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Insurance General Level 1 Licensing Exam

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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. A homeowner loves their tress, shrubs, and plants. These are covered under Coverage A but only for certain named perils. What limit and to what extent are their trees covered under a Basic, Broad or Comprehensive home policy?

5% of the Dwelling limit, to a maximum of 5% per tree, only for fire, wind, hail, theft and lightning10% of Dwelling limit, to a maximum of $5000 per tree, only for fire, lightning, explosion, impact by aircraft or land vehicle, riot or vandalism5% of the Dwelling limit, to a maximum of $5000 per tree, only for fire, wind, hail, theft and snow load5% of Dwelling limit, to a maximum of $500 per tree, only for fire, lightning, explosion, impact by aircraft or land vehicle, riot or vandalism

2. The Insurance Act specifies that an applicant must:

Pass a criminal record checkAll of theseHave a good business reputationHave a reasonable knowledge of the kinds of insurance he/she will be licensed to sell

3. Which is the correct definition of Robbery?

The taking of property from a custodian by a person who causes or threatens bodily harm or commits an overt unlawful act witnessed by the custodianThe 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 contractor

4. An accident, including continuous or repeated exposure to substantially the same general harmful conditions describes:

Use and operationAn accidentAn occurrenceLiability Loss

5. Which of the following statements is FALSE with respect to the Personal Effects Floater?

This policy covers artificial teeth or limbsThis is the ideal insurance for tourists and travelersThis policy does not cover money while the Insured is travellingThis coverage provides coverage on contents temporarily removed worldwide

6. The Insurer has learned that they have a client who has committed arson to his own apartment. He is jailed, and his girlfriend bails him out of jail. He has returned to lived in the burned up mess at the apartment. The insurer wants to cancel as soon as possible. How will the insurer initiate this cancellation?

15 days notice sent by registered mail and include any refund chequeThe insurer cannot cancel until renewalCall him and have him come into the office to sign off on the cancellation5 days hand delivery of the cancellation and include any refund cheque

7. Under Section A of an S.P.F. No 1, the Insured agrees to do the following:

Appoint the Insurer as its irrevocable attorneyAppoint an adjuster for the InsuredAll of theseAdmit liability for any damage done by the Insured

8. The unqualified word 'insured' in a policy for fire insurance is defined as:

Named insured, their spouse, relatives of either, and any person under the age of 21 in the care of insuredNamed insured and, if residing in the household, their relatives and any person under the age of 21 in the care of the insuredThe name insured and, if residing in the household, their spouse, relatives of either under the age of 21The named insured and, if residing in the household, their spouse, relatives of either any any person under the age of 21 in care of the insured

9. 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 theftNot covered for any lossCovered if damage due to collisionCovered for loss if All Perils is carried on the Insured's policy

10. The Additional Agreements in Section C of the S.P.F. No1 waives subrogation under Section C against every person, who with the Insured's consent has care, custody, or control of the vehicle:

None of theseExcept if involved in a race or speed testAs long as they are a member of the Insured's familyWithout restriction

11. Which of the following statements is true?

Government Insurers have more freedom under the Insurance Act than private companies operating in the same province.Stock companies are owned by the shareholders.All of theseThe main function of mutual insurance companies is to make money

12. The Tenant's Package Policy is the same as the Homeowner's Basic Policy EXCEPT with respect to:

Coverage on the buildingCoverage for water damageCoverage for windstormLimits on money, furs, and jewelry

13. The Garage Policy S.P.F. No 4 is:

Designed for anyone in the automobile businessAn owner's policy formCan include legal liability for collision damage for customer's autosAll of these

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

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

15. What does Business Interruption Insurance include:

Pays expenses, loss of profit, and insures same perils as property policy, coverage limited to policy periodInsured different perils than property policy, a contract of indemnity, coverage limited to policy periodPay expenses when they reduce amount of loss, coverage not limited to policy period, insures same perils as property policy, a contract of indemnity including paying expenses and loss of profitGives coverage for the business may be forced to close for a lengthy period. The business is able to resume partial operations at the insured or other location

16. In addition to the five elements to be contained in all contracts, an insurance contract is enforceable only if it contains the following three additional elements:

Insurable interest, indemnity, utmost good faithInsurable interest, utmost good faith, lawful objectInsurable interest, consideration, indemnityInsurable interest, indemnity, genuine intention

17. A temporary motor vehicle liability insurance card is valid for:

7 days21 days15 days30 days

18. 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:

Excess of LossCatastrophe InsuranceSurplusQuota Share

19. Which organization of experts will discuss contentious claims if and when the Insurance Bureau of Canada Intercompany Claims Settlement Agreement (also called IBC Fault Chart) cannot specifically define the situation?

There is no organization for this, it is always determined by IBC Agreement (Fault Chart)Canadian Insurance Condominium Insurance ActNone of theseCanadian Insurance Claims Managers Association (CICMA)

20. Which of the following are NOT optional for Coverage A habitational policies?

Building fixtures and fittings temporarily removed for storage or repair up to 10% of Coverage AShutters temporarily removed for paintingPermanently installed outdoor equipmentDebris removal

21. Under a Standard Homeowner's Policy, which of the following would be covered?

Backing up or escape of water from the sewer, sump pump or septic tankDamage caused by freezing to plumbing systems under certain circumstancesDamage which occurs when building is vacantDamage to plumbing systems caused by rust or corrosion

22. Which of the following is a 'fiduciary'

All of theseMortgageeInsuredInsurer

23. Under the General Provisions, Definitions and Exclusions section of the S.P.F. No 1, a newly acquired Vehicle is automatically covered by the insurer's contract, subject to provisions that the insured is already insured with the insurer, and has all vehicles insured there for:

30 days from the acquisition date of the newly acquired vehicle14 days from the date on the bill of sale14 days from the delivery date of the newly acquired vehicle15 days from the acquisition date of the newly acquired vehicle

24. Statutory conditions are the rules of conduct that both the insured and insurer must abide by. Statutory Conditions:

Cannot be changed in any way via endorsementNone of theseAre legally bindingCan only be changed by legal endorsement designed specifically to override that condition

25. If a 6-year old deliberately threw a rock through the neighbour's window:

The policy would pay all or part of the loss under Voluntary Property DamageWould not pay for the window as the child is too young to understand the consequences of his actionsIf no policy was in force, the parents would have to pay for the windowThere is no coverage under the contract

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