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| Section | Objectives |
|---|---|
| Topic 1: Legal and Regulatory Framework | - Ethical standards and professional conduct - Law of agency and fiduciary duty |
| Topic 2: Insurance Distribution Systems | - Distribution models (independent agency, brokerage, direct writers) - Agent vs broker roles and responsibilities |
| Topic 3: Insurance Fundamentals and Risk Concepts | - Nature of risk (pure vs speculative risk) - Insurance principles and contract basics |
| Topic 4: Insurance Products and Markets | - Property and casualty insurance basics - Commercial and personal lines overview |
| Topic 5: Broker and Agent Practice Skills | - Policy placement and insurer interaction - Client communication and advisory skills |
1. Which article is not insured for off-premises coverage unless it is scheduled?
A) Musical instrument
B) Business computer
C) Firearm
D) Silverware
2. A client who wants coverage for a risk, independent from the risk a broker previously arranged coverage for, is usually required to submit which document?
A) Insured's authorization application
B) Formal written application
C) Broker of record letter
D) Statement of change request
3. A building valued at $500,000 is insured under a homeowners policy with a guaranteed replacement cost provision. If the building suffers a total fire loss, under what circumstances would the insurer pay the full cost of rebuilding, even if it cost $725,000?
A) The amount insured was 100 percent of the replacement cost at last valuation.
B) The insured notified the insurer 115 days after the building improvements have been completed.
C) The amount of insurance under the policy was 85 percent of the replacement cost at last valuation.
D) The increased cost of replacement was due to a change in the potential occupancy of the building.
4. Jaspreet is employed as a broker. K7 Properties approached him for a large commercial policy. Two months prior to the inception date, he agreed to provide cover and sent them a binder while late details were confirmed. After finalizing the policy, he compares it to the binder and notices some premium discrepancies resulting in a higher policy premium.
List FOUR possible causes for the discrepancies.
Provide THREE solutions Jaspreet can offer the client. Explain the actions he should take after the solutions have been proposed.
5. Mikayla is an independent contractor who uses her own vehicle to deliver pizza. She is compensated by the number of pizzas she can deliver. If she is involved in an accident where she injures a third party, which coverage could respond?
A) Mikayla's employer's liability coverage from its tenant's legal liability
B) Mikayla's homeowners policy
C) The pizza company's non-owned automobile policy
D) The pizza company's professional liability policy
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: Only visible for members | Question # 5 Answer: C |
Principles and Practice of Insurance
Advanced Skills for the Insurance Broker and Agent
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