C130 (Study 1 - Terms) Essential Skills
for the Insurance Broker and Agent
2025/2026 Exam Questions and Answers
| 100% Solved
insurance - 🧠 ANSWER ✔✔A contract in which one party (the insurer) for
monetary consideration agrees to reimburse another (the insured) for loss
or liability for a loss on a defined subject caused by specified hazards or
perils.
risk - 🧠 ANSWER ✔✔The chance of loss. Specifically, the possible loss or
destruction of property or the possible incurring or a liability. Sometimes
referred to as the subject of an insurance contract.
speculative risk - 🧠 ANSWER ✔✔chance of loss or gain; not insurable
intermediary - 🧠 ANSWER ✔✔1. The agent/broker negotiating insurance or
reinsurance contracts for another. 2. Any party representing another party,
in negotiation with a third party.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, agent - 🧠 ANSWER ✔✔A person licensed and authorized or employed to
act on behalf of another.
broker - 🧠 ANSWER ✔✔A licensed independent person or firm who acts
on behalf of an insured in placing business with insurance companies.
Distribution of insurance - 🧠 ANSWER ✔✔Independent Agency,
Independent Brokerage, Exclusive Agency, Direct Writer and Online and
Call Centre
Independent Agency System - 🧠 ANSWER ✔✔A system of marketing
insurance through independent contractors (agents) who sell insurance on
a commission or fee basis with one or more in insurers.
independent brokerage system - 🧠 ANSWER ✔✔A System in which
independent insurance professionals, licenced as insurance brokers, are
contracted to sell insurance on behalf of an insurer or multiple insurers.
Exclusive Agency System - 🧠 ANSWER ✔✔A system of marketing
insurance through licensed agents who represent only one company or a
group of companies under similar management.
direct writer - 🧠 ANSWER ✔✔Insurance company selling directly to the
public and not through independent agents or brokers.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
for the Insurance Broker and Agent
2025/2026 Exam Questions and Answers
| 100% Solved
insurance - 🧠 ANSWER ✔✔A contract in which one party (the insurer) for
monetary consideration agrees to reimburse another (the insured) for loss
or liability for a loss on a defined subject caused by specified hazards or
perils.
risk - 🧠 ANSWER ✔✔The chance of loss. Specifically, the possible loss or
destruction of property or the possible incurring or a liability. Sometimes
referred to as the subject of an insurance contract.
speculative risk - 🧠 ANSWER ✔✔chance of loss or gain; not insurable
intermediary - 🧠 ANSWER ✔✔1. The agent/broker negotiating insurance or
reinsurance contracts for another. 2. Any party representing another party,
in negotiation with a third party.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, agent - 🧠 ANSWER ✔✔A person licensed and authorized or employed to
act on behalf of another.
broker - 🧠 ANSWER ✔✔A licensed independent person or firm who acts
on behalf of an insured in placing business with insurance companies.
Distribution of insurance - 🧠 ANSWER ✔✔Independent Agency,
Independent Brokerage, Exclusive Agency, Direct Writer and Online and
Call Centre
Independent Agency System - 🧠 ANSWER ✔✔A system of marketing
insurance through independent contractors (agents) who sell insurance on
a commission or fee basis with one or more in insurers.
independent brokerage system - 🧠 ANSWER ✔✔A System in which
independent insurance professionals, licenced as insurance brokers, are
contracted to sell insurance on behalf of an insurer or multiple insurers.
Exclusive Agency System - 🧠 ANSWER ✔✔A system of marketing
insurance through licensed agents who represent only one company or a
group of companies under similar management.
direct writer - 🧠 ANSWER ✔✔Insurance company selling directly to the
public and not through independent agents or brokers.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
