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| Section | Objectives |
|---|---|
| Topic 1: Claims and Loss Handling | - Claims processes and documentation - Loss adjustment principles |
| Topic 2: Insurance Brokerage Practice | - Professional ethics and conduct - Broker roles and responsibilities - Client relationship management |
| Topic 3: Regulatory and Legal Environment | - Compliance and consumer protection - Insurance regulations in Canada |
| Topic 4: Risk and Insurance Fundamentals | - Insurance principles and coverage types - Risk identification and assessment |
| Topic 5: Underwriting and Policy Management | - Policy administration and endorsements - Underwriting guidelines and decision-making |
1. Jeff, an intermediary who specializes in complex industrial risks, is reviewing a new request for insurance.
The client is a major construction company who is building a bridge, and wants insurance from end to end of the construction process, including property, liability, and other specialty coverages. From the preliminary information received on the new risk, Jeff understands that the risk CANNOT be placed with just one insurer.
Identify and discuss TWO different coverage options that Jeff can use to arrange coverage for this risk.
2. When a broker is focusing on a manufacturing facility's housekeeping regimen and safeguards for a prospect, what is he primarily trying to establish?
A) How many expenses the facility has
B) Whether the prospect is a morale hazard
C) How large the facility is
D) Whether the prospect is profitable
3. A broker is reviewing a client's risk profile. The client commonly sends their employees on international trips to source rare goods, which are often found in unstable parts of the world. The broker recommends a kidnap, ransom and extortion policy. Which type of client is this?
A) Distributor
B) Freight forwarder
C) Contractor
D) Builder
4. In risk management, how can a risk be transferred?
A) By using contracts
B) By reducing the risk through loss prevention
C) By eliminating the risk
D) By self-insuring
5. The senior manager of XYZ Trucking Company has received her company's automobile renewal policy, and considers the premium excessive. She asks her broker what exposures are covered under the policy. What will her broker make her aware of?
A) The non-owned exposure could include XYZ's own trucks.
B) There could be a non-owned exposure if XYZ's employees use their own vehicles for company business.
C) The owned exposure includes rented vehicles that replace any of XYZ's vehicles.
D) There could be an owned exposure if the directors and officers use their personal vehicles to attend trade shows.
Solutions:
| Question # 1 Answer: Only visible for members | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: B |
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