91. What is the primary value of insurance to business enterprise?

1. It removes all tort and contract liability risk.
2. It provides a means to shift risk away from the business to an insurer.
3. It shields directors and officers from personal liability.

d. It imposes a duty of utmost good faith on the business enterprise.

92. Under which level of government jurisdiction do insurance policies fall?

a. provincial jurisdiction b. federal jurisdiction

c. executive jurisdiction d. municipal jurisdiction

93, What is the purpose of a deductible in the context of an insurance policy?

1. Risk of loss is shared between the insurer and insured.
2. Certain types of losses are excluded from coverage.
3. The insurer is entitled to deduct defence costs from its payout to the insured.
4. The amount of the insurance proceeds is reduced if the insured is partly at fault.

94, Which of the following is an implication of the utmost good faith nature of insurance contracts?

1. the insurer may subrogate
2. the insured has a duty to disclose
3. the insurer is a fiduciary to the insured
4. the insured is a fiduciary to the insurer

95. Which of the following is a distinguishing characteristic of a duty to disclose?

1. It is applicable to the point in time the insurance application is made.
2. It is considered by law to be an insured's ongoing obligation.
3. It requires the prompt, oral communication of material changes to the insurer.
4. Compliance automatically adjusts the policy coverage.

96, Allowing people to insure property that they have no real interest in may lead to the intentional destruction of the property. To which rule does this rationale apply?

a. life insurance rule b. indemnity rule

c. coinsurance rule d. insurable interest rule

97, When an insurer compensates an insured, it has the right to sue a wrongdoer to recover that compensation. What is the legal term for this right?

a. third party rider b. third party endorsement

c. forfeiture d. subrogation

98. What is the most likely result of malicious acts or acts of vandalism caused by an insured?

1. the denial of coverage by operation of a rider
2. the insured's right of subrogation
3. the insured's right to endorsement
4. the denial of coverage by operation of an exclusion clause

99. Which type of insurance is intended to compensate a business enterprise for liabilities incurred during the course of its business?

1. errors and omissions insurance
2. comprehensive general liability insurance
3. all risks property insurance o
4. business interruption loss insurance

100. Which of the following would occupiers' liability insurance protection strongly support?

1. payment where the insured is held legally responsible for causing loss to a third party
2. payment in the event of loss to the insured caused by a fire that is unintentional
3. payment in the event of loss to the insured caused by a fire that is started intentionally
4. payment when the insured causes damage to the property of a third party