Chapter 2- Broker Professionalism And Ethics

Question 1

Four aspects of customer relationship management

Answer 1

Insurance policy management- clients Stay
Claims process management
Resolving conflict
Binding limits

Question 2

What is the claims process?

Answer 2

Loss -> insured reports to broker -> broker reports to insurer -> adjuster contacts client -> broker follows up if necessary -> claim closed

Question 3

Define risk management

Answer 3

Reducing Financial consequences of a loss

Question 4

What are the 5 steps in Risk Management:

Answer 4

1. Identify exposures that might affect client
2. Analyzed risks
3. Select risk management techniques
4. Implement
5. Monitor

Question 5

What are the two types of risks?

Answer 5

Speculative

Pure

Question 6

What is risk analysis?

Answer 6

Determine Financial consequences of loss. Calculate severity of Risk by frequency and cost

Question 7

What are four methods of risk management?

Answer 7

Control
Avoid
Retain
Transfer

Question 8

Name two common causes for E&O claims:

Answer 8

Inadequate coverage

Failing to make changes accurately or in time

Question 9

CAIB

Answer 9

Canadian accredited insurance broker. Four-part program covering personal lines, brokerage lines and broker management

Question 10

CPIB

Answer 10

Canadian professional insurance broker. Senior designation, University level. Prerequisite CAIB OR CIP

Question 11

CIP

Answer 11

Chartered Insurance professional.

Question 12

FCIP

Answer 12

Fellow chartered Insurance professional. Executive development program

Question 13

CCIB

Answer 13

Canadian certified insurance broker. Highest level

Question 14

Which designations does the Insurance Institute of Canada provide

Answer 14

CIP

FCIP

Question 15

Which designations does the IBAC provide?

Answer 15

National designations
CAIB
CPIB