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Exam Code: C131
Exam Name: Advanced Skills for the Insurance Broker and Agent
Updated: Aug 23, 2026
Q & A: 79 Questions and Answers
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| Section | Objectives |
|---|---|
| Underwriting and Policy Management | - Policy administration and endorsements - Underwriting guidelines and decision-making |
| Risk and Insurance Fundamentals | - Risk identification and assessment - Insurance principles and coverage types |
| Claims and Loss Handling | - Loss adjustment principles - Claims processes and documentation |
| Regulatory and Legal Environment | - Insurance regulations in Canada - Compliance and consumer protection |
| Insurance Brokerage Practice | - Professional ethics and conduct - Client relationship management - Broker roles and responsibilities |
1. What is governed by the Personal Information Protection and Electronic Documents Act (PIPEDA)?
A) The consent requirement when a prospective employer is asking the candidate for a list of references and previous work history
B) The use of corporate governance information
C) The types of software that can be used in data mining
D) The consent requirement when the insurer requests an applicant's motor vehicle record
2. When a broker is focusing on a manufacturing facility's housekeeping regimen and safeguards for a prospect, what is he primarily trying to establish?
A) How many expenses the facility has
B) Whether the prospect is a morale hazard
C) How large the facility is
D) Whether the prospect is profitable
3. A real estate investment trust is a long-term client of Best Brokerage. The REIT intends to tear down one unused warehouse and build an apartment in its place. The risk manager requests insurance coverage for the project, wants to avoid a significant increase in premium, and does not want to include cost overruns.
a) Briefly discuss how the limits of insurance of this project will be determined, and what type of costs are included in the limit.
b) Should the risk manager exclude cost overruns from the limit of insurance? Explain your answer.
4. What coverage is generally provided by an accounts receivable floater?
A) Loss arising out of credit card receipts being destroyed by fire
B) Loss arising out of maintaining duplicate records offsite
C) Loss arising out of bookkeeping errors
D) Loss arising as a result of bad debts
5. Which clause is a refusal to accept liability for damages that might occur?
A) Indemnity provision
B) Disclaimer
C) Risk retainer
D) Hold harmless agreement
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: Only visible for members | Question # 4 Answer: A | Question # 5 Answer: B |
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