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CIP C11 Practice questions
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CIP C11 Practice questions
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CIP C11 Practice questionsWhat are the components of risk? - CORRECT ANSWER-Uncertainty
Varying levels of risk
Identify 3 general types of insurable risk that people are exposed to. - CORRECT
ANSWER-Personal
Property
Liability
Which of the following statements is true about risk managers? - CORRECT
ANSWER-They determine what risks exist and what to do about them
Which of the following is categorized as general insurance? - CORRECT
ANSWER-Liability insurance
Only liability insurance of the options provided is considered general insurance.
Employment insurance is a social insurance and life/pension are part of life and
health insurance.
Who would the board of directors of a stock insurance company report to? -
CORRECT ANSWER-Shareholders
The Board of Directors are non-involved overseers of the operation representing
the shareholders.
Who is responsible for the constant supervision and enforcement of safeguards
so that the insurance companies remain financially healthy? - CORRECT
ANSWER-The Office of the Superintendent of Financial Institutions (OSFI)
Which of the following is NOT a function of the supervision during operation of
insurance companies by the Superintendent of Financial Institutions?
a) Underwriting risks
b) Inspecting company offices
c) Maintaining a register for each licensed insurer
, d) Requesting additional documentation to prove provisions are being met -
CORRECT ANSWER-a) Underwriting risks
Underwriting risks is a function carried out by insurers
What type of intermediary represents only one company? - CORRECT
ANSWER-An agent
Which of the following is an example of consideration in contracts? - CORRECT
ANSWER-Lorraine agrees to pay Molly Maid an hourly fee to clean her kitchen
Consideration refers to the promise to pay in exchange for an item or service
Mary and Jim entered into a contract in Ontario, but Jim misrepresented some
substantial details. What type of contract would this be considered? - CORRECT
ANSWER-Voidable at Mary's option
A voidable contract can be affirmed or rejected at the option of the aggrieved
party, in this case, Mary.
Under the Civil Code, which of the following must occur for consent to be
present? - CORRECT ANSWER-Agreement between contraction parties
A contract is formed when and where acceptance is received by the offeror,
regardless of the communication used
Marci is 12 years old. She agrees to purchase a bicycle via an online ad. Why
has no contract been formed in this case? - CORRECT ANSWER-No capacity to
contract
In order to enter into a contract a person must be full age or the age of majority,
which is 18 years.
Identify the two requirements needed, in addition to the elements found in any
common law contract, for an insurance contract to be binding? - CORRECT
ANSWER-Insurable interest and Utmost Good Faith
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