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1. Which problem could arise with an oral binder?
A) The insurer did not secure privacy documentation
B) It may override a policy warranty
C) It is illegal in some provinces
D) The intermediary may not have authority to bind coverage
2. Why does the Office of the Superintendent of Financial Institutions (OSFI) control the types of investments insurers are allowed to make?
A) To minimize industry indemnifications
B) To maximize insurers' returns on investments
C) To minimize insurers' investment loss exposures
D) To maximize industry profits
3. Which type of clause grants additional protection to the entity that has a registered interest on real property?
A) Mortgage clause
B) Lienholder clause
C) Bailee clause
D) Additional Interest clause
4. Jack owns a convenience store. During a severe hurricane, he places sandbags in front of his store and boards up the windows. Which technique of loss control is Jack utilizing?
A) Diversification
B) Avoidance
C) Loss reduction
D) Risk transfer
5. What does the acronymPIPEDAstand for?
A) Personal Information Protection and Electronic Documents Act
B) Personal Insurance Products Electronically Delivered Act
C) Private Information Protected from Email Decoding Attacks
D) Protect Insurance Products by Electronic Decoding Algorithms
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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