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General Insurance Level 2 License - Alberta with 100- correct answers
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General Insurance Level 2 License - Alberta with 100- correct answers
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General Insurance Level 2License - Alberta with 100%
correct answers
Which groups are the owners of the following company types?
Mutual Companies
Stock (Publicly traded) Companies - answer Stock Companies are owned
by the shareholders
Mutual companies are owned by the policyholders
Which office is responsible for the administration of the Insurance Act in
each province? - answer Federal Office of the Superintendent of
Insurance
BUT the Federal Office of the Superintendent of Financial Institutions is
responsible for the administration of the other common fiduciaries.
If any of the insured property is removed from the location to prevent
further loss, destruction or damage the insurer agrees to cover the
property removed for up to how long? - answer for 7 days (1 week) or the
expiry date of the policy, whichever comes first
VS extension of coverage for property removed from the premises as
moving to a new location/home is up to 30 days (4+ weeks)
NOT for a whole 14 days (2 weeks) or the expiry date of the policy,
whichever comes first
NOT only up to the expiry date of the policy
Under Subsection 3 - Uninsured Motorist Coverage, the insurer is liable for
the minimum limits applicable to which jurisdiction? - answer -the
,greater of EITHER the jurisdiction where the accident occurred OR the
insured's home jurisdiction
NOT ONLY in the jurisdiction where the accident occurred OR ONLY in the
insured's home jurisdiction
In an insurance contract, how would you define "consideration"? - answer
anything of value exchanged between the parties of the contract
NOT the subject matter of the policy for which coverage is needed
An insurance contract indemnifies the insured against loss arising out of
the happening of a specific event.
What conditions of the event must be considered before it can become an
insurable loss? - answer -must be a future event
-must be accidental
-may happen with the cooperation of the insured as some losses are a
result of covered but careless behavior
-may happen with the intent of the insured as some losses are a result of
covered but intended behavior with unintended results
Statutory Condition 5 provides that when an insurance policy is
terminated by the insurer, the insurer shall refund - answer the excess of
the premium actually paid by the insured over the pro-rata premium for
the expired time
NOT JUST the excess of the premium actually paid over the short-rate
premium for the expired time because question clearly listed that it is
"terminated by the insurer"
If the owner of a building worth $125,000 buys $90,000 of insurance on a
policy with an 80% coinsurance clause, and a 4% waiver, then suffers a
loss of $ 50,000, his recovery under the policy will be - answer $ 45,000
$ 42,500
, STUDY UP ON CO-INSURANCE
The priority of payment of the $200,000 under Third Party Liability in
Alberta is distributed to Bodily Injury & Property Damage as follows: -
answer liability to Bodily Injury $190,000 then liability to Property
Damage $10,000
-Property is more commonly insured as well by the owner but severe
Bodily Injury is not often covered well by individuals
This is to ensure that bodily injury are always provided for first. If the
coverage is less than the claim settlement, the first moneys are going to
be allocated to bodily injuries.
NOT Bodily Injury $150,000 / Property Damage $50,000
Bodily Injury $180,000 / Property Damage $20,000
Under Subsection 2 - II Total Disability, Total Disability must occur within
how much time to be covered by Section B - Accident Benefits as such? -
answer 60 days from the date of accident
NOT 120 days from the date of accident as disability is to be covered by
accident benefits in an expedient and partial fashion
A court finds the insured responsible for third party damages in the
amount of $3,000,000. After six months, the insurer decides not to appeal
the decision and agrees to pay the claim. The bodily injury and property
damage limit of the insured's liability insurance policy is $2,000,000.
Which of the following statements is FALSE? - answer The insurer is
responsible for the interest on $3,000,000 from the judgment date
The insurer is responsible for the interest on $2,000,000 from the
judgment date
NOT JUST The insurer is responsible for paying the $2,000,000 limit plus
the interest on that amount from the judgment date
PAY ATTENTION it asked for FALSE
The insurer is not responsible for paying the interest on any judgment
over the $2000,000 policy limit
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