Fundamentals Of Insurance (BC) 2023 1. Insurance plays an important role in managing financial risk. The main purpose of Insurance is to: A. Enable the consumer to obtain loan or mortgage. B. Provide employment and investment capital. C. Allow spread of risk. D. Reduce losses through loss preventio...
FUNDAMENTALS OF INSURANCE (BC) EXAM / 400
QUESTIONS AND VERIFIED ANSWERS / 2023/2024
ALL CORRECT / GRADED A+
,FUNDAMENTALS OF INSURANCE (BC) EXAM / 400 QUESTIONS
AND VERIFIED ANSWERS / 2023/2024 ALL CORRECT / GRADED A+
1. Insurance plays an important role in managing financial risk. The main
purpose of Insurance is to:
A. Enable the consumer to obtain loan or mortgage.
B. Provide employment and investment capital.
C. Allow spread of risk.
D. Reduce losses through loss prevention and loss reduction.: correct answer-
C. Allow spread of risk.
2. When the insurer terminates an insurance policy, ALL of the following
conditions apply, EXCEPT one. Pick the exception:
A. The insured is entitled to 15 days' written notice of termination sent by
registered mail of 5 days' written notice personally delivered.
B. The refund due to the insured shall be calculated on a short rate basis.
C. Unless otherwise stated, the refund shall accompany the notice of termina-
tion.
D. The refund shall be in the form of money, postal or express company
,FUNDAMENTALS OF INSURANCE (BC) EXAM / 400 QUESTIONS
AND VERIFIED ANSWERS / 2023/2024 ALL CORRECT / GRADED A+
money order or cheque payable at par.: correct answer- B. The refund due to
the insured shallbe calculated on a short rate basis.
3. The major function of insurance is to:
A. Reduce the cost of losses.
B. Share the losses of the few among many.
C. Safeguard the interest of the mortgagees
D. Serve as the basis of the existing credit system.: correct answer- B. Share
the losses of thefew among many.
4. Under the policy of "fire" insurance, the insurer would be obligated to pay
the following loss only:
A. Fire damage caused to appliance following a sudden power surge.
B. Fire damage to insured buildings occurring during a rebellion.
C. Damage to insured property due to radioactive contamination.
D. Loss of property caused by a process involving the application of heat.:
correct answer- B.Fire damage to insured buildings occurring during a rebellion.
5. Generally, all of the following, except one, are seen to be "incompetent" or
lacking the legal capacity to contract. Pick the exception:
, FUNDAMENTALS OF INSURANCE (BC) EXAM / 400 QUESTIONS
AND VERIFIED ANSWERS / 2023/2024 ALL CORRECT / GRADED A+
A. A corporation.
B. A child.
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