Exam Code: C130
Exam Name: Essential Skills for the Insurance Broker and Agent
Updated: Jul 03, 2026
Q & A: 79 Questions and Answers
C130 Free Demo download
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1. Insurance is based on the existence of which factor?
A) Risk
B) Premium
C) Absolute liability
D) Tortfeasors
2. The insurance industry is entering a hard market as a result of losses arising from extreme weather. Megan, a broker, has been advised by the North American Fire and Casualty Company that it will be increasing its homeowner policy rates by 25 percent, effective immediately.
How should Megan deliver the bad news to her client Mr. Robertson, a widower living on a fixed pension?
How will she communicate with her client and what outcomes will Megan work towards?
3. Priya, a broker, receives a call from a prospective client, Umberto. Priya handles Umberto's inquiry and at the end of the call asks how he heard about her brokerage. He states that his manager at work has their home and auto coverage placed with Priya's brokerage. Which prospecting method would Priya check off on her questionnaire?
A) Cross-selling
B) Marketing
C) Upselling
D) Cold calling
4. What must an intermediary remember when using a valuation guide to calculate the replacement cost for a dwelling?
A) There is no substitute for an on-site inspection by the intermediary.
B) There will be increased costs to repair or replace luxury or custom dwellings.
C) The mortgage value may be less than the cost of replacing the building.
D) The tool used by each insurer would provide the exact same calculation.
5. What does the term contra proferentem mean?
A) Any uncertainty in the policy wording will be construed in the insured's favour.
B) Any insured listed on the policy must comply with all obligations under the policy.
C) The policy can be affirmed at the option of the insured.
D) The policy will be treated as if it never existed.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: Only visible for members | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: A |
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