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IIC Essential Skills for the Insurance Broker and Agent Sample Questions:
1. In law, what does the term prescription mean?
A) Limited time after which a cause of action ceases
B) Transferring of the rights for action against the responsible party to the insurer
C) Guidelines relating to the acceptability of a class of risk
D) Committing to an automatic renewal process
2. It is critical that an intermediary is always mindful of privacy legislation during which method of sourcing clients?
A) Walk-ins
B) Tracking of expiry dates
C) Online marketing
D) Upselling
3. Michelle is a new agent who would like to protect herself against possible errors and omissions claims. What should Michelle practice in her interactions with clients and insurers?
A) Recommend that clients consult with experts outside the insurance field if a situation calls for it
B) Use close-ended questions with clients at all times
C) Ensure all communication with clients and insurers is done face-to-face
D) Offer advice to clients if she thinks it is beneficial, even if it is outside her area of expertise
4. Why is the precedent-setting case Fine's Flowers Ltd. et al. v. General Accident Assurance Co. of Canada et al. significant?
A) Outlined the intermediary's stringent duty of care owed to clients
B) Established that intermediaries will be held accountable if they provide legal advice
C) Defined special risks and the responsibility the insurer has to limit the intermediary's authority
D) Restructured the content of agency contracts between insurers and intermediaries
5. Relay Cycle Shop has been non-operational for six months since an arsonist set fire to the building. The store is empty of all contents, and contractors continue to work onsite. The owner of the shop anticipates it will be able to reopen in four weeks. How would the shop traditionally be categorized by the insurer?
A) Unoccupied
B) Idle
C) Vacant
D) Abandoned
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |

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