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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:
1. A commercial insurance agent receives a request for commercial automobile insurance from a client who transports radioactive materials. When reviewing the Autoplus report, the agent notices that the client frequently changes insurance providers, but there is no gap in insurance and the client only has minor claims in their history. What will the agent likely do, and why?
A) Decline the risk, as the motor vehicle record should have been included with the application
B) Decline the risk, as it will not be profitable
C) Accept the risk, as the agent's insurer writes the business
D) Accept the risk with no deductible, as this will offset the risk's loss ratio
2. A broker is emailed by a prospect looking to cover his three stores that do not hold title to any goods, and can never be held contractually responsible for those goods. What type of stores are these?
A) Bailor
B) Freight forwarding
C) Consignment
D) Manufacturing
3. Angie is frustrated with her insurer as she recently had a mysterious disappearance claim that was denied under her commercial property policy. Why was Angie likely denied her claim?
A) Her policy had not earned sufficient premium at the time of the loss
B) She had a similar claim in a previous policy term
C) Her appraisal was only received in the last three months
D) She had chosen named perils coverage
4. Valuable information about the principals of a prospect's company, the products and services the company sells, and other financial data could be found by reviewing which source?
A) D & B reports
B) Best's Underwriting Guide
C) The prospect's property appraisal
D) The prospect's website
5. Jeremy is a new electrical contractor. He needs some special documentation before he can practise his trade, to be compliant with territorial regulations. Which special documentation will the broker arrange for Jeremy?
A) Performance bond
B) Licence and permit bond
C) Errors and omissions insurance
D) Equipment breakdown insurance
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: B |
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