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| Section | Objectives |
|---|---|
| Insurance Fundamentals and Core Concepts | - Types of risk and risk management - Principles of insurance (risk, insurability, contracts) |
| Insurance Products and Policy Basics | - Property and liability insurance fundamentals - Policy structure and coverage concepts |
| Insurance Intermediaries and Distribution | - Agency relationships and authority - Distribution systems (direct writer, independent brokerage, etc.) - Role of agents and brokers |
| Ethics, Legal Principles, and Professional Standards | - Duty of care and fiduciary responsibility - Ethical conduct and regulatory expectations |
| Client Needs and Risk Assessment | - Information gathering and client interviewing - Identifying client exposures and loss potential |
1. Which item would be insured under a personal articles floater?
A) Leather sofa
B) Antique table
C) Coffee machine
D) Stamp collection
2. A commercial general liability policy has an aggregate limit of $1,000,000. During the current term, the insurer has already paid for three liability claims: one for $100,000, a second for $500,000, and a third for
$300,000. How much will the insurer pay if a new claim of $300,000 is submitted?
A) $100,000
B) $0
C) $1,000,000
D) $300,000
3. Chandeep, a broker with binding authority, sold property and liability coverage to his new client, Multiplex Movies. Three days into the policy term, there was a slip-and-fall incident. The liability loss was denied by the insurer. Multiplex Movies sues Chandeep for E & O. Which allegation will most likely be successful for the insured?
A) Failure to explain the steps to take in the event of a claim
B) Failure to provide cover for exposures
C) Failure to provide cover in time
D) Failure to issue a tangible policy
4. 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) Coverage for fire damage varies greatly between personal-lines and commercial-lines.
B) Policy wordings restrict the named insured to an actual person.
C) Inspections are prohibited on personal-lines policies.
D) Liability could extend to other, unrelated operations of that numbered company.
5. During the renewal process, which tool keeps the broker on track and protects against lawsuits by requiring the insured's signature?
A) Cover note
B) Binder
C) Checklist
D) Flowchart
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |
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