Manitoba IBAM Fundamentals of Insurance (FOI) Practice Exam

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• The following three coverages are required on every policy insuring loss by fire.
• Which of the following is not a factor considered in the indemnity agreement?
• What is the main purpose of reinsurance?
• Supplementary Payments in liability policies are:
• Which of the following entities have the legal capacity to contract?
• What does "premium rating" involve?
• Which statement does NOT correctly describe Business Interruption Insurance?
• Liability Insurance is primarily designed to protect against what type of risk?
• Which type of insurance is considered outside the scope of General Insurance?
• The Removal Clause contains all of the following conditions, except one. Pick the exception.
• Where does an Installation Floater NOT cover property?
• Which of the following is NOT included in Private Protection?
• Which of the following types of claims may be excluded from general Personal Liability coverage?
• In which situation would Third Party Liability coverage not be provided?
• Which of the following is typically not protected under a Homeowner's policy?
• Which is one of the Insuring Agreements in a Homeowner's Form?
• What does CGL stand for in insurance?
• Which statement regarding custom duties under the Autopac Program is correct?
• What is the significance of a claims-made policy in insurance?
• What type of coverage does a business owner's policy (BOP) typically combine?
• Which coverage is not included in a Rental Car Policy?
• Which of the following is an incorrect Premium Rating Factor used to decide the amount of insurance?
• The majority of insurance business in Canada is transacted by which type of insurer?
• Which payment type is excluded from Voluntary Medical Payments?
• Which of the following would not be considered included in the definition of a Dwelling?
• Which factor is least likely to directly affect claim cost?
• What is the main function of the insurance company rating system?
• Which of the following factors will be considered when determining the amount of depreciation to be used in the determination of actual cash value?
• What does "policy lapse" mean?
• What does a "waiting period" in an insurance policy signify?
• What is typically considered a "risk" in insurance terminology?
• What type of insurance would cover business losses during a period of interruption?
• Insurance companies utilize all of the following documents for contract changes except one. Identify the exception.
• Which of the following is excluded under Third Party Liability coverage?
• Which activity is not covered under the Liability coverages of a Homeowner's policy?
• Which of the following best describes "underwriting" in insurance?
• The definition of "Insurance" is typically found in which document?
• What is the purpose of the Subrogation Clause in an insurance policy?
• Which group of people is owed the highest duty of care?
• A Broker's license may be revoked if which of the following occurs?
• Risks people face are categorized into several groups. Which of the following is NOT one of these categories?
• Which factor does NOT affect the premium of insurance?
• Which of the following is an example of "policy conditions"?
• What role does an insurance broker play?
• Burglary Insurance provides coverage even if what condition is met?
• What is an "endorsement" in an insurance policy?
• What does "risk management" involve?
• How is "risk" defined in the context of insurance?
• Which of the following is not a typical coverage included in property insurance?
• What is "liability insurance" designed to protect against?
• Which of the following is a primary role of an insurance broker?
• How does the length of the elimination period impact insurance premiums?
• Which of the following terms refers to the process of determining if an insurance policy is valid?
• Which of the following individuals has the legal capacity to enter into a contract?
• What does "standard risk" mean?
• What is the primary objective of the insurance underwriting process?
• In insurance terminology, what does "waiver" mean?
• What document describes the rights and responsibilities of the parties in an insurance contract?
• Which is mainly a personal liability coverage in a Homeowner's policy?
• Why is it important for insurance companies to manage risk effectively?
• Which of the following best describes the relationship between hazard and risk?
• Which statement about the Registered Owner of a vehicle is NOT true?
• The amount of indemnity is determined by the insured property's value at what time?
• Which type of losses are typically covered under comprehensive insurance?
• If the Insured breaches a policy condition, the Standard Mortgage Clause guarantees the mortgagee will be paid?
• In insurance law, what is "negligence"?
• Which term describes the injury covered when a neighbor's child drowns in your pool?
• Which term refers to the legal obligation to avoid causing harm to others?
• Which of the following is NOT a form of risk management?
• When one of the essential elements of an insurance contract is missing, the contract may be considered what?
• A person who handles another person's money is called a(n)...
• What is a "claims adjuster" responsible for?
• Ethical standards established by organizations like RIBO are referred to in written form as?
• What type of insurance plan is commonly referred to as "No Fault" insurance?
• What defines "comprehensive coverage" in an insurance policy?
• Which item is NOT classified as equipment in a commercial policy?
• What percentage of accidents most closely represents non-work-related incidents?
• Where are motorized golf carts insured when they are in use?
• What does "Actual Cash Value" mean in insurance terms?
• Which of the following best describes the term "insurable interest"?
• The purpose of the 'Material Change' condition in insurance is to...
• Agency Agreements are between...
• Which of the following is not considered an element of a Tort?
• The law requires that insurance Brokers...
• If the Insured fails to comply with all of the conditions of the replacement cost endorsement, the loss will?
• What important role does "insuring agreement" play in an insurance policy?
• The Liability policy primarily pays for:
• Which of the following best describes a "deductible" in an insurance policy?
• What does a Commercial Named Perils form primarily cover?
• What could an occupier of a property potentially be liable for regarding a trespasser?
• What does "excess insurance" provide?
• What aspect of insurance do "deductibles" relate to?
• What does the term "moral hazard" refer to in risk assessment?
• Which coverage option is generally not offered by group insurance plans?
• What is "subrogation" in the insurance context?
• Who is defined as an "insurance agent"?
• Who are Brokerage Owners typically classified as?
• Which term is used in the Occupiers' Liability Acts to replace Licensee and Invitee?
• Consequential Loss Coverage would provide coverage for food spoilage from?
• What is the concept of "insurable interest"?
• What type of events typically trigger business interruption insurance claims?
• What does the term 'duty of care' refer to in the context of property liability?
• What type of risk does "general liability insurance" typically cover?
• How is "deductible" defined in insurance terms?
• What is a business owner's policy (BOP)?
• What is meant by "non-renewal" in the context of insurance?
• Outdoor trees, shrubs, and plants are insured for all of the following perils, except one. Pick the exception.
• Which of the following is a component of workers' compensation coverage?
• In simple terms, ethics relates to?
• What type of law deals with written regulations?
• What is a claims-made policy?
• Under the Off-Road Vehicle Act, Accident Benefits provide coverage for all of the following except one. Which is the exception?
• Which aspect is not typically addressed in the indemnity agreement?
• Which type of watercraft is not covered for bodily injury or personal damage?
• Which types of risk do insurers commonly face?
• What is a potential challenge in determining coverage limits?
• Which of the following is NOT classified as a licensee?
• What defines an "insurance policy"?
• Which of the following is true regarding "deductibles"?
• What is one key aspect of risk management?
• What is the purpose of an "exclusion" in an insurance policy?
• What condition would affect the validity of Third Party Liability coverage?
• Which of the following is not an example of a Statutory Condition?
• Who of the following is an employee of the insurance company?
• What is "universal life insurance"?
• Which loss scenario is not covered by a Homeowner's Form?
• Which of the following benefits is included under Personal Injury Protection?
• Which of the following does not meet the standard of being candid and honest in providing insurance advice?
• What is the main purpose of an insurance contract's declaration component?
• Which of the following is not an example of a Personal Injury claim?
• Which property is NOT insured under All Perils Coverage in Manitoba's Autopac Program?
• What does "moral hazard" signify in insurance?
• What does the term "premium" signify in insurance?
• An insurance Broker is...
• What is a "fidelity bond"?
• Which of the following is NOT a way to provide automobile insurance?
• Which of the following is NOT an example of a Private Insurer?
• In comprehensive insurance, what does "collision coverage" typically encompass?
• What is a "pre-existing condition" in health insurance terms?
• The Insuring Agreement for Personal Property includes coverage for?
• What is an auto insurance declaration page?
• Which of the following best describes a "deductible" in insurance?
• When an Insurer terminates a policy all of the following conditions must be followed, except one, for the termination to be valid. Pick the exception.
• What is "excess and surplus lines insurance"?
• Which factors are considered in the assessment of risk?
• An underwriter performs all of the following duties, except one. Identify the exception.
• In insurance, what does the term 'damages' refer to?
• What does "total loss" refer to in the context of insurance?
• What process follows the evaluation of a claim in the insurance industry?
• What does "coverage limit" mean in insurance?
• A fire policy contains the following exclusions except one. Which is the exception?
• The following are examples of indirect damage losses, except one. Pick the exception.
• Which of the following is excluded from Supplementary Payments?
• The premium for an insurance policy is primarily influenced by which of the following factors?
• What is "premium" in the context of insurance?
• Which term describes the period during which a new insurance policy has no benefits for pre-existing conditions?
• What are "policy limits" in insurance?
• Which of the following is an example of a loss that might be specifically excluded from a standard property policy?
• What is often a requirement for an Insured making a claim?
• What type of benefits is most commonly provided by workers' compensation plans?
• What does "actual cash value" mean in property insurance?
• What constitutes a "hazard" in relation to risk?
• Which type of insurance provides income replacement in case of disability?
• What is the primary purpose of insurance?
• If title of the insured property changes, the new party of interest is automatically covered in all of the following circumstances, except one. Pick the exception.
• What is the recommended form of dealing with risk?
• What is the waiting period for Income Replacement Indemnity under the Personal Injury Protection Program?
• What is typically covered under a homeowner's policy?
• What does “coinsurance” mean in property insurance?
• To what does the term "actuarial" relate in insurance?
• What is meant by "subrogation" in insurance terminology?
• All of the following are examples of not providing quality service, except?
• Which is not a document used by MPI to receive insurance?
• Which type of law governs the relationships between individuals?
• Which group of individuals is covered by the insured's automobile insurance policy?
• What does a "rider" represent in an insurance policy?
• Liability policies are designed to cover which type of damages?
• What is the primary function of an insurance policy's coverage limits?
• Independent adjusters...
• When a Broker recognizes their lack of competence to serve a client, they should?
• Which option best describes the purpose of underwriting guidelines?
• What does "coverage" refer to in insurance?
• Which term describes the risk associated with dishonest behaviors by the insured?
• Which of the following would NOT fall under the protection of a property insurer?
• What are the main components of an insurance contract?
• What is the purpose of business interruption insurance?
• What does "adequate reserves" refer to in insurance?
• What does an "occurrence" refer to in insurance terms?
• What is an essential outcome of effective risk assessment?
• Which statement about Theft Insurance is NOT true?
• Which professional is typically not included in Errors and Omissions insurance?
• The following are examples of a friendly fire, except one. Pick the exception.
• What distinguishes underwriting from claims processing?
• Why is assessing "risk" crucial in the insurance industry?
• All of the following are examples of conditions affecting the physical hazards of a risk, except one. Identify the exception.
• In the event of an Occurrence, Claim, or Action, the Insured must:
• What are underwriting guidelines?
• What does it mean when an insurance policy is described as "indemnity"?
• What does "replacement cost coverage" provide?
• What is defined as a "loss ratio" in insurance?
• What is property insurance?
• The Standard Mortgage Clause guarantees the mortgagee that the Insurer?
• What is commonly used to alter coverage or terms in an existing insurance policy?
• Bodily Injury encompasses:
• What does "assessable risk" mean?
• An Insured's perception of the brokerage services will be influenced by the way a claim is handled. What should the Broker do?
• The damage caused by a "Falling Object" will only be insured if the "Falling Object"?
• What does "coinsurance" refer to in an insurance policy?
• What distinguishes term life insurance from permanent life insurance?
• Which of the following best describes "exclusions" in an insurance policy?
• What duty does an occupier owe to an Invitee?
• What does "exclusion" refer to in an insurance policy?