IIC Essential Skills for the Insurance Broker and Agent - C130 Exam Practice Test
Which type of adjuster processes a large volume of claims that do not require inspecting property damage or visiting the loss location?
Correct Answer: B
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In insurance sales terminology, what is a lead?
Correct Answer: A
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Which homeowners package policy provides all-perils coverage on the building and named-perils coverage on the contents?
Correct Answer: D
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Why do insurers prefer not to issue personal-lines forms for a dwelling that is owned by a numbered company and used for the company principals to reside in?
Correct Answer: D
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Briefly describe an exclusive agency company as a distribution channel that delivers insurance products to consumers.
Correct Answer:
See the solution in Explanation below:
Explanation:
An exclusive agency company is an insurance distribution channel where insurance products are sold to consumers through agents who represent one insurer, or a very limited group of related insurers. The exclusive agent acts as the appointed representative of that insurance company and is authorized to explain products, provide quotations, complete applications, and arrange policies for customers. This channel gives the insurer strong control over how its products are presented because the agent is trained in that company's underwriting rules, coverage options, pricing structure, and service standards. For consumers, the advantage is that they receive direct access to a knowledgeable representative of the insurer, often with consistent advice and efficient policy handling. However, the limitation is that the consumer has less market choice because the exclusive agent does not usually compare products across many competing insurers. The key distinction is that an exclusive agent differs mainly in the number of insurance companies they can represent.
Explanation:
An exclusive agency company is an insurance distribution channel where insurance products are sold to consumers through agents who represent one insurer, or a very limited group of related insurers. The exclusive agent acts as the appointed representative of that insurance company and is authorized to explain products, provide quotations, complete applications, and arrange policies for customers. This channel gives the insurer strong control over how its products are presented because the agent is trained in that company's underwriting rules, coverage options, pricing structure, and service standards. For consumers, the advantage is that they receive direct access to a knowledgeable representative of the insurer, often with consistent advice and efficient policy handling. However, the limitation is that the consumer has less market choice because the exclusive agent does not usually compare products across many competing insurers. The key distinction is that an exclusive agent differs mainly in the number of insurance companies they can represent.
In which Canadian province is compulsory automobile insurance purchased from a private insurer?
Correct Answer: C
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Which article is not insured for off-premises coverage unless it is scheduled?
Correct Answer: D
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In provinces with a graduated licensing system for intermediaries, what must the licensee achieve in order to write the next level of examination?
Correct Answer: A
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