What type of insurance is required by law for vehicles in Alberta?

Question 1 options:

1)

business interruption insurance

2)

property insurance

3)

comprehensive general liability insurance

4)

liability insurance

5)

errors and omissions insurance

Question 2(1 point)

After a flood in the basement, a restaurant closes for repairs. Which type of insurance should cover the loss of income to the business during the closure?

Question 2 options:

1)

business interruption insurance

2)

property insurance

3)

comprehensive general liability insurance

4)

liability insurance

5)

errors and omissions insurance

Question 3(1 point)

Which of the following liability risks would be adequately managed by errors and omissions insurance?

Question 3 options:

1)

liabilities arising from the performance of obligations of corporate directors and officers

2)

liabilities arising from negligence in the provision of professional services

3)

the insured's portion of the loss that is insured against out of his or her own assets

4)

loss of profit of a business that has to close due to COVID 19

Question 4(1 point)

A hair salon is ordered to close by the government due to COVID 19 pandemic restrictions. Which type of insurance might cover the loss of income to the business during the closure?

Question 4 options:

1)

business interruption insurance

2)

property insurance

3)

comprehensive general liability insurance

4)

liability insurance

5)

errors and omissions insurance

Question 5(1 point)

Insurance law does not allow people to insure property that they have no real interest in, because it may lead to the intentional destruction of the property. This is due to this legal concept:

Question 5 options:

1)

subrogation

2)

insurable interest

3)

indemnity

4)

duty to disclose

Question 6(1 point)

Jeron does not tell the insurer that he has just been diagnosed with cancer. Sadly, he is killed in a car accident. Which of the following is correct?

Question 6 options:

1)

His beneficiary cannot collect on his life insurance due to subrogation

2)

His beneficiary cannot collect on his life insurance due to insurable interest

3)

His beneficiary cannot collect on his life insurance due to indemnity

4)

His beneficiary cannot collect on his life insurance due to duty to disclose

5)

His beneficiary can collect on his life insurance because his death was unrelated to diabetes

Question 7(1 point)

Safehome Alarms has hired Jackson, an independent contractor, to install its alarm systems into customer homes. What is an important implication of Jackson's status as an independent contractor?

Question 7 options:

1)

Safehome will provide all the tools Jackson needs to complete the job.

2)

Jackson has the freedom to determine his own wages.

3)

Safehome will be vicariously liable if Jackson commits a tort while performing the contract.

4)

Jackson will not have certain statutory rights and benefits that are typically conferred on employees, including minimum wage

Question 8(4 points)

Which of the following are consistent with being an independent contractor?

Question 8 options:

1)

Eunice provides financial advice to one client only

2)

Eunice uses her own office, computer and software

3)

Eunice attends all office social events and staff meetings

4)

Eunice drives a vehicle provided by the company

5)

Eunice has a locker at work

6)

Eunice buys her own uniforms

7)

When a customer doesn't pay, it comes off of Eunice's cheque

8)

The businesses hiring Eunice are vicariously liable for her torts

Question 9(1 point)

Lissy bought insurance on her home. Though the actual value of her house is $800,000, the insured value is $500,000 because that's what she said her house was worth. For this question, let's assume she has no deductible. Which of the following is correct?

Question 9 options:

1)

If her home is destroyed, she can collect whatever amount it would cost her to rebuild

2)

If her home is destroyed, she can collect whatever amount it would cost her to rebuild, up to $500,000

3)

If her home is destroyed, she can collect whatever amount it would cost her to rebuild, up to $1,000,000

4)

If her home is destroyed, since she is under-insured, she can collect he can collect whatever amount it would cost her to rebuild, multiplied by the insured value, divided by the actual value

5)

If her home is destroyed, since she is under-insured, she can collect he can collect whatever amount it would cost her to rebuild, multiplied by the actual value, divided by the insured value

Question 10(1 point)

To save money on insurance, I lie and tell my insurer that I drive 5 kilometres to and from work (actually, I drive 30 kilometres). This makes my insurance cheaper. If the insurer finds out about this, I will not be able to collect due to:

Question 10 options:

1)

I will not be able to collect due to subrogation

2)

I will not be able to collect due to insurable interest

3)

I will not be able to collect due to indemnity

4)

I will not be able to collect due to duty to disclose

5)

If I have an insurance policy, I will be able to collect according to the policy

Question 11(1 point)

I visit my mom at her house for Easter. She asks me to help her re-attach a pipe. I fall asleep and her house is flooded. Due to this concept, if she collects from her insurer, the insurer can collect from me.

Question 11 options:

1)

subrogation

2)

insurable interest

3)

indemnity

4)

duty to disclose

Question 12(1 point)

In the previous question, if there is a lawsuit, the plaintiff will be:

Question 12 options:

1)

me

2)

my mom

3)

my insurance company

4)

my mom's insurance company

5)

none of the above