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BC FOI – ACTUAL PRACTICE EXAM
QUESTIONS WITH VERIFIED
ANSWERS 2026
When the insurer has indemnified the insured for a loss caused by a third party,
the insurer has a legal right of recover from that party. This legal process is
referred to as
a. Arbitration
b. Restitution
c. Subrogation
d. Mediation - correct-answer -c. Subrogation
The Insurance Act provides that a policy insuring the peril of "fire" must also
include coverage for
a. Windstorm and Lightning
b. Lightning, including damage to electrical appliances and devices
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c. Lightning and all types of Explosion
d. Explosion of natural, coal or manufactured gas and Lightning, excluding damage
to electrical appliances and devices - correct-answer -d. Explosion of natural, coal
or manufactured gas and Lightning, excluding damage to electrical appliances and
devices
Only one of the following statements regarding Statutory Condition No. 1 -
Misrepresentation is correct
a. Any description of the property that proves to be incorrect constitutes a
Misrepresentation
b. about previous cancellations or refusal of insurance is not a
Misrepresentation
c. Statements made by the applicant, which lead the insurer to believe that the
risk is better than it actually is, are considered Misrepresentation
d. A Misrepresentation has no effect whatsoever on the coverage under the
policy, even when the insurer is able to prove misrepresentation - correct-answer
-c. Statements made by the applicant, which lead the insurer to believe that the
risk is better than it actually is, are considered Misrepresentation
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All of the following statements regarding the Statutory Conditions are true,
except one. Pick the Exception:
a. The insurer has an obligation only to those parties whose name appears on the
Declarations Page and who can prove insurable interest
b. A "Material Change" is considered a change that alters the risk in a way that
greatly increases the potential for some losses
c. When a loss is caused directly by an unreported Material Change, the insurer
has the right to deny that claim
d. As long as the insured reports a Material Change promptly, the insurer rarely
charges an additional premium - correct-answer -d. As long as the insured reports
a Material Change promptly, the insurer rarely charges an additional premium
Your client has requested the termination of his insurance policy. You advise your
client of the provisions of Statutory Condition, No. - Termination. Which of the
four provisions stated below is wrong?
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a. Written request for termination signed by all persons stated on the policy must
be provided to the insurer
b. Your client does not have to give the insurer any notice prior to the requested
cancellation date
c. As the insurer has the right to charge the insured administrative costs to
process the cancellation, the premium refund is calculated on a short-rate basis
d. When the insured terminated the policy, the insured is not entitled to a
premium refund - correct-answer -d. When the insured terminated the policy, the
insured is not entitled to a premium refund
In the event of a claim there are also a number of Statutory Conditions that affect
both the insurer and the insured. One of the following statements regarding these
conditions is incorrect. Select the statement that is incorrect.
a. The insured must provide the insurer with a Proof of Loss as soon as practicable
b. In the claim the insured included an article she did not even own, therefore,
the insurer will only pay for those articles for which the insured can prove
ownership
BC FOI – ACTUAL PRACTICE EXAM
QUESTIONS WITH VERIFIED
ANSWERS 2026
When the insurer has indemnified the insured for a loss caused by a third party,
the insurer has a legal right of recover from that party. This legal process is
referred to as
a. Arbitration
b. Restitution
c. Subrogation
d. Mediation - correct-answer -c. Subrogation
The Insurance Act provides that a policy insuring the peril of "fire" must also
include coverage for
a. Windstorm and Lightning
b. Lightning, including damage to electrical appliances and devices
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c. Lightning and all types of Explosion
d. Explosion of natural, coal or manufactured gas and Lightning, excluding damage
to electrical appliances and devices - correct-answer -d. Explosion of natural, coal
or manufactured gas and Lightning, excluding damage to electrical appliances and
devices
Only one of the following statements regarding Statutory Condition No. 1 -
Misrepresentation is correct
a. Any description of the property that proves to be incorrect constitutes a
Misrepresentation
b. about previous cancellations or refusal of insurance is not a
Misrepresentation
c. Statements made by the applicant, which lead the insurer to believe that the
risk is better than it actually is, are considered Misrepresentation
d. A Misrepresentation has no effect whatsoever on the coverage under the
policy, even when the insurer is able to prove misrepresentation - correct-answer
-c. Statements made by the applicant, which lead the insurer to believe that the
risk is better than it actually is, are considered Misrepresentation
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All of the following statements regarding the Statutory Conditions are true,
except one. Pick the Exception:
a. The insurer has an obligation only to those parties whose name appears on the
Declarations Page and who can prove insurable interest
b. A "Material Change" is considered a change that alters the risk in a way that
greatly increases the potential for some losses
c. When a loss is caused directly by an unreported Material Change, the insurer
has the right to deny that claim
d. As long as the insured reports a Material Change promptly, the insurer rarely
charges an additional premium - correct-answer -d. As long as the insured reports
a Material Change promptly, the insurer rarely charges an additional premium
Your client has requested the termination of his insurance policy. You advise your
client of the provisions of Statutory Condition, No. - Termination. Which of the
four provisions stated below is wrong?
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a. Written request for termination signed by all persons stated on the policy must
be provided to the insurer
b. Your client does not have to give the insurer any notice prior to the requested
cancellation date
c. As the insurer has the right to charge the insured administrative costs to
process the cancellation, the premium refund is calculated on a short-rate basis
d. When the insured terminated the policy, the insured is not entitled to a
premium refund - correct-answer -d. When the insured terminated the policy, the
insured is not entitled to a premium refund
In the event of a claim there are also a number of Statutory Conditions that affect
both the insurer and the insured. One of the following statements regarding these
conditions is incorrect. Select the statement that is incorrect.
a. The insured must provide the insurer with a Proof of Loss as soon as practicable
b. In the claim the insured included an article she did not even own, therefore,
the insurer will only pay for those articles for which the insured can prove
ownership
