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| Section | Objectives |
|---|---|
| Legal and Regulatory Framework | - Ethical standards and professional conduct - Law of agency and fiduciary duty |
| 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 |
| Insurance Fundamentals and Risk Concepts | - Nature of risk (pure vs speculative risk) - Insurance principles and contract basics |
| Broker and Agent Practice Skills | - Policy placement and insurer interaction - Client communication and advisory skills |
1. What is an agent's primary duty to the insurer?
A) Bind the policy with the insurer they have the best relationship with
B) Quote the client with maximum amounts of liability coverage
C) Provide the insurer with the insured's finances upon request
D) Provide the insurer with all relevant material facts
2. Which homeowners package policy provides all-perils coverage on the building and named-perils coverage on the contents?
A) Comprehensive
B) Broad
C) Basic
D) Standard
3. Brenda works as a property and casualty underwriter in an industry that has some staged claims. Her accounts have a poor loss ratio and she has been put on a performance plan. She recently shadowed a senior broker for training purposes. He advised her on qualifying the client to establish whether the client and the brokerage can form a mutually beneficial business relationship.
She has just been approached by a new client, who would be the largest client in her portfolio. Describe what Brenda should keep in mind for her process regarding this client. How can Brenda qualify the client? Provide two questions she could ask if she suspects a moral hazard.
4. What refers to one's ability to pay for any damage incurred as a result of the driver's actions or inaction?
A) Financial responsibility
B) Accident benefits
C) Uninsured motorist coverage
D) No-fault insurance
5. A tenant's negligence causes a fire in the dwelling they rent. Typically, who is initially responsible for paying the damage?
A) The insurer that issued the tenant's legal liability policy
B) The insurer that issued the homeowners policy
C) The dwelling's owner who is responsible for the tenant's actions
D) The tenant who negligently caused the fire
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: Only visible for members | Question # 4 Answer: A | Question # 5 Answer: B |
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Principles and Practice of Insurance
Advanced Skills for the Insurance Broker and Agent
Essential Skills for the Insurance Broker and Agent
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