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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:
1. How can a broker without binding or settlement authority assist a client who has suffered a loss and is making an insurance claim?
A) Verify if the client has coverage for the loss and then pay the claim
B) Suggest the client assemble receipts and other documents to prove the loss
C) Determine the amount of the claim payment
D) Direct the insurance adjuster in carrying out the investigation of the loss
2. Helen, an agent for a marine insurer, is reviewing the renewal policy of her freight forwarding account. The firm has just expanded its operations to include United States exposure. Helen advises that a modification will be needed on both the current policy term and the renewal policy term. What is her reasoning to perform changes on both terms?
A) If the firm has a claim in the United States, the insurer may deny coverage.
B) As the firm did not advise the insurer in advance, the insurer can void coverage for misrepresentation.
C) If the firm is importing and exporting American goods, the brokerage must attach a tariff disclaimer document to the policies.
D) As the firm has expanded its area of exposure, a new policy will be required, and the renewal policy must be rescinded.
3. 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.
4. In the absence of specific expertise in construction, which party will generally arrange a wrap-up liability policy?
A) Subcontractor
B) General contractor
C) Party in control of the project
D) Party in control of the land
5. A broker recommends that their commercial client repair the sprinkler system in their factory. Which risk management technique does the broker's suggestion fall under?
A) Risk reduction
B) Diversification
C) Avoidance
D) Risk transfer
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: Only visible for members | Question # 4 Answer: C | Question # 5 Answer: A |
By Phil
