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Free IIC C131 Exam Dumps Questions & Answers
| Exam Code/Number: | C131Join the discussion |
| Exam Name: | Advanced Skills for the Insurance Broker and Agent |
| Certification: | IIC |
| Question Number: | 79 |
| Publish Date: | Nov 08, 2026 |
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Rating
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Total 79 questions
What type of property would be covered by mercantile stock burglary coverage under a crime insurance policy?
A broker is trying to convince his large accountancy client to purchase cyber risk insurance. The firm's CEO believes the controls in place managed by a third-party information technology provider are sufficient. The broker provides the CEO with a list of claims that will only be covered if cyber risk insurance is carried.
Which type of claim appears on that list?
What is insurer solvency?
The owner of a successful chain of spas wants to ensure her liability coverage is adequate. She has read about several lawsuits regarding slip and falls within spas, and she has been fielding questions via social media about health and safety practices from her clients. Her broker advises she has a broad umbrella policy over and above her primary policy. What coverage does the umbrella policy include?
Davies Architect has opened two new offices in the last quarter. Its recent claims history includes a break-in at its head office a month ago and legal action against the firm due to a structural mistake made by the architect and engineer six months ago. The firm's insurance broker is reviewing its current insurance program, and the renewal date is in two months. Due to stable market conditions, there have been no recent changes made by insurers to policy wordings or pricing. The firm has been very cooperative with providing information. Briefly discuss how the broker would review the renewal for this architectural firm.
Explanation:
The broker should treat the renewal as a full exposure review, not a simple repeat of the previous policy. First, the two new offices must be added to the insurance program. The broker should confirm addresses, occupancy, property values, equipment, lease obligations, security, employees, and any change in revenue or professional activity at those locations. If the new offices are not disclosed properly, the firm may have uninsured property or liability exposures.
Second, the broker should review the break-in claim. This requires checking property, crime, burglary, security safeguards, alarm systems, locks, access controls, and any insurer recommendations. A recent theft loss may affect deductibles, terms, or underwriting attitude.
Third, the legal action involving a structural mistake is a major professional liability issue. The broker must review the architects' errors and omissions policy, claim reporting, retroactive date, limits, deductibles, engineers' involvement, and whether the claim has been properly notified.
Because the market is stable and the client is cooperative, renewal negotiations should be manageable.
However, the broker must update all material facts and recommend coverage changes where exposures have changed. Course topic reference: Monitoring and Modifying the Risk Management Plan; Liability; Professional Liability; Renewal Review; Architects' E & O .