British Columbia Insurance Level 1 Licensing Exam Version 1
Practice exam for Life Insurance Producer under Insurance Exams (Licensing Exams). 5 sample questions.
Sample Questions
You're viewing a limited preview. Log in and subscribe to access all questions.
Log InExam Questions
Question 1
When an insured purchases the new vehicle replacement plus (NVR+) endorsement, at what point is the vehicle written off?
Correct Answer: B
Rationale: Under the NVR+ endorsement, a vehicle is written off when repair costs exceed its fair market value, as this indicates it is uneconomical to repair. Any damage or half market value thresholds are not standard criteria, and insured preference does not determine write-off status.
Rationale: Under the NVR+ endorsement, a vehicle is written off when repair costs exceed its fair market value, as this indicates it is uneconomical to repair. Any damage or half market value thresholds are not standard criteria, and insured preference does not determine write-off status.
Question 2
A chef accidentally drops a kitchen towel onto a lit stove in a restaurant. The towel catches fire, and the fire spreads through the kitchen. The restaurant's sprinkler system is activated, and the fire department arrives to extinguish the fire. The kitchen equipment sustains fire, smoke, and water damage. What is the peril in this scenario?
Correct Answer: A
Rationale: Fire is the primary peril in this scenario, as it initiated the damage to the kitchen equipment. Negligence is a cause, not a peril, while water and smoke are secondary effects resulting from the fire and sprinkler activation.
Rationale: Fire is the primary peril in this scenario, as it initiated the damage to the kitchen equipment. Negligence is a cause, not a peril, while water and smoke are secondary effects resulting from the fire and sprinkler activation.
Question 3
Which type of loss is EXCLUDED under a basic homeowners policy?
Correct Answer: A
Rationale: Flooding is typically excluded under a basic homeowners policy, requiring separate coverage or an endorsement. Explosion and aircraft impact are named perils often covered, and transportation of property may be covered under specific conditions.
Rationale: Flooding is typically excluded under a basic homeowners policy, requiring separate coverage or an endorsement. Explosion and aircraft impact are named perils often covered, and transportation of property may be covered under specific conditions.
Question 4
Which activity best represents the term selling within an insurance interaction?
Correct Answer: A
Rationale: Selling in insurance involves matching products to client needs to provide appropriate coverage. Referrals and cold calling are prospecting methods, and presenting high-premium options does not prioritize client needs.
Rationale: Selling in insurance involves matching products to client needs to provide appropriate coverage. Referrals and cold calling are prospecting methods, and presenting high-premium options does not prioritize client needs.
Question 5
What is a deductible for a first-party automobile loss?
Correct Answer: B
Rationale: A deductible is the fixed amount the insured pays on a first-party claim before the insurer covers the remaining loss. It is not paid after policy limits, to third parties, or as a premium discount.
Rationale: A deductible is the fixed amount the insured pays on a first-party claim before the insurer covers the remaining loss. It is not paid after policy limits, to third parties, or as a premium discount.