Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What must clients do to ensure a claim is covered after switching insurers?

1. Notify the insurer before the policy expiration

2. Wait for the new policy to kick in

3. Only report claims for incidents occurring after the switch

4. Purchase one-year insurance extensions

The correct answer is: Notify the insurer before the policy expiration

To ensure a claim is covered after switching insurers, clients must notify the insurer before the policy expiration. This proactive step is crucial because it allows the new insurer to be aware of any potential claims that might be related to incidents that occurred while the previous policy was still in effect. If a claim arises after the switch, but the incident happened before the new policy began, the client risks having that claim denied if not properly notified. Maintaining communication with both the old and new insurers helps to clarify coverage details and avoids confusion regarding the effective dates of the policies. This ensures there are no lapses in coverage and that claims can be processed smoothly. While other options might seem plausible, they do not address the key requirement of communication to ensure all incidents are appropriately managed and claimed.