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1. Jim owns a metal factory. Which question should Jim's broker ask to best understand the commercial occupancy of the company?
A) How is your factory protected against fire?
B) What is the total number of your staff?
C) Is your factory left unattended for long periods of time?
D) What does a typical day look like in your factory?
2. What is an agent's primary duty to the insurer?
A) Quote the client with maximum amounts of liability coverage
B) Provide the insurer with the insured's finances upon request
C) Provide the insurer with all relevant material facts
D) Bind the policy with the insurer they have the best relationship with
3. In insurance sales terminology, what is a lead?
A) A segment of existing clients who have similar insurance coverage needs
B) A member of a group of potential clients that fits the profile that has been determined as the marketing target
C) An insurer with an underwriting policy that most closely aligns with a broker's requirements
D) A broker who aims to meet their clients' needs with products
4. Which document releases the insurer from further obligations for a loss after payment is made?
A) Non-waiver agreement
B) Sworn statement
C) Proof of loss
D) Reservation of rights letter
5. Why do insurers prefer not to issue personal-lines forms for a dwelling that is owned by a numbered company and used for the company principals to reside in?
A) Inspections are prohibited on personal-lines policies.
B) Policy wordings restrict the named insured to an actual person.
C) Liability could extend to other, unrelated operations of that numbered company.
D) Coverage for fire damage varies greatly between personal-lines and commercial-lines.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |
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