IIC C11 : Principles and Practice of Insurance

  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Updated: Oct 10, 2026     Q & A: 103 Questions and Answers

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IIC C11 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Practice- Underwriting and Pricing
  • 1. Premium calculation principles
    • 2. Risk assessment methods
      - Claims Handling
      • 1. Fraud detection and prevention
        • 2. Claims process stages
          Topic 2: Insurance Principles- Fundamentals of Insurance
          • 1. Risk concepts and risk pooling
            • 2. Nature and purpose of insurance
              - Insurance Market Structure
              • 1. Regulatory environment overview
                • 2. Roles of insurers, brokers, and intermediaries
                  Topic 3: Legal Principles of Insurance- Insurable Interest and Indemnity
                  • 1. Insurable interest requirements
                    • 2. Principle of indemnity and application
                      - Contract Law Basics
                      • 1. Utmost good faith principle
                        • 2. Formation of insurance contracts

                          IIC Principles and Practice of Insurance Sample Questions:

                          Question #1

                          Which peril of operating a business is insurable?

                          • A. Cybersecurity
                          • B. Product obsolescence
                          • C. Under-capitalization
                          • D. Mismanagement
                          Reveal Solution  Discussion  0

                          Correct Answer: A  🗳️

                          Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).

                          Question #2

                          Tame Insurance Company recently decided to terminate its broker agreement with XYZ Insurance Brokers.
                          Which situation would likely have resulted in this termination?

                          • A. Tame Insurance Company set a standard deductible for certain classes of business
                          • B. XYZ Insurance Brokers did not keep handled premiums in a trust account and instead used them to pay expenses
                          • C. Tame Insurance Company provided quotes on all applications received from the broker
                          • D. XYZ Insurance Brokers did not remit commissions owed to the insurer immediately after issuing a policy
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

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                          Question #3

                          Which statement reflects the concept that the premium for each risk should be commensurate with that risk?

                          • A. One or more persons should provide protection to another person against loss
                          • B. Proper settlement of losses should be paid out of the pool of funds
                          • C. Risks more likely to have losses should pay higher premiums
                          • D. Risks can happen to anyone, so each individual should purchase insurance
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

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                          Question #4

                          John convinces Louise to sign a contract for room and board at his house in Montreal in exchange for $1,000.
                          When Louise prepares to move in, John informs her that she will be staying in a room at a run-down hotel he owns. Which cause of nullity is Louise MOST LIKELY to employ to cause the contract to be of no effect?

                          • A. Lesion
                          • B. Error
                          • C. Violence
                          • D. Fraud
                          Reveal Solution  Discussion  0

                          Correct Answer: D  🗳️

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                          Question #5

                          What is binding authority?

                          • A. Equivalent to an insurers cover note
                          • B. Agreement between an insurer and an insured regarding reinsurance
                          • C. Permission to confirm coverage before submitting it to the insurer
                          • D. List of clients who the broker can contact for coverage
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

                          Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).

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