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Free Advanced Skills for the Insurance Broker and Agent Practice Questions

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Exam style questions across every C131 domain

Last Update 3 days ago
Total Questions : 77

Start with our free C131 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real Chartered Insurance Professional (CIP) exam. Each C131 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your IIC weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 11

How does a self-insured retention (SIR) differ from a deductible?

Options:

A.  

Is a method of insuring risk

B.  

Does not affect the policy limit

C.  

Applies to losses below a specific amount

D.  

Does not encourage loss prevention measures

Discussion 0
Question # 12

The owner of a small bookstore arranges to have a reputable courier deliver an expensive set of antique encyclopedias to the store after it closes. The next morning, he notices several encyclopedias are missing from the set. He reports this situation to his broker, who advises that the loss will be covered under his commercial property broad form if he can provide which type of proof?

Options:

A.  

Declaration under oath confirming it was a fidelity loss

B.  

Evidence that the loss occurred as a result of mysterious disappearance

C.  

Sworn statement from the courier that the set was delivered in its entirety

D.  

Documented evidence showing the encyclopedias were in the owner's care, custody, and control

Discussion 0
Question # 13

What is the purpose of a letter of authorization?

Options:

A.  

Acts as express written permission for the broker to bind any policies on behalf of the insurer

B.  

Confirms the exclusive business agreement between the intermediary and the insurance company

C.  

Permits an insured to nominate a legal representative to speak and transact business on her behalf

D.  

Directs the underwriter to deal with the broker named in the letter on the particular client's account

Discussion 0
Question # 14

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?

Options:

A.  

Soft market

B.  

Hard market

C.  

Weak market

D.  

Strong market

Discussion 0
Question # 15

How can a broker without binding or settlement authority assist a client who has suffered a loss and is making an insurance claim?

Options:

A.  

Determine the amount of the claim payment

B.  

Verify if the client has coverage for the loss and then pay the claim

C.  

Direct the insurance adjuster in carrying out the investigation of the loss

D.  

Suggest the client assemble receipts and other documents to prove the loss

Discussion 0
Question # 16

Which exclusion on the contractors' equipment floater applies to loss or damage caused by breaking through ice or sinking in soft ground?

Options:

A.  

Territory exclusion

B.  

Muskeg exclusion

C.  

Sinkhole exclusion

D.  

Overloading exclusion

Discussion 0
Question # 17

What does pure risk entail?

Options:

A.  

Only gain

B.  

Either gain or loss

C.  

Chance of profit without loss

D.  

Chance of loss without gain

Discussion 0
Question # 18

What is a disadvantage of a broker using one-way communication with clients?

Options:

A.  

Time consuming

B.  

Client may not read the communication

C.  

Too costly

D.  

Lack of generalization for clients

Discussion 0
Question # 19

A major automotive manufacturer is launching a line of electric vehicles. It intends to outsource the production of the vehicle batteries to a new supplier. The manufacturer's risk manager has requested that the supplier provide evidence of comprehensive vendor liability insurance, before the contract can be finalized. What is the likely reason for the request?

Options:

A.  

The manufacturer does not want to be held responsible for product liability claims.

B.  

The manufacturer wants to ensure that the supplier prioritizes its work over other manufacturers.

C.  

The manufacturer does not want to be held responsible for the supplier's contractual liability claims.

D.  

The manufacturer wants to be compensated in the event of the supplier's failure to perform the contract.

Discussion 0
Question # 20

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?

Options:

A.  

Rental insurance policy

B.  

Commercial property floater policy

C.  

Warehouseman's legal liability policy

D.  

Contingent business interruption policy

Discussion 0

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