GIE - C82 Midterm

Question 1

A tort is:

A) A delicious pie
B) A legal wrong
C) A wrongdoer
B) A court case

Answer 1

B) A legal wrong

Question 2

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

Answer 2

D) All the above

Question 3

Statute Law is:

A) Codified Law
B) The same as Common Law
C) Applicable in all provinces
D) Federally regulated

Answer 3

A) Codified Law

Question 4

A contract is:

A) A deal between 2 people
B) Only exists in insurance documents
C) Provincially regulated
D) An agreement enforceable at law

Answer 4

D) An agreement enforceable at law

Question 5

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

Answer 5

D) A notarized document

Question 6

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

Answer 6

C) That never had any legal existence

Question 7

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

Answer 7

A) People under 21

Question 8

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

Answer 8

C) Jack Smith DBA Jack’s Shipping Yard

Question 9

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

Answer 9

D) Is one who can sue and be sued

Question 10

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

Answer 10

D) All of the above

Question 11

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

Answer 11

A) Error, fraud, violence, lesion

Question 12

The 3 elements distinctive to insurance contracts are all expect:

A) Insurance Interest
B) Financial Benefit
C) Indemnity
D) Utmost Good Faith

Answer 12

B) Financial Benefit

Question 13

Individuals have insurable interest in:

A) Their aunts and uncles
B) Their great grandchildren
C) Their employer
D) Their employees

Answer 13

D) Their employees

Question 14

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

Answer 14

D) All of the above

Question 15

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

Answer 15

C) The sharing of the loss between two companies sharing the same risk

Question 16

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

Answer 16

D) All of the above

Question 17

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

Answer 17

C) Immediate and effective cause

Question 18

Which item is not a type of insurance contract?

A) Application
B) Certificate
C) Binding oral agreement
D) Renewal receipt

Answer 18

A) Application

Question 19

Which kind of damage is not usually covered by liability insurance?

A) Special
B) General
C) Punitive
D) Compensatory

Answer 19

C) Punitive

Question 20

Voluntary Compensation for residence Employees will cover all but:

A) Loss of life
B) Weekly disability
C) Own damage
D) Medical expenses

Answer 20

C) Own damage

Question 21

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

Answer 21

D) The maximum total amount that will be paid out in actual claims during a policy year

Question 22

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

Answer 22

A) Is the time after which a cause of action ceases

Question 23

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

Answer 23

D) Number of past automobile accidents

Question 24

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

Answer 24

A) The insurer does not write the class of business

Question 25

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

Answer 25

C) Scorching

Question 26

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

Answer 26

A) Adds coverage for more perils

Question 27

Which of the following in not an extended coverage peril:

A) Water escape
B) Smoke
C) Explosion
D) Earthquake

Answer 27

D) Earthquake

Question 28

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

Answer 28

D) Claims

Question 29

Very large risks are often insured by:

A) Extension policies
B) Prescription policies
C) Subscription policies
D) Endorsements

Answer 29

C) Subscription policies

Question 30

Statutory Conditions do not deal with:

A) Salvage
B) Right of access
C) Change of Title
D) Premium

Answer 30

D) Premium

Question 31

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

Answer 31

D) Set out the rights and responsibilities of the insureds and the insurer under the policy

Question 32

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

Answer 32

B) Those that exclude property that the insured does not like

Question 33

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

Answer 33

C) The owner must live in the dwelling

Question 34

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

Answer 34

A) Is an all risk policy

Question 35

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

Answer 35

C) Additional Living Expenses

Question 36

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

Answer 36

C) Arson conviction reward

Question 37

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

Answer 37

C) Losses that are accidental

Question 38

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

Answer 38

B) Theft

Question 39

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

Answer 39

B) Parts

Question 40

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

Answer 40

D) Is also known as the By-laws endorsement