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IIC C130 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Property Insurance Wordings | 12% | - Valuation methods - Coverages and exclusions - Common policy forms |
| Claims Handling | 8% | - Broker's role in claims - Claim reporting process - Settlement and subrogation |
| Property Insurance Exposures | 10% | - Exposures and perils - Personal property risks - Small commercial property risks |
| From Quote to Policy | 10% | - Policy structure and components - Quotation and binding authority - Policy issuance and delivery |
| Automobile Insurance | 10% | - Provincial variations - Rating and policy issues - Mandatory and optional coverages |
| The Application Process | 10% | - Duty of disclosure - Completing applications - Underwriting considerations |
| Sales and Client Needs | 10% | - Client consultation - Risk identification - Insurance solutions |
| Communication and Service Skills | 8% | - Record keeping - Policy changes and endorsements - Client communication |
| Insurance and the Intermediary | 10% | - Licensing and regulation - Roles of brokers and agents - Legal duties and ethics |
| Liability Insurance | 12% | - Personal liability coverages - Commercial general liability - Legal liability concepts |
IIC Essential Skills for the Insurance Broker and Agent Sample Questions:
1. W & A Insurers Inc. has a capacity of $30 million for any single property risk. It also has a reinsurance agreement with Tri-insurance Inc. for an additional $40 million. A broker approaches W & A Insurers Inc.
with a request to write a low-hazard $37 million liability risk. What is the insurer's retention if it accepts and reinsures the risk?
A) $27 million
B) $37 million
C) $30 million
D) $40 million
2. When qualifying a new client, how might an intermediary best differentiate their services from those of the current broker or agent?
A) Understand the financial motives of the client
B) Counter the incumbent's marketing and advertising strategies
C) Know the products the incumbent intermediary offers
D) Compete based on premium cost and commissions
3. Which item would be insured under a personal articles floater?
A) Coffee machine
B) Stamp collection
C) Antique table
D) Leather sofa
4. Regarding the duty of disclosure, what is required to comply with the principle of utmost good faith?
A) The intermediary is required to withhold disclosure of pertinent information if the client asks the broker to do so.
B) The applicant has a duty to disclose all relevant and irrelevant facts.
C) Full disclosure of material information is required of the applicant.
D) The broker or agent determines whether the information is material to the risk and discloses information accordingly, on behalf of the insured.
5. Briefly describe an exclusive agency company as a distribution channel that delivers insurance products to consumers.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: Only visible for members |
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