CAIB 1 - General
Questions Chapter 7 & 8
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Who is responsible for the administration of the insurance
act in your province? Answer: The Insurance Council
2. Outline the initial licensing requirements, whether there are
different levels of licenses, the supervision requirements, and license
terms in your province Answer: To obtain an initial license, an applicant must be of good
character and reputation and must pass an approved examination. Most provinces have adopted the CAIB
program, a step licensing systems.
Level 1 - Licenses for all lines of insurance, under supervision. CAIB 1 or fundamentals is required
Level 2 - Licenses for all lines of insurance without supervision, but not allowed to own or manage a
brokerage. CAIB 2 & 3 is required
Level 3 - Licenses for all lines of insurance and is qualified to own and manage a brokerage. CAIB 4 is
required.
3. Outline the class of license issued in our province and whether this
license would be valid in other provinces Answer: We receive an All Classes (other
than life) license. Brokers should check with the appropriate regulatory body to be sure of what is
2/
21
, Contact for further consultation
permitted in other provinces whether a counter signature is required or if the broker has to reside in
that province.
4. Identify 3 temptations that could cause a broker to act unethically
Answer: 1) To sell more insurance than is needed
2) To sell higher priced coverage when equivalent coverage is available at a lower price
3) To recommend the policy with the highest commission percentage
5. Identify 5 reasons why your license to practice as an insurance
broker may be revoked Answer: 1) Guilty of misrepresentation, fraud, deceit or
dishonesty
2) Contravenses any provisions of The Insurance Act or its equivalent
3) Unreasonably fails to pay to an insurer premiums collected and retained
4) Places insurance with unlicensed insurers
3/
21
Questions Chapter 7 & 8
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. Who is responsible for the administration of the insurance
act in your province? Answer: The Insurance Council
2. Outline the initial licensing requirements, whether there are
different levels of licenses, the supervision requirements, and license
terms in your province Answer: To obtain an initial license, an applicant must be of good
character and reputation and must pass an approved examination. Most provinces have adopted the CAIB
program, a step licensing systems.
Level 1 - Licenses for all lines of insurance, under supervision. CAIB 1 or fundamentals is required
Level 2 - Licenses for all lines of insurance without supervision, but not allowed to own or manage a
brokerage. CAIB 2 & 3 is required
Level 3 - Licenses for all lines of insurance and is qualified to own and manage a brokerage. CAIB 4 is
required.
3. Outline the class of license issued in our province and whether this
license would be valid in other provinces Answer: We receive an All Classes (other
than life) license. Brokers should check with the appropriate regulatory body to be sure of what is
2/
21
, Contact for further consultation
permitted in other provinces whether a counter signature is required or if the broker has to reside in
that province.
4. Identify 3 temptations that could cause a broker to act unethically
Answer: 1) To sell more insurance than is needed
2) To sell higher priced coverage when equivalent coverage is available at a lower price
3) To recommend the policy with the highest commission percentage
5. Identify 5 reasons why your license to practice as an insurance
broker may be revoked Answer: 1) Guilty of misrepresentation, fraud, deceit or
dishonesty
2) Contravenses any provisions of The Insurance Act or its equivalent
3) Unreasonably fails to pay to an insurer premiums collected and retained
4) Places insurance with unlicensed insurers
3/
21
