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IIC C130 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Liability Insurance | 12% | - Legal liability concepts - Personal liability coverages - Commercial general liability |
| The Application Process | 10% | - Completing applications - Duty of disclosure - Underwriting considerations |
| Insurance and the Intermediary | 10% | - Roles of brokers and agents - Legal duties and ethics - Licensing and regulation |
| Communication and Service Skills | 8% | - Record keeping - Client communication - Policy changes and endorsements |
| Sales and Client Needs | 10% | - Risk identification - Client consultation - Insurance solutions |
| Claims Handling | 8% | - Broker's role in claims - Claim reporting process - Settlement and subrogation |
| Automobile Insurance | 10% | - Rating and policy issues - Provincial variations - Mandatory and optional coverages |
| Property Insurance Wordings | 12% | - Common policy forms - Coverages and exclusions - Valuation methods |
| Property Insurance Exposures | 10% | - Exposures and perils - Small commercial property risks - Personal property risks |
| From Quote to Policy | 10% | - Policy structure and components - Quotation and binding authority - Policy issuance and delivery |
IIC Essential Skills for the Insurance Broker and Agent Sample Questions:
Marsha, a broker, receives a call from a frustrated client regarding their increasing premium. How should she explain the increase to the client?
- A. Premiums are determined by statistical predictions of past losses and they increase during a hard market.
- B. Premiums are determined by statistical predictions of future losses and they increase during a soft market.
- C. Premiums are determined by statistical predictions of past losses and they increase during a soft market.
- D. Premiums are determined by statistical predictions of future losses and they increase during a hard market.
Correct Answer: D 🗳️
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a) Describe the characteristics and exposures of a seasonal dwelling.
b) Describe the characteristics of a mobile home.
Correct Answer:
See the solution in Explanation below:
Explanation:
a) A seasonal dwelling is a property used only for part of the year, such as a cottage, vacation home, cabin, or lakeside property. It is not the insured's main residence and may remain vacant or unoccupied for long periods. Because it is used intermittently, it presents higher insurance exposures than a permanently occupied home. Losses may not be discovered quickly, so fire, water damage, vandalism, theft, windstorm damage, or animal damage can become more severe before anyone notices. Heating, plumbing, and electrical systems may also create increased risk if the dwelling is closed for the season or not properly winterized. Seasonal dwellings may also be in remote areas where fire protection, emergency response, and repair services are limited. Liability exposure can arise from docks, boats, trails, stairs, pools, guests, or trespassers. Insurers therefore pay close attention to occupancy, construction, protection, access, maintenance, distance to fire services, and whether the property is rented to others.
b) A mobile home is a factory-built dwelling designed to be transported to a site and used as a residence. It may be placed on blocks, piers, pads, or a permanent foundation, but its construction and structure differ from a conventional house. Mobile homes are often lighter in construction and may be more exposed to windstorm, fire spread, water damage, impact, and transportation-related damage. Insurance must consider the mobile home itself, attached structures, skirting, decks, awnings, outbuildings, contents, and personal liability.
Because of its design, the insurer will also consider age, anchoring, foundation, location, occupancy, heating system, and maintenance condition.
Regarding the duty of disclosure, what is required to comply with the principle of utmost good faith?
- A. Full disclosure of material information is required of the applicant.
- B. The broker or agent determines whether the information is material to the risk and discloses information accordingly, on behalf of the insured.
- C. The applicant has a duty to disclose all relevant and irrelevant facts.
- D. The intermediary is required to withhold disclosure of pertinent information if the client asks the broker to do so.
Correct Answer: A 🗳️
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Priya, a broker, receives a call from a prospective client, Umberto. Priya handles Umberto's inquiry and at the end of the call asks how he heard about her brokerage. He states that his manager at work has their home and auto coverage placed with Priya's brokerage. Which prospecting method would Priya check off on her questionnaire?
- A. Cold calling
- B. Marketing
- C. Upselling
- D. Cross-selling
Correct Answer: B 🗳️
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Katherine is employed as an adjuster and has been assigned a large liability claim. The insured had two recent claims and Katherine suspects this claim might be staged. She sends the insured a non-waiver agreement allowing her to investigate the loss without accepting liability. If the insured refuses to sign the agreement, what would Katherine send next?
- A. Acceptance confirmation
- B. Reservation of rights letter
- C. Forfeiture agreement
- D. Liability admittance notice
Correct Answer: B 🗳️
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