Question 1

Upon which of the following qualifications being met on an ongoing basis is insurance protection dependent?

Accepted Answer

A)  the worthiness of the insured 
B)  the financial health of the insurer 
C)  the insured's need for insurable protection 
D)  the payment of insurance premiums 
A)  the worthiness of the insured 
B)  the financial health of the insurer 
C)  the insured's need for insurable protection 
D)  the payment of insurance premiums D

Question 2

What type of insurance product would a business that produces and sells pesticides most likely require?

Accepted Answer

A)  injury and property damage insurance coverage 
B)  business interruption,environmental injury,and property insurance coverage 
C)  financial loss and personal injury insurance coverage 
D)  comprehensive,environmental,and personal injury insurance coverage 
A)  injury and property damage insurance coverage 
B)  business interruption,environmental injury,and property insurance coverage 
C)  financial loss and personal injury insurance coverage 
D)  comprehensive,environmental,and personal injury insurance coverage D

Question 3

What is the most likely result of malicious acts or acts of vandalism caused by an insured?

Accepted Answer

A)  the denial of coverage by operation of a rider 
B)  the insured's right of subrogation 
C)  the insured's right to endorsement 
D)  the denial of coverage by operation of an exclusion clause 
A)  the denial of coverage by operation of a rider 
B)  the insured's right of subrogation 
C)  the insured's right to endorsement 
D)  the denial of coverage by operation of an exclusion clause D

Question 4

A company that sells insurance coverage in the form of contracts of insurance known as policies is legally described as an indemnity agency.

Accepted Answer

A) True 
 B)False

Question 5

The subrogation rule provides that a criminal should not be permitted to profit from a crime.

Accepted Answer

A) True 
 B)False

Question 6

The purpose of comprehensive general liability insurance (also known as CGL insurance)is to compensate business enterprises in a comprehensive way for any liabilities they incur outside the course of their normal business operations.

Accepted Answer

A) True 
 B)False

Question 7

An insurance agent is one who provides advice and assistance to the insured in acquiring insurance.

Accepted Answer

A) True 
 B)False

Question 8

Jasmine is discussing an alteration to her current business insurance coverage.Which of the following will her insurer most likely recommend to Jasmine for this purpose?

Accepted Answer

A)  additional policy 
B)  rider 
C)  new policy 
D)  endorsement 
A)  additional policy 
B)  rider 
C)  new policy 
D)  endorsement

Question 9

All types of insurance policies are typically written so that the insured is responsible for the first part of the loss,which is paid in the form of a deductible.

Accepted Answer

A) True 
 B)False

Question 10

The test for whether the insured has an insurable interest is whether he benefits from its existence and would be prejudiced from its destruction.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a known result of the recent disasters,such as the Quebec train derailment and explosion,the flooding in Alberta,and climate change?

Accepted Answer

A)  Insurers are incurring significant subrogation expenses. 
B)  These events are resulting in higher premiums and changes in the extent of coverage. 
C)  Comprehensive general liabilities are no longer available. 
D)  Directors' and officers' liability insurance is now unavailable. 
A)  Insurers are incurring significant subrogation expenses. 
B)  These events are resulting in higher premiums and changes in the extent of coverage. 
C)  Comprehensive general liabilities are no longer available. 
D)  Directors' and officers' liability insurance is now unavailable.

Question 12

Identify and briefly describe the basic kinds of insurance.

Accepted Answer

Following are the three basic kinds of i

Question 13

Why would the owners of a successful business operation carry life insurance on the lives of its shareholders?

Accepted Answer

A)  to ensure that the business doesn't suffer financial loss from business interruption 
B)  to offset any deficiency in the value demanded for the deceased's shares 
C)  to offset the challenging costs of buying out a deceased shareholder's shares 
D)  to comply with the law's mandatory life insurance pertaining to shareholders 
A)  to ensure that the business doesn't suffer financial loss from business interruption 
B)  to offset any deficiency in the value demanded for the deceased's shares 
C)  to offset the challenging costs of buying out a deceased shareholder's shares 
D)  to comply with the law's mandatory life insurance pertaining to shareholders

Question 14

In what case did the Supreme Court of Canada hold that an insurer could not deny coverage on the basis of the insured's alleged breach of the duty to disclose because the risk issue was rectified by the insured before the loss occurred?

Accepted Answer

A) 	Royal Bank of Canada v. State Farm Fire and Casualty Co. [2005] 1 S.C.R. 799 
B)  	Triple Five Corp. v. Simcoe & Erie Group (1994), AFF’D [1997] 5 W.W.R. 1 (C.A.) 
C) 	Lucena v. Caufurd (1806), 2 B. & P. (N.R.) 269 at 301 
D)  	Marche v. Halifax Insurance Co. [2005] 1 S.C.R. 47 
A) 	Royal Bank of Canada v. State Farm Fire and Casualty Co. [2005] 1 S.C.R. 799 
B)  	Triple Five Corp. v. Simcoe & Erie Group (1994), AFF’D [1997] 5 W.W.R. 1 (C.A.) 
C) 	Lucena v. Caufurd (1806), 2 B. & P. (N.R.) 269 at 301 
D)  	Marche v. Halifax Insurance Co. [2005] 1 S.C.R. 47

Question 15

What insurance concern is raised by the ability of genetic testing to reveal information about the genetic susceptibility to illness and disease of individuals applying for life and disability insurance?

Accepted Answer

A)  Insurance will become too costly to insurers unless they have access to genetic testing. 
B)  Genetic testing is invasive and will breach individual privacy if it becomes mandatory. 
C)  Failure to disclose may result in the insurance contract being voided,yet disclosure may result in denial of coverage or higher premiums. 
D)  False positive results will lead to inaccurate assessments of risk. 
A)  Insurance will become too costly to insurers unless they have access to genetic testing. 
B)  Genetic testing is invasive and will breach individual privacy if it becomes mandatory. 
C)  Failure to disclose may result in the insurance contract being voided,yet disclosure may result in denial of coverage or higher premiums. 
D)  False positive results will lead to inaccurate assessments of risk.

Question 16

A duty to disclose exists not just at the time of applying for the insurance-it is an ongoing duty.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a key consequence of the classification of an insurance contract as an instrument of utmost good faith?

Accepted Answer

A)  retaining an insurable interest 
B)  a right to indemnification 
C)  a duty to bear a deductible cost 
D)  an insured's duty to disclose 
A)  retaining an insurable interest 
B)  a right to indemnification 
C)  a duty to bear a deductible cost 
D)  an insured's duty to disclose

Question 18

Allowing people to insure property that they have no real interest in may lead to the intentional destruction of the property.To which rule does this rationale apply?

Accepted Answer

A)  life insurance rule 
B)  indemnity rule 
C)  coinsurance rule 
D)  insurable interest rule 
A)  life insurance rule 
B)  indemnity rule 
C)  coinsurance rule 
D)  insurable interest rule

Question 19

Explain the nature and purpose of business interruption loss insurance.

Accepted Answer

Business interruption loss insurance,als

Question 20

Describe the three types of directors and officers insurance (D&O insurance)coverage that are currently available.

Accepted Answer

The three types of D&O insurance coverag

Exam 28: Insurance

Upon which of the following qualifications being met on an ongoing basis is insurance protection dependent?

What type of insurance product would a business that produces and sells pesticides most likely require?

What is the most likely result of malicious acts or acts of vandalism caused by an insured?

A company that sells insurance coverage in the form of contracts of insurance known as policies is legally described as an indemnity agency.

The subrogation rule provides that a criminal should not be permitted to profit from a crime.

The purpose of comprehensive general liability insurance (also known as CGL insurance)is to compensate business enterprises in a comprehensive way for any liabilities they incur outside the course of their normal business operations.

An insurance agent is one who provides advice and assistance to the insured in acquiring insurance.

Jasmine is discussing an alteration to her current business insurance coverage.Which of the following will her insurer most likely recommend to Jasmine for this purpose?

All types of insurance policies are typically written so that the insured is responsible for the first part of the loss,which is paid in the form of a deductible.

The test for whether the insured has an insurable interest is whether he benefits from its existence and would be prejudiced from its destruction.

Which of the following is a known result of the recent disasters,such as the Quebec train derailment and explosion,the flooding in Alberta,and climate change?

Identify and briefly describe the basic kinds of insurance.

Why would the owners of a successful business operation carry life insurance on the lives of its shareholders?

In what case did the Supreme Court of Canada hold that an insurer could not deny coverage on the basis of the insured's alleged breach of the duty to disclose because the risk issue was rectified by the insured before the loss occurred?

What insurance concern is raised by the ability of genetic testing to reveal information about the genetic susceptibility to illness and disease of individuals applying for life and disability insurance?

A duty to disclose exists not just at the time of applying for the insurance-it is an ongoing duty.

Which of the following is a key consequence of the classification of an insurance contract as an instrument of utmost good faith?

Allowing people to insure property that they have no real interest in may lead to the intentional destruction of the property.To which rule does this rationale apply?

Explain the nature and purpose of business interruption loss insurance.

Describe the three types of directors and officers insurance (D&O insurance)coverage that are currently available.

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

An Introduction to Contracts

Forming Contractual Relationships

The Terms of a Contract

Non-Enforcement of Contracts

Termination and Enforcement of Contracts

Introduction to Tort Law

The Tort of Negligence

Other Torts

The Agency Relationship

Business Forms and Arrangements

The Corporate Form: Organizational Matters

The Corporate Form: Operational Matters

Introduction to Property Law

Intellectual Property

Real Property

The Employment Relationship

Terminating the Employment Relationship

Professional Services

The Sale of Goods

Consumer Protection and Competition Law

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

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