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IIC Essential Skills for the Insurance Broker and Agent Sample Questions:
1. The insured has a property policy on his cottage with a $120,000 limit of insurance. What is the amount of coverage available for loss or damage to his $12,000 cottage boathouse under a typical policy?
A) $12,000, included in the limit on the cottage
B) $120,000, the limit of the cottage policy
C) $12,000, in addition to the $120,000 on the cottage
D) $0, boathouses are excluded under the policy
2. How many years of driving experience are newly licensed drivers generally credited for if they have completed an approved driver training course?
A) Four or five years
B) Two or three years
C) Three or four years
D) One or two years
3. When does a minimum retained premium apply to a policy?
A) When the insured moves the policy at renewal to another insurer
B) When the insurer cancels the policy at any time
C) When the insured cancels the policy midterm
D) When the policy has been voided for misrepresentation
4. An underwriter receives a submission for a restaurant. The base rate is $0.80 per $100. Due to the client's loss history, the underwriter decides on a $0.15 loading. What premium would the underwriter charge for a building valuation of $200,000?
A) $1,900
B) $1,600
C) $1,300
D) $1,750
5. Brenda works as a property and casualty underwriter in an industry that has some staged claims. Her accounts have a poor loss ratio and she has been put on a performance plan. She recently shadowed a senior broker for training purposes. He advised her on qualifying the client to establish whether the client and the brokerage can form a mutually beneficial business relationship.
She has just been approached by a new client, who would be the largest client in her portfolio. Describe what Brenda should keep in mind for her process regarding this client. How can Brenda qualify the client? Provide two questions she could ask if she suspects a moral hazard.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: Only visible for members |





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