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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: The Application Process | 10% | - Duty of disclosure - Completing applications - Underwriting considerations |
| Topic 2: Sales and Client Needs | 10% | - Risk identification - Client consultation - Insurance solutions |
| Topic 3: Insurance and the Intermediary | 10% | - Legal duties and ethics - Licensing and regulation - Roles of brokers and agents |
| Topic 4: Claims Handling | 8% | - Settlement and subrogation - Claim reporting process - Broker's role in claims |
| Topic 5: Automobile Insurance | 10% | - Mandatory and optional coverages - Provincial variations - Rating and policy issues |
| Topic 6: Liability Insurance | 12% | - Legal liability concepts - Personal liability coverages - Commercial general liability |
| Topic 7: Property Insurance Exposures | 10% | - Personal property risks - Small commercial property risks - Exposures and perils |
| Topic 8: Communication and Service Skills | 8% | - Record keeping - Policy changes and endorsements - Client communication |
| Topic 9: From Quote to Policy | 10% | - Policy issuance and delivery - Policy structure and components - Quotation and binding authority |
| Topic 10: Property Insurance Wordings | 12% | - Valuation methods - Common policy forms - Coverages and exclusions |
1. Michelle is a new agent who would like to protect herself against possible errors and omissions claims. What should Michelle practice in her interactions with clients and insurers?
A) Ensure all communication with clients and insurers is done face-to-face
B) Offer advice to clients if she thinks it is beneficial, even if it is outside her area of expertise
C) Recommend that clients consult with experts outside the insurance field if a situation calls for it
D) Use close-ended questions with clients at all times
2. Which occupancy would be most attractive to an insurer reviewing a property's exposure?
A) Scrap yard
B) Restaurant
C) Auto body shop
D) Clothing store
3. What should a broker do when selecting coverage for a client?
A) Ensure that only standard policy wordings are used
B) Overinsure the client to protect the broker from an errors and omissions claim
C) Place the policy with the insurer that has the most legally-worded policies
D) Compare wordings based on an analysis of the client's needs
4. The insurance industry is entering a hard market as a result of losses arising from extreme weather. Megan, a broker, has been advised by the North American Fire and Casualty Company that it will be increasing its homeowner policy rates by 25 percent, effective immediately.
How should Megan deliver the bad news to her client Mr. Robertson, a widower living on a fixed pension?
How will she communicate with her client and what outcomes will Megan work towards?
5. What refers to one's ability to pay for any damage incurred as a result of the driver's actions or inaction?
A) Accident benefits
B) Financial responsibility
C) Uninsured motorist coverage
D) No-fault insurance
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: Only visible for members | Question # 5 Answer: B |
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