C130 - Chapter 1 - The Insurance Intermediary
LATEST UPDATE 2024-2025 225 50 QUESTIONS
AND VERIFIED CORRECT ANSWERS
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A client wants terrorism insurance for his hotel; however, the insurance companies that the broker deals with do not provide such coverage. The broker can obtain such
coverage from? - CORRECT ANSWER: Whole sale brokers who specialize in non-
standard or difficult to place risks
a line guide is - CORRECT ANSWER:
An example of a hard skills is - CORRECT ANSWER: technical skill
As an insurance professional, your role throughout the interaction with your client is? -
CORRECT ANSWER: Contact person, insurance adviser, sales person, and service
advisor
Bottomry is the practice of - CORRECT ANSWER: a type of loan extended by a
moneylender to an owner of goods or ships in transit between ports
business environment of managing agent - CORRECT ANSWER: independent, paid
commission. support for training,admin, & marketing. Large or small. Do not own client list.code of ethics what duties are brokers expected to render their clients - CORRECT ANSWER: Comply with provisions of the various insurance acts. Act in a competent, trustworthy fashion, avoiding fraud deceit or misrepresentation, pay insurers premiums, comply with legislation relating to unlicensed insurers. 1 / 2
define agent as used in the law of agency - CORRECT ANSWER: is a person who is
authorized to act on behalf of another.Define Errors and Omissions (E&O) - CORRECT ANSWER: Error is doing something wrong, omission is not doing something you should have done.Define risk - CORRECT ANSWER: the possibility of loss or damage to property of the chance of incurring liability describe agent - CORRECT ANSWER: generally sells and services policies offered by a single insurer. They receive support from that insurer by way of training product knowledge administratively. They can be employed by an insurer or operate independently. The insurer owns the book of business.
describe broker - CORRECT ANSWER: Independent business people. paid commission
for each policy. can charge a fee for services rendered. The broker not the insurer owns the book of business. Can move their book of business from one insurer to another.More choice of products and insurers.Describe the best defence against E&O - CORRECT ANSWER: Documentation; always keep a record in your file detailing whom you talked to, the date the discussion took place, what you talked about, and the subsequent actions the you have taken.Communication; Communicate clearly with your clients what you will do on their behalf and confirm actions taken. Provide your insurers with prompt, complete instructions and information. Act within the scope of your authority and competence.
describe the business environment of a broker - CORRECT ANSWER: independent.
large or small. own the book of business and client list.paid by commission or fee for service. Develop their own target market and marketing strategy.
difference between an employed and an independent agent - CORRECT ANSWER:
employed agent- works directly for 1 insurer. sell directly to the public. paid by salary, or salary with commission. client list belongs to insurer. independent agent-
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