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IIC C131 Practice Q&A's

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

1. What is insurer solvency?

A) The amount of claims an insurer has closed in the past year
B) An obligation to meet a rating company's opinion
C) An agreement between multiple insurance companies
D) The ability of an insurer to meet its financial obligations


2. A group of stockholders is bringing a class action lawsuit, stating that the finances of the corporation in which they hold stock are being mismanaged. Which policy would likely respond to such a lawsuit?

A) Directors and officers liability
B) Employee dishonesty
C) Fiduciary obligation
D) Shareholders equity liability


3. Annette, a new broker, is completing a wrap-up liability insurance application for a condominium development. Before finalizing the application, she asks a coworker to review it. Her coworker advises Annette that she has missed an important detail. What detail did Annette likely miss?

A) The application needs to list all condominium developments currently under construction by the general contractor.
B) The project owner must provide evidence of separate liability coverage to qualify for the policy.
C) The application must include information about the construction of the parking garage.
D) The architect needs to be named as the primary insured on the policy.


4. An individual who uses public transit rather than buying a car is managing their risk using which risk management technique?

A) Separating risk
B) Avoiding risk
C) Retaining risk
D) Transferring risk


5. Insurance premiums on automobile fleet policies are based on which factor?

A) Overall experience of all drivers
B) Original purchase price of all vehicles in the fleet
C) Mechanical condition of a vehicle from one particular fleet
D) Driving record of the individual drivers


Solutions:

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

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