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C130 Practice Questions

Essential Skills for the Insurance Broker and Agent

Last Update 3 days ago
Total Questions : 77

Dive into our fully updated and stable C130 practice test platform, featuring all the latest Chartered Insurance Professional (CIP) exam questions added this week. Our preparation tool is more than just a IIC study aid; it's a strategic advantage.

Our free Chartered Insurance Professional (CIP) practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about C130. Use this test to pinpoint which areas you need to focus your study on.

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Question # 11

How much would Company B be required to pay for an insured loss of $200,000 if all three insurers’ wordings have a contribution clause?

Insurer | Amount Insured

Company A | $300,000

Company B | $80,000

Company C | $20,000

Options:

A.  

$20,000

B.  

$25,000

C.  

$40,000

D.  

$80,000

Discussion 0
Question # 12

A commercial general liability policy has an aggregate limit of $1,000,000. During the current term, the insurer has already paid for three liability claims: one for $100,000, a second for $500,000, and a third for $300,000. How much will the insurer pay if a new claim of $300,000 is submitted?

Options:

A.  

$0

B.  

$100,000

C.  

$300,000

D.  

$1,000,000

Discussion 0
Question # 13

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?

Options:

A.  

$120,000

B.  

$150,000

C.  

$176,000

D.  

$220,000

Discussion 0
Question # 14

Which statement about the expiry dates of binders is correct?

Options:

A.  

Binders must include the statement “valid for one year.”

B.  

The expiry date must automatically be 30 days from the effective date of the policy.

C.  

An open expiry date should be used in case the delivery of the formal policy is delayed.

D.  

To minimize the risk of overlooking an expiring binder, the expiry date should fall on a business day.

Discussion 0
Question # 15

Which article is not insured for off-premises coverage unless it is scheduled?

Options:

A.  

Firearm

B.  

Silverware

C.  

Business computer

D.  

Musical instrument

Discussion 0
Question # 16

When qualifying a new client, how might an intermediary best differentiate their services from those of the current broker or agent?

Options:

A.  

Understand the financial motives of the client

B.  

Compete based on premium cost and commissions

C.  

Know the products the incumbent intermediary offers

D.  

Counter the incumbent’s marketing and advertising strategies

Discussion 0
Question # 17

Prominently included on some property insurance policies is the statement “This policy contains a clause that may limit the amount payable.” What clause is being referred to?

Options:

A.  

Coinsurance clause

B.  

Stacked limits clause

C.  

Named exclusions clause

D.  

Deferred payment clause

Discussion 0
Question # 18

What type of automobile insurance endorsement provides coverage for physical damage to a rented vehicle for which the insured has assumed responsibility under contract?

Options:

A.  

Loss of use

B.  

Non-owned automobile

C.  

Agreed value of automobiles

D.  

Loss of or damage to insured automobile

Discussion 0
Question # 19

What should the intermediary do if the person reporting the claim is not named on the insurance policy?

Options:

A.  

Contact the police

B.  

Send the client a statement of claim

C.  

Attempt to discuss the matter with the client

D.  

Ask the insurer to add the interested party as an additional insured

Discussion 0
Question # 20

An insured reports a loss to their broker and is subsequently contacted by an adjuster to discuss the claim. A few days later, the insured calls their broker to ask a question about their claim settlement. What is the best course of action for the broker to take?

Options:

A.  

Review the policy wordings with the insured

B.  

Advise the insured to contact the ombudsperson

C.  

Provide expected settlement values to the insured

D.  

Connect the insured with their loss adjuster to discuss the claim

Discussion 0
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