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

1. What does the permissions clause in a building insurance policy allow the insured to do?

A) Clean up debris from a loss prior to advising the insurer
B) Move undamaged property to a secure site to prevent further damage after a loss
C) Proceed with additions, alterations, or repairs, without having to inform the insurer in advance
D) Use the property for purposes other than those stated on the policy


2. In the absence of specific expertise in construction, which party will generally arrange a wrap-up liability policy?

A) Party in control of the project
B) Party in control of the land
C) Subcontractor
D) General contractor


3. What coverage is generally provided by an accounts receivable floater?

A) Loss arising out of maintaining duplicate records offsite
B) Loss arising out of bookkeeping errors
C) Loss arising as a result of bad debts
D) Loss arising out of credit card receipts being destroyed by fire


4. Which clause is a refusal to accept liability for damages that might occur?

A) Disclaimer
B) Risk retainer
C) Hold harmless agreement
D) Indemnity provision


5. Jeff, an intermediary who specializes in complex industrial risks, is reviewing a new request for insurance.
The client is a major construction company who is building a bridge, and wants insurance from end to end of the construction process, including property, liability, and other specialty coverages. From the preliminary information received on the new risk, Jeff understands that the risk CANNOT be placed with just one insurer.
Identify and discuss TWO different coverage options that Jeff can use to arrange coverage for this risk.


Solutions:

Question # 1
Answer: C
Question # 2
Answer: A
Question # 3
Answer: D
Question # 4
Answer: A
Question # 5
Answer: Only visible for members

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