Your questions are the real C130 questions.
Exam Code: C130
Exam Name: Essential Skills for the Insurance Broker and Agent
Updated: Oct 07, 2026
Q & A: 79 Questions and Answers
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| Section | Objectives |
|---|---|
| Legal and Regulatory Framework | - Law of agency and fiduciary duty - Ethical standards and professional conduct |
| Broker and Agent Practice Skills | - Client communication and advisory skills - Policy placement and insurer interaction |
| Insurance Distribution Systems | - Agent vs broker roles and responsibilities - Distribution models (independent agency, brokerage, direct writers) |
| Insurance Fundamentals and Risk Concepts | - Insurance principles and contract basics - Nature of risk (pure vs speculative risk) |
| Insurance Products and Markets | - Property and casualty insurance basics - Commercial and personal lines overview |
W & A Insurers Inc. has a capacity of $30 million for any single property risk. It also has a reinsurance agreement with Tri-insurance Inc. for an additional $40 million. A broker approaches W & A Insurers Inc.
with a request to write a low-hazard $37 million liability risk. What is the insurer's retention if it accepts and reinsures the risk?
Correct Answer: D 🗳️
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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%
Correct Answer: D 🗳️
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What do statutory conditions and general conditions have in common?
Correct Answer: C 🗳️
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To protect themselves against claims that arise long after the policy expiration date, a broker should retain a permanent copy of which policy?
Correct Answer: B 🗳️
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Why would an insured need an advertising injury liability extension in addition to the coverage provided by the standard commercial general liability policy?
Correct Answer: D 🗳️
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