C11 Study 3 Quiz fall 2023_ stafani_Answers

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Jan 9, 2024

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C11 – Study 3 Regulatory Framework Quiz Name: __Stafani Anthonimuthu__________________________________ Please circle the most correct answer to each question 1. What is solvency a) A business entity’s ability to meet its long term financial commitments b) The tax charged on insurance premiums c) The insurer’s availability to provide coverage for a range of risks d) A bonus premium paid to brokers 2. What is the purpose of the Personal Information Protection and Electronic Documents Act? a) To balance individual privacy rights with the need of organization to collect, use or disclose personal information for reasonable and appropriate purposes b) To bring about change in the insurance industry c) To assist in the growth of the insurance organization d) To overrule the principles of indemnity 3. What is the role of the Federal department of Insurance a) It controls the wording of policies issued by federally licenced insurance companies b) It regulates the financial stability of federally licenced insurance companies c) It grants licences to agents who represent federally licensed insurance companies d) It only monitors the operations of life insurance companies in Canada 4. What regulation does Provincial and territorial regulators control. a) It controls the wording of policies issued by federally licenced insurance companies b) It regulates the financial stability of federally licenced insurance companies c) The operations of insurance intermediaries d) It only monitors the operations of life insurance companies in Canada AAAAAAAAAAAAAAAA

C11 – Study 3 Regulatory Framework Quiz 5. What three areas does the Insurance Companies Act regulate? a) Establishment of an insurance company, prerequisites to operation, and supervision during operations b) Establishment of an insurance company, prerequisites to operation and licensing of executive officers c) Establishment of an insurance company, capacity during operation and licensing of executive officers d) Capacity during operation, licensing of executive officers, and reporting of loss results to a general insurance statistical agency 6. Which of the following is an automobile Statutory Condition? a) Degree of Injury suffered b) Overpayment of Insurance Premium c) Material change of risk d) Contract Wording Bias 7. Which of the following statements about Quebec General Conditions is true? a) They are applicable only to the fire insurance risk b) They are sections of the Civil Code reproduced in insurance policies c) They are identical to Statutory Conditions d) They are statutory in nature 8. Which Statement is correct? a) Each province has its own superintendent of financial institutions b) The Highway Traffic Act deals with insurance and agent broker licensing c) The superintendent of insurance overseas agent and broker licencing pursuant to the provincial insurance acts d) The Insurance Companies Act deals with provincial licensing and supervision of insurance companies and solvency standards for insurers. 9. Additions insurers add to Automobile Statutory Conditions are? a. Binding on the insured b. Illegal c. Not binding on the insured d. Non-negotiable

C11 – Study 3 Regulatory Framework Quiz 10. Insurers can omit Statutory Conditions on which type of extremely short duration contracts? a. Non-renewable accident policy b. Fire insurance policy c. Auto storage policy d. Non-renewable auto storage policy 11. Which province has a “Limitation Where Seat Belt Not Worn” Statutory Condition? a. Alberta b. Nova Scotia c. New Brunswick d. Québec . 12. Who is responsible for overseeing privacy legislation in a province or territory? a. Lieutenant Governor b. OSFI c. Superintendent of Insurance d. Ombudsperson 13. A mechanism worked out with the government whereby the brokers set qualification standards and operational requirements is? a. Provincially regulated brokers’ association b. Regulatory c. Self-regulation d. Insurance regulation organization

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C11 – Study 3 Regulatory Framework Quiz 14. Which statement is true a) The Statutory Conditions must be identified and printed in every liability insurance policy b) Statutory Conditions are special prescribed and standardized conditions that the federal insurance acts require to be included in all insurance policies c) Statutory Conditions will govern A&S automobile, and fire insurance policies even in their absence, even if they are not printed as part of the policy d) Statutory Conditions may be included in any type of insurance policy, at the insurer’s discretion 15. Which type of conduct could seriously impair a defence against a fraudulent claim? a) Any improper conduct regarding maintaining the confidentiality of information b) Any conduct in accordance with Personal Information Protection and Electronic Documents Act (PIPEDA) c) Any conduct required by the policy Statutory Conditions d) Any improper criminal criminal conduct by the insured. 16. Stacy informs her broker that she is working with a car dealership to purchase a new car, but hasn’t completed the deal yet. What action must broker take to ensure confidentiality of Stacy’s information is maintained. a) call the underwriter to obtain a quote for the new car b) Ask the administrative assistant to print out a copy of Stacy’s insurance file c) Email the information about the new car to the insurer immediately d) Not share the information with anyone 17. The Office of the Superintendent of Financial Institutions (OSFI) operates at the provincial level and is solely responsible for safeguarding insurer solvency and protecting insurance consumers a) True b) False

C11 – Study 3 Regulatory Framework Quiz 18. Which act governs the registration and licencing of motor vehicles, licensing of drivers and traffic controls of vehicles on highways? a) The Insurance Brokers Act b) The Highway Traffic Act c) The Insurance Companies Act d) Provincial and territorial insurance act 19. The Civil Code of Quebec specified the Statutory Conditions that apply to insurance policies and fulfill a similar purpose as the mandatory conditions in common law provinces and territories A) True B) False 20. Who regulates provincially/territorially licensed insurers, operations of insurance agents/brokers and adjusters and automobile insurance policy and endorsement wording a) Provincial and territorial insurance regulators b) Federal regulator c) Superintendent of the Insurance Bureau of Canada (IBC) d) Premier of the province 21. Explain what a privacy breach is and the best way to respond to it. (5 marks) A privacy breach occurs when an individuals personal information is given unacceptably. You can respond by finding whom did it and bring it to their attention. Also find out how to prevent it in the future. 3/5 need to say more on this.. 14/25