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IIC C130 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Broker and Agent Practice Skills | - Policy placement and insurer interaction - Client communication and advisory skills |
| Topic 2: Insurance Fundamentals and Risk Concepts | - Nature of risk (pure vs speculative risk) - Insurance principles and contract basics |
| Topic 3: Insurance Distribution Systems | - Distribution models (independent agency, brokerage, direct writers) - Agent vs broker roles and responsibilities |
| Topic 4: Legal and Regulatory Framework | - Ethical standards and professional conduct - Law of agency and fiduciary duty |
| Topic 5: Insurance Products and Markets | - Property and casualty insurance basics - Commercial and personal lines overview |
IIC Essential Skills for the Insurance Broker and Agent Sample Questions:
Question 1
Which action on the part of the insured would most likely result in a surcharge to the insurance policy?
A. Disclosure that his home has two mortgages
B. Purchase of a new sports car for his teenage son to drive
C. Trade-in of an existing vehicle for an eco-friendly vehicle
D. Installation of a high-end home security system
Question 2
Lindy, a new producer, has a robust client list and has struggled to find time to acquire new customers. To meet her aggressive sales goals, she has decided to pivot to increasing revenues primarily from her current clients.
Discuss the TWO techniques that will allow Lindy to grow her business mainly from within.
Question 3
Katherine is employed as an adjuster and has been assigned a large liability claim. The insured had two recent claims and Katherine suspects this claim might be staged. She sends the insured a non-waiver agreement allowing her to investigate the loss without accepting liability. If the insured refuses to sign the agreement, what would Katherine send next?
A. Liability admittance notice
B. Reservation of rights letter
C. Forfeiture agreement
D. Acceptance confirmation
Question 4
W & A Insurers Inc. has a capacity of $30 million for any single property risk. It also has a reinsurance agreement with Tri-insurance Inc. for an additional $40 million. A broker approaches W & A Insurers Inc.
with a request to write a low-hazard $37 million liability risk. What is the insurer's retention if it accepts and reinsures the risk?
A. $27 million
B. $37 million
C. $40 million
D. $30 million
Question 5
During the renewal process, which tool keeps the broker on track and protects against lawsuits by requiring the insured's signature?
A. Binder
B. Checklist
C. Flowchart
D. Cover note
Solutions:
| Question 1 Answer: B | Question 2 Answer: Only visible for members | Question 3 Answer: B | Question 4 Answer: D | Question 5 Answer: B |
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