14.Tara, who lives in Vancouver (British Columbia), decided to visit her friend Melissa, who lives in Winnipeg (Manitoba). Two days into her trip, Tara had an emergency situation and needed to go to the hospital. At the hospital, Tara received insured health care services which cost $1,000. If the same benefits cost $800 in British Columbia, how much does Tara have to pay for these benefits?

		$1,000
		$800
		$0

15.Sunny is currently living in Oshawa, Ontario while attending Durham College. For the long-weekend, Sunny drove home to visit his parents. While in Toronto, thieves broke into his apartment in Oshawa and stole his computer. When he filed a claim with his homeowners' insurance policy, Sunny decided to use the robbery as an opportunity to make a profit for his loss. He told his insurer that he lost his computer, T.V., Xbox. and some expensive college textbooks. Which basic characteristisc of insurance, if any, did Sunny violate?

		Utmost Good Faith
		Reasonable Expectations
		Indemnification of losses
		Transfer of a pure risk

16.All of the following illnessness are covered under a basic critial illness insurance policy except?

		Heart Attack
		Cancer
		Paralysis
		Stroke

17.Which of the following is not an act of daily living covered by long-term care insurance?

		Eating
		Transferring
		Continence
		Walking

18. MIchael works as a financial planner for Emax Financial. While trying to maximize the returns for some of his clients portfolios, Michael did not complete his duligences and caused some of his clients to lose a substanical amount of money. Once client inparticular decides to take legal action. What type of professional commerical insurance would protect Michael?

		General Liability Insurance
		Directors and Officers Insurance
		Errors and Omissions Insurance
		Homeowners' Insurance

19. Sally Carr, sells cars. In 2019, Sally opened her own car dealership. Sally knows that her business will face endogenous and exogenous risks. What can Sally do to protect herself against those risks?

1. Share
2. Insure
3. Control
4. Retain
5. Avoid

		1,2,3
		1,3, and 4
		2 and 4 only
		All of the above

20.When dealing with risk management, risk is defined as:

		An undesirable event
		An unexpected loss
		The uncertainty about the occurrence of a loss
		An expected loss

21.Greg and Christine took out a mortgage together to buy a house in Toronto. Christine has life insurance, from her company benefit plan at work, and Greg is the named beneficiary. Greg on the other hand, does not own life insurance and does not want to buy it. If Christine decides to buy a life insurance policy on Gregs life, pay the premium, and name herself the beneficiary, what does she have to illustrate to the insurance company?

		Greg is going to marry her.
		She has an insurable interest in Greg's life.
		Greg thinks its a good ideas as well.
		She can afford the premium.

22. The public administration principle means:

		The plan must be run on a non-profit basis
		Must be operated by a public authority accountable to the government
		Both a and b
		None of the above

23. Manoj occasionally borrows his dads car when he goes out with his friends. One night, Manoj had too much to drink and drove home drunk. While driving home, Manoj was involved in a hit-and-run accident which caused $2,000 in damages to the vehicle. If Manojs father files a claim to have the damages repaired, how much would he receive from his insurance company if he has a $300 deductible?

		$2,000
		$1,700
		$300
		$0 because the claim would not be covered.

24. Leo bought a used car for $4,500. While in class at George Brown, his car was damaged by an unidentified automobile. The damage to the vehicle was estimated at $1,000. If the cash value of Leo's car at the time of the loss is $3,000, how much money would Leo receive if he files a claim for damages? Assume he has an Ontario Automobile Insurance policy with a $500 deductible and all perils coverage.

		$3,000
		$2,500
		$1,000
		$500
		None of the above. He's not covered.

25. Alex, aged 37, just purchased a condo in Mississauga with a $350,000 mortgage. Alex plans on living in the condo until its fully paid, which he thinks will happen when he retires at age 62. Alex is single, so he does not have to worry about protecting his spouse, but Alex does have a nephew who will inherit his condo when he passes. Alex is not sure what the condo will be worth in 25 years, but would like to buy life insurance to cover the outstanding mortgage. What type of life insurance would you recommend for this situation?

		Term Insurance
		Term-to-100 Life Insurance
		Whole Life Insurance
		Universial Life Insurance

26. Fatima is trying to figure out how much life insurance she needs to buy in order to support her family incase of her death. She asks you to calculate the amount of insurance she needs to buy by telling you her take home pay after all deductions is $50,000 per year. She also states that her family would need this amount every year, for the next 15 years until her children can take care of themselves. Assuming she can generate a 2% rate of return, how much life insurance should she buy?

		$624,463.18 (or $625,000)
		$655,312.44 (or $660,000)
		$642,463.18 ($650,000)
		$600,000