CAIB 1 - Chapter 7 Questions and Answers 100% Correct

CAIB 1 - Chapter 7 Questions and Answers 100% Correct What are 3 actions which demonstrate a brokers unethical conduct? - Answer- to sell more insurance than is needed, to sell higher priced coverages when equivalent coverage is available for a lower price, to recommend policies with a higher commission. What are 3 qualities of a professional? - Answer- commitment to higher ethical standards, have a high standard of educational preparedness with mandatory continuous education, have a formal association regulating power over its members What responsibilities do brokers owe their clients? - Answer- to provide coverage best suited to the client, to hold the affairs of clients in strict confidence, to be competent and diligent. What responsibilities do brokers owe insurers? - Answer- to abide by the agency agreement, to adhere to binding authority, to deal honestly with money and to disclose all material facts What responsibilities do brokers owe fellow brokers? - Answer- to use fair methods of solicitation, to encourage public respect and to not harm the reputation of a fellow broker State 3 common E&O causes - Answer- inadequate coverage, misrepresentation and description errors, cancellation and renewal errors