OTL Practice Exam A Questions and Answers 100% Pass

OTL Practice Exam A Questions and Answers 100% Pass Which of the following is not a definition of "Certificate of Insurance"? a) It does not certify the existence of insurance. b) May be a modified form of a policy. c) Issued as a convenience to a party who may have interest in the insurance. d) None of the above. - Answer- a) It does not certify the existence of insurance. The Casualty Department underwrites: a) Homeowner policies. b) Marine risks. c) Business property and stock. d) Accident and Sickness, Crime and Robbery. - Answer- d) Accident and Sickness, Crime and Robbery. Which statement best defines the term Actual Cash Value? a) It is the same as replacement cost. b) Is the replacement value of the property. c) Same as B above, less any accumulated depreciation. d) Today's market value of the property. - Answer- d) Today's market value of the property. A definition of Ordinary negligence: a) Will always refer to bodily injury to a third party. b) Is the failure to do what a reasonable person would do in a given situation. c) Is basically the same as gross negligence. d) Would always include reference to impaired driving. - Answer- b) Is the failure to do what a reasonable person would do in a given situation. Which statement is CORRECT pertaining to Moral Hazard? a) Untidy general housekeeping. b) Mental attitude and character of the person. c) It does not relate to conditions attributable to the human elements of risk. d) It relates to the property and may lead to the occurrence of a peril. - Answer- b) Mental attitude and character of the person. Which of the following is NOT TRUE in reference to a Physical Hazard? a) Slippery floors, loose tiles. b) Dangerous manufacturing practices. c) Labor problems, obsolescence of plant. d) Preventative methods can usually be implemented and thereby reducing or even completely remove the risk. - Answer- c) Labor problems, obsolescence of plant. The Principal-Agent relationship which is governed by law, is one between the: a) Agent and the insured. b) Agent and the insurer. c) Contract between the agent and insured. d) Has no legal binding by law. - Answer- b) Agent and the insurer. Which of the following is NOT part of the insuring agreement? a) Circumstances under which the insured may receive the proceeds of the insurance. b) The exclusions. c) The perils insured against. d) The premium to be paid. - Answer- d) The premium to be paid. What are the different types of insurance companies? a) Mutual b) Mutual and Stock c) Mutual, Stock and Lloyds d) Stock - Answer- b) Mutual and Stock Which of the following would NOT be considered as part of the agents' duties? a) Service and settle claims. b) Represent the client and client's interest. c) Represent the insurer. d) Deposit the premiums in the trust account and transfer the proceeds to the insurer at a later date. - Answer- a) Service and settle claims. "Statutory Conditions" are: a) Frequently part of a fire policy. b) The same as the "Insuring Clause". c) Set out in the Provincial Insurance Act. d) Legislated by the Federal Insurance Department. - Answer- c) Set out in the Provincial Insurance Act. Negligence can be defined as: a) Omission to do something a reasonable person would do. b) To do something a reasonable person would do. c) Acting under normal circumstance. d) None of the above. - Answer- a) Omission to do something a reasonable person would do. A "Peril" is best defined as: a) A chance of loss. b) The occurrence of a loss. c) The event, which may cause a loss. d) The result of a loss. - Answer- c) The event, which may cause