CAIB 4 INSURANCE PRINCIPLES
CERTIFICATION 2026 TEST PAPER
QUESTIONS AND ANSWERS GRADED A+
⩥ What are the considerations when evaluating operating affiliations.
Answer: services and support, exclusivity, fees, contractual agreement,
financial strength
⩥ What is the law of agency. Answer: when one entity acts on behalf of
another
⩥ 6 activities with human resources management function. Answer:
planning, selecting, orienting, training, developing & rewarding,
managing performance
⩥ the 3 steps in the selection process of new employees. Answer:
recruitment, screening and interviewing, hiring
⩥ 4 advantages of hiring within. Answer: cost effective, shorter vacancy,
takes guesswork out of hiring, reduces turnover
⩥ 5 components of screening process. Answer: application, resume,
interview, testing, reference checks
,⩥ most critical component of the orientation process. Answer: the
explanation of performance expectations
⩥ 4 kinds of training programs recommended for brokerages. Answer:
quality service training, sales training, product and service knowledge,
leadership training
⩥ 4 elements of the training program. Answer: who, what, why, how
⩥ how does a career path relate to an employee's development within
brokerage. Answer: it shows the employee how they may progress from
one position to another and what kinds of skills and education will be
required in order to progress
⩥ 6 components of leadership. Answer: delegating, motivating,
communication, managing conflict, managing change, coaching
⩥ key factor of effective delegation. Answer: communication is the key
factor of delegation
⩥ 2 reasons why delegation breaks down. Answer: when the balance
between responsibility and authority is not maintained and when
communication between the parties is not clear
, ⩥ non verbal communication. Answer: need to consider not only what
you say but how you say it
⩥ body language. Answer: others may interpret words differently if body
language, gestures, mannerisms are not supporting the words
⩥ active listening. Answer: ability to read between the lines, asks
questions to seek clarification
⩥ how managers can promote open communication. Answer:
demonstrate a desire to communicate, display a tendency to take action,
maintain flexibility, employ active listening skills
⩥ 4 strategies a manager can use to resolve employee conflict. Answer:
communication skills, mutual respect, interactive problem solving, win-
win solutions
⩥ 4 causes of employee resistance to change. Answer: tradition, past
failures, lack of times as too many priorities, unpredictability of future
⩥ why do some leaders fail to coach their employees. Answer: they don't
have time, they don' know how, too many employees reporting to them,
employees are not motivated to perform better
CERTIFICATION 2026 TEST PAPER
QUESTIONS AND ANSWERS GRADED A+
⩥ What are the considerations when evaluating operating affiliations.
Answer: services and support, exclusivity, fees, contractual agreement,
financial strength
⩥ What is the law of agency. Answer: when one entity acts on behalf of
another
⩥ 6 activities with human resources management function. Answer:
planning, selecting, orienting, training, developing & rewarding,
managing performance
⩥ the 3 steps in the selection process of new employees. Answer:
recruitment, screening and interviewing, hiring
⩥ 4 advantages of hiring within. Answer: cost effective, shorter vacancy,
takes guesswork out of hiring, reduces turnover
⩥ 5 components of screening process. Answer: application, resume,
interview, testing, reference checks
,⩥ most critical component of the orientation process. Answer: the
explanation of performance expectations
⩥ 4 kinds of training programs recommended for brokerages. Answer:
quality service training, sales training, product and service knowledge,
leadership training
⩥ 4 elements of the training program. Answer: who, what, why, how
⩥ how does a career path relate to an employee's development within
brokerage. Answer: it shows the employee how they may progress from
one position to another and what kinds of skills and education will be
required in order to progress
⩥ 6 components of leadership. Answer: delegating, motivating,
communication, managing conflict, managing change, coaching
⩥ key factor of effective delegation. Answer: communication is the key
factor of delegation
⩥ 2 reasons why delegation breaks down. Answer: when the balance
between responsibility and authority is not maintained and when
communication between the parties is not clear
, ⩥ non verbal communication. Answer: need to consider not only what
you say but how you say it
⩥ body language. Answer: others may interpret words differently if body
language, gestures, mannerisms are not supporting the words
⩥ active listening. Answer: ability to read between the lines, asks
questions to seek clarification
⩥ how managers can promote open communication. Answer:
demonstrate a desire to communicate, display a tendency to take action,
maintain flexibility, employ active listening skills
⩥ 4 strategies a manager can use to resolve employee conflict. Answer:
communication skills, mutual respect, interactive problem solving, win-
win solutions
⩥ 4 causes of employee resistance to change. Answer: tradition, past
failures, lack of times as too many priorities, unpredictability of future
⩥ why do some leaders fail to coach their employees. Answer: they don't
have time, they don' know how, too many employees reporting to them,
employees are not motivated to perform better
