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

1. How can a broker BEST investigate a roofing contractor's operations to identify liability exposures?

A) Read reviews on the contractor's website
B) Ask the client to detail what a typical project involves
C) Speak with past customers of the contractor
D) Ask the client what type of claims they are worried about


2. Why is bylaws insurance used?

A) To cover projects that can take years to complete
B) To cover vacant lots
C) To protect new buildings that comply with the latest building codes
D) To protect wooded lots in the country


3. A broker is preparing to meet with a prospective client, Queen Ice Cream, who manufactures and distributes ice cream to five different provinces. What can the broker ask to ensure a smooth transition for the client?

A) How many flavours of ice cream does the client sell?
B) Do all existing policies expire at the same time?
C) How long has the client been in business?
D) How many competitors are in the market?


4. How is a party treated when added to a liability policy as an additional named insured?

A) The certificate holder receives the same protections under the policy as named insureds.
B) Named loss payees have more rights than the named insured.
C) Additional named insureds can be amended by the broker without the need to inform the insurer.
D) Both the names of the corporation and the individual insured must be listed on the declarations page.


5. After examining an organization's financial statements and accounting records, a broker decides that they would like to take the company on as a client. What did the broker determine during their examination that helped make this decision?

A) The organization is consistently profitable.
B) The organization has a captive company.
C) The organization has paid policy premiums on time for the last seven years.
D) The organization is compliant with federal and provincial tax laws.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: A
Question # 3
Answer: B
Question # 4
Answer: A
Question # 5
Answer: A

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