CII I10 Questions with Correct
Answers
What is the difference between an independent intermediary and an intermediary? -
ANSWER✔✔-An independent intermediary conducts insurance mediation without
being contractually tied to any other organisation. Intermediaries who are not
independent are contractually tied to one or more organisations, such as insurers, and
are authorised to conduct insurance mediation on behalf of the organisation they are
tied to.
State four reasons why an insured might buy insurance from an insurance broker. -
ANSWER✔✔-Four from: • Convenience. • Expert knowledge. • Independent
quotation. • Complexity of product. • Assistance with claims. • Existing relationship or
connected business. • Other services offered.
State four types of insurance broker. - ANSWER✔✔-Four from: • Global firms. • UK-
only based. • Consolidators. • Niche sector. • Wholesale. • Reinsurance. • Online. •
Lloyd's.
, What are the three fundamental factors which distinguish Lloyd's brokers from other
insurance brokers? - ANSWER✔✔-The three fundamental factors which distinguish
Lloyd's brokers from other insurance brokers are: • the market in which they operate; •
their methods of transacting business; and • many of the risks they place.
State three purposes of reinsurance. - ANSWER✔✔-The purposes of reinsurance are to
smooth peaks and troughs in claims experience, to protect the portfolio of risks being
insured, to improve customer service and support insurers entering new areas of
business.
Describe the role of the retail insurance broker - ANSWER✔✔-The retail insurance
broker acts directly for their clients, the insured.
State four typical methods of segmentation. - ANSWER✔✔-Four methods are: • By
class. • By trade. • By client size. • By premium size.
What are the traditional broking services? - ANSWER✔✔-The traditional broking
services are: reviewing client needs, selecting insurers, negotiating terms with insurers,
providing advice, negotiate renewals, advising and assisting clients with claims, design
and operation of insurance programmes.
State five added value services a broker may offer. - ANSWER✔✔-Five from: •
Property surveys. • Business continuity plans. • Business interruption reviews. •
Answers
What is the difference between an independent intermediary and an intermediary? -
ANSWER✔✔-An independent intermediary conducts insurance mediation without
being contractually tied to any other organisation. Intermediaries who are not
independent are contractually tied to one or more organisations, such as insurers, and
are authorised to conduct insurance mediation on behalf of the organisation they are
tied to.
State four reasons why an insured might buy insurance from an insurance broker. -
ANSWER✔✔-Four from: • Convenience. • Expert knowledge. • Independent
quotation. • Complexity of product. • Assistance with claims. • Existing relationship or
connected business. • Other services offered.
State four types of insurance broker. - ANSWER✔✔-Four from: • Global firms. • UK-
only based. • Consolidators. • Niche sector. • Wholesale. • Reinsurance. • Online. •
Lloyd's.
, What are the three fundamental factors which distinguish Lloyd's brokers from other
insurance brokers? - ANSWER✔✔-The three fundamental factors which distinguish
Lloyd's brokers from other insurance brokers are: • the market in which they operate; •
their methods of transacting business; and • many of the risks they place.
State three purposes of reinsurance. - ANSWER✔✔-The purposes of reinsurance are to
smooth peaks and troughs in claims experience, to protect the portfolio of risks being
insured, to improve customer service and support insurers entering new areas of
business.
Describe the role of the retail insurance broker - ANSWER✔✔-The retail insurance
broker acts directly for their clients, the insured.
State four typical methods of segmentation. - ANSWER✔✔-Four methods are: • By
class. • By trade. • By client size. • By premium size.
What are the traditional broking services? - ANSWER✔✔-The traditional broking
services are: reviewing client needs, selecting insurers, negotiating terms with insurers,
providing advice, negotiate renewals, advising and assisting clients with claims, design
and operation of insurance programmes.
State five added value services a broker may offer. - ANSWER✔✔-Five from: •
Property surveys. • Business continuity plans. • Business interruption reviews. •
