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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 # 1

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 # 2

A commercial insurance agent receives a request for commercial automobile insurance from a client who transports radioactive materials. When reviewing the Autoplus report, the agent notices that the client frequently changes insurance providers, but there is no gap in insurance and the client only has minor claims in their history. What will the agent likely do, and why?

Options:

A.  

Decline the risk, as it will not be profitable

B.  

Accept the risk, as the agent's insurer writes the business

C.  

Accept the risk with no deductible, as this will offset the risk's loss ratio

D.  

Decline the risk, as the motor vehicle record should have been included with the application

Discussion 0
Question # 3

Valuable information about the principals of a prospect's company, the products and services the company sells, and other financial data could be found by reviewing which source?

Options:

A.  

The prospect's website

B.  

Best's Underwriting Guide

C.  

The prospect's property appraisal

D.  

D & B reports

Discussion 0
Question # 4

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 # 5

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 # 6

How do privacy laws impact brokers?

Options:

A.  

Implied permission is given when a potential client asks for a quote.

B.  

Provincial privacy legislation follows the same rules and regulations as federal privacy legislation.

C.  

Brokers may be held accountable for third parties' duty to provide appropriate privacy protection to clients.

D.  

Third parties must submit notarized written requests for the broker to release the insured's claims information.

Discussion 0
Question # 7

Which clause is a refusal to accept liability for damages that might occur?

Options:

A.  

Disclaimer

B.  

Indemnity provision

C.  

Risk retainer

D.  

Hold harmless agreement

Discussion 0
Question # 8

What coverage is generally provided by an accounts receivable floater?

Options:

A.  

Loss arising as a result of bad debts

B.  

Loss arising out of bookkeeping errors

C.  

Loss arising out of credit card receipts being destroyed by fire

D.  

Loss arising out of maintaining duplicate records offsite

Discussion 0
Question # 9

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 # 10

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
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