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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:
1. XYZ Insurer is known for using the first-in principle. If multiple brokers request quotations for a new applicant, how does XYZ Insurer respond?
A) Negotiates with each broker based on the same terms and conditions
B) Blocks itself from dealing with other brokers on the risk
C) Cooperates with the largest brokerage
D) Releases quotes for each broker sequentially
2. A broker binds a property policy for a future date, and follows up for documentation. While reviewing documents the client sent, it is discovered that the property is actually used as a rooming house, and not a family home. Why does underwriting instruct that the policy be cancelled?
A) The broker did not complete an in-person home inspection.
B) The insurer already has too many rooming houses in their book of business.
C) The use of the home is a material fact that the client should have disclosed.
D) The policy cannot be bound without proof of how the home is used.
3. The owner of a small bookstore arranges to have a reputable courier deliver an expensive set of antique encyclopedias to the store after it closes. The next morning, he notices several encyclopedias are missing from the set. He reports this situation to his broker, who advises that the loss will be covered under his commercial property broad form if he can provide which type of proof?
A) Sworn statement from the courier that the set was delivered in its entirety
B) Declaration under oath confirming it was a fidelity loss
C) Evidence that the loss occurred as a result of mysterious disappearance
D) Documented evidence showing the encyclopedias were in the owner's care, custody, and control
4. An insured who owns a factory had a major loss. A pressure vessel ruptured due to a faulty safety valve, causing water escape, that resulted in significant water damage. The insured is covered by two insurance policies. Which policy will cover this loss?
A) The insured's CGL policy will pay the loss in full.
B) The insured will select which policy to cover the loss.
C) The insured's EBI policy will pay the loss in full.
D) The insured's remediation policy will cover the loss.
5. What does pure risk entail?
A) Chance of profit without loss
B) Chance of loss without gain
C) Only gain
D) Either gain or loss
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: B |



