1|Page
FUNDAMENTALS OF INSURANCE TEST FINAL EXAM
AND PRACTICE EXAM QUESTIONS 2025/ 2026
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+|| NEWEST EXAM!!!
What is tied selling? - Answer-When an operator makes
purchasing something mandatory in order to purchase
something else.
Elements unique to an Insurance contract - Answer-
Utmost good faith, Insurable Interest, Indemnity
When there is a deductible in an insurance policy, the
Insurance Act requires - Answer-the phrase "This policy
contains a clause that may limit the amount payable" be
stamped in red ink on the policy face sheet
Provincial Insurance Acts require that every policy insuring
loss by fire provide the following coverages - Answer-Fire,
lightening, and exploding of natural, coal, or manufactured
gas
,2|Page
Change of Interest - Answer-Policy continues to protect
"new" insured's when change of title due to succession
operation of law or by death
When the policy is cancelled by the Insurer, the refund will
be made on what basis? - Answer-Pro-rata basis
If the Insured wishes to sue the Insurer for failure to pay a
claim, how long does she have to initiate the action? -
Answer-one year from the date of the loss or damage
A willfully false statement in a notice of loss has what
effect? - Answer-It invalidates the claim
An Insured is experiencing financial difficulty. This is an
example of - Answer-a moral hazard
A breach of warranty results in - Answer-The insurer
denying coverage only when the breach is related to the
loss.
The provisions of the Indemnity agreement contained in
commercial property insurance policies consider all of the
, 3|Page
following when determining the amount of the settlement: -
Answer-The actual cash value of the property at the time
of the loss or damage. The interest of the insured in the
property, and the amount of insurance specified on the
declarations page in respect of the property lost or
damaged
The standard mortgage clause provides that the
mortgagee will be paid when the insureds are denied
coverage because of: - Answer-Arson, neglect, or
misrepresentation
The brokers primary duty to clients is - Answer-to ensure
they provide the right advice and coverages
The description of dwelling in a mobile home insurance
policy includes coverages for: - Answer-appliances,
furniture, and equipment forming a permanent part of the
dwelling
Perils covered under a named perils form of a commercial
property insurance policy include: - Answer-Windstorm or
hail. Riot,vandalism, or malicious acts, and leakage of fire
protective equipment
FUNDAMENTALS OF INSURANCE TEST FINAL EXAM
AND PRACTICE EXAM QUESTIONS 2025/ 2026
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+|| NEWEST EXAM!!!
What is tied selling? - Answer-When an operator makes
purchasing something mandatory in order to purchase
something else.
Elements unique to an Insurance contract - Answer-
Utmost good faith, Insurable Interest, Indemnity
When there is a deductible in an insurance policy, the
Insurance Act requires - Answer-the phrase "This policy
contains a clause that may limit the amount payable" be
stamped in red ink on the policy face sheet
Provincial Insurance Acts require that every policy insuring
loss by fire provide the following coverages - Answer-Fire,
lightening, and exploding of natural, coal, or manufactured
gas
,2|Page
Change of Interest - Answer-Policy continues to protect
"new" insured's when change of title due to succession
operation of law or by death
When the policy is cancelled by the Insurer, the refund will
be made on what basis? - Answer-Pro-rata basis
If the Insured wishes to sue the Insurer for failure to pay a
claim, how long does she have to initiate the action? -
Answer-one year from the date of the loss or damage
A willfully false statement in a notice of loss has what
effect? - Answer-It invalidates the claim
An Insured is experiencing financial difficulty. This is an
example of - Answer-a moral hazard
A breach of warranty results in - Answer-The insurer
denying coverage only when the breach is related to the
loss.
The provisions of the Indemnity agreement contained in
commercial property insurance policies consider all of the
, 3|Page
following when determining the amount of the settlement: -
Answer-The actual cash value of the property at the time
of the loss or damage. The interest of the insured in the
property, and the amount of insurance specified on the
declarations page in respect of the property lost or
damaged
The standard mortgage clause provides that the
mortgagee will be paid when the insureds are denied
coverage because of: - Answer-Arson, neglect, or
misrepresentation
The brokers primary duty to clients is - Answer-to ensure
they provide the right advice and coverages
The description of dwelling in a mobile home insurance
policy includes coverages for: - Answer-appliances,
furniture, and equipment forming a permanent part of the
dwelling
Perils covered under a named perils form of a commercial
property insurance policy include: - Answer-Windstorm or
hail. Riot,vandalism, or malicious acts, and leakage of fire
protective equipment
