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Need Help? elearning@insuranceinstitute.ca 1-866-362-8585 Insurance Institute Online Home / My courses / C130: Essential Skills for the Insurance Broker and Agent with Kelly Parrott - W23 / Midterm / C130 Midterm Winter 2023 . - C130: Essential Skills for the Insurance Broker and Agent with Kelly Parrott - W23 Startedon Tuesday, 7 March 2023, 12:34 PM State Finished Completedon Tuesday, 7 March 2023, 2:02 PM Time taken 1 hour 28 mins Grade 93.00 out of 100.00 Information C130 - Essential Skills for the Insurance Broker & Agent Mid-term Information Multiple Choice - 2 Marks Each

Question 1 Incorrect Mark 0.00 out of 2.00 Question 2 Correct Mark 2.00 out of 2.00 Question 3 Incorrect Mark 0.00 out of 2.00 Utmost good faith in the contract of insurance is best described as: Select one: a. A legal principle that requires the insured to give honest information about the risk X b. A legal principle that requires the agent to complete the application c. Requires full disclosure by the insured and brokers/agents of all information material to the contract d. Requires all parties to the contract to behave with the highest standard of integrity The correct answer is: Requires all parties to the contract to behave with the highest standard of integrity The source of new business in most insurance brokerage offices is: Select one: a. Up-selling b. Cross-selling c. Referrals «/ d. Cold-calling The correct answer is: Referrals What does it mean when a contract is referred to as an "express contract?" Select one: a. The contract must be completed immediately b. A verbal offer has been presented to the insurer. X c. The contract has been agreed upon and the terms may be in writing d. None of the above The correct answer is: The contract has been agreed upon and the terms may be in writing

Question 4 Correct Mark 2.00 out of 2.00 Question 5 Correct Mark 2.00 out of 2.00 Question 6 Correct Mark 2.00 out of 2.00 In common law there is a presumption that agents will advise the insurance company about all information about an insured risk that comes to their attention. Courts assume that the knowledge of the broker is the: Select one; a. Knowledge of the broker/agent b. Knowledge of the insurer «/ c. Knowledge of the broker and the insured d. Revelevant to the broker only, due to the privacy act The correct answer is: Knowledge of the insurer Insurance professionals consider prescription periods when determining all but one of the following. Which is the exception: Select one: a. How long to keep copies of signed applications forms b. The length of time a client has to present a claim to the insurer c. Privacy laws and the rights of individuals d. How much information is needed to prepare a quote s/ The correct answer is: How much information is needed to prepare a quote A written application is important because it: Select one: a. Is a source of evidence b. Indicates the intention of the parties at the time application was made c. Provides a signature of the application which attests to the accuracy of the information d. All of the above «/ The correct answer is: All of the above

Question 7 Correct Mark 2.00 out of 2.00 Question 8 Correct Mark 2.00 out of 2.00 Question 9 Correct Mark 2.00 out of 2.00 A Peril is defined as: Select one: a. A condition that can cause a loss to occur b. Something that can make damages worse c. An exclusion on most insurance policies d. The event that caused the damage +/ The correct answer is: The event that caused the damage Agents and brokers considered many factors when determining whether to do business with an prospect. The client qualification considerations do not consist of: Select one: a. Income level «/ b. Prior insurance history c. Broker product knowledge d. Loss history runs The correct answer is: Income level Which of the following could be a sign that your client is a Morale Hazard? Select one: a. They are always late paying their bills ~/ b. Their business located next door to a welding shop c. They refuses to purchase recommended coverage after the broker has clearly demonstrated a need d. A dangerous process is discovered during the inspection of the clients factory The correct answer is: They are always late paying their bills

Question 10 Correct Mark 2.00 out of 2.00 Question 11 Correct Mark 2.00 out of 2.00 Question 12 Correct Mark 2.00 out of 2.00 If you wish to bind arisk that you know exceeds your binding authority: Select one: a. Always contact the insurer prior to binding «/ b. Only contact the insurer if the client is new since any change is allowed once a policy is in effect c. If the brokerage has a contract with the insurer the change will be ratified d. None of the above The correct answer is: Always contact the insurer prior to binding When an insurance policy is issued differently than applied for what is the legal status of the contract? Select one: a. Ratified by the insurer «/ b. In effect without restriction c. A contra proferrentum situation d. Void or Voidable The correct answers are: Ratified by the insurer, In effect without restriction, A contra proferrentum situation, Void or Voidable A brokerage’s preferred client type is known as its: Select one: a. Book of business b. Target market «/ c. Standard risks d. Alternative market The correct answer is: Target market

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