CIP C12 INSURANCE ON PROPERTY EXAM LATEST
UPDATE THIS YEAR ALL 450 QUESTIONS AND
CORRECT VERIFIED ANSWERS
Question: Statutory Condition 13: Replacement - CORRECT ANSWER✔✔-Decision to repair /
replace
-Intention to be provided (30 days)
-Repairs within 45 days
-Must be completed regardless of cost
Question: Statutory Condition 14: Action - CORRECT ANSWER✔✔-Legal action against insurer
-Statute of limitations
-Time frame depends on province or territory (1 or 2 months)
Question: Statutory Condition 15: Notice - CORRECT ANSWER✔✔-To the insurer: delivered or
mail
-To the insured: personal delivery or mail
-Types of notices: policy changes or termination
Question: PIPEDA - CORRECT ANSWER✔✔Personal Information Protection and Electronic
Documents Act
-How info collected, used
-Who/what privacy law applies
-Governing body to oversee legislation
-Compensation for breach of privacy
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Question: Peril Definition - CORRECT ANSWER✔✔-Cause of loss
-May be insurable or not insurable
-Can be man-made
Question: Fortuitous Events Definition - CORRECT ANSWER✔✔-Event subject to chance without
the implication of suddenness
-There are events that are accidental and insurable
-Property insurance will not cover things like wear and tear or arson because they are expected
Question: Named Peril Policy - CORRECT ANSWER✔✔-Physical loss / damage by listed perils
-Responsibility left with insured to prove loss or damage
-No exclusions apply
-Perils differ between personal and commercial forms
-Limited coverage
Question: All risks policy - CORRECT ANSWER✔✔-Loss / damage by any perils except those
specifically excluded
-Broader coverage
Question: Conditions of policy to be satisfied by insured - CORRECT ANSWER✔✔1. Proof of loss
2. Loss was fortuitous (sudden and accidental)
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-Insurer to prove exclusion applies
Question: Defining Property Insurance - CORRECT ANSWER✔✔-Protection against loss/damage
to property
-First party insurance
-Premium exchanged for protection
-Fortuitous losses (sudden and accidental)
-Insurable interest
-Intangible product
Question: Real vs Personal Property - CORRECT ANSWER✔✔R: buildings or land (can't be
moved)
P: office desk or machinery (can be transported)
Question: Promise that Property Insurance is based on - CORRECT ANSWER✔✔-Insured
promise to pay a premium
-Insurers promise to protect and indemnify
Question: Five elements of an Insurance Contract - CORRECT ANSWER✔✔1. Agreement (offer
and acceptance)
2. Capacity to contract
3. Consideration
4. Genuine intent
5. Legality
Question: Additional Features of Insurance Contract - CORRECT ANSWER✔✔1. Insurable
interest
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2. Indemnity
3. Principle of utmost good faith
Question: Insurance Policy - CORRECT ANSWER✔✔-Formal agreement between parties
-Outlines the terms and conditions
-One year term
-Claims
Question: 2 Types of Classes of Insurance - CORRECT ANSWER✔✔1. Personal (habitational)
2. Commercial (building, equipment, stock)
Question: Classes of Insurance - CORRECT ANSWER✔✔1. EBI - large machinery
2. Crop - growing of crops
3. Aviation - aircrafts
4. Earthquake
5. Flood
6. Marine - goods in transit
7. Builders risk - COC
Question: Elements of the Property Policy - CORRECT ANSWER✔✔1. Name of insurer / insured
2. Names to whom the insurance money is payable
3. Premium
4. Subject matter of insurance
5. Indemnity for which insurer may become liable
6. Events / perils of which liability will accrue
7. Effective / expiry date
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