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1. After examining an organization's financial statements and accounting records, a broker decides that they would like to take the company on as a client. What did the broker determine during their examination that helped make this decision?
A) The organization is consistently profitable.
B) The organization is compliant with federal and provincial tax laws.
C) The organization has paid policy premiums on time for the last seven years.
D) The organization has a captive company.
2. Which phrase will best help an intermediary close a sale, after presenting the proposal to a client?
A) "How does our proposal compare to your current coverage?"
B) "Would you like to insure with our company?"
C) "Do you have any objections?"
D) "Which day would you like the payment plan to start?"
3. Which type of property loss is commonly covered under the commercial property broad form (CPBF)?
A) Loss of inventory shortage
B) Loss of money and securities
C) Damage to a salesperson's samples
D) Damage to automobiles
4. Valuable information about the principals of a prospect's company, the products and services the company sells, and other financial data could be found by reviewing which source?
A) D & B reports
B) Best's Underwriting Guide
C) The prospect's property appraisal
D) The prospect's website
5. An insured has a commercial property policy with a $50,000 deductible and a policy limit of $100,000. If the insured suffers a loss of $50,000, how much will the insurer pay?
A) $25,000
B) $0
C) $100,000
D) $50,000
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: B |
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