Level Three – Lesson 3 – Quiz

1.The clause in a shareholders’ agreement that sets out the conditions under which one or more shareholders would buy out another shareholder is called the

2. In many Canadian provinces, a graduated process is employed that increases the brokers authority as they acquire a combination of additional education and years of experiences known as

3. In strategic planning, the type of analysis that considers how the ever-changing events and trends in the economy will affect the business or business environment in which brokerages operate is called:

4. Which of the following liaises with government, consumer groups and insurance companies to safeguard the interests of brokers throughout the Canadian insurance industry?

5. Businesses with this form of legal structure benefit from continuity, limited liability and liquidity advantages.

6. The cancellation clause of an agency contract should

7. An agent who has restricted express authority and can perform only those acts that are essential to a specific situation are known as

8. The formal plan that outlines and supplies direction to the brokerage’s action in broad general terms over a three to five year period is known as the

9. Which of the following is not a legal entity?

10. A group of independent brokers or brokerages who agree to share certain expenses, to make unified volume commitments to their insurers, and to conduct specified aspects of their financial affairs in an agreed-upon manner is called a(n)

11. Marketing organizations established to give participating firms the image and resources of national or international-strength organizations are known as:

12. This plan provides the finer, more specific details necessary to achieve the strategic and business plans.

13. This type of analysis turns attention inward to the strengths and weaknesses within the organization and its operations

14. The permission specifically granted to the agent to carry out any legal action that the agent and the principal agree to in writing or verbally, including acts that enable the agent to carry out those instructions, is called

15. The systematic gathering of information about a market’s size and trends is known as

16. The process whereby managers accomplish tasks by giving authority and responsibility to other people is known as

17. The assessment of the current situation, a strategy for the coming year, and studying the financial and resource implications for either a proposed product or service constitute what is known as a(n)

18. If a broker divides one of the three buyer’s markets by education, industry or risk type, the broker is using

19. As it relates to the planning and managing a brokerage, policies are

20. Consists of a small number of risks that require specialized products or services, such as pet insurance.