Chapter 15 Quizlet

Question 1

“Who is responsible for the Administration of the Insurance Act

Answer 1

Superintendent of Insurance OR Superintendent of Financial Institutions (BC), OR the Commissioner (Ontario)

Question 2

List 2 requirements of an application to get an INITIAL license

Answer 2

1. Be of good character/reputation
2. Must pass an approved exam

Question 3

List 2 requirements for qualifications for licensing

Answer 3

1. Must be sponsored by the brokerage that employs them.
2. If self-employed must be represented by an insurer

Question 4

A Level I is permitted to sell all types of General Insurance - True or false

Answer 4

TRUE

Question 5

A level III is permitted to own and amange a brokerage - true or false

Answer 5

TRUE

Question 6

Define Ethics

Answer 6

One’s moral duties/obligations to other

Question 7

Define REBATING

Answer 7

“Returning a part of the premium on the policy to applicant to induce them to purchase insurance Can also be giving the client something valuable (other than money)

Question 8

RIBO stands for

Answer 8

Role of Insurance Councils

Question 9

CCIR stands for

Answer 9

Canadian Council of Insurance Regulators

Question 10

A Broker’s duties must be performed while adhering to these standards List (8)

Answer 10

1. Integrity
2. Competence
3. Quality of Service
4. Advising Clients
5. Confidentiality
6. Fee Disclosure
7. Encouraging Public Respect
8. Maintaining Integrity of Profession

Question 11

CAIB Stands for

Answer 11

Canadian Accredited Insurance Broker

Question 12

List the 3 duties owed to insurers by brokers/brokerages

Answer 12

1. Follow Agency Agreement- binder authorities
2. Deal with monies in trust for insurer
3. Disclose to insurer all material facts about a risk even if it jeopardizes a sale