Exam (elaborations)
CAIB 1 Chapter 7 questions with 100- correct answers(latest update).
- Course
- Institution
CAIB 1 Chapter 7 questions with 100- correct answers(latest update).
[Show more]
Content preview
CAIB 1 Chapter 7 questionswith 100% correct
answers(latest update)
Who is responsible for the administration of the insurance act in your
province? - answer MB Government
Outline the initial licensing requirements, whether there are different
levels of licenses, the supervision requirements, and license terms in your
province. - answer Insurance license required. CAIB 1 with supervision
Outline the class of license issued in our province and whether this license
would be valid in other provinces. - answer CAIB, this is transferable to
other provinces
Define "Ethics - answer the principles of conduct governing an individual
or a group
Identify 3 temptations that could cause a broker to act unethically. -
answer 1. Sell more insurance than is needed
2. Sell higher priced coverage when equivalent coverage is available at a
lower price
3. Recommend the policy with the highest commission percentage
Identify 6 reasons why your licence to practice as an insurance broker may
be revoked - answer 1. Guilty of misrepresentation, fraud, deceit or
dishonesty
2. Contravenes any provision of The Insurance Act or its equivalent
3. Fails to pay to an insurer premiums collected and retained beyond the
term stipulated
4. Places insurance with unlicensed insurers without complying with
legislation
, 5. Incompetent to transact insurance agency business for which the
licence was granted
6. Untrustworthy to transact insurance agency business for which the
licence was granted
Professional brokers association at both the provincial and national levels
are governed by codes of conduct which set ethical standards of a level
than more compliance with the law. Outline three duties brokers owe to
each of the following:
Clients
Insurers
Fellow Brokers - answer Clients
- Provide coverage best suited to the client's needs
- Hold the affairs of a client in strict confidence
- Be competent to perform the services undertaken on the clients behalf
Insurers
- Abide by the terms of the Agency Agreement
- Adhere to the binding authority granted by the insurer
- Deal honestly with monies held in trust for the insurer
- Disclose to the insurer all material facts about a risk even if such
information might jeopardize the placement of the risk
Fellow Brokers
- Use fair methods of competition in solicitation of the business,
consistent with the honor and dignity of the profession
- Encourage public respect for and endeavor to improve the practice of the
broker's vocation
- Co-operate in every reasonable way for the betterment of the industry
- Treat fellow brokers with respect
- To not harm the reputation of a fellow broker
Outline 3 characteristics showed by all professions, including brokers -
answer i. a commitment to high ethical standards
ii. A high standard of educational preparedness and training
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now