Sample Questions
Free Sample Exam Questions
Here are a few sample questions directly from our complete 150-question bank:
Sample Question 1
What is the primary role of the Insurance Council of British Columbia?
- To license insurance agents, salespersons and adjusters, and regulate their conduct in BC ✓
- To set the premium rates that insurers may charge on general insurance products in the province
- To supervise the solvency and financial strength of the insurance companies operating in the province
- To deliver Basic Autoplan insurance and settle injury and damage claims from motor vehicle crashes
Explanation: The Insurance Council of BC is continued under FIA s. 220 and makes rules under s. 225.1 to license and regulate insurance agents, salespersons and adjusters. Insurer solvency is supervised by the BC Financial Services Authority, and ICBC delivers Basic Autoplan.
Sample Question 2
Which restriction does Council Rule 6(1) place on every Level 1 general insurance salesperson licence?
- The licensee may conduct business solely under the supervision of a general insurance agent ✓
- The licensee must be paid wholly by commission on the policies that the licensee sells
- The licensee may sell personal lines policies but is barred from writing any commercial lines
- The licensee must hold a minimum ownership interest in the agency that the licensee represents
Explanation: Rule 6(1) restricts every Level 1 salesperson: no signing contracts of insurance for an insurer, no business away from the agency's premises unless the Council Rules Course is completed, supervision by a general insurance agent, and pay that is mainly a regular salary rather than commission.
Sample Question 3
What is the principle of 'Indemnity' in property and casualty insurance?
- The insured is restored to the financial position held just before the loss, with no profit ✓
- The insurer pays the full amount of insurance shown in the policy whenever an insured peril occurs
- The insurer pays the replacement value of the damaged property plus a margin for the inconvenience
- The insurer refunds the premiums paid whenever a policy term ends without a claim being made
Explanation: Indemnity compensates the insured for the actual loss suffered, no more, so that insurance cannot become a source of profit.
Sample Question 4
What constitutes 'Insurable Interest' in property insurance?
- The insured would suffer a financial loss or incur liability if the property were damaged or destroyed ✓
- The insured has been named as a beneficiary or loss payee in the policy issued by the insurer
- The insured has paid the premium for the policy in full before the date of any loss
- The insured holds a mortgage or lease on a property located in the same municipality
Explanation: Section 10 of the Insurance Act treats a contract as a wager, and void, if the insured has no interest in the subject matter. Insurable interest is the financial stake that makes a loss real to the insured.
Frequently Asked Questions
Exam FAQs
Is this BC Fundamentals of Insurance practice test free?
Yes — completely free, no signup required. Full practice tests for the Level 1 General Insurance licensing exam.
What is the passing mark for the BC Fundamentals of Insurance (FOI) exam?
Course providers report a multiple-choice exam of about 100 questions with a 70% pass mark. The Insurance Council of BC does not publish the exam's question count, time limit or pass mark, so confirm the format with your course provider.
What restrictions apply to a Level 1 General Insurance licence in BC?
A Level 1 licensee must work inside a licensed brokerage office under the direct supervision of a Level 2 or 3 broker.
What perils are covered under the Basic Fire Policy in BC?
Under statutory insurance conditions, the Basic Fire Policy covers fire, lightning, and natural/coal gas explosion.
What is the formula for calculating co-insurance penalty?
Amount Carried divided by Amount Required, multiplied by the Amount of Loss, minus deductible.
What is the difference between the FOI exam and CAIB 1?
IBABC says that passing the Fundamentals of Insurance (FOI) exam or the CAIB 1 exam is the first step toward a Level 1 General Insurance Salesperson's licence in British Columbia, including the ability to sell ICBC Autoplan. IBABC publishes a point-by-point comparison of the two on its FOI page.