IIC C130 : Essential Skills for the Insurance Broker and Agent

  • Exam Code: C130
  • Exam Name: Essential Skills for the Insurance Broker and Agent
  • Updated: Aug 21, 2026
  • Q & A: 79 Questions and Answers

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IIC C130 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Fundamentals and Core Concepts- Principles of insurance (risk, insurability, contracts)
- Types of risk and risk management
Topic 2: Ethics, Legal Principles, and Professional Standards- Duty of care and fiduciary responsibility
- Ethical conduct and regulatory expectations
Topic 3: Client Needs and Risk Assessment- Information gathering and client interviewing
- Identifying client exposures and loss potential
Topic 4: Insurance Intermediaries and Distribution- Agency relationships and authority
- Distribution systems (direct writer, independent brokerage, etc.)
- Role of agents and brokers
Topic 5: Insurance Products and Policy Basics- Policy structure and coverage concepts
- Property and liability insurance fundamentals

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

1. 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?


2. In which Canadian province is compulsory automobile insurance purchased from a private insurer?

A) Manitoba
B) British Columbia
C) Newfoundland and Labrador
D) Saskatchewan


3. 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) The mortgage value may be less than the cost of replacing the building.
C) The tool used by each insurer would provide the exact same calculation.
D) There will be increased costs to repair or replace luxury or custom dwellings.


4. 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


5. Which statement about the expiry dates of binders is correct?

A) Binders must include the statement "valid for one year."
B) The expiry date must automatically be 30 days from the effective date of the policy.
C) An open expiry date should be used in case the delivery of the formal policy is delayed.
D) To minimize the risk of overlooking an expiring binder, the expiry date should fall on a business day.


Solutions:

Question # 1
Answer: Only visible for members
Question # 2
Answer: C
Question # 3
Answer: D
Question # 4
Answer: B
Question # 5
Answer: D

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