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C130 - CIP Exam TEST FINAL EXAM AND PRACTICE EXAM
20262027 BANK 2 VERSIONS QUESTIONS WITH DETAILED
VERIFIED ANSWERS EXAM QUESTIONS WILL COME
FROM HERE (100% CORRECT ANSWERS A+ GRADED
Which of the following has been traditionally offered by insurance
companies, but is not actually insurance? - ANSWER--Surety bonds
The court case, Fine's Flowers Ltd. vs. General Accident Assurance Co.
of Canada (1977), is significant because it - ANSWER--increased the
duty of care required by insurance intermediaries when acting within
their scope of duty.
With respect to Utmost Good Faith, - ANSWER--full disclosure of
material information is required by all parties.
Cold calls - ANSWER--are excellent practice for talking to people to
discover their needs.
Brokers use this technique to provide existing clients with new policies
covering additional exposures. - ANSWER--Up-selling
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A system established to monitor files to ensure that action is taken
within the appropriate time is known as - ANSWER--abeyance.
The process by which detrimental effects of a risk are minimized by
identifying, measuring and controlling the-risk is known as - ANSWER--
risk management.
The unlawful taking of insured property from within the insured
premises by a person who unlawfully enters the premises as evidenced
by marks of forcible entry is termed - ANSWER--burglary.
A disadvantage of oral applications is that they - ANSWER--might not
record all the discussions between the broker and the insured.
A broker might identify a client with a potential accounts recelvable
problem by reviewing the section of the insurance application
disclosing the - ANSWER--loss payees.
When an applicant for insurance has been involved in one previous not-
at-fault loss in which her vehicle was damaged, an insurer who is
writing a policy for the risk may - ANSWER--apply standard terms and
conditions based on the exposure.
Binding authority - ANSWER--allows the broker to bind some limited
coverage immediately.
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The legal concept by which any ambiguity in the policy wording will be
interpreted against the party that wrote the wording is - ANSWER--
contra preferentem.
The signature clause of a policy consists of signatures of the - ANSWER--
chief executive of the insurance company and the broker or authorized
employee of the insurer.
Condominium corporations arrange insurance for - ANSWER--the
common areas of the building.
Under most seasonal dwelling forms, insurance limits for outbuildings -
ANSWER--are part of the limit of coverage for the main building.
Under the terms of guaranteed replacement cost, the insurer will pay
the full cost to rebuild the dweling even if it exceeds the amount of
insurance purchased provided that the - ANSWER--amount insured was
100% of the replacement cost at the last evaluation.
The legal term defined as the substantial and unreasonable
interference with a person's right to enjoy and use his or her property is
- ANSWER--nuisance.
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A broker whose client regularly rents accommodations while on
vacation would offer this client insurance coverage for - ANSWER--
tenant's legal liability.
One of the legal penalties for driving without insurance is the -
ANSWER--possibility of being sued for legal liability as an at fault
uninsured motorist.
The Facility Association does NOT operate in - ANSWER--British
Columbia.
Which automobile coverage is compulsory in all Canadian jurisdictions?
- ANSWER--Accident benefits
The automobile endorsement that makes it possible to insure a vehicle
for less than its appraised value is called the - ANSWER--Limit of
Amount Paid for Loss or Damage endorsement.
Letters of authorization are - ANSWER--written notices from the
insured to the insurer stating the broker of record on a policy.
Prescription is - ANSWER--the limited time after which a cause of action
ceases.
C130 - CIP Exam TEST FINAL EXAM AND PRACTICE EXAM
20262027 BANK 2 VERSIONS QUESTIONS WITH DETAILED
VERIFIED ANSWERS EXAM QUESTIONS WILL COME
FROM HERE (100% CORRECT ANSWERS A+ GRADED
Which of the following has been traditionally offered by insurance
companies, but is not actually insurance? - ANSWER--Surety bonds
The court case, Fine's Flowers Ltd. vs. General Accident Assurance Co.
of Canada (1977), is significant because it - ANSWER--increased the
duty of care required by insurance intermediaries when acting within
their scope of duty.
With respect to Utmost Good Faith, - ANSWER--full disclosure of
material information is required by all parties.
Cold calls - ANSWER--are excellent practice for talking to people to
discover their needs.
Brokers use this technique to provide existing clients with new policies
covering additional exposures. - ANSWER--Up-selling
,2|Page
A system established to monitor files to ensure that action is taken
within the appropriate time is known as - ANSWER--abeyance.
The process by which detrimental effects of a risk are minimized by
identifying, measuring and controlling the-risk is known as - ANSWER--
risk management.
The unlawful taking of insured property from within the insured
premises by a person who unlawfully enters the premises as evidenced
by marks of forcible entry is termed - ANSWER--burglary.
A disadvantage of oral applications is that they - ANSWER--might not
record all the discussions between the broker and the insured.
A broker might identify a client with a potential accounts recelvable
problem by reviewing the section of the insurance application
disclosing the - ANSWER--loss payees.
When an applicant for insurance has been involved in one previous not-
at-fault loss in which her vehicle was damaged, an insurer who is
writing a policy for the risk may - ANSWER--apply standard terms and
conditions based on the exposure.
Binding authority - ANSWER--allows the broker to bind some limited
coverage immediately.
,3|Page
The legal concept by which any ambiguity in the policy wording will be
interpreted against the party that wrote the wording is - ANSWER--
contra preferentem.
The signature clause of a policy consists of signatures of the - ANSWER--
chief executive of the insurance company and the broker or authorized
employee of the insurer.
Condominium corporations arrange insurance for - ANSWER--the
common areas of the building.
Under most seasonal dwelling forms, insurance limits for outbuildings -
ANSWER--are part of the limit of coverage for the main building.
Under the terms of guaranteed replacement cost, the insurer will pay
the full cost to rebuild the dweling even if it exceeds the amount of
insurance purchased provided that the - ANSWER--amount insured was
100% of the replacement cost at the last evaluation.
The legal term defined as the substantial and unreasonable
interference with a person's right to enjoy and use his or her property is
- ANSWER--nuisance.
, 4|Page
A broker whose client regularly rents accommodations while on
vacation would offer this client insurance coverage for - ANSWER--
tenant's legal liability.
One of the legal penalties for driving without insurance is the -
ANSWER--possibility of being sued for legal liability as an at fault
uninsured motorist.
The Facility Association does NOT operate in - ANSWER--British
Columbia.
Which automobile coverage is compulsory in all Canadian jurisdictions?
- ANSWER--Accident benefits
The automobile endorsement that makes it possible to insure a vehicle
for less than its appraised value is called the - ANSWER--Limit of
Amount Paid for Loss or Damage endorsement.
Letters of authorization are - ANSWER--written notices from the
insured to the insurer stating the broker of record on a policy.
Prescription is - ANSWER--the limited time after which a cause of action
ceases.
