OTL Practice 5 – Study Guide and Exam Preparation Material
Which of the following is not covered under the liability section of Homeowner policy? -
✔✔The insured picks up a hot pot from the stove and is badly burned by it causing her to miss
several weeks from work.
Which of the following have no limit on the amount paid (other than the policy limit)? -
✔✔The theft of freezer food.
Which policy is most similar to Mobile Homeowner's? - ✔✔The basic Homeowners form.
A building is worth $360,000 and is subject to an 80% coinsurance clause. It is insured for
$90,000 and there is a fire that causes $72,000 worth of damage. Which of the following will
the policy pay?
a) $57,6000
b)$90,000
c) $72,000
d) $22,500 - ✔✔D - $22,500
Common Law is
a) based on Old English Laws that used to apply to the common law
b)the law that regulates matrimonial relationships
c) sometimes referred to as case law
d) law that had its origins in Quebec - ✔✔C -sometimes referred to as case law
Insurable interest it - ✔✔the monetary interest a person might have in the happening of a loss
,A replacement Cost Contract
a)will pay for new item lost or damaged but will deduct for depreciation
b)denies the principle of Utmost Good Faith
c) in effect, offends the principle of indemnity
d)is a contract of compensation - ✔✔C - in effect, offends the principle of indemnity
Consideration as it relates to insurance is - ✔✔The premium
The valued contract is a policy - ✔✔Which will pay a specific agreed amount
Actual cash value of an item is best described as
a) replacement value
b) fair market value
c) salvage value
d) value at the time of purchase - ✔✔b) fair market value
Trust accounts are designed for - ✔✔depositing premiums due to the insurer
your client has recently purchased a resale condo town house whose previous owner installed a
fully finished basement. Which coverage below would ensure the client is protected? -
✔✔improvements and betterments
A bailee could be someone who - ✔✔has someone else's property in his possession for repairs
, A 14-year-old child deliberately breaks a friends bike. which sec. of the parents Homeowner's
policy would it cover?
a) legal liability
b) voluntary property damage
c) additional living expenses
d) none of the above - ✔✔d- none of the above
The total mandatory automobile coverages in Ontario are
a)Direct compensation, liability and collision
b)Direct compensation, OPCF 44R, liability and collision
c)Direct compensation, accident benefits, liability and collision
d) none of the above - ✔✔D- none of the above
The following damage is not covered under All Perils coverage - ✔✔Damage to the car while
the vehicle was driven by a drunk driver.
The liability section of the OAP 1 policy covers - ✔✔Anybody who drives the automobile with
the owners permission
A deductible on auto insurance usually does not apply to - ✔✔lightning damage
The OPCF 44R Family protection endorsement provides protection for
a) damage when the at-fault Third party's liability limit is inadequate or when the third party is
uninsured.
Which of the following is not covered under the liability section of Homeowner policy? -
✔✔The insured picks up a hot pot from the stove and is badly burned by it causing her to miss
several weeks from work.
Which of the following have no limit on the amount paid (other than the policy limit)? -
✔✔The theft of freezer food.
Which policy is most similar to Mobile Homeowner's? - ✔✔The basic Homeowners form.
A building is worth $360,000 and is subject to an 80% coinsurance clause. It is insured for
$90,000 and there is a fire that causes $72,000 worth of damage. Which of the following will
the policy pay?
a) $57,6000
b)$90,000
c) $72,000
d) $22,500 - ✔✔D - $22,500
Common Law is
a) based on Old English Laws that used to apply to the common law
b)the law that regulates matrimonial relationships
c) sometimes referred to as case law
d) law that had its origins in Quebec - ✔✔C -sometimes referred to as case law
Insurable interest it - ✔✔the monetary interest a person might have in the happening of a loss
,A replacement Cost Contract
a)will pay for new item lost or damaged but will deduct for depreciation
b)denies the principle of Utmost Good Faith
c) in effect, offends the principle of indemnity
d)is a contract of compensation - ✔✔C - in effect, offends the principle of indemnity
Consideration as it relates to insurance is - ✔✔The premium
The valued contract is a policy - ✔✔Which will pay a specific agreed amount
Actual cash value of an item is best described as
a) replacement value
b) fair market value
c) salvage value
d) value at the time of purchase - ✔✔b) fair market value
Trust accounts are designed for - ✔✔depositing premiums due to the insurer
your client has recently purchased a resale condo town house whose previous owner installed a
fully finished basement. Which coverage below would ensure the client is protected? -
✔✔improvements and betterments
A bailee could be someone who - ✔✔has someone else's property in his possession for repairs
, A 14-year-old child deliberately breaks a friends bike. which sec. of the parents Homeowner's
policy would it cover?
a) legal liability
b) voluntary property damage
c) additional living expenses
d) none of the above - ✔✔d- none of the above
The total mandatory automobile coverages in Ontario are
a)Direct compensation, liability and collision
b)Direct compensation, OPCF 44R, liability and collision
c)Direct compensation, accident benefits, liability and collision
d) none of the above - ✔✔D- none of the above
The following damage is not covered under All Perils coverage - ✔✔Damage to the car while
the vehicle was driven by a drunk driver.
The liability section of the OAP 1 policy covers - ✔✔Anybody who drives the automobile with
the owners permission
A deductible on auto insurance usually does not apply to - ✔✔lightning damage
The OPCF 44R Family protection endorsement provides protection for
a) damage when the at-fault Third party's liability limit is inadequate or when the third party is
uninsured.
