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IIC C130 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Communication and Service Skills | 8% | - Policy changes and endorsements - Client communication - Record keeping |
| Topic 2: From Quote to Policy | 10% | - Policy issuance and delivery - Quotation and binding authority - Policy structure and components |
| Topic 3: Sales and Client Needs | 10% | - Insurance solutions - Risk identification - Client consultation |
| Topic 4: Claims Handling | 8% | - Broker's role in claims - Claim reporting process - Settlement and subrogation |
| Topic 5: Property Insurance Wordings | 12% | - Coverages and exclusions - Common policy forms - Valuation methods |
| Topic 6: Insurance and the Intermediary | 10% | - Roles of brokers and agents - Licensing and regulation - Legal duties and ethics |
| Topic 7: Property Insurance Exposures | 10% | - Exposures and perils - Small commercial property risks - Personal property risks |
| Topic 8: Liability Insurance | 12% | - Personal liability coverages - Legal liability concepts - Commercial general liability |
| Topic 9: The Application Process | 10% | - Duty of disclosure - Completing applications - Underwriting considerations |
| Topic 10: Automobile Insurance | 10% | - 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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