Study 5: Communication and Service Skills - MC Flashcards
. PIPEDA is a federal statute that governs the collection and use of personal information. What does
the acronym “PIPEDA” stand for?
A. Protection of Information Personal to Everyone Deemed Acceptable
B. Personal Information Protection and Electronic Documents Act
C. Proper Information Protection and Electric Documents Act
D. Personal Incidents of Protection and Elementary Details Information Act
Personal Information Protection and Electronic Documents Act
Rationale: Personal Information Protection and Electronic Documents Act (PIPEDA) is a federal statute
that governs the collection and use of personal information. It states that personal information to be
collected must be relevant, and that all information that has been collected, is being collected, or will be
collected must be held in the strictest of confidence.
Jameela calls the brokerage and, when unable to reach her broker, decides to leave a message on
his voicemail. She instructs him to remove a vehicle from her policy effective immediately and wants
proof of the change sent to her in the mail. What should the broker have done so that Jameela is
discouraged from requesting changes to her policy without speaking to the broker?
A. The broker should have forwarded his phone to a co-worker so that the voicemail was not
required and a personal message could have been relayed by the co-worker.
B. The broker should have a statement on his voicemail greeting advising that any changes,
additions, or reductions on an insurance policy cannot be completed without a discussion with the
broker.
C. The broker should have forwarded his office phone to his cell phone so that he doesn’t miss a
client call.
D. There is nothing different that the broker should do and he should just follow up on completing the
required changes.
The broker should have a statement on his voicemail greeting advising that any changes,
additions, or reductions on an insurance policy cannot be completed without a discussion with the broker.
Rationale: Because voicemail is not always reliable, the greeting should remind clients that coverage
cannot be bound or altered through a voicemail message.
What should brokers and agents do to prepare for a phone conversation with a client?
A. Have supplies like notepads, pens, documents, forms, or applications ready in order to record the
discussion
B. Make sure that the door is closed at all times in case of a phone call
C. Do nothing to prepare ahead of time since the clients will call in and intermediaries have no need
to make outbound calls
D. Have an audio recorder computer on hand to document the full discussion with the client
Have supplies like notepads, pens, documents, forms, or applications ready in order to record the discussion
Rationale: In preparation for a telephone conversation, agents and brokers should have supplies at
hand, such as notepads and pens for handwritten notes or the appropriate document, form, or
application available on a computer or tablet to record details of the conversation; client files for
reference; and any forms required.
A client presenting a complaint may be upset and in an emotionally heightened state. How should the
intermediary respond to the client’s emotions?
A. Remain calm, clarify the client’s position, and keep the discussion focused on the facts.
B. Provide reasons for the client’s position.
C. Advise the client that there is no reason to be so emotional.
D. Apologize, realizing that the client is wrong in their reaction and the agent or broker is appeasing
them.
Remain calm, clarify the client’s position, and keep the discussion focused on the facts.
Rationale: Intermediaries should remain calm, clarify the client’s position, keep the discussion focused
on the facts, and avoid falling into the traps inherent to the specific situation.
Anita stops by the brokerage very upset about her renewal documents. Anita feels that a mistake
has resulted in a significant increase in her renewal premium. She demands to speak with her
broker, who is not currently available. What should the representative of the brokerage do?
A. Advise Anita to talk with her broker tomorrow
B. Assume that Anita is just being difficult for no reason and send her away
C. Call the broker to inform him that Anita is at the office and really upset
D. Avoid assuming that Anita is a difficult person and listen to Anita’s situation
Avoid assuming that Anita is a difficult person and listen to Anita’s situation
Rationale: Intermediaries should avoid making assumptions about the client. An unbiased position will allow the flexibility to respond to what the client actually says. Labelling a complaining client as an irate
customer is likely to hinder resolution of the problem and the growth of any positive relationship.
What is one of the ways that an intermediary can deal with a client’s dissatisfaction that has led to a
non-renewal of the policy?
A. Accuse the insurer of being responsible for the client’s situation.
B. Advise the client that the situation is not resolvable and send them to another brokerage.
C. Advise the client that the only resolution is to seek the services of a direct writer.
D. Listen to the insured’s concerns and offer solutions if possible.
Listen to the insured’s concerns and offer solutions if possible.
Rationale: Client dissatisfaction with insurer services generally relates to the insurers’ answering of
queries, the issuing of documents, or the handling of claims. Listen to the insured’s concerns and offer
solutions if possible.
What is the amount of money an insurer charges to provide insurance coverage?
A. Rate
B. Interest
C. Premium
D. Service fee
Premium
Rationale: A commonly used definition of “premium” is that it is the amount of money an insurer
charges to provide insurance coverage.
Jon calls his agent advising that he has moved and needs to update his address with the agency.
Jackson, the agent, proceeds with an endorsement in order to make the changes to Jon’s file. What
should Jackson also consider in making this address change?
A. What other policies or coverages may be involved in this address change
B. How much more premium Jackson must advise his client will be required
C. What territory Jon has moved to and if it is now a more high-risk neighbourhood
D. Whether Jon has gone through a marital separation causing him to have visitation with his
children
What other policies or coverages may be involved in this address change
Rationale: An endorsement may trigger changes to many files. For example, if a client’s address changes, this should be noted in the client profile; the address change could mean a location change or a change in use of the building or changes in the use and exposure of the automobile risk.
Peter and Mai Trang have been shopping around for insurance since their renewal on June 1. It is
now December 17. They call their broker, Jackie Longson, to notify her that they would like to cancel
their policies for home and auto as they have found another insurer who has offered them a much
lower premium. Jackie advises that Peter and Mai will be asked to sign a cancellation form. What else
does Jackie need to advise her clients about?
A. They are not allowed to cancel their policy in the middle of the term as they signed a contract for
one year.
B. The Trangs will need to give Jackie a referral for another client as they are taking their business
elsewhere, leaving Jackie with a loss of income.
C. The Trangs will face a short-rate cancellation of their policy, resulting in a financial penalty.
D. If they leave the brokerage, they will not be allowed to return for three years.
The Trangs will face a short-rate cancellation of their policy, resulting in a financial penalty.
Rationale: Short-rate cancellation is the cancellation by the insured of a policy before its natural expiration; the insurer pays a return premium that is less than the proportionate part that remains unearned.
As a recommended best practice, what should an intermediary request when the client decides to
cancel an insurance policy?
A. That the insured shred all documents they still have for the policy that they are requesting to be
cancelled
B. That the insured not tell friends and family of their decision to cancel the policy as it could ruin the
intermediary’s reputation
C. That the client explain why they decided to shop their insurance without asking the broker or
agent to help them with the premiums
D. That the client sign a cancellation form, making sure that all owners or named insureds sign the
form
That the client sign a cancellation form, making sure that all owners or named insureds sign
the form
Rationale: The statutory conditions do not require that the insured’s request to cancel be in writing;
however, it is prudent to obtain written confirmation from the insured that the policy is to be terminated.
