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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:
1. What coverage is generally provided by an accounts receivable floater?
A) Loss arising out of bookkeeping errors
B) Loss arising out of credit card receipts being destroyed by fire
C) Loss arising as a result of bad debts
D) Loss arising out of maintaining duplicate records offsite
2. A real estate investment trust is a long-term client of Best Brokerage. The REIT intends to tear down one unused warehouse and build an apartment in its place. The risk manager requests insurance coverage for the project, wants to avoid a significant increase in premium, and does not want to include cost overruns.
a) Briefly discuss how the limits of insurance of this project will be determined, and what type of costs are included in the limit.
b) Should the risk manager exclude cost overruns from the limit of insurance? Explain your answer.
3. What type of property would be covered by mercantile stock burglary coverage under a crime insurance policy?
A) Furniture
B) Cheques
C) Paper currency
D) Securities
4. How is the premium for a garage policy computed on a monthly average basis?
A) Requires that the insurer refund the insured if the total adjusted premium is greater than the advance premium
B) Provides an adjustment at year end after charging a 100 percent advance premium
C) Allows the insured to file quarterly reports detailing the actual monthly exposure
D) Permits the charging of an advance premium that is 75 percent of the annual premium
5. Alberta Trucking Company frequently transports material back and forth from Canada to the United States. It employs over forty truckers, who, upon hiring, have criminal and reference checks completed. A trucker, transporting general freight, has recently been stopped at the border by a United States customs agent, who refuses to let him through. What is the likely reason for the custom agent's refusal?
A) The trucking company did not follow the guidelines when arranging the filing.
B) The truck is not insured for the minimum $200,000 limit required in the United States.
C) The truck is not displaying the trucker's medical or criminal check certificates.
D) The trucker did not register for an International driver's licence.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: Only visible for members | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: A |







