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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Introduction to Insurance | 10–15% | - Basic concepts: risk, peril, hazard - Purpose and function of insurance - Role of insurance in economy and society |
| Topic 2: Legal Principles of Insurance | 20–25% | - Principle of indemnity - Contract law fundamentals - Insurable interest, utmost good faith - Subrogation and contribution |
| Topic 3: Risk Management and Application | 15–20% | - Application of principles to personal and commercial contexts - Ethics and professional conduct - Risk identification, assessment, treatment |
| Topic 4: Insurance Industry Structure and Stakeholders | 15–20% | - Insurers, intermediaries, regulators - Roles: underwriting, claims, reinsurance - Legislation and regulation in Canada |
| Topic 5: Insurance Policy Structure and Provisions | 20–25% | - Interpretation of policy wording - Policy components: declarations, insuring agreement, exclusions, conditions - Endorsements and modifications |
1. Which type of policy must be signed by a member of each participating insurer?
A) All-inclusive
B) Subscription
C) Prescription
D) Subrogation
2. Huronial Insurance Company submitted incorporation documents and received approval to sell personal-lines property and automobile policies. Which document will the Office of the Superintendent of Financial Institutions (OSFI) issue?
A) Insurer of record
B) Insurer establishment document
C) Order of commencement
D) National insurance notice
3. Robin is employed as a loss adjuster handling a large residential fire claim. Which is NOT one of their responsibilities?
A) Explain relevant insurance coverage
B) Provide legal advice even if the claimant has legal counsel
C) Assess the claim with integrity
D) Uphold the law with respect to its interpretation
4. Stuart sells his vehicle and cancels his auto policy. The insurer refunds the full unearned portion of the premium. What type of cancellation is this?
A) Non-adjusted rate
B) Total rate
C) Pro rata
D) Fully fixed
5. Who has authority from a company to manage that company's business within their territory, to appoint other agents, and to settle claims?
A) Operating agent
B) General agent
C) Analyst
D) Wholesaler
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: B |
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