Free IIC C130 Practice Test & Real Exam Questions

Exam Code/Number: C130
Exam Name/Title: Essential Skills for the Insurance Broker and Agent
Certification Provider: IIC
Corresponding Certification: Chartered Insurance Professional (CIP)

Exam Questions: 79
Updated On: Jul 14, 2026

Question #25

A building valued at $500,000 is insured under a homeowners policy with a guaranteed replacement cost provision. If the building suffers a total fire loss, under what circumstances would the insurer pay the full cost of rebuilding, even if it cost $725,000?

A. The insured notified the insurer 115 days after the building improvements have been completed.

B. The amount of insurance under the policy was 85 percent of the replacement cost at last valuation.

C. The amount insured was 100 percent of the replacement cost at last valuation.

D. The increased cost of replacement was due to a change in the potential occupancy of the building.

Discussion 0

Correct Answer: C Vote an answer

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Question #26

What does the term contra proferentem mean?

A. Any uncertainty in the policy wording will be construed in the insured's favour.

B. The policy can be affirmed at the option of the insured.

C. Any insured listed on the policy must comply with all obligations under the policy.

D. The policy will be treated as if it never existed.

Discussion 0

Correct Answer: A Vote an answer

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Question #27

Marsha, a broker, receives a call from a frustrated client regarding their increasing premium. How should she explain the increase to the client?

A. Premiums are determined by statistical predictions of future losses and they increase during a soft market.

B. Premiums are determined by statistical predictions of past losses and they increase during a hard market.

C. Premiums are determined by statistical predictions of future losses and they increase during a hard market.

D. Premiums are determined by statistical predictions of past losses and they increase during a soft market.

Discussion 0

Correct Answer: C Vote an answer

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Question #28

Which item would be insured under a personal articles floater?

A. Antique table

B. Stamp collection

C. Coffee machine

D. Leather sofa

Discussion 0

Correct Answer: B Vote an answer

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Question #29

Which document releases the insurer from further obligations for a loss after payment is made?

A. Reservation of rights letter

B. Proof of loss

C. Sworn statement

D. Non-waiver agreement

Discussion 0

Correct Answer: B Vote an answer

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Question #30

Prominently included on some property insurance policies is the statement "This policy contains a clause that may limit the amount payable." What clause is being referred to?

A. Named exclusions clause

B. Deferred payment clause

C. Coinsurance clause

D. Stacked limits clause

Discussion 0

Correct Answer: C Vote an answer

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Question #31

What should be considered when adding the increased cost-demolition or construction endorsement to an insurance policy?

A. Municipal building codes often require that owners update their property every 10 years.

B. The older the building, the more likely it is to deviate from current building codes.

C. Since the entire building has to be demolished to bring it up to code after a loss, the coverage increases the amount of insurance.

D. It covers the requirement to bring existing structures up to code, even when the building remains unchanged.

Discussion 0

Correct Answer: B Vote an answer

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Question #32

Miro's vehicle and Stephanie's vehicle collide with each other in New Brunswick. Neither of them has loss or damage coverage, also known as collision coverage. The chart shows the physical damage and assigned fault.
How would the payment be apportioned?
Driver | Physical Damage | Fault Percent
Miro | $4,000 | 50%
Stephanie | $2,000 | 50%

A. Miro can collect $2,000 from his insurer and $2,000 from Stephanie's insurer; Stephanie can collect
$1,000 from her insurer and $1,000 from Miro's insurer.

B. Miro can collect $2,000 from his insurer; Stephanie can collect $1,000 from her insurer.

C. Miro can collect $2,000 from his insurer and $1,000 from Stephanie's insurer; Stephanie can collect
$1,000 from her insurer and $500 from Miro's insurer.

D. Miro can collect $4,000 from his insurer; Stephanie can collect $2,000 from her insurer. Miro's insurer will subrogate against Stephanie's insurer for $2,000 and Stephanie's insurer will subrogate against Miro's insurer for $1,000.

Discussion 0

Correct Answer: B Vote an answer

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