Podcast
Questions and Answers
What is a major cause of business loss?
What is a major cause of business loss?
Theft
What is the name of the curve that illustrates the rate at which we forget information?
What is the name of the curve that illustrates the rate at which we forget information?
Forgetting Curve
What is the name of the organization that oversees the administration of the Insurance Act in each province?
What is the name of the organization that oversees the administration of the Insurance Act in each province?
To obtain an initial insurance broker license, an applicant must have a good character and reputation.
To obtain an initial insurance broker license, an applicant must have a good character and reputation.
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Which of the following is NOT required for a Level 1 insurance broker license?
Which of the following is NOT required for a Level 1 insurance broker license?
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What is the standard term for the duration of an insurance broker license?
What is the standard term for the duration of an insurance broker license?
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An insurance broker can sell any class of insurance without a specific license.
An insurance broker can sell any class of insurance without a specific license.
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An insurance broker can sell insurance in any province without obtaining a license in that province.
An insurance broker can sell insurance in any province without obtaining a license in that province.
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What is the term that refers to principles of conduct that govern individuals and groups?
What is the term that refers to principles of conduct that govern individuals and groups?
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Brokers' associations are required to have a code of conduct.
Brokers' associations are required to have a code of conduct.
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Which of the following is NOT a duty of a broker to their clients?
Which of the following is NOT a duty of a broker to their clients?
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A broker must be knowledgeable about their clients' specific needs and personal situations.
A broker must be knowledgeable about their clients' specific needs and personal situations.
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Which of the following is NOT a duty of a broker to their insurers?
Which of the following is NOT a duty of a broker to their insurers?
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The insurance industry generally considers inadequate coverage to be a significant cause of E&O claims.
The insurance industry generally considers inadequate coverage to be a significant cause of E&O claims.
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Exclusions and exemptions benefit the insurance company, not the policyholder.
Exclusions and exemptions benefit the insurance company, not the policyholder.
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A broker should give their clients advice regarding insurance coverage, even if it's not their area of expertise.
A broker should give their clients advice regarding insurance coverage, even if it's not their area of expertise.
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A client's application for insurance is considered placed once the broker has received the application and submitted it to the insurer.
A client's application for insurance is considered placed once the broker has received the application and submitted it to the insurer.
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A broker should always be transparent with their clients regarding the availability of insurance coverage.
A broker should always be transparent with their clients regarding the availability of insurance coverage.
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Brokers are not liable for losses incurred due to processing delays.
Brokers are not liable for losses incurred due to processing delays.
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Agency agreements specify the limits of binding authority for brokers.
Agency agreements specify the limits of binding authority for brokers.
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A broker should seek legal counsel if they are unsure about the specifics of a client's insurance needs.
A broker should seek legal counsel if they are unsure about the specifics of a client's insurance needs.
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A broker should prioritize their personal opinion over the needs of their clients when suggesting insurance options.
A broker should prioritize their personal opinion over the needs of their clients when suggesting insurance options.
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Brokers are not responsible for handling claims filed by their clients.
Brokers are not responsible for handling claims filed by their clients.
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A broker should advise their clients to avoid contacting their insurance companies directly.
A broker should advise their clients to avoid contacting their insurance companies directly.
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Brokers should prioritize avoiding non-renewals regardless of the clients' circumstances.
Brokers should prioritize avoiding non-renewals regardless of the clients' circumstances.
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Brokers are expected to maintain accurate and detailed records of all client interactions and transactions.
Brokers are expected to maintain accurate and detailed records of all client interactions and transactions.
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A broker should never question the fairness or accuracy of an adjuster's decisions.
A broker should never question the fairness or accuracy of an adjuster's decisions.
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It is not necessary for brokers to maintain a consistent and professional approach in their business practices.
It is not necessary for brokers to maintain a consistent and professional approach in their business practices.
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A broker should always provide broad and comprehensive coverage options to all their clients, regardless of individual needs.
A broker should always provide broad and comprehensive coverage options to all their clients, regardless of individual needs.
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What is the term used to describe a detailed and comprehensive insurance policy that covers a wide range of risks?
What is the term used to describe a detailed and comprehensive insurance policy that covers a wide range of risks?
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Brokers should conduct regular audits of their files to ensure accuracy and minimize potential errors.
Brokers should conduct regular audits of their files to ensure accuracy and minimize potential errors.
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Claim handling is not within the scope of a broker's responsibilities.
Claim handling is not within the scope of a broker's responsibilities.
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A broker should always advise their clients to proceed with repairs or replacements as soon as possible after a loss occurs, regardless of the insurer's involvement.
A broker should always advise their clients to proceed with repairs or replacements as soon as possible after a loss occurs, regardless of the insurer's involvement.
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Brokers are not responsible for ensuring their clients understand the consequences of cancelling their insurance policies.
Brokers are not responsible for ensuring their clients understand the consequences of cancelling their insurance policies.
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Brokers should always avoid making any statements that could potentially bind the insurer to a course of action.
Brokers should always avoid making any statements that could potentially bind the insurer to a course of action.
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A broker should only inform their clients about a loss if they are certain the loss is covered by the insurance policy.
A broker should only inform their clients about a loss if they are certain the loss is covered by the insurance policy.
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Brokers should avoid following up with their clients regarding the status of their claims settlements.
Brokers should avoid following up with their clients regarding the status of their claims settlements.
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It is acceptable for brokers to disregard the need for detailed claim records, as long as they have a good understanding of the details of a claim.
It is acceptable for brokers to disregard the need for detailed claim records, as long as they have a good understanding of the details of a claim.
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Brokers should avoid interfering with claims negotiations, as it is the responsibility of the adjuster and the insurer.
Brokers should avoid interfering with claims negotiations, as it is the responsibility of the adjuster and the insurer.
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Study Notes
Insurance Training & Education
- This material outlines training and education for insurance, likely for a professional certification.
CAB1 General Insurance
- CAB1 refers to a specific general insurance curriculum/training.
- Icons on the graphic show various types of insurance coverage.
Attendance Poll
- Students are asked if they can hear the facilitator and see the slides, likely during a virtual training session.
Learning Pause
- Students are instructed to recall concepts from the previous session for 3-4 minutes.
- The Forgetting Curve graph displays data on retention over time, emphasizing the value of practice and review.
Insurance Graphic Organizer
- This is likely a study tool for CAIB1 Chapter 6 related to insurance.
Example Exam Question (Theft)
- Theft is a major insurance loss concern.
- Students should provide two examples of theft situations including when, where, and who is involved.
Theft: Major Cause of Loss (Data Points)
- In 2009, $400 million worth of vehicles were stolen in Canada
- Approximately 25% of stolen vehicles were recovered.
- A 1980's study found patterns suggesting theft occurring during specific times/locations (e.g., evenings, Thursday, front of homes).
- Common theft locations include shopping centre lots, hospital/commercial parking lots, and sports cars/imports.
Theft: Major Cause of Loss (Details)
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Common types of vehicle theft include joyriding, commission of other crimes by persons.
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Vehicle theft often occurs due to owner negligence/abandonment.
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Stolen vehicles are frequently found in a short period (within 10 days).
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Criminal rings involved in reselling stolen vehicles/parts.
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Organized rings operate by stealing to order.
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Vehicles selected for theft based on make, model, and specific needs.
Theft: Major Cause of Loss (Specific Cases)
- Example case involving a person picking up work shoes at a mall and parking their vehicle next to an empty spot in the parking lot.
- Criminal Rings frequently steal vehicles to sell quickly.
- Multiple theft rings involved in dealing with stolen parts or vehicles
- Large amounts of theft of vehicles per year from a variety of sources.
Chapter 7: Building Towards Professionalism (Regulation of Brokers)
- The insurance industry is subject to government regulation.
- Administration of insurance is handled provincially.
- Provincial Departments oversee the laws surrounding insurance.
Licensing Standards for Brokers
- Licenses required for brokers applying for a license, or working in certain roles
- License sponsorship is sometimes required in some provinces or by employers.
- Brokers need proper character and credentials
- Licensing examinations vary across provinces.
Licensing Standards (Continued)
- Some provinces require brokers to have certain basic level of licensure (e.g., Fundamental level) before progressing to higher levels of licensing or handling more specific lines of insurance.
- Level I requires some supervision, but not full.
- Level II allows independent work/handling.
- Additional levels may require additional licensing.
- Licensing terms vary from 1 year to 5 years in some provinces.
- Broker must be licensed in each province where they conduct business.
Ethics: Principles of Conduct
- Ethics are codes of conduct applying to individuals and groups in this business
- Moral duty and obligation are key aspects of this industry.
Standards of Ethics
- Brokers' licenses can be revoked in certain situations based on these ethical frameworks.
- These violations can include misrepresenting facts, unethical conduct/committing fraud/being deceitful or dishonest, failing to properly operate within the insurance act and regulations (or equivalent).
- Avoiding conflicts of interest is vital in professionalism
- Ethical conduct is expected/required in the insurance industry.
Professional Associations
- Broker organizations at provincial and national levels often have higher ethical standards than those required by law.
- Their duties extend to ensuring client needs are met with the best available coverage.
- They have to maintain their professional conduct
- Client confidence must be upheld.
Duty to Insurers
- Brokers must adhere to agency agreement terms.
- Broker must respect the legal responsibilities in handling insurer-client relationships.
Important Terms So far
- Students should be summarizing important terms encountered in the insurance training
- Review concepts to limit forgetting.
Creating a "How" Question
- Students should frame a question using the method of "How" to answer about the concepts learned.
Quiz
- A quiz will be provided to assess the student understanding of the material.
Questions
- A questions session will be provided.
Section 2: Errors and Omissions Exposure Analysis (Duty to Client)
- Brokerrs may face lawsuits from clients who experience losses due to underinsured incidents.
- Professional handling is expected in handling issues
- Understanding client requirements must be upheld.
Section 2: Errors and Omissions Exposure Analysis (Duty Towards Insurers)
- Insurers have the right to take action against brokers when they are required to cover losses in an event.
- The cause of many errors and omission claims in this field arises from inadequate coverage.
Causes of Errors/Omissions Claims (Continued Discussion)
- Inadequate coverage is a significant factor
- Failure to advise clients on exclusions/exemptions/terms is significant cause of errors.
Causes of Errors/Omissions Claims (Continued Discussion)
- Misrepresentation of risks/descriptions of risks leads to claims.
- Inappropriate Handling of cancellations/renewal can cause issues
Causes of Errors/Omissions Claims (Continued Discussion - Policy Change)
- Errors of policies are also a major cause of problems.
- Time conflicts in adjusting policies can lead to major problems.
Causes of Errors/Omissions Claims (Processing Delays)
- Delays in processing claims can cause problems
- Keeping time records is essential in the insurance business
Causes of Errors/Omissions Claims (Agency Agreement Violations)
- Violations of the agency agreements result in issues for both the client, insurer, and the broker.
Preventing Errors/Omissions Claims
- Preventing errors requires planning and thorough handling
- This is essential to limit potential errors
- Brokers must clearly outline procedures relating to policy expirations
- Proper documentation is vital in this business.
Preventing Errors/Omissions Claims - Claims Procedure
- Reporting claims quickly to insurers is necessary
- Brokers should notify clients about claim progress
- Keeping records is one way to limit issues
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Description
This quiz focuses on the CAB1 General Insurance curriculum and emphasizes the importance of professional training in insurance. It covers various topics, including types of insurance coverage, concepts around the Forgetting Curve, and theft as a major cause of loss. Assess your understanding and retention of crucial insurance concepts.
