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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

Graham works at a brokerage where responsibilities are divided among the staff. His daily work consists of analyzing quotations and creating client proposals. What is his role?

Options:

A.  

Producer

B.  

Marketer

C.  

Underwriter

D.  

Adjuster

Discussion 0
Question # 12

A broker is preparing to meet with a prospective client, Queen Ice Cream, who manufactures and distributes ice cream to five different provinces. What can the broker ask to ensure a smooth transition for the client?

Options:

A.  

How many flavours of ice cream does the client sell?

B.  

How long has the client been in business?

C.  

How many competitors are in the market?

D.  

Do all existing policies expire at the same time?

Discussion 0
Question # 13

XYZ Insurer is known for using the first-in principle. If multiple brokers request quotations for a new applicant, how does XYZ Insurer respond?

Options:

A.  

Cooperates with the largest brokerage

B.  

Releases quotes for each broker sequentially

C.  

Blocks itself from dealing with other brokers on the risk

D.  

Negotiates with each broker based on the same terms and conditions

Discussion 0
Question # 14

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 # 15

A broker is emailed by a prospect looking to cover his three stores that do not hold title to any goods, and can never be held contractually responsible for those goods. What type of stores are these?

Options:

A.  

Bailor

B.  

Consignment

C.  

Manufacturing

D.  

Freight forwarding

Discussion 0
Question # 16

An insured has a commercial property policy with a $50,000 deductible and a policy limit of $100,000. If the insured suffers a loss of $50,000, how much will the insurer pay?

Options:

A.  

$0

B.  

$25,000

C.  

$50,000

D.  

$100,000

Discussion 0
Question # 17

How can world events, such as climate change and flood, affect insurance?

Options:

A.  

Insurers need to modify their terms.

B.  

Excess levels will become mandatory.

C.  

Premiums will become less expensive.

D.  

Deductibles need to be removed from policies.

Discussion 0
Question # 18

A property manager needs to insure the potential loss of revenue if his commercial property under construction is destroyed before its completion and occupancy. What would the intermediary request from the insurer?

Options:

A.  

Production policy

B.  

Customized wordings

C.  

Underwriting manual

D.  

Contingent by-laws endorsement

Discussion 0
Question # 19

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 # 20

Jeremy is a new electrical contractor. He needs some special documentation before he can practise his trade, to be compliant with territorial regulations. Which special documentation will the broker arrange for Jeremy?

Options:

A.  

Performance bond

B.  

Licence and permit bond

C.  

Errors and omissions insurance

D.  

Equipment breakdown insurance

Discussion 0
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