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Exam Code: C130
Exam Name: Essential Skills for the Insurance Broker and Agent
Updated: Aug 22, 2026
Q & A: 79 Questions and Answers
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| Section | Objectives |
|---|---|
| Insurance Intermediaries and Distribution | - Role of agents and brokers - Distribution systems (direct writer, independent brokerage, etc.) - Agency relationships and authority |
| Insurance Fundamentals and Core Concepts | - Principles of insurance (risk, insurability, contracts) - Types of risk and risk management |
| Ethics, Legal Principles, and Professional Standards | - Duty of care and fiduciary responsibility - Ethical conduct and regulatory expectations |
| Insurance Products and Policy Basics | - Policy structure and coverage concepts - Property and liability insurance fundamentals |
| Client Needs and Risk Assessment | - Identifying client exposures and loss potential - Information gathering and client interviewing |
1. Mikayla is an independent contractor who uses her own vehicle to deliver pizza. She is compensated by the number of pizzas she can deliver. If she is involved in an accident where she injures a third party, which coverage could respond?
A) Mikayla's homeowners policy
B) Mikayla's employer's liability coverage from its tenant's legal liability
C) The pizza company's professional liability policy
D) The pizza company's non-owned automobile policy
2. A tenant's negligence causes a fire in the dwelling they rent. Typically, who is initially responsible for paying the damage?
A) The insurer that issued the tenant's legal liability policy
B) The dwelling's owner who is responsible for the tenant's actions
C) The tenant who negligently caused the fire
D) The insurer that issued the homeowners policy
3. How much would Company B be required to pay for an insured loss of $200,000 if all three insurers' wordings have a contribution clause?
Insurer | Amount Insured
Company A | $300,000
Company B | $80,000
Company C | $20,000
A) $40,000
B) $80,000
C) $25,000
D) $20,000
4. 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?
5. In insurance sales terminology, what is a lead?
A) An insurer with an underwriting policy that most closely aligns with a broker's requirements
B) A broker who aims to meet their clients' needs with products
C) A segment of existing clients who have similar insurance coverage needs
D) A member of a group of potential clients that fits the profile that has been determined as the marketing target
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: Only visible for members | Question # 5 Answer: D |
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