C130 - CIP Exam With Questions
And Correct Answers
Which of the following has been traditionally offered by insurance companies, but is
not actually insurance?
Surety bonds
The court case, Fine's Flowers Ltd. vs. General Accident Assurance Co. of Canada
(1977), is significant because it
increased the duty of care required by insurance intermediaries when acting within their
scope of duty.
With respect to Utmost Good Faith,
full disclosure of material information is required by all parties.
Cold calls
are excellent practice for talking to people to discover their needs.
Brokers use this technique to provide existing clients with new policies covering
additional exposures.
,Up-selling
A system established to monitor files to ensure that action is taken within the
appropriate time is known as
abeyance.
The process by which detrimental effects of a risk are minimized by identifying,
measuring and controlling the-risk is known as
risk management.
The unlawful taking of insured property from within the insured premises by a person
who unlawfully enters the premises as evidenced by marks of forcible entry is termed
burglary.
A disadvantage of oral applications is that they
might not record all the discussions between the broker and the insured.
A broker might identify a client with a potential accounts recelvable problem by
reviewing the section of the insurance application disclosing the
loss payees.
,When an applicant for insurance has been involved in one previous not-at-fault loss in
which her vehicle was damaged, an insurer who is writing a policy for the risk may
apply standard terms and conditions based on the exposure.
Binding authority
allows the broker to bind some limited coverage immediately.
The legal concept by which any ambiguity in the policy wording will be interpreted
against the party that wrote the wording is
contra preferentem.
The signature clause of a policy consists of signatures of the
chief executive of the insurance company and the broker or authorized employee of the
insurer.
Condominium corporations arrange insurance for
the common areas of the building.
Under most seasonal dwelling forms, insurance limits for outbuildings
, are part of the limit of coverage for the main building.
Under the terms of guaranteed replacement cost, the insurer will pay the full cost to
rebuild the dweling even if it exceeds the amount of insurance purchased provided
that the
amount insured was 100% of the replacement cost at the last evaluation.
The legal term defined as the substantial and unreasonable interference with a
person's right to enjoy and use his or her property is
nuisance.
A broker whose client regularly rents accommodations while on vacation would offer
this client insurance coverage for
tenant's legal liability.
One of the legal penalties for driving without insurance is the
possibility of being sued for legal liability as an at fault uninsured motorist.
The Facility Association does NOT operate in
British Columbia.
And Correct Answers
Which of the following has been traditionally offered by insurance companies, but is
not actually insurance?
Surety bonds
The court case, Fine's Flowers Ltd. vs. General Accident Assurance Co. of Canada
(1977), is significant because it
increased the duty of care required by insurance intermediaries when acting within their
scope of duty.
With respect to Utmost Good Faith,
full disclosure of material information is required by all parties.
Cold calls
are excellent practice for talking to people to discover their needs.
Brokers use this technique to provide existing clients with new policies covering
additional exposures.
,Up-selling
A system established to monitor files to ensure that action is taken within the
appropriate time is known as
abeyance.
The process by which detrimental effects of a risk are minimized by identifying,
measuring and controlling the-risk is known as
risk management.
The unlawful taking of insured property from within the insured premises by a person
who unlawfully enters the premises as evidenced by marks of forcible entry is termed
burglary.
A disadvantage of oral applications is that they
might not record all the discussions between the broker and the insured.
A broker might identify a client with a potential accounts recelvable problem by
reviewing the section of the insurance application disclosing the
loss payees.
,When an applicant for insurance has been involved in one previous not-at-fault loss in
which her vehicle was damaged, an insurer who is writing a policy for the risk may
apply standard terms and conditions based on the exposure.
Binding authority
allows the broker to bind some limited coverage immediately.
The legal concept by which any ambiguity in the policy wording will be interpreted
against the party that wrote the wording is
contra preferentem.
The signature clause of a policy consists of signatures of the
chief executive of the insurance company and the broker or authorized employee of the
insurer.
Condominium corporations arrange insurance for
the common areas of the building.
Under most seasonal dwelling forms, insurance limits for outbuildings
, are part of the limit of coverage for the main building.
Under the terms of guaranteed replacement cost, the insurer will pay the full cost to
rebuild the dweling even if it exceeds the amount of insurance purchased provided
that the
amount insured was 100% of the replacement cost at the last evaluation.
The legal term defined as the substantial and unreasonable interference with a
person's right to enjoy and use his or her property is
nuisance.
A broker whose client regularly rents accommodations while on vacation would offer
this client insurance coverage for
tenant's legal liability.
One of the legal penalties for driving without insurance is the
possibility of being sued for legal liability as an at fault uninsured motorist.
The Facility Association does NOT operate in
British Columbia.
