CIP - C130 Exam Questions and Correct
Answers
Question 1
A system established to monitor files to ensure that action is taken within the
appropriate time is known as
Correct Answer
abeyance.
Question 2
When a broker asks a client whose policy is due for renewal, if he would like to
purchase a comprehensive homeowners policy to replace his existing broad form
policy, the broker is
Correct Answer
up-selling.
Question 3
In self-regulated licensing models for insurance agents, which of the following bodies
controls the licensing laws?
Correct Answer
Provincial government
Question 4
What is an example of an indirect loss?
Correct Answer
Loss of income following a fire claim that closes a factory another
Page 1 of 34
,Question 5
Historically, all insurers rated vehicles according to the
Correct Answer
Provincial Clear Rating System
Question 6
Matching a similar sitting position as the person to whom you are speaking, is an
example of
Correct Answer
mirroring.
Question 7
By law, for which type of insurance must an application be signed by the insured?
Correct Answer
Commercial automobile
Question 8
Misrepresentation is
Correct Answer
giving false information to an underwriter, and knowing it is false.
Question 9
The majority of claims under a liability insurance policy arise from
Correct Answer
negligence
Question 10
With respect to Utmost Good Faith,
Correct Answer
full disclosure of material information is required by all parties.
Page 2 of 34
,Question 11
The broker's role in an insurance claim is to
Correct Answer
explain the claims process to the insured.
Question 12
The Facility Association does NOT operate in
Correct Answer
British Columbia.
Question 13
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
Correct Answer
burglary.
Question 14
Letters of authorization are
Correct Answer
written notices from the insured to the insurer stating the broker of record on a
policy.
Question 15
How would an insurer generally underwrite an applicant with one previous not-at-
fault loss in which her vehicle was damaged?
Correct Answer
Apply standard terms and conditions based on the exposure
Page 3 of 34
, Question 16
A physical hazard
Correct Answer
increases the chance of a peril occurring.
Question 17
A person standing outside a restaurant shouting that the restaurant is a health
hazard, thus causing the restaurant to lose business, could face a
Correct Answer
slander suit.
Question 18
The suspension of coverage endorsement
Correct Answer
suspends third party liability and collision coverage and is available in most
provinces
Question 19
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
Correct Answer
apply standard terms and conditions based on the exposure.
Question 20
Which of the following is a legal entity?
Correct Answer
268539 Ontario Limited
Page 4 of 34
Answers
Question 1
A system established to monitor files to ensure that action is taken within the
appropriate time is known as
Correct Answer
abeyance.
Question 2
When a broker asks a client whose policy is due for renewal, if he would like to
purchase a comprehensive homeowners policy to replace his existing broad form
policy, the broker is
Correct Answer
up-selling.
Question 3
In self-regulated licensing models for insurance agents, which of the following bodies
controls the licensing laws?
Correct Answer
Provincial government
Question 4
What is an example of an indirect loss?
Correct Answer
Loss of income following a fire claim that closes a factory another
Page 1 of 34
,Question 5
Historically, all insurers rated vehicles according to the
Correct Answer
Provincial Clear Rating System
Question 6
Matching a similar sitting position as the person to whom you are speaking, is an
example of
Correct Answer
mirroring.
Question 7
By law, for which type of insurance must an application be signed by the insured?
Correct Answer
Commercial automobile
Question 8
Misrepresentation is
Correct Answer
giving false information to an underwriter, and knowing it is false.
Question 9
The majority of claims under a liability insurance policy arise from
Correct Answer
negligence
Question 10
With respect to Utmost Good Faith,
Correct Answer
full disclosure of material information is required by all parties.
Page 2 of 34
,Question 11
The broker's role in an insurance claim is to
Correct Answer
explain the claims process to the insured.
Question 12
The Facility Association does NOT operate in
Correct Answer
British Columbia.
Question 13
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
Correct Answer
burglary.
Question 14
Letters of authorization are
Correct Answer
written notices from the insured to the insurer stating the broker of record on a
policy.
Question 15
How would an insurer generally underwrite an applicant with one previous not-at-
fault loss in which her vehicle was damaged?
Correct Answer
Apply standard terms and conditions based on the exposure
Page 3 of 34
, Question 16
A physical hazard
Correct Answer
increases the chance of a peril occurring.
Question 17
A person standing outside a restaurant shouting that the restaurant is a health
hazard, thus causing the restaurant to lose business, could face a
Correct Answer
slander suit.
Question 18
The suspension of coverage endorsement
Correct Answer
suspends third party liability and collision coverage and is available in most
provinces
Question 19
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
Correct Answer
apply standard terms and conditions based on the exposure.
Question 20
Which of the following is a legal entity?
Correct Answer
268539 Ontario Limited
Page 4 of 34
