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

1. 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


2. Briefly discuss the liability exposures that arise from the ownership of animals.


3. In which Canadian province is compulsory automobile insurance purchased from a private insurer?

A) Manitoba
B) Newfoundland and Labrador
C) Saskatchewan
D) British Columbia


4. Brenda works as a property and casualty underwriter in an industry that has some staged claims. Her accounts have a poor loss ratio and she has been put on a performance plan. She recently shadowed a senior broker for training purposes. He advised her on qualifying the client to establish whether the client and the brokerage can form a mutually beneficial business relationship.
She has just been approached by a new client, who would be the largest client in her portfolio. Describe what Brenda should keep in mind for her process regarding this client. How can Brenda qualify the client? Provide two questions she could ask if she suspects a moral hazard.


5. Brenda's house is valued at $250,000. She has a policy coverage limit of $220,000 and an 80 percent coinsurance clause. What would be the payout if the insured suffers a loss of $150,000?

A) $220,000
B) $120,000
C) $176,000
D) $150,000


Solutions:

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

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