IIC C131 actual dump : Advanced Skills for the Insurance Broker and Agent

C131
  • Exam Code: C131
  • Exam Name: Advanced Skills for the Insurance Broker and Agent
  • Updated: Oct 06, 2026
  • Q & A: 79 Questions and Answers

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IIC C131 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Insuring Contractors & Construction Risks15%- Contractors' Exposures
- Builders Risk Insurance
Topic 2: Monitoring and Modifying Risk Plans5%
Topic 3: Insuring Manufacturers & Distributors15%
Topic 4: Introduction to Commercial Insurance10%
Topic 5: Commercial Property Coverages15%- Policy Wordings and Clauses
- Business Interruption Insurance
Topic 6: Specialty Lines: Auto, Crime, and Surety Bonds10%
Topic 7: Commercial Liability Coverages15%- General Liability
- Errors and Omissions
Topic 8: Risk Management Principles15%- Selecting Risk Management Techniques
- Analyzing Risk Exposures
- Developing Risk Management Plans

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

Question #1

A building contractor has been hired to perform renovations and additions to a run-down office building. The contractor is aware of the typical exposures that can arise from this operation and has adequate insurance in place, but needs to hire additional staff. He contacts his broker Andrew to discuss the benefit of having risk management measures in place during the contractor's employee selection process. Briefly describe the advice Andrew would provide.

Reveal Solution  Discussion  0

Correct Answer:

see the Explanation for Detailed Solution.
Explanation:
Andrew should explain that hiring is a risk management issue because employees directly affect job-site safety, workmanship quality, liability exposure, and claims frequency. Renovating a run-down office building creates hazards such as structural instability, demolition work, tools and equipment use, electrical or plumbing work, falls, damage to existing property, and injury to workers or third parties. Poor hiring can increase all of these risks.
Andrew should advise the contractor to use a structured employee selection process. This should include verifying trade qualifications, licences, safety training, employment history, references, and experience with similar renovation projects. If employees will drive company vehicles, motor vehicle record checks should be considered. If employees will access client premises, tools, materials, or secure areas, background checks may be appropriate where legally permitted.
The contractor should also use written job descriptions, documented safety policies, orientation training, supervision, probationary review, and records of training. These controls reduce the chance of accidents, theft, defective work, and liability claims. They also show insurers that the contractor is professionally managed.
Course topic reference: Risk Management; Contractors; Employee Selection; Loss Prevention; Construction Safety Controls .

Question #2

What does pure risk entail?

  • A. Chance of profit without loss
  • B. Chance of loss without gain
  • C. Either gain or loss
  • D. Only gain
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

Davies Architect has opened two new offices in the last quarter. Its recent claims history includes a break-in at its head office a month ago and legal action against the firm due to a structural mistake made by the architect and engineer six months ago. The firm's insurance broker is reviewing its current insurance program, and the renewal date is in two months. Due to stable market conditions, there have been no recent changes made by insurers to policy wordings or pricing. The firm has been very cooperative with providing information. Briefly discuss how the broker would review the renewal for this architectural firm.

Reveal Solution  Discussion  0

Correct Answer:

see the Explanation for Detailed Solution.
Explanation:
The broker should treat the renewal as a full exposure review, not a simple repeat of the previous policy. First, the two new offices must be added to the insurance program. The broker should confirm addresses, occupancy, property values, equipment, lease obligations, security, employees, and any change in revenue or professional activity at those locations. If the new offices are not disclosed properly, the firm may have uninsured property or liability exposures.
Second, the broker should review the break-in claim. This requires checking property, crime, burglary, security safeguards, alarm systems, locks, access controls, and any insurer recommendations. A recent theft loss may affect deductibles, terms, or underwriting attitude.
Third, the legal action involving a structural mistake is a major professional liability issue. The broker must review the architects' errors and omissions policy, claim reporting, retroactive date, limits, deductibles, engineers' involvement, and whether the claim has been properly notified.
Because the market is stable and the client is cooperative, renewal negotiations should be manageable.
However, the broker must update all material facts and recommend coverage changes where exposures have changed. Course topic reference: Monitoring and Modifying the Risk Management Plan; Liability; Professional Liability; Renewal Review; Architects' E & O .

Question #4

Angie is frustrated with her insurer as she recently had a mysterious disappearance claim that was denied under her commercial property policy. Why was Angie likely denied her claim?

  • A. Her appraisal was only received in the last three months
  • B. Her policy had not earned sufficient premium at the time of the loss
  • C. She had chosen named perils coverage
  • D. She had a similar claim in a previous policy term
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

Which exclusion on the contractors' equipment floater applies to loss or damage caused by breaking through ice or sinking in soft ground?

  • A. Muskeg exclusion
  • B. Sinkhole exclusion
  • C. Territory exclusion
  • D. Overloading exclusion
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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