Exam Code: C130
Exam Name: Essential Skills for the Insurance Broker and Agent
Certification Provider: IIC
Corresponding Certification: Chartered Insurance Professional (CIP)
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IIC C130 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Communication and Service Skills8%- Policy changes and endorsements
- Client communication
- Record keeping
Topic 2: From Quote to Policy10%- Policy issuance and delivery
- Quotation and binding authority
- Policy structure and components
Topic 3: Sales and Client Needs10%- Insurance solutions
- Risk identification
- Client consultation
Topic 4: Claims Handling8%- Broker's role in claims
- Claim reporting process
- Settlement and subrogation
Topic 5: Property Insurance Wordings12%- Coverages and exclusions
- Common policy forms
- Valuation methods
Topic 6: Insurance and the Intermediary10%- Roles of brokers and agents
- Licensing and regulation
- Legal duties and ethics
Topic 7: Property Insurance Exposures10%- Exposures and perils
- Small commercial property risks
- Personal property risks
Topic 8: Liability Insurance12%- Personal liability coverages
- Legal liability concepts
- Commercial general liability
Topic 9: The Application Process10%- Duty of disclosure
- Completing applications
- Underwriting considerations
Topic 10: Automobile Insurance10%- Provincial variations
- Mandatory and optional coverages
- Rating and policy issues

IIC Essential Skills for the Insurance Broker and Agent Sample Questions:

1. 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) $20,000
B) $80,000
C) $25,000
D) $40,000


2. Jim owns a metal factory. Which question should Jim's broker ask to best understand the commercial occupancy of the company?

A) What is the total number of your staff?
B) How is your factory protected against fire?
C) Is your factory left unattended for long periods of time?
D) What does a typical day look like in your factory?


3. John, a broker, has binding authority for comprehensive homeowners policies up to $200,000. On Saturday morning, a potential client calls John and advises that she is at the lawyer's office signing the purchasing documents for a $500,000 home and requires comprehensive homeowners coverage immediately. What action should John take?

A) Provide coverage on a named-perils basis
B) Inspect the home and, if the risk is acceptable, issue a comprehensive homeowners policy with a limit of $500,000
C) Issue a cover note providing a comprehensive homeowners policy with a policy limit of $500,000
D) State that he will try to arrange coverage with the insurer on Monday morning


4. Michelle is a new agent who would like to protect herself against possible errors and omissions claims. What should Michelle practice in her interactions with clients and insurers?

A) Ensure all communication with clients and insurers is done face-to-face
B) Use close-ended questions with clients at all times
C) Recommend that clients consult with experts outside the insurance field if a situation calls for it
D) Offer advice to clients if she thinks it is beneficial, even if it is outside her area of expertise


5. W & A Insurers Inc. has a capacity of $30 million for any single property risk. It also has a reinsurance agreement with Tri-insurance Inc. for an additional $40 million. A broker approaches W & A Insurers Inc.
with a request to write a low-hazard $37 million liability risk. What is the insurer's retention if it accepts and reinsures the risk?

A) $30 million
B) $27 million
C) $37 million
D) $40 million


Solutions:

Question # 1
Answer: D
Question # 2
Answer: D
Question # 3
Answer: D
Question # 4
Answer: C
Question # 5
Answer: A

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