, the law requires an insurance policy identify certain persons or entities, including:
a) All parties to whom insurance monies are payable following a loss.
b) The heirs of the named insured.
c) The named insured’s bank.
d) The spouse of the named insured.
A
Who would not be considered to have insurable interest in a policy of insurance?
a) The owner of a home.
b) A mortgage of the property.
c) The owner of a building entirely rented to others.
d) A person who expects to inherit property after their father’s death.
D
Which of the following statements is correct?
a) The insurance premium is the cost of insurance per unit of exposure.
b) The insurance rate is the cost of insurance per unit of exposure.
c) The insurance rate is what the insured pays for the policy.
d) The insurance rate is calculated by multiplying the premium by the number of exposure units.
B
Michaela temporarily removes property from her insured premises to prevent loss, or further loss, from an insured peril. How long must the removal of property extension on her fire policy provides coverage for?
a) Seven Days
b) 15 days
c) 30 days
d) 60 days
A
10) Kai moves his property to an unnamed location to prevent further loss or damage. Which of the following statements is incorrect?
a) It must be shown that the removed property was in danger of further loss or damage from wind or burglary
b) The amount of insurance available for any loss to the property while at the unnamed location will be reduced by the amount paid for the loss at the name location.
c) If repairs to the location specified on the policy will take longer than 7 days, the policy must be amended to provide coverage at the temporary location.
d) It must be shown that the property was removed to an unnamed location because it was in danger of further loss or damage from a peril insured by the policy.
A
