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IIC Advanced Skills for the Insurance Broker and Agent Sample Questions:
1. A major automotive manufacturer is launching a line of electric vehicles. It intends to outsource the production of the vehicle batteries to a new supplier. The manufacturer's risk manager has requested that the supplier provide evidence of comprehensive vendor liability insurance, before the contract can be finalized.
What is the likely reason for the request?
A) The manufacturer does not want to be held responsible for product liability claims.
B) The manufacturer does not want to be held responsible for the supplier's contractual liability claims.
C) The manufacturer wants to ensure that the supplier prioritizes its work over other manufacturers.
D) The manufacturer wants to be compensated in the event of the supplier's failure to perform the contract.
2. When should a broker recommend that a client amend their existing risk management plan?
A) After financial statements are published
B) Annually at renewal
C) When changing a manufacturing process
D) When hiring a new staff member
3. After examining an organization's financial statements and accounting records, a broker decides that they would like to take the company on as a client. What did the broker determine during their examination that helped make this decision?
A) The organization has paid policy premiums on time for the last seven years.
B) The organization is consistently profitable.
C) The organization has a captive company.
D) The organization is compliant with federal and provincial tax laws.
4. Charlotte, a broker, is meeting a potential client in person, and hopes to close the new business account. The potential client is a contractor, a line of work which Charlotte also has past experience in.
a) Explain how Charlotte can present herself professionally in the meeting to establish credibility with the client.
b) Explain the value of establishing credibility with the client and the value Charlotte brings to the interaction.
5. By conducting online research of a risk's profile and website, and asking about supplies, machinery, and manufacturing process used, which liability exposure of the risk is being assessed?
A) Contractual
B) Current
C) Premises
D) Professional
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: Only visible for members | Question # 5 Answer: B |


