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| Section | Objectives |
|---|---|
| Topic 1: Client Needs and Risk Assessment | - Identifying client exposures and loss potential - Information gathering and client interviewing |
| Topic 2: Insurance Fundamentals and Core Concepts | - Types of risk and risk management - Principles of insurance (risk, insurability, contracts) |
| Topic 3: Insurance Intermediaries and Distribution | - Role of agents and brokers - Distribution systems (direct writer, independent brokerage, etc.) - Agency relationships and authority |
| Topic 4: Insurance Products and Policy Basics | - Policy structure and coverage concepts - Property and liability insurance fundamentals |
| Topic 5: Ethics, Legal Principles, and Professional Standards | - Duty of care and fiduciary responsibility - Ethical conduct and regulatory expectations |
1. What type of automobile insurance endorsement provides coverage for physical damage to a rented vehicle for which the insured has assumed responsibility under contract?
A) Agreed value of automobiles
B) Loss of or damage to insured automobile
C) Non-owned automobile
D) Loss of use
2. How much would Company B be required to pay for an insured loss of $200,000 if all three insurers' wordings have a contribution clause?
Insurer | Amount Insured
Company A | $300,000
Company B | $80,000
Company C | $20,000
A) $40,000
B) $20,000
C) $80,000
D) $25,000
3. 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
4. Marsha, a broker, receives a call from a frustrated client regarding their increasing premium. How should she explain the increase to the client?
A) Premiums are determined by statistical predictions of future losses and they increase during a soft market.
B) Premiums are determined by statistical predictions of future losses and they increase during a hard market.
C) Premiums are determined by statistical predictions of past losses and they increase during a hard market.
D) Premiums are determined by statistical predictions of past losses and they increase during a soft market.
5. What is an agent's consideration when assessing a potential client and the client's attitude towards risk?
A) People have the same acceptance of risk.
B) Clients who lead riskier lives are good sources of profit for insurance brokers.
C) Availability of insurance coverage may be affected by the client's lifestyle.
D) People's habits are unrelated to their level of risk.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: C |
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Advanced Skills for the Insurance Broker and Agent
Principles and Practice of Insurance
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