General Insurance Broker Level 2 – Study Guide and Licensing Exam Preparation
Material
Keasha is an underwriter with Knockout Insurance Company. She was instrumental in having a
well-written underwriting manual published and in the hands of their brokers. The rate manual
would include which of the following information?
Select one:
a.The actual rates for the different types of insurance and underwriting rules
b.The types of risk for which underwriter pre approval is required
c.A specific list of risks that would not be acceptable to the company
d.All of the above - correct answer ✔✔d
The time of disclosure of material information can take different forms:
Select one:
a.Facts that exist at the time the contract is formed
b.New facts that arise during the policy period
c.Information that always existed and has never changed
d.Facts that existed originally and new facts that arise during the policy period - correct answer
✔✔d
In the claims-handling process, the broker can provide considerable assistance to the adjuster.
Which of the following would not be helpful to the company claims representative?
Select one:
a.Having the insured abandon the damaged property to the insurer
b.Giving first notice of loss promptly
c.Advising the client to cooperate with the adjuster
,d.Being sure that the loss is mitigated - correct answer ✔✔a
In securing information for an auto policy, Ms. Stephens mentions that she suffers from
blackouts at different intervals, which can result in a short period of being unconscious. The
broker wants to disclose this to the insurer. What must he do before sending this information
along to the insurer?
Select one:
a.Recommend that the client get a doctor's report
b.Get Ms. Stephens's written consent to forward this information to the insurer
c.Just ignore it and hope for the best
d.Ask her doctor for a report as a courtesy - correct answer ✔✔b
Bill and Mary Jones have a Comprehensive Homeowners policy, and they left the freezer
unplugged after cleaning it. Would the freezer spoilage and damage to the freezer be covered?
Select one:
a.Yes, for $1000.
b.Spoilage is covered for only $2000. The freezer is not covered.
c.Loss is not covered because it was not caused by an accidental power interruption or freezer
breakdown.
d.Damage to the freezer is never covered, just food spoilage. - correct answer ✔✔c
Alice and William have purchased a condo in a seniors' development. They inquire about
insurance for this unique lifestyle and are advised that they need loss assessment coverage.
Why would they need coverage like this when they always pay their condo fees promptly?
Select one:
a.This is additional liability coverage in case their personal liability policy does not have
sufficient limits.
b.If the Condo Board does not have sufficient coverage on the common elements, an
assessment will be made of each unit owner and this coverage would pay it.
,c.This is a contribution in addition to the condo fees to the overall insurance coverage for the
condominium complex.
d.This is an insurance policy fee most insurers include in the premium for condo coverage. -
correct answer ✔✔b
Jack Johnson is away on a trip to the Caribbean when he has problems with an ulcer. This
problem had bothered him before the trip, but it was his vacation and he went anyway. What
implications will this have for coverage on his travel policy?
Select one:
a.No problem as he was not suffering from this ailment when he boarded the plane
b.No problem as he was not taking medication for the ulcer
c.Could be a problem as policies have pre-existing condition clauses that negate coverage under
certain circumstances
d.Pre-existing condition clause null and void as he had never been hospitalized - correct answer
✔✔c
A method of canvassing for clients referred to as "cold calling" results in
Select one:
a.quite a few sales.
b.very few sales but is good practice in talking to potential clients.
c.a very poor image for the insurance industry.
d.charitable donations. - correct answer ✔✔b
Dryer Industries Limited is considering a Commercial Property Floater but want to be sure that
theft coverage is included. What would you, as the broker/agent, in this transaction advise?
Select one:
a.No, it is not included and must be added by endorsement.
b.Commercial property floaters are all-risk, including theft.
, c.Commercial property floaters are all-risk, excluding theft.
d.Theft is covered but only at the main location. - correct answer ✔✔b
Identify the main function of the Insurance Bureau of Canada.
Select one:
a.To compile statistics from a premium and claims standpoint to aid the industry actuaries
b.To show the insurance industry in a favourable way to consumers, government, and other
stakeholders
c.To instigate safety programs on the insurance industry's behalf
d.To provide assistance to the regulators in problem cases - correct answer ✔✔b
In an insurance brokerage, if a policy is considered lapsed, how long must the brokerage
maintain the lapsed policy file in their records, and what is this period called?
Select one:
a.Two years and called the limitation period
b.A period of time set out by the provincial authorities referred to as the prescription period
c.A flexible time frame dictated by the Statute of Limitations and called the limitation period
d.Seven years and called the prescription period - correct answer ✔✔b
If an insured has jewellery insured on a personal articles endorsement and purchased a $3,000
Rolex watch, what is the circumstance of coverage on this new item of jewellery?
Select one:
a.Has coverage for 30 days up to $5,000 on the class of property scheduled that is newly
purchased
b.No coverage until the new watch is added to the policy by endorsement
c.Jeweller would hold him covered for a 14-day period
d.Has coverage for 14 days up to an amount of $3,000 on the class of property scheduled that is
newly purchased - correct answer ✔✔a
Material
Keasha is an underwriter with Knockout Insurance Company. She was instrumental in having a
well-written underwriting manual published and in the hands of their brokers. The rate manual
would include which of the following information?
Select one:
a.The actual rates for the different types of insurance and underwriting rules
b.The types of risk for which underwriter pre approval is required
c.A specific list of risks that would not be acceptable to the company
d.All of the above - correct answer ✔✔d
The time of disclosure of material information can take different forms:
Select one:
a.Facts that exist at the time the contract is formed
b.New facts that arise during the policy period
c.Information that always existed and has never changed
d.Facts that existed originally and new facts that arise during the policy period - correct answer
✔✔d
In the claims-handling process, the broker can provide considerable assistance to the adjuster.
Which of the following would not be helpful to the company claims representative?
Select one:
a.Having the insured abandon the damaged property to the insurer
b.Giving first notice of loss promptly
c.Advising the client to cooperate with the adjuster
,d.Being sure that the loss is mitigated - correct answer ✔✔a
In securing information for an auto policy, Ms. Stephens mentions that she suffers from
blackouts at different intervals, which can result in a short period of being unconscious. The
broker wants to disclose this to the insurer. What must he do before sending this information
along to the insurer?
Select one:
a.Recommend that the client get a doctor's report
b.Get Ms. Stephens's written consent to forward this information to the insurer
c.Just ignore it and hope for the best
d.Ask her doctor for a report as a courtesy - correct answer ✔✔b
Bill and Mary Jones have a Comprehensive Homeowners policy, and they left the freezer
unplugged after cleaning it. Would the freezer spoilage and damage to the freezer be covered?
Select one:
a.Yes, for $1000.
b.Spoilage is covered for only $2000. The freezer is not covered.
c.Loss is not covered because it was not caused by an accidental power interruption or freezer
breakdown.
d.Damage to the freezer is never covered, just food spoilage. - correct answer ✔✔c
Alice and William have purchased a condo in a seniors' development. They inquire about
insurance for this unique lifestyle and are advised that they need loss assessment coverage.
Why would they need coverage like this when they always pay their condo fees promptly?
Select one:
a.This is additional liability coverage in case their personal liability policy does not have
sufficient limits.
b.If the Condo Board does not have sufficient coverage on the common elements, an
assessment will be made of each unit owner and this coverage would pay it.
,c.This is a contribution in addition to the condo fees to the overall insurance coverage for the
condominium complex.
d.This is an insurance policy fee most insurers include in the premium for condo coverage. -
correct answer ✔✔b
Jack Johnson is away on a trip to the Caribbean when he has problems with an ulcer. This
problem had bothered him before the trip, but it was his vacation and he went anyway. What
implications will this have for coverage on his travel policy?
Select one:
a.No problem as he was not suffering from this ailment when he boarded the plane
b.No problem as he was not taking medication for the ulcer
c.Could be a problem as policies have pre-existing condition clauses that negate coverage under
certain circumstances
d.Pre-existing condition clause null and void as he had never been hospitalized - correct answer
✔✔c
A method of canvassing for clients referred to as "cold calling" results in
Select one:
a.quite a few sales.
b.very few sales but is good practice in talking to potential clients.
c.a very poor image for the insurance industry.
d.charitable donations. - correct answer ✔✔b
Dryer Industries Limited is considering a Commercial Property Floater but want to be sure that
theft coverage is included. What would you, as the broker/agent, in this transaction advise?
Select one:
a.No, it is not included and must be added by endorsement.
b.Commercial property floaters are all-risk, including theft.
, c.Commercial property floaters are all-risk, excluding theft.
d.Theft is covered but only at the main location. - correct answer ✔✔b
Identify the main function of the Insurance Bureau of Canada.
Select one:
a.To compile statistics from a premium and claims standpoint to aid the industry actuaries
b.To show the insurance industry in a favourable way to consumers, government, and other
stakeholders
c.To instigate safety programs on the insurance industry's behalf
d.To provide assistance to the regulators in problem cases - correct answer ✔✔b
In an insurance brokerage, if a policy is considered lapsed, how long must the brokerage
maintain the lapsed policy file in their records, and what is this period called?
Select one:
a.Two years and called the limitation period
b.A period of time set out by the provincial authorities referred to as the prescription period
c.A flexible time frame dictated by the Statute of Limitations and called the limitation period
d.Seven years and called the prescription period - correct answer ✔✔b
If an insured has jewellery insured on a personal articles endorsement and purchased a $3,000
Rolex watch, what is the circumstance of coverage on this new item of jewellery?
Select one:
a.Has coverage for 30 days up to $5,000 on the class of property scheduled that is newly
purchased
b.No coverage until the new watch is added to the policy by endorsement
c.Jeweller would hold him covered for a 14-day period
d.Has coverage for 14 days up to an amount of $3,000 on the class of property scheduled that is
newly purchased - correct answer ✔✔a
