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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:

1. Alberta Trucking Company frequently transports material back and forth from Canada to the United States. It employs over forty truckers, who, upon hiring, have criminal and reference checks completed. A trucker, transporting general freight, has recently been stopped at the border by a United States customs agent, who refuses to let him through. What is the likely reason for the custom agent's refusal?

A) The truck is not displaying the trucker's medical or criminal check certificates.
B) The trucking company did not follow the guidelines when arranging the filing.
C) The trucker did not register for an International driver's licence.
D) The truck is not insured for the minimum $200,000 limit required in the United States.


2. What is insurer solvency?

A) An obligation to meet a rating company's opinion
B) An agreement between multiple insurance companies
C) The amount of claims an insurer has closed in the past year
D) The ability of an insurer to meet its financial obligations


3. Which action illustrates the duty of care required from a broker when arranging a client's insurance program?

A) Inspect all the client's premises and provide risk control recommendations
B) Disclose the percentage of the premium that will be paid as commission
C) Provide insurance options for known exposures
D) Await inquiries from the client before approaching the insurer on policy wording discrepancies


4. Annette, a new broker, is completing a wrap-up liability insurance application for a condominium development. Before finalizing the application, she asks a coworker to review it. Her coworker advises Annette that she has missed an important detail. What detail did Annette likely miss?

A) The project owner must provide evidence of separate liability coverage to qualify for the policy.
B) The application must include information about the construction of the parking garage.
C) The architect needs to be named as the primary insured on the policy.
D) The application needs to list all condominium developments currently under construction by the general contractor.


5. 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?

A) Bailor
B) Consignment
C) Freight forwarding
D) Manufacturing


Solutions:

Question # 1
Answer: B
Question # 2
Answer: D
Question # 3
Answer: C
Question # 4
Answer: B
Question # 5
Answer: B

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