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C130 Exam: Questions With Clear-Cut Solutions (A+)
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C130 Exam: Questions With Clear-Cut Solutions (A+)
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C130 Exam: Questions With Clear-Cut Solutions (A+)1.Which type of risk can be insured?
A.Illegal risk
B.Pure risk
C.Speculative risk
D.Moral risk Right Ans - B. Pure Risk
2.What are the three (3) broad categories of insurable risk?
A.Personal risks, property risks and liability risks
B.Property risks, commercial risks and farm risks
C.Liability risks, commercial risks and marine risks
D.Personal risks, property risks and commercial risks Right Ans - A.
Personal risks, property risks and liability risks
3.Which of the following actions can a general agent perform?
A.Appoint public adjusters
B.Sell and underwrite risks for one insurance company only
C.Appoint other agents
D.Create insurance rates and calculate premiums to be charged for categories
of risks Right Ans - C. Appoint other agents
4.Which of the following statements is true of brokers?
A.They can be independent or direct writers.
B.They work in the online environment only.
C.They have a very broad coverage allowing them to underwrite, issue
policies, and settle claims.
D.They act on behalf of the insured, placing business with insurance
companies. Right Ans - D. They act on behalf of the insured, placing
business with insurance companies.
5. Identify the true statement about agent and broker authority.
A. In an implied agency agreement, all terms have been specifically stated and
agreed upon.
B. Binding authority is the capacity to confirm to applicants that all incurred
losses will be covered.
C. Agents and brokers obtain their authority from the agreement entered into
with their insurers.
,D. Policy premiums belong to the agent or broker, while the commission
belongs to the insurer. Right Ans - C. Agents and brokers obtain their
authority from the agreement entered into with their insurers.
6. Material facts
A. are the least important information given to the insurer.
B. can guarantee a claim payment.
C. are not required by agents or brokers.
D. must be disclosed by the applicant if asked about. Right Ans - D. must be
disclosed by the applicant if asked about.
7. As an insurance enterprise, an insurance agency is regulated by the
authority provided within the
A. Insurance Companies Act.
B. Highway Traffic Act.
C. Criminal Code of Canada.
D. Insurance Act. Right Ans - D. Insurance Act.
8. Which jurisdiction is mainly responsible for licensing requirements?
A. Federal
B. Municipal
C. Provincial
D. Civil Right Ans - C. Provincial
The client requested one form of coverage but the broker or agent arranged
another, and the client's claim was denied. What is this an example of?
A. Failure to provide correct coverage
B. Failure to provide coverage in time
C. Failure to place coverage at all
D. Failure to explain effects of endorsements Right Ans - A. Failure to
provide correct coverage
10. Agents and brokers have duties to both their insurers and the clients they
service. Which of the following duties is owed to the insurer?
A. Not to be swayed by remunerative gain
B. To competently perform services undertaken, which requires them to be
well educated and indicates the need for continuing education
C. To hold information in strict confidence
, D. To be honest and trustworthy Right Ans - D. To be honest and
trustworthy
1. Which of the following statements best describes what sales planning is?
A. Part of strategic planning and takes place at the management level
B. Best left to experts who translate the mission into action
C. Part of corporate planning in multinational companies
D. Best handled by individual producers at the personal level Right Ans - A.
Part of strategic planning and takes place at the management level
2. Which of the following promotional activities would be an example of
differentiation?
A. A brokerage has purchased a large billboard on a major commuter highway.
B. An insurer developed commercials and purchased a television advertising
package.
C. An intermediary has arranged for flyers to be included in the local
newspaper.
D. An insurer offers a discounted rate to the owners of a specific luxury car.
Right Ans - D. An insurer offers a discounted rate to the owners of a specific
luxury car.
3. In a recent sales meeting, the sales manager has asked the customer service
agents to start
collecting email addresses from Facebook with the intention of sending out a
mass newsletter to
promote a new cyber security insurance product. What concerns should be
addressed in this
meeting?
A. The Canadian Anti-Spam Legislation (CASL) prohibits commercial
messaging without
express permission.
B. The Personal Information Protection and Electronic Documents Act
(PIPEDA) prohibits this
type of collection of email addresses.
C. The Insurance Act prohibits this type of mass sale of insurance products.
D. There are no concerns because Facebook is a public forum. Right Ans - A.
The Canadian Anti-Spam Legislation (CASL) prohibits commercial messaging
without
express permission.
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