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IIC Chartered Insurance Professional (CIP) C130

C130

Exam Code: C130

Exam Name: Essential Skills for the Insurance Broker and Agent

Updated: Oct 08, 2026

Q & A: 79 Questions and Answers

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IIC C130 Exam Syllabus Topics:

SectionObjectives
Legal and Regulatory Framework- Law of agency and fiduciary duty
- Ethical standards and professional conduct
Insurance Products and Markets- Commercial and personal lines overview
- Property and casualty insurance basics
Insurance Fundamentals and Risk Concepts- Insurance principles and contract basics
- Nature of risk (pure vs speculative risk)
Insurance Distribution Systems- Agent vs broker roles and responsibilities
- Distribution models (independent agency, brokerage, direct writers)
Broker and Agent Practice Skills- Client communication and advisory skills
- Policy placement and insurer interaction

IIC Essential Skills for the Insurance Broker and Agent Sample Questions:

Question #1
A commercial general liability policy has an aggregate limit of $1,000,000. During the current term, the insurer has already paid for three liability claims: one for $100,000, a second for $500,000, and a third for
$300,000. How much will the insurer pay if a new claim of $300,000 is submitted?

A. $0
B. $1,000,000
C. $300,000
D. $100,000


Question #2
Michelle is a new agent who would like to protect herself against possible errors and omissions claims. What should Michelle practice in her interactions with clients and insurers?

A. Offer advice to clients if she thinks it is beneficial, even if it is outside her area of expertise
B. Use close-ended questions with clients at all times
C. Recommend that clients consult with experts outside the insurance field if a situation calls for it
D. Ensure all communication with clients and insurers is done face-to-face


Question #3
What does the term contra proferentem mean?

A. The policy will be treated as if it never existed.
B. The policy can be affirmed at the option of the insured.
C. Any insured listed on the policy must comply with all obligations under the policy.
D. Any uncertainty in the policy wording will be construed in the insured's favour.


Question #4
Insurance is based on the existence of which factor?

A. Premium
B. Risk
C. Absolute liability
D. Tortfeasors


Question #5
Regarding the duty of disclosure, what is required to comply with the principle of utmost good faith?

A. The intermediary is required to withhold disclosure of pertinent information if the client asks the broker to do so.
B. Full disclosure of material information is required of the applicant.
C. The broker or agent determines whether the information is material to the risk and discloses information accordingly, on behalf of the insured.
D. The applicant has a duty to disclose all relevant and irrelevant facts.


Solutions:

Question #1
Correct Answer: D
Question #2
Correct Answer: C
Question #3
Correct Answer: D
Question #4
Correct Answer: B
Question #5
Correct Answer: B

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