Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

What is NOT required by law to appear on all insurance policies?

1. Policy number

2. Insured's social security number

3. Names of loss payee

4. Premium

The correct answer is: Insured's social security number

The correct choice is based on the fact that the insured's social security number is not a legal requirement to be included in all insurance policies. Insurance policies generally contain specific mandatory elements to ensure clarity and enforceability, such as the policy number, names of relevant parties (like the insured and any loss payees), and the premium amount. In practice, while the social security number may be collected for underwriting or identification purposes, it is not universally mandated to be displayed on the actual policy documents. This distinction is important as it highlights privacy concerns and the varying requirements across different insurance types and jurisdictions. In summary, although the other elements serve vital roles in the policy's function and validity, the inclusion of the insured's social security number is not legally required. This understanding can help clarify what information insurers need to provide and what is optional, ensuring that policyholders are aware of what they can expect in their documentation.