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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 # 1

What must an intermediary remember when using a valuation guide to calculate the replacement cost for a dwelling?

Options:

A.  

There is no substitute for an on-site inspection by the intermediary.

B.  

The mortgage value may be less than the cost of replacing the building.

C.  

The tool used by each insurer would provide the exact same calculation.

D.  

There will be increased costs to repair or replace luxury or custom dwellings.

Discussion 0
Question # 2

Which statement describes the reimbursement of voluntary medical payments under a personal liability policy?

Options:

A.  

The insured is required to provide written proof and medical documentation.

B.  

The third party will be reimbursed solely for direct damage to their property.

C.  

The insured and the third party must live in the same household for there to be payment.

D.  

The injured party is required to prove that their injuries occurred as a result of negligence.

Discussion 0
Question # 3

Miro’s vehicle and Stephanie’s vehicle collide with each other in New Brunswick. Neither of them has loss or damage coverage, also known as collision coverage. The chart shows the physical damage and assigned fault. How would the payment be apportioned?

Driver | Physical Damage | Fault Percent

Miro | $4,000 | 50%

Stephanie | $2,000 | 50%

Options:

A.  

Miro can collect $2,000 from his insurer; Stephanie can collect $1,000 from her insurer.

B.  

Miro can collect $2,000 from his insurer and $1,000 from Stephanie’s insurer; Stephanie can collect $1,000 from her insurer and $500 from Miro’s insurer.

C.  

Miro can collect $2,000 from his insurer and $2,000 from Stephanie’s insurer; Stephanie can collect $1,000 from her insurer and $1,000 from Miro’s insurer.

D.  

Miro can collect $4,000 from his insurer; Stephanie can collect $2,000 from her insurer. Miro’s insurer will subrogate against Stephanie’s insurer for $2,000 and Stephanie’s insurer will subrogate against Miro’s insurer for $1,000.

Discussion 0
Question # 4

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

Options:

Discussion 0
Question # 5

W & A Insurers Inc. has a capacity of $30 million for any single property risk. It also has a reinsurance agreement with Tri-insurance Inc. for an additional $40 million. A broker approaches W & A Insurers Inc. with a request to write a low-hazard $37 million liability risk. What is the insurer’s retention if it accepts and reinsures the risk?

Options:

A.  

$27 million

B.  

$30 million

C.  

$37 million

D.  

$40 million

Discussion 0
Question # 6

A tenant’s negligence causes a fire in the dwelling they rent. Typically, who is initially responsible for paying the damage?

Options:

A.  

The tenant who negligently caused the fire

B.  

The insurer that issued the homeowners policy

C.  

The insurer that issued the tenant’s legal liability policy

D.  

The dwelling’s owner who is responsible for the tenant’s actions

Discussion 0
Question # 7

Katherine is employed as an adjuster and has been assigned a large liability claim. The insured had two recent claims and Katherine suspects this claim might be staged. She sends the insured a non-waiver agreement allowing her to investigate the loss without accepting liability. If the insured refuses to sign the agreement, what would Katherine send next?

Options:

A.  

Forfeiture agreement

B.  

Acceptance confirmation

C.  

Liability admittance notice

D.  

Reservation of rights letter

Discussion 0
Question # 8

What is the primary way an agent and an exclusive agent differ?

Options:

A.  

In the way they evaluate a client

B.  

In their authority to handle claims

C.  

In the way they advise clients of policy coverages

D.  

In the number of insurance companies they can represent

Discussion 0
Question # 9

Trevor is cutting down a tree in his backyard. The tree accidentally falls onto his neighbour’s shed, destroying the roof. Two weeks later, Trevor receives a document from his neighbour suing him for the damages to the shed and its contents. Which document has Trevor received?

Options:

A.  

Judgment notice

B.  

Statement of claim

C.  

Damages attestation

D.  

Statement of defence

Discussion 0
Question # 10

What is included in an experience letter from an insurer or broker?

Options:

A.  

Amount of the last insurance premium paid

B.  

Period during which the individual was insured

C.  

Name of each driver and applicable licence class

D.  

List of all vehicles owned by the insured over the past six years

Discussion 0
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