Canadian Accredited Insurance Broker (CAIB) One Practice Exam 2026 - Free CAIB Practice Questions and Study Guide

The primary duty of the broker in the insurance process centers around the obligation to disclose all material facts about the client's risk. This responsibility is critical because it ensures that the insurer has a complete understanding of the risk associated with the client before underwriting the policy. Proper disclosure helps in accurately assessing the risk and determining appropriate premium rates and coverage options.

By fulfilling this duty, brokers not only protect the interests of their clients but also ensure compliance with legal and ethical standards in the insurance industry. A broker's role involves gathering relevant information and presenting it transparently to both the client and the insurer, fostering a relationship built on trust and clarity. This duty also prevents potential issues in the future regarding claims and coverage disputes, as insurers rely on accurate disclosures to make informed decisions.

The other choices do not accurately reflect the broker's primary role. Acting solely in the insurer's interest undermines the broker's role as an intermediary who should advocate for the best outcomes for their clients. Always finding the cheapest insurance does not align with the broker's obligation to ensure that clients receive appropriate coverage suited to their risks. Lastly, representing both the client and the insurer equally may lead to conflicts of interest, making it challenging for the broker to fulfill their primary duty effectively.