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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:
1. A broker is emailed by a prospect looking to cover his three stores that do not hold title to any goods, and can never be held contractually responsible for those goods. What type of stores are these?
A) Bailor
B) Manufacturing
C) Freight forwarding
D) Consignment
2. What is the intent of a cross liability clause found in a commercial general liability (CGL) policy?
A) Prevent one insured from bringing an action against another named insured
B) Provide coverage as if each named insured had a separate policy
C) Insure under a trading style which is always a legal entity
D) Compound the limits of liability by providing the limit of coverage for each named insured
3. An architect is sued by a client for having failed to account for local bylaws when designing a new home. For the insurance company to defend the architect, which coverage must he have in place?
A) Errors and omissions
B) Wrap-up liability
C) Explosion, collapse, and underpinning
D) Commercial building, equipment, and stock
4. 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) Diversification
C) Risk reduction
D) Risk transfer
5. In risk management, how can a risk be transferred?
A) By eliminating the risk
B) By using contracts
C) By reducing the risk through loss prevention
D) By self-insuring
Solutions:
Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: B |