Exam format

The format of examinations vary across courses and programs. Some programs, such as General Insurance Essentials (GIE) Risk Management Certificate, and Canadian Managing General Agent (CMGA), have final exams with all multiple-choice questions (MCQ). Most CIP final examinations have a combination of multiple-choice questions (MCQ), as well as narrative and application questions (constructed response questions).

CIP final examinations are marked out of 200. Each MCQ is worth two (2) marks. For example, if an exam includes 70 MCQ, this is equivalent to one hundred and forty (140) marks. The number of marks a constructed response question is worth varies. Each constructed response question will have the number of marks assigned to it on the final examination.

The examinations for the following courses include only constructed response questions:

C16 The Business of Insurance
C58 Marine Hull and Associated Liability – Part 1
C59 Marine Hull and Associated Liability – Part 2

The examinations for the following courses include only multiple-choice questions

C11: Principles and Practice of Insurance (starting July 2023)
C12: Insurance on Property, common law edition (starting July 2024)
C13: Insurance Against Liability—Part 1 (starting April 2024)
C14: Automobile Insurance—Part 1 Atlantic (starting April 2024)
C14: Automobile Insurance —Part 1 BC (starting July 2024)
C14: Automobile Insurance—Part 1 Ontario (starting December 2023)

You are encouraged to refer to the examination blueprint for information on the format of each exam.

Most examinations, including the CIP examinations, are built using a course-specific examination blueprint. Blueprints identify the weight, shown as a percentage, of each textbook study tested on the final examination and the proportion of each type of question appearing on the exam.

The weight of each study tested on the final examination reflects the knowledge and understanding required to competently perform in the insurance industry.

The blueprint also includes information on the structure of the exam and indicates the percentage of marks dedicated to the multiple-choice, narrative and application questions.

To access a blueprint, log in to your account on our learning management system (LMS) and look for course resources under My Courses. For courses with an online tutorial, click on the course textbook online tutorial link. For courses without an online tutorial, click on the course textbook PDF link or on your class. Blueprints can be found in a section called ‘A Note About Exams’. If you have difficulty finding the document or accessing the LMS, please contact Member Services. You are encouraged to use the blueprint to assist with your preparation for the final examination. Each blueprint will include the study and the weight assigned to each study.

Multiple-choice questions are designed to assess different types of learning. Some questions assess knowledge, recognition and recall of facts and concepts (knowledge-level questions), some assess understanding of concepts (comprehension-level questions), and others assess the ability to apply knowledge to other contexts using scenarios (application-level questions). You should be prepared to answer all these types of questions.

Multiple-choice questions (MCQ) consist of a question component, or “stem”, and four (4) options, of which there is only one (1) correct answer or best answer and three (3) incorrect answers, or “distractors”.

Typical “knowledge-level” multiple-choice questions used on the CIP exams look like this:

Which statement defines a peril?

a) An event that may cause a loss
b) A condition that may cause a loss
c) An event that will prevent a loss
d) A factor which may increase the chance of a loss

What is indemnity?

a) A principle that requires the insured to act with a high standard of honesty
b) An interest that the insured must have in the subject matter of the insurance
c) A contractual objective to return the insured to the financial position they enjoyed immediately prior to a loss
d) An agreed specified amount that the insured must pay on a claim before the insurer will cover the rest of the claim

What is volume reserving also known as?

a) Group reserving
b) Individual reserving
c) Average cost reserving
d) Common case reserving

Typical “comprehension-level” multiple-choice questions used on the CIP exam look like this:

Which situation is an example of a peril?

a) Damage to a kitchen due to fire
b) Loose carpet on stairs
c) Slippery sidewalk in winter
d) Poorly maintained heating system

Jackie advertises her car for $4,000. Elsa offers her $3,000. What is this an example of under contract law in the common law system?

a) Consideration
b) Counter-offer
c) Legality of purpose
d) Offer and acceptance

A commercial underwriter received an application for insurance. The applicant requires coverage for collision and theft for their construction equipment products which will be transported across Canada by train. Which class of insurance does the applicant need?

a) Marine
b) Automobile
c) Builders risk
d) Products liability

Typical “application-level” multiple-choice questions used on the CIP exam look like this:

Tammy was driving down a road in Calgary when she noticed a cyclist ahead. Without looking, the cyclist crossed in front of Tammy and she accidentally struck him. The cyclist sued Tammy for his injuries.

Which defence is Tammy likely to use?

a) No duty owed
b) Onus of proof
c) Remoteness of damage
d) Contributory negligence

Marcel purchases a raw turkey from the grocery store. He notices then packaging is open slightly and knows that there is a risk the turkey may cause illness. After cooking and eating the poultry, Marcel’s family becomes very ill. According to the Civil Code of Québec, will Marcel be successful in a lawsuit against the grocery store for damages arising from the turkey, and why?

a) Yes, because the seller is bound to warrant that the turkey is free of defects at the time Marcel purchases it.
b) Yes, because the seller is liable, under strict liability legislation, for all damages caused by any product it sells.
c) No, because Marcel chose to purchase and consume the turkey despite the apparent defect of the open packaging.
d) No, because Marcel chose to shop at that store, and so voluntarily assumed any risk arising from products purchased there.

An insurer receives submissions potentially worth $3 million in premium monthly, quotes 20 percent of the risks, and has a hit ratio of 40 percent. What is its monthly new business opportunity?

a) $240,000
b) $1,200,000
c) $2,760,000
d) $3,000,000

To answer multiple-choice questions more effectively, do the following:

• Try to answer the question yourself without looking at the options. Then compare your answer to the options listed and select the closest option.
• Answer the questions you know first. Once you are done, come back to the ones you are not sure about.
• Use the process of elimination to reduce the number of options.
• When in doubt, go with your first guess. Research has shown that your first choice is often the correct one, so unless you’re sure you’ve made a mistake, go with your first instinct.
• Read the entire question carefully, including the stem and every answer option. Sometimes you may think there is more than one correct option, but if you read the stem carefully, you will find information that will make one option more correct than another. Choose the “most” correct option.

Constructed response questions require you to write (or “construct”) your answer.

The number of marks a constructed response question is worth varies. Each question will indicate the number of marks it is worth.

Two types of constructed response questions are asked on most CIP exams.

Narrative questions are generally used to evaluate your understanding of concepts. These are typically formatted as a question using any of the following verbs:

• Identify
• Outline
• Describe
• Discuss
• Explain
• Compare or
• Provide examples

Application questions are used to evaluate your ability to understand as well as apply your understanding to circumstances/scenarios that are commonly faced while working in the insurance industry. These questions will involve a detailed scenario, followed by one or more questions related to that scenario. These scenarios are typically formatted using any of the following verbs:

• Illustrate
• Contrast
• Solve
• Analyze
• Assess
• Create
• Interpret and discuss
• Explain and/or
• Explain using an example

Typical “narrative questions” on the CIP exam look like this:

Explain the many loss prevention activities that the insurance industry is involved in. Include examples to support your answer. (10 marks)

Identify and briefly describe TWO (2) elements required for a common law contract to be considered valid. (8 marks)

What is reinsurance? Explain why reinsurance is purchased. (10 marks)

Briefly explain physical hazards and moral hazards. Provide ONE (1) example of EACH type of hazard. (5 marks)

Typical “application questions” on the CIP exam look like this:

Scenario – Single question:

Brian and Suzy were joking around, pushing, and shoving each other on a crowded sidewalk. They collided with Marcus, a dance instructor, who fell and badly broke his leg. If Marcus brings an action for negligence, who will be held liable? Briefly explain your answer. (5 marks)

Sanjay owns a house in downtown Edmonton which is insured under an Insurance Bureau of Canada (IBC) comprehensive homeowners policy. During the summer months, he spends most of his time at his cottage in northern Alberta, so he uses an accommodation-sharing program to rent out his house to tourists on the weekends. Sanjay assumes his homeowners policy will respond if a guest is injured while renting the house. Is Sanjay’s assumption correct? Explain why or why not. In your answer, refer to any definitions or conditions that must be considered. (10 marks)

Tom and Suzy are at a wedding with an open bar, and both have had several cocktails. Suzy tells Tom she wants to sell her vehicle, and Tom offers to pay her $2,500 for it. Suzy agrees to this amount, and Tom uses his cellphone to send her an electronic money transfer. Since they are both heavily intoxicated, they call a taxi to get home. They plan to meet the next morning at Suzy’s house so she can give Tom the vehicle keys and ownership. Does the sale of Suzy’s vehicle to Tom constitute a valid contract? Explain why or why not. (5 marks)

Scenario – Multi-part question:

Harpreet purchases a new home and contacts a broker to arrange insurance. The broker helps Harpreet select the appropriate coverage for her home. The broker helps her fill in the application, which he sends to the insurer. The broker does not give Harpreet any paperwork to take home, but he tells her that she will have insurance coverage for 30 days until the insurer is able to issue the policy.

i. Based on what the broker has stated, what is Harpreet’s temporary insurance known as? (1 mark)

ii. What is the purpose of this temporary insurance? (3 marks)

iii. Describe any problems that may arise from the temporary insurance being provided orally but not in writing. (6 marks)

Please be advised that these are ONLY a sample of the type of questions students may see and should not be considered an exhaustive list of how constructed response questions may be formatted and verbs used.

Scenario – repeated across multiple questions on the exam: In some instances, the same scenario may apply to multiple questions on the examination. In some cases, the scenario is presented once followed by a number of questions it applies to. In others, the scenario is repeated for each question, along with a preamble stating which questions the scenario applies to. For example, on an exam a student may see an instruction above a question indicating,

“The following scenario applies to questions 62 and 63”:

62. Connie purchases a new vehicle and calls her broker, Ken, to arrange for insurance. Ken tells her that he can just take an oral application over the phone and that she will need to come into the office to sign the forms. He asks Connie a series of questions and records her answers, then informs Connie that he will send her information to the insurer. Ken calls Connie two more times to clarify information needed before the insurer will issue the policy.

Two weeks pass and Connie does not hear from Ken nor does she receive the policy documents. She tries to contact Ken but is unable to reach him. After not hearing back from Ken for another week, Connie calls the manager of the brokerage to complain about both the application process and the lack of response from her broker.

How might Connie’s experience have been improved if Ken had asked her to fill in a written application instead of completing it orally? (5 marks)

The instruction and the scenario are repeated on the next question. “The following scenario applies to questions 62 and 63”:

63. Connie purchases a new vehicle and calls her broker, Ken, to arrange for insurance. Ken tells her that he can just take an oral application over the phone and that she will need to come into the office to sign the forms. He asks Connie a series of questions and records her answers, then informs Connie that he will send her information to the insurer. Ken calls Connie two more times to clarify information needed before the insurer will issue the policy.

Two weeks pass and Connie does not hear from Ken nor does she receive the policy documents. She tries to contact Ken but is unable to reach him. After not hearing back from Ken for another week, Connie calls the manager of the brokerage to complain about both the application process and the lack of response from her broker.

i. What impact might Connie’s poor customer service experience have on the brokerage? (2 marks)

ii. Outline the best way for the manager of the brokerage to handle Connie’s complaint. (3 marks)

When answering the narrative and application questions, do the following:

Read the question carefully. Key terms (for example, describe, define) will provide guidance on the type of answer required.

• If the question requires to identify, outline, or describe a specific number of items or concepts, (or provide a specific number of examples) the number required will be emphasized, such as “Identify and describe the THREE (3) types of…”.
• If a question asks for a specific number of items and more than the requested number is provided, ONLY the first items provided will be marked, even if they are incorrect.
• Create an outline to organize your thoughts. Map out your response on the notepad found on your test interface. When you see your points noted, you may remember the remaining answer points.
• When writing the answers, students keep in mind how many marks any given question is worth. If the question is worth five marks, it means that your answer should contain five main points that adequately address the question.
• Structure your answer using bullets. Each bullet should include a key point required to answer the question. Be sure to include sufficient information to fully address the question.
• Include information directly related to the question being asked. Avoid going off on a tangent. If the question has multiple parts, be sure to answer all.
• Answer the question based on your understanding of the material and in your own words.

Most CIP examinations are three (3) hours in duration. Examinations that consist of all multiple-choice questions will be (2) hours in duration.