Exam Code: C131
Exam Name: Advanced Skills for the Insurance Broker and Agent
Certification Provider: IIC
Corresponding Certification: Chartered Insurance Professional (CIP)
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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:

1. In risk management, how can a risk be transferred?

A) By using contracts
B) By eliminating the risk
C) By self-insuring
D) By reducing the risk through loss prevention


2. A broker recommends that their commercial client repair the sprinkler system in their factory. Which risk management technique does the broker's suggestion fall under?

A) Avoidance
B) Risk reduction
C) Risk transfer
D) Diversification


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

A) Architect's liability
B) Garage liability
C) Commercial general liability (CGL)
D) Directors and officers liability (D & O)


4. How is a party treated when added to a liability policy as an additional named insured?

A) Additional named insureds can be amended by the broker without the need to inform the insurer.
B) The certificate holder receives the same protections under the policy as named insureds.
C) Both the names of the corporation and the individual insured must be listed on the declarations page.
D) Named loss payees have more rights than the named insured.


5. A real estate investment trust is a long-term client of Best Brokerage. The REIT intends to tear down one unused warehouse and build an apartment in its place. The risk manager requests insurance coverage for the project, wants to avoid a significant increase in premium, and does not want to include cost overruns.
a) Briefly discuss how the limits of insurance of this project will be determined, and what type of costs are included in the limit.
b) Should the risk manager exclude cost overruns from the limit of insurance? Explain your answer.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: B
Question # 5
Answer: Only visible for members

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