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Insurance General Level 1 Licensing Exam

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Avg score: 50% • Most missed: “The Homeowner's Broad Form differs from the Basic Homeowner's Policy in that the…”

The Insurance General Level 1 Licensing Exam is a mandatory entry-level exam for individuals seeking to become licensed insurance brokers or agents for general insurance (property and casualty). It tests knowledge of insurance principles, policies (auto, property), and industry ethics, typically requiring a passing score of 70% to apply for a license. Key Aspects of the General Level 1 Exam: Purpose: Qualifies candidates to sell and advise on general insurance products. Content Focus: Covers technical skills (60% - risk management, policy details), ethics and professionalism (20% -... Show more

The Insurance General Level 1 Licensing Exam is a mandatory entry-level exam for individuals seeking to become licensed insurance brokers or agents for general insurance (property and casualty). It tests knowledge of insurance principles, policies (auto, property), and industry ethics, typically requiring a passing score of 70% to apply for a license.

Key Aspects of the General Level 1 Exam:
Purpose: Qualifies candidates to sell and advise on general insurance products.
Content Focus: Covers technical skills (60% - risk management, policy details), ethics and professionalism (20% - confidentiality, compliance), and industry knowledge (20%).
Structure: Often 100 multiple-choice questions with a time limit (e.g., 2 hours).
Requirements: Requires completion of an approved pre-licensing course (e.g., in Alberta/BC) before taking the exam.
Validity: Exam results are generally valid for 12 months for licensing application.

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Insurance General Level 1 Licensing Exam

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1. Which is the correct definition of Robbery?

The actual or attempted robbery by a person who unlawfully enters or exits a premisesThe conversion of property belonging to anotherThe loss or damage to money or securities because of the dishonest act of an employee or a contractorThe taking of property from a custodian by a person who causes or threatens bodily harm or commits an overt unlawful act witnessed by the custodian

2. Under the Deductible Clause applicable to Sections C of S.P.F. #1, some losses are not subject to a deductible. Under any circumstance, under which situation will the insurer not apply a deductible?

Fire, theft of the entire vehicle, windstormFire, theft of the entire vehicle, lightningFire, lightning, theftFire, lightning, certain types of explosion

3. A 'peril' is best defined as:

The chance of a lossAn occurrence that causes a loss to occurThe occurrence of a lossA known event that causes a loss to occur

4. As a condition requirement of a loan of sum of money, a creditor may NOT impose one the following:

That insurance be obtained to protect the property offered as securityThat the kind and amount of insurance be acceptable to himThat the original policies of insurance be remitted to himThat insurance be placed through a particular agent or a particular company

5. Statutory Conditions of a fire insurance policy section 'Requirements after Loss' states that the insured must give notice in writing and as soon as practicable file a Proof of Loss with an insurer. After the Proof of Loss has been filed with an insurer, loss is payable within:

5 days personally delivered45 days60 days90 days

6. Coverage C, Personal Property, includes off-premises coverage which is limited to include:

None of theseNorth American travel onlyMexico, the Continental USA, Hawaii and CanadaFive continents

7. An insured suffers the loss of a pot roast as a result of a fire which was confined to the oven in the insured's kitchen. The loss is deemed to be the result of a:

Direct fireIndirect fireFriendly fireHostile fire

8. Under the extension of coverage of a Standard Homeowner's Policy, Debris Removal is covered up to:

No limitLimit stated in the policy5% of the policy limit10% of the policy limit

9. The Homeowner's Basic Policy provides coverage for the peril of Glass Breakage. Which of the following is TRUE?

There is no coverage provided when the dwelling is under construction or vacantThere is no coverage provided if the owner of the dwelling causes the glass breakageCoverage is automatically included in all situationsThere is coverage when the dwelling is vacant under 30 days

10. Before an Insurer or client can recover from the broker:

Only the manager can be negligentThe broker must be a limited companyThe broker must have E & O insuranceThe broker must have made an error or omission causing loss to either the client or company

11. Which of the following statements is correct in connection with the 80% Co-Insurance Clause?

It restricts the insurance payable to less than 80% of the actual cash value of the propertyIf the amount of insurance is less than 80% of the value of the property, payment may be less than the actual lossThe amount of insurance carried must, by law, be not less than 80% of the value of the propertyThe Insured can collect only 80% of any loss

12. Under Subsection 2, of the Accident Benefits section of the S.P.F. No 1, Death Benefits will be paid in the event that both the head of household and spouse are killed:

None of theseEqually to all surviving dependent relativesTo the oldest surviving dependent relativeTo the youngest surviving dependent relative

13. An Insured purchases a lot for $22,000 and builds a home on it that costs him $97,500. For insurance purposes, to insure for 100% of value, the policy would be for the sum of:

$119,500$100,000$22,000$97,500

14. An insurance contract indemnifies the Insured against loss arising out of the happening of a specific event. Which of the following is CORRECT?

The event may happen with the intent of the InsuredThe event may happen with the co-operation of the InsuredAll of theseThe event must be a future event and it must be accidental

15. Under Statutory Condition 8, Termination, an automobile contract may NOT be cancelled by?

All of theseThe brokerThe third partyThe lien holder

16. An insurer determines that there is a maximum it wishes to pay on one loss and wants to reinsure any amount that exceeds this maximum. The Re-Insurer will then be called upon to pay any amount that exceeds this maximum. This type of reinsurance is called:

Catastrophe InsuranceSurplusQuota ShareExcess of Loss

17. Insurance is BEST described by which of the following?

A method of distributing all losses among many peopleA method of spreading the losses of a few among the many contributorsA method of rewarding the wise policy holders for foresight in purchasing the coverageA method of ensuring large, wealthy companies bear the majority of the loss and the Insured only pays the deductible

18. 'Insurable Interest' means:

A future financial interest one has in something of value, for example a vehicle or a homeFinancial interest a person has in something of value, for example a vehiclePersonal interest that someone has in expectation of an inheritanceInterest gained on money on deposit in a bank

19. What types of risks should need to have Crime Insurance coverage which covers safe burglary and fidelity insurance which is unlawful acts of employees, whether acting along or in collusion with others?

Banks and places which has cash on handOnly churches and social hallsAll retail stores including drug stores, dollar storesAll of these

20. Under Section B, Subsection 2 of the S.P.F. No 1, the head of the household is:

The person earning the highest salary at the time of the accidentThe person with the largest income in the year proceeding the date of the accidentThe oldest person residing in the houseThe oldest male member of the household

21. Under a Standard Automobile Application form, which of the following statements by an Insured could void loss payment under Section C?

All of theseNon-disclosure of license suspensionsIncorrect particulars regarding previous driving suspensionsNon-disclosure of additional drivers

22. Under S.P.F. No 1, damage to an automobile occurring within 24 hours after a bill of sale transferring ownership of the Insured automobile to another person is:

Covered for loss by theftCovered for loss if All Perils is carried on the Insured's policyNot covered for any lossCovered if damage due to collision

23. Under Coverage H of a Property Policy, Voluntary Compensation for Residence Employees, there is NO coverage for:

Loss of wages of employee because they cannot workMedical expensesWeekly indemnityLoss of life, including funeral benefits

24. An agent issued a fire policy on the Insured's house but collected only half the premium with the balance promised 30 days later. The Insured's house was destroyed 90 days later and the agent had still not received the other half of the premium. Which of the following is TRUE?

The Insured's claim was paid out up the policy limits stated on the policyThe policy was void and the Insured received only part of the premium he had paidNo claim is recoverable by the Insured under the rules of The Insurance ActThe Insured was paid as much of the insurance limit in proportion to the premium he had paid

25. Ordinarily, negligence must be established before payment will be made under:

Bodily Injury LiabilityImmediate Medical AidAll of theseMedical Payments

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All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

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