Other Than Life (OTL) Agent’s Exam A Practice

These questions are part of the practice quiz. Start practicing

• A peril is best defined as:
• Your painting would be covered under which endorsement?
• In Ontario, a true copy of the automobile insurance application may be signed after the policy has been issued.
• Statutory Conditions are:
• Which statement about Glass insurance is true?
• Which of the following is required by law in a Fire policy?
• In the Additional Agreements of the insurer, Own damage, the insurer agrees to waive subrogation against which party?
• In underwriting a new commercial policy, after assessing exposures and determining classification, which step comes next?
• Which step follows notice of loss?
• Under a Fire and Extended Coverage policy, which item is not included?
• Which type of risk is commonly underwritten by the Casualty Department?
• What is subrogation in property insurance?
• Under the Entry, Control, Abandonment, the insurer is not entitled to which action?
• Which statement defines Actual Cash Value?
• Which of the following statements applies to a Commercial Property Floater?
• The farmers liability policy:
• Which coverage pays for damage to your own vehicle resulting from a collision?
• The property was insured for $100,000, and valued at $150,000, with an 80% coinsurance. The loss was $80,000. The amount the client would receive is:
• Special limitations are not applied to which item when a specified peril affects a Homeowner's policy?
• How does the deductible affect premium and payout, and what is the difference between a per-occurrence and an aggregate deductible?
• What does Additional Living Expenses coverage reimburse?
• Which statement best describes a binder in insurance?
• What is premium financing and what is a typical term risk for the insured?
• What does Additional Living Expense (ALE) cover in homeowners policies?
• The person decides to renovate their home, and they need temporary residence during work. The homeowner policy will pay:
• Which statement best differentiates admitted and non-admitted insurers in terms of regulatory oversight and consumer protections?
• Which statement about a Certificate of Insurance is accurate?
• Which statement about Additional Living Expense (ALE) is true?
• Which sequence correctly represents the typical claims-handling process from notice to subrogation?
• In a commercial General Liability policy, the limit that represents total payout for the policy year is called the
• Under a Homeowner’s policy, which statement about coins and stamp collections is true?
• Provincial Insurance Acts governing automobile applications state that
• Under Homeowner's All Risk policy, windstorm damage to a detached tool shed is covered. True or False?
• Which form is designed for renters and typically does not insure the building but covers personal property and liability?
• With regards to Liability insurance, which is CORRECT?
• A commercial package policy (CPP) is characterized by what?
• Which would NOT be considered part of the agents' duties?
• Which step involves pursuing recovery from a third party after payment of a claim?
• The All Risks policy is best described as which of the following?
• In a Fire policy, what does the term "Insuring Agreement" state?
• Which policy will pay for the damage to the temporary substitute automobile when all policies exist and carry full coverage?
• The Statutory Condition concerning Termination does NOT state
• All Perils coverage is best described as:
• Which best describes the Glass insurance and its coverage?
• Which statement about co-insurance is accurate in these policies?
• Which statement about the 3-D policy is true?
• The Basic Homeowner policy covers which of the following?
• What does equipment breakdown coverage specifically protect against that standard property forms often exclude?
• When must insurable interest exist for a policy to be valid?
• Core components of a Commercial General Liability policy and their purposes?
• Hazard mitigation credits are best described as what?
• In insurance, insurable interest must exist at which times?
• It is advisable for store owners to use the Premium Adjustment clause because:
• The Statutory Condition is best described as
• Which statement about notice requirements for cancellation or nonrenewal is generally true?
• Which statement about surplus lines insurance is accurate?
• Umbrella or excess liability insurance is designed to do what?
• Which statement correctly describes the relationship among All Perils, Comprehensive, and Specified Perils forms?
• Which of the following is covered by the Basic Fire policy?
• A contractor has been given a Performance Bond, but is now unable to complete the contract because of bankruptcy. Therefore the Surety will do which of the following?
• Vacancy in a dwelling policy refers to what, and how does it affect coverage?
• In a business property policy, which section describes the insured property?
• In own-damage coverage, which party is protected by a subrogation waiver?
• In a property insurance policy with a coinsurance clause, the standard required coverage is 80% of the value. Which option below is the correct corresponding percentage?
• Glass breakage coverage does not include which of the following?
• In a surety bond, who is primarily protected by the bond?
• Under which policy would you most likely find coverage for stock, equipment and tenants improvements?
• Which statement best describes a straight deductible in property coverage?
• Which statement is most accurate about endorsements in a property policy?
• Under a policy with a specified upper limit, which statement is true?
• Which of the following exclusions apply to Glass insurance?
• Which of the following statements applies to a Surety Bond?
• Endorsements in an insurance policy are used to what?
• Which statement correctly contrasts HO-3 and HO-5 coverage for dwelling and personal property?
• After a bond claim due to non-performance, the surety's typical action is to
• Which statement is NOT true of recreational vehicles?
• Which is a hazard rather than a peril?
• The Facility Association is described as which of the following?
• If the parties cannot agree on the loss amount and appraisal is used, which option describes this step?
• A basic fire policy does not cover damage which occurs while a property is vacant or unoccupied for more than how many days?
• Which statement best describes consumer protections when dealing with admitted vs non-admitted insurers?
• Which statement best describes All Risks coverage relative to exclusions?
• Which statement is CORRECT in connection with Homeowner's insurance?
• If the principal cannot complete the contract due to bankruptcy, the surety's remedy is to
• What is the function of exclusions in a property policy, and which are typical exclusions?
• The major peril when insuring boilers and pressure vessels is breakdown. Which is NOT part of the Boiler and Machinery policy?
• Which statement CORRECT pertaining to Moral Hazard?
• What does indemnity aim to do?
• What is the typical time limit to submit proof of loss after an automobile loss?
• In risk management, transfer as a risk treatment option means what?
• What is the primary purpose of an umbrella liability policy?
• What is a mold or water damage endorsement, and why is it important in property policies?
• Umbrella liability policies typically provide coverage for which of the following?
• Which description best captures co-insurance?
• In a mortgagee situation, which statement correctly reflects the function of a loss payable clause?
• Which of the following is a common fraud indicator in underwriting and claims?
• Which of the following items is NOT automatically covered in the 3-D policy?
• Which statement best captures the overall purpose of the underwriting rating process for a new commercial policy?
• Collateral benefits are any sources of entitlement outside of the automobile insurance policy
• The Basic Homeowner policy includes which of the following coverage combinations?
• Which statement is TRUE regarding a Comprehensive General Liability policy?
• Defense within limits vs defense outside limits describes which concept?
• In the underwriting rating process, which step ensures the risk is categorized correctly by its exposure data and risk characteristics?
• Which statement correctly contrasts HO-3 and HO-5 property coverage?
• Surplus lines insurance is coverage from non-admitted carriers used when which condition applies?
• Replacement cost is defined as:
• Under the fire policy exclusions, which statement is CORRECT?
• Not TRUE under the Homeowner's All Risk policy?
• The Facility Association
• Which statement about umbrella liability policy is true?
• What is the purpose of a mortgagee clause in an insurance policy?
• Which statement correctly distinguishes moral from physical hazards?
• Which statement best describes Highway Victims Indemnity Funds?
• Negligence can be defined as:
• What does EC stand for in fire policy terms?
• Which of the following would NOT be covered when the insured drives intoxicated and causes an accident?
• The basic homeowner policy will cover:
• Which step is typically performed after verifying territory and controls in the underwriting rating process?
• Condominium insurance, which of the following is CORRECT?
• Which of the following is NOT part of the insuring agreement?
• Which endorsement covers the failure of covered equipment to perform its intended function, often including business interruption losses?
• In business interruption coverage, which statement correctly distinguishes 'business income' from 'extra expense'?
• All accidents and claims within the following time period immediately preceding the application must be disclosed
• DP-1 basic coverage includes which type of perils?
• Which option is NOT covered by Basic Fire policy due to typical exclusions?
• What describes replacement cost basis for personal line property insurance?
• If the insured drove his automobile into his own garage door, what would be covered under the Third Party Liability coverage of his automobile policy?
• Which factor is commonly used by insurers in auto insurance rating?
• The insured is driving Robert Brown's automobile as a temporary substitute and is responsible for an accident causing $1200 damage to that automobile. Smith carries Collision on his own automobile with a $300 deductible while Brown carries no Collision. How much would Smith's insurer pay?
• In an automobile accident involving bodily injuries, which action is required of the insured?
• In a principal-agent relationship, who is the principal?
• Under the policy clause Entry, Control, Abandonment, the insurer is not entitled to enter to survey damage without the consent of the insured. True or False?
• Which item is automatically covered under the 3-D policy?
• Which step is the final action in the underwriting rating process?
• Priorities of payment relate to payment of which types of losses under an automobile insurance policy?
• Salvage is described as
• Endorsements may be used to exclude coverage for all-terrain vehicles used in water.
• Before applying for automobile insurance, accidents and claims from how many years prior must be disclosed?
• Endorsements modify coverage; which two are common endorsements in property policies?
• A reduced operation for a period of time describes which form?
• Which item below would be considered the key difference between the Profit and Gross Earnings form?
• An Additional Insured endorsement is best described as:
• Which of the following best describes a Commercial Property floater?
• Utmost good faith requires which core duty from both parties?
• Which action is most closely associated with finalizing policy terms?
• The farmers liability policy is similar to homeowners policy.
• Which statement best describes professional liability (E&O) insurance?
• Garage liability exposures are typically addressed by which policies?
• Which of the following is NOT TRUE in reference to a Physical Hazard?
• A definition of Ordinary negligence:
• Which of the following best describes the effect of implementing risk management controls?
• Which endorsement would have to be attached to a policy for loss settlement without depreciation?
• What is the primary benefit of risk pooling for policyholders?
• Which of the following best describes a Tenant's Package Form?
• Highway Victims Indemnity Funds
• Before the premium quote is issued, which area should be verified to ensure accuracy?
• Which step involves setting aside funds to cover anticipated costs?
• Which statement correctly differentiates peril and hazard?
• Named perils coverage under the Boat and Motor Form does not include which?
• If a $430 loss occurs and there is a $300 deductible under Specified Perils, what would the insurer pay?
• In the context of completed operations coverage, which statement is correct?
• Which asset would typically be covered under a Fine Arts endorsement?
• General damage is best described as
• Umbrella policy can drop down to provide coverage not insured under primary policies.
• Under Loss of Use due to Theft, reimbursement ends upon which event?
• How many different limits exist under the commercial form?
• What is the first step in the claims-handling process from notice to settlement?
• Describe the DP-3 dwelling policy form.
• Under the Commercial Building, Equipment and Stock Form, the definition of equipment is:
• Which best describes the inflation guard endorsement’s effect on property coverage?
• In a break-in, specified perils will cover which item?
• Which term describes the order in which losses are paid under an automobile policy?
• Who, from among the following, would NOT be covered under the Third Liability coverage of an automobile insurance policy?
• What are the different types of insurance companies?
• Open-perils policies cover which risks?
• Which is true as it applies to Occurrence Basis Property damage?
• Inland marine coverage primarily covers movable or specialized property in transit or off premises. Which of the following is a typical example?
• Which statement best describes a Condominium Unit Package?
• Which statement best describes the administrative advantage of a CPP?
• The Facility Association is best described as which of the following?
• Describe the scope and typical coverage in a Businessowners Policy (BOP).
• What is the Declarations page and what information does it typically list?
• In a liability policy, what is the difference between an occurrence limit and an aggregate limit?
• Tail coverage applies to which liability policy type?
• Which information is not typically included on a certificate of insurance?
• In Ontario, the definition of the conditions under which injured parties are permitted to sue another motorist to recover for their injuries is known as
• Which statement about inland marine coverage is true?
• What distinguishes a binder's legal effect from a formal policy?
• Which policy is primarily designed to cover office equipment such as computers and printers?
• What does the coverage territory define in a policy?
• If a policy is written with 100% co-insurance, what does that imply?
• Which item is NOT typically found on a property policy Declarations page?
• Which professions commonly require professional liability (E&O) insurance?
• Which statement best describes how NFIP terms compare to private flood insurance terms?
• Which statement about endorsements is most accurate?
• What is the purpose of the Income Replacement Benefit under Accident Benefits coverage?
• Following loss or damage to the automobile, there is NO requirement to
• Which of the following is a typical duty of an insurance agent?
• In a Condominium arrangement, the unit owner owns which of the following?
• Which statement best describes NFIP and private flood insurance, and who administers NFIP?
• A Condominium Unit Package covers which of the following?
• Which statement about motorized snow vehicles and automobile insurance is NOT true?
• After an insured's automobile is damaged in an accident, the insured must
• Which step is primarily responsible for estimating reserves and recording anticipated liability?
• Which description best fits occurrence-based property damage coverage?
• Which of the following is NOT a step in the risk management process?
• The insured's dining room furniture scenario illustrates which type of loss settlement?
• Rising water is covered under which combination of perils?
• Which of the following describes the occurrence-based principle?
• Distinguish replacement cost vs actual cash value and explain when RC is used.
• Which factor best describes the potential for liability claims?
• Under Water Escape, Rupture Freezing peril, which statement is NOT TRUE?
• Which automobile documents must be approved by the Superintendent of Insurance?
• Extra Expense Form under RBC is designed to:
• A hazard is best described as:
• Priorities of payment in Ontario auto insurance relate to which two types of losses?
• What is the purpose of inflation guard in property coverage?
• Under the Voluntary Property Damage coverage you are insured for claims
• Settlement method that pays replacement cost minus depreciation is which concept?
• Under a commercial General Liability policy, which statement is TRUE?
• In a break-in scenario, which item is not covered under specified perils?
• In contract work, an Additional Insured endorsement is commonly required to protect which party?
• Which item is specifically listed as not subject to special limitations under a Homeowner's policy according to the material?
• Under a fire policy the insurer will pay:
• How do cancellation and nonrenewal differ?
• Which policy would best suit the needs of accountants and real estate agents?
• Loss control in risk management is primarily intended to do what?
• Recovery from the responsible party for loss of income as a result of an automobile accident, after trial is limited to
• Which of these is NOT considered an insured peril?
• Business Interruption insurance is defined as, under the Profit Form:
• What is the role of mortgagee rights and loss payable clauses in coverage?
• Complete fire and EC policy on a commercial building consists of:
• Not all drivers of recreational vehicles must be licensed.
• What occurs after settlement or litigation in the claims-handling process?
• Which statement about The Facility Association is correct?
• What are the main valuation options for property, and what does inflation guard do?
• In coinsurance, if property value is 100k and the minimum required is 80k, with the insured carrying 60k, the loss is paid how?
• There are five (5) different limits under the commercial form.
• The Principal-Agent relationship which is governed by law, is one between the:
• What is the purpose of a premium audit?