Fundamentals of Insurance 100 Exams
Questions and Answers (2026) | Verified
Answers with In-Depth Rationales | A+
Verified
• General Insurance involves all of the following types of insurance, except one. Pick the
exception.
a) Life Insurance
b) Liability Insurance
c) Automobile Insurance
d) Property Insurance -✓✓a) Life Insurance
• The definition of "Insurance" is found...
a) In the policy
b) In the Insurance Act of each province
c) In the Indemnity agreement
d) In the application form -✓✓b) In the Insurance Act of each province
• The amount of indemnity is determined by the value of the insured property...
a) As it was when originally purchased
b) At the inception date of the policy
c) At the latest renewal date
d) Immediately prior to the loss -✓✓d) Immediately prior to the loss
• Brokerage Owners are...
a) Employed by the provincial government
b) Employed by their sponsoring Insurer
c) Self-employed
d) Employed by Direct Writers -✓✓c) Self-employed
• Which of the following is not an example of a Private Insurer?
a) ING Insurance
b) Portage Mutual Insurance
c) Manitoba Public Insurance
d) Red River Valley Mutual -✓✓c) Manitoba Public Insurance
,• When one of the eight elements of an insurance contract are not present, the contract
may be...
a) Void or Voidable
b) Cancelled or Terminated
c) Suspended
d) Enforceable at law -✓✓a) Void or Voidable
• Insurance companies use all of the following documents to make changes in the
insurance contract, except one. Pick the exception.
a) Rider
b) Telephone change log
c) Endorsement
d) Floater -✓✓b) Telephone change log
• Risks people face fall into one of the following categories, except one. Pick the
exception.
a) Liability risk
b) Property risk
c) Financial risk
d) Personal risk -✓✓c) Financial risk
• None of the following people have the legal capacity to contract, except one. Pick the
exception.
a) Persons under the influence of alcohol
b) Minors
c) Mental incompetents
d) Seniors -✓✓d) Seniors
• Which of the following entities have the legal capacity to contract?
a) Maggie's Lingerie Ltd.
b) Maggie's Lingerie
c) Maggie's Lingerie o/b employees of Maggie's Lingerie
d) Maggie's Lingerie o/b the shareholders and directors -✓✓a) Maggie's Lingerie Ltd.
• Which of the following is the recommended form of dealing with risk?
a) Avoidance
b) Controlling
c) Retention
d) Transfer -✓✓d) Transfer
, • Agency Agreements are between...
a) The Broker and the Insured
b) The Insurer and the Insured
c) The Insurer and the Broker
d) Broker and Broker -✓✓c) The Insurer and the Broker
• The Removal Clause contains all of the following conditions, except one. Pick the
exception.
a) The amount of coverage at the new location will be reduced by the amount used at
the named location
b) The property must be removed to prevent damage or further damage thereto
c) Only the peril of fire will be insured at the new location
d) The coverage at the new location will be in effect for 7 days or the unexpired term of
the policy, whichever is less -✓✓c) Only the peril of fire will be insured at the new
location
• Only the following person(s) have the authority to change the policy.
a) The Insured and the Broker
b) An Officer of the insurance company
c) An employee of the Loss Payable
d) An office of the insurance company, or any licensed Broker -✓✓b) An Officer of the
insurance company
• The following three coverages are required on every policy insuring loss by fire.
a) Fire, hail, and lightning
b) Fire, windstorm, and explosion of natural, coal, or manufactured gas
c) Fire, windstorm, and hail
d) Fire, lightning, and explosion of natural, coal, or manufactured gas -✓✓d) Fire,
lightning, and explosion of natural, coal, or manufactured gas
• When an Insurer terminates a policy all of the following conditions must be followed,
except one, for the termination to be valid. Pick the exception.
a) 15 days' notice by registered letter must be provided to the Insured
b) The refund must be calculated on a short rate basis
c) The refund must accompany the notice
d) The 15 days' notice begins on the day after it is received at the post office to which it
was addressed -✓✓b) The refund must be calculated on a short rate basis
• If title of the insured property changes, the new party of interest is automatically
covered in all of the following circumstances, except one. Pick the exception.
Questions and Answers (2026) | Verified
Answers with In-Depth Rationales | A+
Verified
• General Insurance involves all of the following types of insurance, except one. Pick the
exception.
a) Life Insurance
b) Liability Insurance
c) Automobile Insurance
d) Property Insurance -✓✓a) Life Insurance
• The definition of "Insurance" is found...
a) In the policy
b) In the Insurance Act of each province
c) In the Indemnity agreement
d) In the application form -✓✓b) In the Insurance Act of each province
• The amount of indemnity is determined by the value of the insured property...
a) As it was when originally purchased
b) At the inception date of the policy
c) At the latest renewal date
d) Immediately prior to the loss -✓✓d) Immediately prior to the loss
• Brokerage Owners are...
a) Employed by the provincial government
b) Employed by their sponsoring Insurer
c) Self-employed
d) Employed by Direct Writers -✓✓c) Self-employed
• Which of the following is not an example of a Private Insurer?
a) ING Insurance
b) Portage Mutual Insurance
c) Manitoba Public Insurance
d) Red River Valley Mutual -✓✓c) Manitoba Public Insurance
,• When one of the eight elements of an insurance contract are not present, the contract
may be...
a) Void or Voidable
b) Cancelled or Terminated
c) Suspended
d) Enforceable at law -✓✓a) Void or Voidable
• Insurance companies use all of the following documents to make changes in the
insurance contract, except one. Pick the exception.
a) Rider
b) Telephone change log
c) Endorsement
d) Floater -✓✓b) Telephone change log
• Risks people face fall into one of the following categories, except one. Pick the
exception.
a) Liability risk
b) Property risk
c) Financial risk
d) Personal risk -✓✓c) Financial risk
• None of the following people have the legal capacity to contract, except one. Pick the
exception.
a) Persons under the influence of alcohol
b) Minors
c) Mental incompetents
d) Seniors -✓✓d) Seniors
• Which of the following entities have the legal capacity to contract?
a) Maggie's Lingerie Ltd.
b) Maggie's Lingerie
c) Maggie's Lingerie o/b employees of Maggie's Lingerie
d) Maggie's Lingerie o/b the shareholders and directors -✓✓a) Maggie's Lingerie Ltd.
• Which of the following is the recommended form of dealing with risk?
a) Avoidance
b) Controlling
c) Retention
d) Transfer -✓✓d) Transfer
, • Agency Agreements are between...
a) The Broker and the Insured
b) The Insurer and the Insured
c) The Insurer and the Broker
d) Broker and Broker -✓✓c) The Insurer and the Broker
• The Removal Clause contains all of the following conditions, except one. Pick the
exception.
a) The amount of coverage at the new location will be reduced by the amount used at
the named location
b) The property must be removed to prevent damage or further damage thereto
c) Only the peril of fire will be insured at the new location
d) The coverage at the new location will be in effect for 7 days or the unexpired term of
the policy, whichever is less -✓✓c) Only the peril of fire will be insured at the new
location
• Only the following person(s) have the authority to change the policy.
a) The Insured and the Broker
b) An Officer of the insurance company
c) An employee of the Loss Payable
d) An office of the insurance company, or any licensed Broker -✓✓b) An Officer of the
insurance company
• The following three coverages are required on every policy insuring loss by fire.
a) Fire, hail, and lightning
b) Fire, windstorm, and explosion of natural, coal, or manufactured gas
c) Fire, windstorm, and hail
d) Fire, lightning, and explosion of natural, coal, or manufactured gas -✓✓d) Fire,
lightning, and explosion of natural, coal, or manufactured gas
• When an Insurer terminates a policy all of the following conditions must be followed,
except one, for the termination to be valid. Pick the exception.
a) 15 days' notice by registered letter must be provided to the Insured
b) The refund must be calculated on a short rate basis
c) The refund must accompany the notice
d) The 15 days' notice begins on the day after it is received at the post office to which it
was addressed -✓✓b) The refund must be calculated on a short rate basis
• If title of the insured property changes, the new party of interest is automatically
covered in all of the following circumstances, except one. Pick the exception.
