GIE - C82 Midterm Flashcards
A tort is:
A) A delicious pie
B) A legal wrong
C) A wrongdoer
B) A court case
B) A legal wrong
Common Law is:
A) A body of well defined legal principles
B) Based upon the rule of precedence
C) Also know as case law
D) All the above
D) All the above
Statute Law is:
A) Codified Law
B) The same as Common Law
C) Applicable in all provinces
D) Federally regulated
A) Codified Law
A contract is:
A) A deal between 2 people
B) Only exists in insurance documents
C) Provincially regulated
D) An agreement enforceable at law
D) An agreement enforceable at law
The rules of offer and acceptance require all but:
A) An unconditional acceptance
B) A definite offer
C) A communicated arrangement
D) A notarized document
D) A notarized document
A void contract is one:
A) That was cancelled
B) That can be enforced
C) That never had any legal existence
D) That was cancelled short rate
C) That never had any legal existence
According to the definition, all of the following have limited ability to legally contract expect:
A) People under 21
B) Infants
C) Mentally incompetent persons
D) Intoxicated
A) People under 21
Which of the following is a legal entity?
A) Jack’s Shipping Yard
B) Pricemart
C) Jack Smith DBA Jack’s Shipping Yard
D) Nicole’s Pizza
C) Jack Smith DBA Jack’s Shipping Yard
A legal person:
A) Is always an individual
B) Is always a corporation
C) Is one who can sue another
D) Is one who can sue and be sued
D) Is one who can sue and be sued
A contract is void if:
A) It is forbidden by law
B) If it is against public policy
C) If it is for the purpose of committing crime
D) All of the above
D) All of the above
Under Contract Law, the cause of nullity are:
A) Error, fraud, violence, lesion
B) Error, fraud, nullity, lesion
C) Error, fraud, capacity, lesion
D) Error, fraud, consent, lesion
A) Error, fraud, violence, lesion
The 3 elements distinctive to insurance contracts are all expect:
A) Insurance Interest
B) Financial Benefit
C) Indemnity
D) Utmost Good Faith
B) Financial Benefit
Individuals have insurable interest in:
A) Their aunts and uncles
B) Their great grandchildren
C) Their employer
D) Their employees
D) Their employees
Salvage?
A) Is property saved from loss
B) Is the process of taking steps to reduce the amount of loss
C) Belongs to the insurer
D) All of the above
D) All of the above
Contribution is:
A) The amount the insured pays towards the loss
B) Equal to the amount of the deductible
C) The sharing of the loss between two companies sharing the same risk
D) Applies to commercial policies only
C) The sharing of the loss between two companies sharing the same risk
A material fact would affect:
A) The acceptability of the risk
B) The amount of the premium
C) The conditions applicable
D) All of the above
D) All of the above
The proximate cause is:
A) The immediate cause is:
B) The remote cause
C) Immediate and effective cause
D) The last event before and occurrence
C) Immediate and effective cause
Which item is not a type of insurance contract?
A) Application
B) Certificate
C) Binding oral agreement
D) Renewal receipt
A) Application
Which kind of damage is not usually covered by liability insurance?
A) Special
B) General
C) Punitive
D) Compensatory
C) Punitive
Voluntary Compensation for residence Employees will cover all but:
A) Loss of life
B) Weekly disability
C) Own damage
D) Medical expenses
C) Own damage
The aggregate limit is:
A) The maximum total amount that will be paid out for claims arising out of a single occurrence
B) The maximum total amount that will be paid out for personal injury claims
C) The maximum total amount that will be paid out for medical expenses
D) The maximum total amount that will be paid out in actual claims during a policy year
D) The maximum total amount that will be paid out in actual claims during a policy year
Prescription:
A) Is the time after which a cause of action ceases
B) Is the time after policy expires
C) Is the time after a service was terminated
D) Is the time after a policy is cancelled
A) Is the time after which a cause of action ceases
Decision to accept/reject a risk are not based on:
A) Personal information about the applicant
B) Details of physical hazards and exposure
C) Special factors pertaining to the class of risk
D) Number of past automobile accidents
D) Number of past automobile accidents
Risks may be rejected because:
A) The insurer does not write the class of business
B) There is a typo on the application
C) The insurer does not like the intermediary
D) The race/gender of the applicant
A) The insurer does not write the class of business
Under a fire policy, which is not part of the definition of fire?
A) Ignition
B) Something in the nature of an accident
C) Scorching
D) Something on fire which ought not to be
C) Scorching
An extended coverage endorsement attached to a fire policy?
A) Adds coverage for more perils
B) Increase the amount of coverage under the policy
C) Adds coverage for additional property
D) All of the above
A) Adds coverage for more perils
Which of the following in not an extended coverage peril:
A) Water escape
B) Smoke
C) Explosion
D) Earthquake
D) Earthquake
The Statutory condition relating to misrepresentation does not deal with:
A) Honesty relating to the nature of the risk
B) False description of the property
C) Omission of important facts
D) Claims
D) Claims
Very large risks are often insured by:
A) Extension policies
B) Prescription policies
C) Subscription policies
D) Endorsements
C) Subscription policies
Statutory Conditions do not deal with:
A) Salvage
B) Right of access
C) Change of Title
D) Premium
D) Premium
Quebec General Conditions:
A) Are identical to the statutory conditions in other provinces
B) Are sections of the civil code reproduced in the insurance policies
C) Are applicable to fire policies only
D) Set out the rights and responsibilities of the insureds and the insurer under the policy
D) Set out the rights and responsibilities of the insureds and the insurer under the policy
There are 3 general types of exclusions. Which item is not part of the group?
A) Those that exclude losses considered to be uninsurable
B) Those that exclude property that the insured does not like
C) Those that restrict or limit coverage
D) Those that exclude property that can be insured under other types of policies
B) Those that exclude property that the insured does not like
To be covered under a homeowners form:
A) A dwelling must contain no more than 6 occupancies
B) A dwelling must not have a mortgagee
C) The owner must live in the dwelling
D) The dwelling must be insured for at least $100,000
C) The owner must live in the dwelling
The comprehensive homeowner’s policy:
A) Is an all risk policy
B) Is all risk on the building and named perils on the contents
C) Contains no exclusions
D) Is only available in big cities
A) Is an all risk policy
Which of the following is a basic coverage under the property section of a Homeowner’s policy?
A) Summer Cottage
B) Outboard Motor/boat
C) Additional Living Expenses
D) Fine Arts Schedule
C) Additional Living Expenses
Which of the following extensions of the coverage under the comprehensive homeowner’s policy increases the amount of insurance?
A) Moving to another home
B) Tear out
C) Arson conviction reward
D) Property removed to prevent further loss
C) Arson conviction reward
Exclusions under all-risk policies can be divided into several different groups. Which of the following is not one of those groups?
A) Wear and tear losses
B) Perils that are generally not insurable
C) Losses that are accidental
D) Perils or property that can be covered by others specific policies
C) Losses that are accidental
Which of the following is not a specified peril, as defined by the comprehensive homeowner’s policy?
A) Smoke
B) Theft
C) Explosion
D) Water damage
B) Theft
Which of the following clause would deal with the loss of one ruby from a gold bracelet which matches a necklace and earrings also owned by the insured:
A) Subrogation
B) Parts
C) Deductible
D) Reinstatement
B) Parts
The increase Cost - Demolition or Construction endorsement:
A) Provides coverage for increase cost of construction in times of high inflation
B) Pays for demolition of old buildings when an insured`s plans to build on the same site
C) May be added to a policy at no extra premium upon request of the insured
D) Is also known as the By-laws endorsement
D) Is also known as the By-laws endorsement
