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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

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
Question # 2

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 # 3

An architect is sued by a client for having failed to account for local bylaws when designing a new home. For the insurance company to defend the architect, which coverage must he have in place?

Options:

A.  

Wrap-up liability

B.  

Errors and omissions

C.  

Explosion, collapse, and underpinning

D.  

Commercial building, equipment, and stock

Discussion 0
Question # 4

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 # 5

When a broker is focusing on a manufacturing facility's housekeeping regimen and safeguards for a prospect, what is he primarily trying to establish?

Options:

A.  

How large the facility is

B.  

Whether the prospect is profitable

C.  

How many expenses the facility has

D.  

Whether the prospect is a morale hazard

Discussion 0
Question # 6

What is insurer solvency?

Options:

A.  

An agreement between multiple insurance companies

B.  

An obligation to meet a rating company's opinion

C.  

The ability of an insurer to meet its financial obligations

D.  

The amount of claims an insurer has closed in the past year

Discussion 0
Question # 7

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 # 8

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 # 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

When should a broker recommend that a client amend their existing risk management plan?

Options:

A.  

Annually at renewal

B.  

When changing a manufacturing process

C.  

When hiring a new staff member

D.  

After financial statements are published

Discussion 0
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