C130 - CIP Exam Questions with Correct Answers Latest Update 2025/2026
Which of the following has been traditionally offered by insurance companies, but is not actually
insurance? - Answers Surety bonds
The court case, Fine's Flowers Ltd. vs. General Accident Assurance Co. of Canada (1977), is
significant because it - Answers increased the duty of care required by insurance intermediaries
when acting within their scope of duty.
With respect to Utmost Good Faith, - Answers full disclosure of material information is required
by all parties.
Cold calls - Answers 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. - Answers Up-selling
A system established to monitor files to ensure that action is taken within the appropriate time
is known as - Answers abeyance.
The process by which detrimental effects of a risk are minimized by identifying, measuring and
controlling the-risk is known as - Answers 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 - Answers
burglary.
A disadvantage of oral applications is that they - Answers 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 - Answers 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 - Answers apply
standard terms and conditions based on the exposure.
Binding authority - Answers 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 - Answers contra preferentem.
The signature clause of a policy consists of signatures of the - Answers chief executive of the
insurance company and the broker or authorized employee of the insurer.
Condominium corporations arrange insurance for - Answers the common areas of the building.
, Under most seasonal dwelling forms, insurance limits for outbuildings - Answers 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 - Answers
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 - Answers nuisance.
A broker whose client regularly rents accommodations while on vacation would offer this client
insurance coverage for - Answers tenant's legal liability.
One of the legal penalties for driving without insurance is the - Answers possibility of being sued
for legal liability as an at fault uninsured motorist.
The Facility Association does NOT operate in - Answers British Columbia.
Which automobile coverage is compulsory in all Canadian jurisdictions? - Answers Accident
benefits
The automobile endorsement that makes it possible to insure a vehicle for less than its
appraised value is called the - Answers Limit of Amount Paid for Loss or Damage endorsement.
Letters of authorization are - Answers written notices from the insured to the insurer stating the
broker of record on a policy.
Prescription is - Answers the limited time after which a cause of action ceases.
If a third party is responsible for a portion of a loss, the insured's right of action against. that
responsible third party is transferred to the insurer and is known as - Answers subrogation.
A person employed by an insurance regulator to help resolve claims is called a(n) - Answers
ombudsman.
Wholesale brokers are - Answers intermediaries that specialize in non-standard or difficult-to-
place risks.
With respect to the law of agency, an insurance intermediary - Answers has a dual responsibility
to the insurer and to the client, as required by law.
What is a broker's best defence against an Errors and Omissions claim? - Answers Acting within
the scope of his or her authority
Processing non-verbal clues and interpreting how a message is being said are part of - Answers
active listening.
Which of the following has been traditionally offered by insurance companies, but is not actually
insurance? - Answers Surety bonds
The court case, Fine's Flowers Ltd. vs. General Accident Assurance Co. of Canada (1977), is
significant because it - Answers increased the duty of care required by insurance intermediaries
when acting within their scope of duty.
With respect to Utmost Good Faith, - Answers full disclosure of material information is required
by all parties.
Cold calls - Answers 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. - Answers Up-selling
A system established to monitor files to ensure that action is taken within the appropriate time
is known as - Answers abeyance.
The process by which detrimental effects of a risk are minimized by identifying, measuring and
controlling the-risk is known as - Answers 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 - Answers
burglary.
A disadvantage of oral applications is that they - Answers 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 - Answers 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 - Answers apply
standard terms and conditions based on the exposure.
Binding authority - Answers 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 - Answers contra preferentem.
The signature clause of a policy consists of signatures of the - Answers chief executive of the
insurance company and the broker or authorized employee of the insurer.
Condominium corporations arrange insurance for - Answers the common areas of the building.
, Under most seasonal dwelling forms, insurance limits for outbuildings - Answers 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 - Answers
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 - Answers nuisance.
A broker whose client regularly rents accommodations while on vacation would offer this client
insurance coverage for - Answers tenant's legal liability.
One of the legal penalties for driving without insurance is the - Answers possibility of being sued
for legal liability as an at fault uninsured motorist.
The Facility Association does NOT operate in - Answers British Columbia.
Which automobile coverage is compulsory in all Canadian jurisdictions? - Answers Accident
benefits
The automobile endorsement that makes it possible to insure a vehicle for less than its
appraised value is called the - Answers Limit of Amount Paid for Loss or Damage endorsement.
Letters of authorization are - Answers written notices from the insured to the insurer stating the
broker of record on a policy.
Prescription is - Answers the limited time after which a cause of action ceases.
If a third party is responsible for a portion of a loss, the insured's right of action against. that
responsible third party is transferred to the insurer and is known as - Answers subrogation.
A person employed by an insurance regulator to help resolve claims is called a(n) - Answers
ombudsman.
Wholesale brokers are - Answers intermediaries that specialize in non-standard or difficult-to-
place risks.
With respect to the law of agency, an insurance intermediary - Answers has a dual responsibility
to the insurer and to the client, as required by law.
What is a broker's best defence against an Errors and Omissions claim? - Answers Acting within
the scope of his or her authority
Processing non-verbal clues and interpreting how a message is being said are part of - Answers
active listening.
