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

1. For which prospective client should a broker conduct further risk analysis?

A) A retail store owner, who only has the one potential source of profit
B) An independent adjuster, who requires errors and omissions coverage
C) A hardware store owner, who also delivers and assembles closets himself
D) A small business owner requesting an insurance package identical to the one she currently has


2. Two agents are discussing artificial intelligence being used more frequently in Canadian industries. They are enthusiastic to write these risks on behalf of their employer, who has relaxed its guidelines on niche risks.
Which type of market are they likely in?

A) Weak market
B) Hard market
C) Soft market
D) Strong market


3. What is insurer solvency?

A) An obligation to meet a rating company's opinion
B) The amount of claims an insurer has closed in the past year
C) The ability of an insurer to meet its financial obligations
D) An agreement between multiple insurance companies


4. An employee of a self-storage facility is careless and causes a fire resulting in damages to the contents in three rental storage units. The renters of the units could seek reimbursement under which policy?

A) Contingent business interruption policy
B) Commercial property floater policy
C) Warehouseman's legal liability policy
D) Rental insurance policy


5. Annette, a new broker, is completing a wrap-up liability insurance application for a condominium development. Before finalizing the application, she asks a coworker to review it. Her coworker advises Annette that she has missed an important detail. What detail did Annette likely miss?

A) The architect needs to be named as the primary insured on the policy.
B) The application must include information about the construction of the parking garage.
C) The project owner must provide evidence of separate liability coverage to qualify for the policy.
D) The application needs to list all condominium developments currently under construction by the general contractor.


Solutions:

Question # 1
Answer: C
Question # 2
Answer: C
Question # 3
Answer: C
Question # 4
Answer: C
Question # 5
Answer: B

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