Question 1

Which clause is a refusal to accept liability for damages that might occur?

Options :

A : Disclaimer

B : Indemnity provision

C : Risk retainer

D : Hold harmless agreement

Answer: A

Question 2

A broker is preparing to meet with a prospective client, Queen Ice Cream, who manufactures and distributes ice cream to five different provinces. What can the broker ask to ensure a smooth transition for the client?

Options :

A : How many flavours of ice cream does the client sell?

B : How long has the client been in business?

C : How many competitors are in the market?

D : Do all existing policies expire at the same time?

Answer: D

Question 3

Insurance premiums on automobile fleet policies are based on which factor?

Options :

A : Overall experience of all drivers

B : Driving record of the individual drivers

C : Original purchase price of all vehicles in the fleet

D : Mechanical condition of a vehicle from one particular fleet

Answer: A

Question 4

A broker is using their prior market knowledge to place a risk with an insurer who accepts luxury log cabins. Which insurer aspect is the broker considering?

Options :

A : Risk appetite

B : Risk management

C : Risk avoidance

D : Risk tolerance

Answer: A

Question 5

An architect is sued by a client for having failed to account for local bylaws when designing a new home. For the insurance company to defend the architect, which coverage must he have in place?

Options :

A : Wrap-up liability

B : Errors and omissions

C : Explosion, collapse, and underpinning

D : Commercial building, equipment, and stock

Answer: B

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