- Exam Code: C130
- Exam Name: Essential Skills for the Insurance Broker and Agent
- Certification Provider: IIC
- Corresponding Certification:Chartered Insurance Professional (CIP)
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IIC C130 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Legal and Regulatory Framework | - Law of agency and fiduciary duty - Ethical standards and professional conduct |
| Insurance Distribution Systems | - Agent vs broker roles and responsibilities - Distribution models (independent agency, brokerage, direct writers) |
| Insurance Products and Markets | - Property and casualty insurance basics - Commercial and personal lines overview |
| Broker and Agent Practice Skills | - Policy placement and insurer interaction - Client communication and advisory skills |
| Insurance Fundamentals and Risk Concepts | - Nature of risk (pure vs speculative risk) - Insurance principles and contract basics |
IIC Essential Skills for the Insurance Broker and Agent Sample Questions:
1. Which homeowners package policy provides all-perils coverage on the building and named-perils coverage on the contents?
A) Standard
B) Broad
C) Comprehensive
D) Basic
2. How many years of driving experience are newly licensed drivers generally credited for if they have completed an approved driver training course?
A) Three or four years
B) One or two years
C) Four or five years
D) Two or three years
3. Why do insurers prefer not to issue personal-lines forms for a dwelling that is owned by a numbered company and used for the company principals to reside in?
A) Liability could extend to other, unrelated operations of that numbered company.
B) Policy wordings restrict the named insured to an actual person.
C) Inspections are prohibited on personal-lines policies.
D) Coverage for fire damage varies greatly between personal-lines and commercial-lines.
4. Why would an intermediary want to know if a client is renovating their home?
A) The increase in property taxes will have to be factored into the premium.
B) The policy needs to be cancelled and written under a builder's risk policy.
C) The liability hazards decrease because the home is unoccupied.
D) The risk of a peril occurring is greater for a building under construction.
5. What information is typically included in a cover letter prepared by a broker for the insured?
A) An explanation of the insurer's underwriting process
B) A reminder to review the policy documents for accuracy
C) A description of the broker and insurer's relationship
D) An indication of the commission earned for placing the risk
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: B |
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