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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:

1. The question of whether an employee might convert cash or cheques for her own use would be considered when underwriting which policy coverages?

A) Property
B) Business interruption
C) Liability
D) Crime


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. Jeff, an intermediary who specializes in complex industrial risks, is reviewing a new request for insurance.
The client is a major construction company who is building a bridge, and wants insurance from end to end of the construction process, including property, liability, and other specialty coverages. From the preliminary information received on the new risk, Jeff understands that the risk CANNOT be placed with just one insurer.
Identify and discuss TWO different coverage options that Jeff can use to arrange coverage for this risk.


4. A real estate investment trust is a long-term client of Best Brokerage. The REIT intends to tear down one unused warehouse and build an apartment in its place. The risk manager requests insurance coverage for the project, wants to avoid a significant increase in premium, and does not want to include cost overruns.
a) Briefly discuss how the limits of insurance of this project will be determined, and what type of costs are included in the limit.
b) Should the risk manager exclude cost overruns from the limit of insurance? Explain your answer.


5. What is governed by the Personal Information Protection and Electronic Documents Act (PIPEDA)?

A) The types of software that can be used in data mining
B) The use of corporate governance information
C) The consent requirement when a prospective employer is asking the candidate for a list of references and previous work history
D) The consent requirement when the insurer requests an applicant's motor vehicle record


Solutions:

Question # 1
Answer: D
Question # 2
Answer: C
Question # 3
Answer: Only visible for members
Question # 4
Answer: Only visible for members
Question # 5
Answer: D

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