C81 Quiz #6

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C81 Insurance Knowledge Quiz

Test your knowledge of insurance concepts with our C81 Quiz #6! This quiz contains 20 multiple-choice questions covering essential topics in insurance including policy components, contracts, and underwriting practices.

Get ready to challenge yourself and see how well you understand the regulations and principles that govern the insurance industry. Suitable for beginners and experienced professionals alike!

20 Questions5 MinutesCreated by LearningWave512

Material facts are things which would impact the:

Acceptance and premium charge of a policy

Client’s insurance history

Coverages

Commission

A modified form of policy, issued as a convenience to a party with an interest in the insurance, is:

Contract of insurance

Certificate of insurance

Insurance policy wording

A notification of insurance

The clause which encourages insureds to carry adequate amounts of insurance on their property is the:

Amount payable clause

Coinsurance clause

Application clause

Deductible clause

Which of the following is not part of the insuring agreement of a policy?

Insured perils

Premium

Description of property covered

Exclusions

An endorsement cannot be used to:

Vary the terms of the policy

Overrule any wording in the policy

Amend the statutory conditions

Reduce coverage under the policy

The failure to disclose a fact which is important for making an underwriting or rating decision is:

Material fact

Concealment

Utmost good faith

Misrepresentation

Under common law, which of the following is NOT a condition required in a legal contract:

Offer and acceptance

Genuine intent

Consideration

Effective date and expiry date

Capacity to contract means:

Having the financial means to pay for a contract

Legally able to enter into contracts

Having the legal knowledge of contract laws

Genuine intent to enter a contract

In Quebec, which of the following can cause a contract to be of no effect:

Unpaid consideration

Damaged object of contract

Violation of Civil Code of Quebec

Lesion

The reduction in value of property through use, aging, deterioration, or obsolescence is:

Depreciation

Devaluation

Actual cash value

Market valuation

________ is the term that describes insured property not totally destroyed and usually has some money value:

Salvage

Reserve value

Salvage reserve

Claims value

The term__________, refers to when there is more than one insurance contract covering a loss:

Coinsurance

Multi-policy clause

Contribution

Priority of insurance clause

________wording is written on a custom basis for a specific insurance situation:

Manuscript

Endorsement

Subscription

Excess

Concerning assignment of insurance contracts:

Insurance contracts can be assigned by the insured to any individual

Insurance contracts cannot be assigned by the insured to any individual

Insurance contracts can only be assigned if there was a sale of the property

Insurance contracts can be assigned with legal documents

C81 Quiz #6

C81 Insurance Knowledge Quiz

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