CAIB 1 Chapter 7 Practice Questions and Answers 100% Pass

CAIB 1 Chapter 7 Practice Questions and Answers 100% Pass Who is responsible for the administration of the insurance act in your province? - Answer- MB Government Outline the initial licensing requirements, whether there are different levels of licenses, the supervision requirements, and license terms in your province. - Answer- Insurance license required. CAIB 1 with supervision Outline the class of license issued in our province and whether this license would be valid in other provinces. - Answer- CAIB, this is transferable to other provinces Define "Ethics - Answer- the principles of conduct governing an individual or a group Identify 3 temptations that could cause a broker to act unethically. - Answer- 1. Sell more insurance than is needed 2. Sell higher priced coverage when equivalent coverage is available at a lower price 3. Recommend the policy with the highest commission percentage Identify 6 reasons why your licence to practice as an insurance broker may be revoked - Answer- 1. Guilty of misrepresentation, fraud, deceit or dishonesty 2. Contravenes any provision of The Insurance Act or its equivalent 3. Fails to pay to an insurer premiums collected and retained beyond the term stipulated 4. Places insurance with unlicensed insurers without complying with legislation 5. Incompetent to transact insurance agency business for which the licence was granted 6. Untrustworthy to transact insurance agency business for which the licence was granted Professional brokers association at both the provincial and national levels are governed by codes of conduct which set ethical standards of a level than more compliance with the law. Outline three duties brokers owe to each of the following: Clients Insurers Fellow Brokers - Answer- Clients - Provide coverage best suited to the client's needs - Hold the affairs of a client in strict confidence - Be competent to perform the services undertaken on the clients behalf Insurers - Abide by the terms of the Agency Agreement - Adhere to the binding authority granted by the insurer - Deal honestly with monies held in trust for the insurer - Disclose to the insurer all material facts about a risk even if such information might jeopardize the placement of the risk