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C131 Advanced Skills for the Insurance Broker and Agent is now Stable and With Pass Result | Test Your Knowledge for Free

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C131 Practice Questions

Advanced Skills for the Insurance Broker and Agent

Last Update 3 days ago
Total Questions : 77

Dive into our fully updated and stable C131 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 C131. Use this test to pinpoint which areas you need to focus your study on.

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Question # 11

Which document contains a rough outline from bidders of work to be completed, with details on how they will carry out this work?

Options:

A.  

Lease agreement

B.  

Certificate of insurance

C.  

Request for a proposal

D.  

Broker's letter of authority

Discussion 0
Question # 12

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 # 13

The senior manager of XYZ Trucking Company has received her company's automobile renewal policy, and considers the premium excessive. She asks her broker what exposures are covered under the policy. What will her broker make her aware of?

Options:

A.  

The non-owned exposure could include XYZ's own trucks.

B.  

The owned exposure includes rented vehicles that replace any of XYZ's vehicles.

C.  

There could be a non-owned exposure if XYZ's employees use their own vehicles for company business.

D.  

There could be an owned exposure if the directors and officers use their personal vehicles to attend trade shows.

Discussion 0
Question # 14

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

Options:

A.  

A hardware store owner, who also delivers and assembles closets himself

B.  

A retail store owner, who only has the one potential source of profit

C.  

A small business owner requesting an insurance package identical to the one she currently has

D.  

An independent adjuster, who requires errors and omissions coverage

Discussion 0
Question # 15

Derek arranges hard-to-place insurance for contractors with specialized equipment. In addition to the condition of the equipment, what can Derek determine about the risk by examining photographs?

Options:

A.  

Moral hazard, if there are poor maintenance habits

B.  

Product information, which is always better than an inventory list

C.  

Proprietary information, which is not always included with an application

D.  

Physical hazard, if the client does not have the latest equipment upgrades

Discussion 0
Question # 16

An insured who owns a factory had a major loss. A pressure vessel ruptured due to a faulty safety valve, causing water escape, that resulted in significant water damage. The insured is covered by two insurance policies. Which policy will cover this loss?

Options:

A.  

The insured's EBI policy will pay the loss in full.

B.  

The insured's CGL policy will pay the loss in full.

C.  

The insured's remediation policy will cover the loss.

D.  

The insured will select which policy to cover the loss.

Discussion 0
Question # 17

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 # 18

A broker is using their prior market knowledge to place a risk with an insurer who accepts luxury log cabins. Which insurer aspect is the broker considering?

Options:

A.  

Risk appetite

B.  

Risk management

C.  

Risk avoidance

D.  

Risk tolerance

Discussion 0
Question # 19

What type of liability policy would cover a product liability exposure arising from an error in the manufacturing design of a product?

Options:

A.  

Garage liability

B.  

Architect's liability

C.  

Commercial general liability (CGL)

D.  

Directors and officers liability (D & O)

Discussion 0
Question # 20

What is governed by the Personal Information Protection and Electronic Documents Act (PIPEDA)?

Options:

A.  

The use of corporate governance information

B.  

The types of software that can be used in data mining

C.  

The consent requirement when the insurer requests an applicant's motor vehicle record

D.  

The consent requirement when a prospective employer is asking the candidate for a list of references and previous work history

Discussion 0
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