Questions from this IIC C131 dump are 100% valid... not all answers. I passed this exam a few days ago (in France) and got these results.
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| Section | Objectives |
|---|---|
| Topic 1: Liability Insurance | - Commercial and general liability concepts |
| Topic 2: Specialized Insurance Lines | - Crime and bonds - Builders risk insurance - Contractors insurance - Automobile insurance - Manufacturers, distributors, freight forwarders |
| Topic 3: Risk Management | - Monitoring and modifying risk management plans - Insurance in a risk management plan - Analyzing risk exposures - Selecting risk techniques |
| Topic 4: Property Insurance Coverages | - Property coverages fundamentals |
Which type of property loss is commonly covered under the commercial property broad form (CPBF)?
Correct Answer: B 🗳️
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Helen, an agent for a marine insurer, is reviewing the renewal policy of her freight forwarding account. The firm has just expanded its operations to include United States exposure. Helen advises that a modification will be needed on both the current policy term and the renewal policy term. What is her reasoning to perform changes on both terms?
Correct Answer: D 🗳️
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Pure Meats Ltd. is a new company selling freezer-packed and processed meat products for resale in stores within Canada. The president has approached Rebecca, a broker who is an expert on products liability insurance. The media recently covered stories of individuals becoming ill or dying from listeriosis due to contaminated processed meat products. Identify the underwriting considerations and information Rebecca needs to assess this exposure. What will she recommend as part of an insurance program to cover the company's products liability exposure? Explain why.
Reveal Solution Discussion 0Correct Answer:
see the Explanation for Detailed Solution.
Explanation:
Rebecca must assess Pure Meats as a serious products liability and contamination exposure. She should gather information about the products sold, ingredients, suppliers, processing methods, refrigeration controls, packaging, labelling, expiry dates, storage conditions, transportation methods, and distribution territory. Since the products are sold for resale across Canada, one defective batch could affect many customers and create multiple bodily injury claims.
She should also review food-safety controls: sanitation procedures, employee training, temperature monitoring, batch coding, traceability, quality testing, inspection records, recall plans, regulatory compliance, and supplier agreements. Listeriosis is important because it can cause severe illness or death, making claim severity potentially high. As a new company, Pure Meats may have limited loss history, so underwriters will rely heavily on its controls and management competence.
Rebecca should recommend a commercial general liability policy with strong products liability coverage.
She should also recommend product recall or contamination coverage , because a standard CGL may defend and indemnify against third-party bodily injury or property damage claims, but it may not fully cover recall expenses, public notices, testing, disposal, crisis management, or brand rehabilitation. Course topic reference: Manufacturers, Distributors, and Freight Forwarders; Products Liability; Food Contamination; Product Recall; Underwriting Considerations .
How is a party treated when added to a liability policy as an additional named insured?
Correct Answer: B 🗳️
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Which exclusion on the contractors' equipment floater applies to loss or damage caused by breaking through ice or sinking in soft ground?
Correct Answer: A 🗳️
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