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IIC Essential Skills for the Insurance Broker and Agent Sample Questions:
1. A tenant's negligence causes a fire in the dwelling they rent. Typically, who is initially responsible for paying the damage?
A) The insurer that issued the homeowners policy
B) The insurer that issued the tenant's legal liability policy
C) The tenant who negligently caused the fire
D) The dwelling's owner who is responsible for the tenant's actions
2. Jim owns a metal factory. Which question should Jim's broker ask to best understand the commercial occupancy of the company?
A) What is the total number of your staff?
B) Is your factory left unattended for long periods of time?
C) What does a typical day look like in your factory?
D) How is your factory protected against fire?
3. A client who wants coverage for a risk, independent from the risk a broker previously arranged coverage for, is usually required to submit which document?
A) Insured's authorization application
B) Formal written application
C) Statement of change request
D) Broker of record letter
4. The insured has a property policy on his cottage with a $120,000 limit of insurance. What is the amount of coverage available for loss or damage to his $12,000 cottage boathouse under a typical policy?
A) $12,000, in addition to the $120,000 on the cottage
B) $12,000, included in the limit on the cottage
C) $0, boathouses are excluded under the policy
D) $120,000, the limit of the cottage policy
5. What is the role of insurance intermediaries under the law of agency?
A) Issue policies on any risk agents deem insurable
B) Confirm with the insurers that all exposures are covered
C) Balance dual responsibilities to the insurers and to the insureds
D) Act as third parties in insurance contracts
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: C |
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