C130 (Study 1 - Terms) Essential Skills for the
Insurance Broker and Agent LATEST UPDATE
2024-2025 225 50 QUESTIONS AND VERIFIED
CORRECT ANSWERS GUARANTEED A+
agent - CORRECT ANSWER: A person licensed and authorized or employed to act on
behalf of another.
broker - CORRECT ANSWER: A licensed independent person or firm who acts on
behalf of an insured in placing business with insurance companies.
Broker and Agent responsibilities to insurers - CORRECT ANSWER: Act within terms of
contract,
follow instructions as to types of business that may be written,
collect premiums and hold in trust until remitted to insurer within specified time limit,
advise the insurer of business written or submit application promptly,
disclose any relevant material fact to insurer, even if it makes placing risk difficult,
advise insurer promptly of all claims notified to agent or broker.
claim - CORRECT ANSWER: An assertion of a demand, one party against another for
indemnity for personal injury or property damage arising out of negligence or contractual
right.
Classes of Insurance - CORRECT ANSWER: Personal Lines, Commercial Lines and
Special Risks
, Client list ownership - CORRECT ANSWER: Yes - Independent brokers, general,
managing agents, and wholesale brokers. No - employed agents and independent
agents.
Commercial lines - CORRECT ANSWER: This class of insurance relates to stores,
restaurants, construction vehicles/contractors, trucking operations and other similar
business ventures.
Direct Loss - Examples - CORRECT ANSWER: Cost of repairing a collision-damaged
vehicle or cost of replacing a stolen stereo or cost of rebuilding house if it burns down.
direct writer - CORRECT ANSWER: Insurance company selling directly to the public
and not through independent agents or brokers.
Distribution of Insurance - CORRECT ANSWER: Independent agency system,
independent brokerage system, exclusive agency system and direct writer.
Distribution of insurance - CORRECT ANSWER: Independent Agency, Independent
Brokerage, Exclusive Agency, Direct Writer and Online and Call Centre
Duty of Care - CORRECT ANSWER: The obligation that a person has to exercise
reasonable care with respect to the interests of others, including protecting them from
harm.
Employed Agents - CORRECT ANSWER: Employee is the status with insurer. Does not
own client list.
Errors and Omissions (E&O) Insurance - CORRECT ANSWER: An insurance form that
protects the insured against liability for committing an error or omission in the
performance of professional duties. Generally, such policies are designed to cover
financial losses rather than liability for bodily injury or property damage.
Insurance Broker and Agent LATEST UPDATE
2024-2025 225 50 QUESTIONS AND VERIFIED
CORRECT ANSWERS GUARANTEED A+
agent - CORRECT ANSWER: A person licensed and authorized or employed to act on
behalf of another.
broker - CORRECT ANSWER: A licensed independent person or firm who acts on
behalf of an insured in placing business with insurance companies.
Broker and Agent responsibilities to insurers - CORRECT ANSWER: Act within terms of
contract,
follow instructions as to types of business that may be written,
collect premiums and hold in trust until remitted to insurer within specified time limit,
advise the insurer of business written or submit application promptly,
disclose any relevant material fact to insurer, even if it makes placing risk difficult,
advise insurer promptly of all claims notified to agent or broker.
claim - CORRECT ANSWER: An assertion of a demand, one party against another for
indemnity for personal injury or property damage arising out of negligence or contractual
right.
Classes of Insurance - CORRECT ANSWER: Personal Lines, Commercial Lines and
Special Risks
, Client list ownership - CORRECT ANSWER: Yes - Independent brokers, general,
managing agents, and wholesale brokers. No - employed agents and independent
agents.
Commercial lines - CORRECT ANSWER: This class of insurance relates to stores,
restaurants, construction vehicles/contractors, trucking operations and other similar
business ventures.
Direct Loss - Examples - CORRECT ANSWER: Cost of repairing a collision-damaged
vehicle or cost of replacing a stolen stereo or cost of rebuilding house if it burns down.
direct writer - CORRECT ANSWER: Insurance company selling directly to the public
and not through independent agents or brokers.
Distribution of Insurance - CORRECT ANSWER: Independent agency system,
independent brokerage system, exclusive agency system and direct writer.
Distribution of insurance - CORRECT ANSWER: Independent Agency, Independent
Brokerage, Exclusive Agency, Direct Writer and Online and Call Centre
Duty of Care - CORRECT ANSWER: The obligation that a person has to exercise
reasonable care with respect to the interests of others, including protecting them from
harm.
Employed Agents - CORRECT ANSWER: Employee is the status with insurer. Does not
own client list.
Errors and Omissions (E&O) Insurance - CORRECT ANSWER: An insurance form that
protects the insured against liability for committing an error or omission in the
performance of professional duties. Generally, such policies are designed to cover
financial losses rather than liability for bodily injury or property damage.
