Pass the actual test with the help of C131 study guide
Updated: Jul 03, 2026
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1. A building contractor has been hired to perform renovations and additions to a run-down office building. The contractor is aware of the typical exposures that can arise from this operation and has adequate insurance in place, but needs to hire additional staff. He contacts his broker Andrew to discuss the benefit of having risk management measures in place during the contractor's employee selection process. Briefly describe the advice Andrew would provide.
2. Which document contains a rough outline from bidders of work to be completed, with details on how they will carry out this work?
A) Lease agreement
B) Request for a proposal
C) Broker's letter of authority
D) Certificate of insurance
3. When should a broker recommend that a client amend their existing risk management plan?
A) Annually at renewal
B) When changing a manufacturing process
C) When hiring a new staff member
D) After financial statements are published
4. When a broker is focusing on a manufacturing facility's housekeeping regimen and safeguards for a prospect, what is he primarily trying to establish?
A) Whether the prospect is a morale hazard
B) How large the facility is
C) Whether the prospect is profitable
D) How many expenses the facility has
5. Angie is frustrated with her insurer as she recently had a mysterious disappearance claim that was denied under her commercial property policy. Why was Angie likely denied her claim?
A) She had chosen named perils coverage
B) Her policy had not earned sufficient premium at the time of the loss
C) Her appraisal was only received in the last three months
D) She had a similar claim in a previous policy term
Solutions:
| Question # 1 Answer: Only visible for members | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: A |
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