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 and regulate general insurance agents, salespersons, and adjusters in British Columbia as mandated by provincial guidelines. ✓
- To set mandatory underwriting premium rates for all private home insurance policies in Canada in accordance with applicable provincial regulations.
- To operate the provincial government's compulsory automobile insurance monopoly as mandated by provincial guidelines.
- To manufacture and distribute commercial security alarms and fire suppression systems as mandated by provincial guidelines.
Explanation: The Insurance Council of BC is the regulatory body responsible for licensing and disciplining insurance intermediaries in BC.
Sample Question 2
What restriction applies to a Level 1 General Insurance Salesperson licence in BC?
- Must work inside a licensed brokerage office under the direct supervision of a Level 2 or Level 3 licensee as defined by the governing provincial licensing authority. ✓
- Cannot sell any property or casualty insurance policies to commercial businesses as mandated by provincial guidelines as mandated by provincial guidelines.
- Can only sell life insurance and mutual fund investment certificates as mandated by provincial guidelines as mandated by provincial guidelines.
- Must own at least 10% voting equity shares in the employing brokerage as mandated by provincial guidelines as mandated by provincial guidelines.
Explanation: Level 1 licensees cannot manage an office or work unsupervised; they must be supervised by a Level 2 or 3 broker.
Sample Question 3
What is the principle of 'Indemnity' in property and casualty insurance?
- The insured should be restored to the same financial position they enjoyed immediately prior to the loss, without profiting. ✓
- The insurance company must pay double the policy limit whenever a loss occurs on a weekend as mandated by provincial guidelines.
- The policyholder is entitled to a complete refund of all historical premiums paid if no claims are filed as mandated by provincial guidelines.
- The insurer must replace all damaged 10-year-old items with brand new luxury upgrades free of charge under official provincial administrative rules.
Explanation: Indemnity ensures the insured receives compensation for actual loss suffered, preventing financial gain from insurance claims.
Sample Question 4
What constitutes 'Insurable Interest' in property insurance?
- The insured stands to suffer financial loss or liability if the property is damaged or destroyed as mandated by provincial guidelines. ✓
- The insured has a sentimental emotional affection for a neighbouring historic building as mandated by provincial guidelines.
- The policyholder plans to purchase the building sometime within the next ten years in accordance with approved regulatory requirements.
- The insured is related by marriage to the municipal building inspector as mandated by provincial guidelines.
Explanation: Insurable interest exists when a person has a legal or financial relationship to property such that damage causes them direct monetary harm.
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?
The passing mark is 70% on the 100-question multiple-choice exam (60% if writing CAIB 1).
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.