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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: From Quote to Policy | 10% | - Policy issuance and delivery - Policy structure and components - Quotation and binding authority |
| Topic 2: Insurance and the Intermediary | 10% | - Licensing and regulation - Roles of brokers and agents - Legal duties and ethics |
| Topic 3: Liability Insurance | 12% | - Legal liability concepts - Personal liability coverages - Commercial general liability |
| Topic 4: Property Insurance Wordings | 12% | - Coverages and exclusions - Common policy forms - Valuation methods |
| Topic 5: Communication and Service Skills | 8% | - Client communication - Policy changes and endorsements - Record keeping |
| Topic 6: The Application Process | 10% | - Underwriting considerations - Duty of disclosure - Completing applications |
| Topic 7: Automobile Insurance | 10% | - Rating and policy issues - Provincial variations - Mandatory and optional coverages |
| Topic 8: Property Insurance Exposures | 10% | - Personal property risks - Small commercial property risks - Exposures and perils |
| Topic 9: Sales and Client Needs | 10% | - Client consultation - Insurance solutions - Risk identification |
| Topic 10: Claims Handling | 8% | - Broker's role in claims - Claim reporting process - Settlement and subrogation |
1. In law, what does the term prescription mean?
A) Committing to an automatic renewal process
B) Transferring of the rights for action against the responsible party to the insurer
C) Limited time after which a cause of action ceases
D) Guidelines relating to the acceptability of a class of risk
2. 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) Issue a cover note providing a comprehensive homeowners policy with a policy limit of $500,000
B) Provide coverage on a named-perils basis
C) State that he will try to arrange coverage with the insurer on Monday morning
D) Inspect the home and, if the risk is acceptable, issue a comprehensive homeowners policy with a limit of $500,000
3. Jim owns a metal factory. Which question should Jim's broker ask to best understand the commercial occupancy of the company?
A) How is your factory protected against fire?
B) What does a typical day look like in your factory?
C) What is the total number of your staff?
D) Is your factory left unattended for long periods of time?
4. Why would an intermediary want to know if a client is renovating their home?
A) The increase in property taxes will have to be factored into the premium.
B) The liability hazards decrease because the home is unoccupied.
C) The risk of a peril occurring is greater for a building under construction.
D) The policy needs to be cancelled and written under a builder's risk policy.
5. To protect themselves against claims that arise long after the policy expiration date, a broker should retain a permanent copy of which policy?
A) Property
B) Crime
C) Liability
D) Automobile
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |
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