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IIC C11 real answers - Principles and Practice of Insurance

C11
  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Updated: Jul 22, 2026
  • Q & A: 103 Questions and Answers
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IIC C11 Exam Syllabus Topics:

SectionWeightObjectives
Introduction to Insurance10–15%- Purpose and function of insurance
- Role of insurance in economy and society
- Basic concepts: risk, peril, hazard
Insurance Industry Structure and Stakeholders15–20%- Roles: underwriting, claims, reinsurance
- Legislation and regulation in Canada
- Insurers, intermediaries, regulators
Risk Management and Application15–20%- Ethics and professional conduct
- Application of principles to personal and commercial contexts
- Risk identification, assessment, treatment
Insurance Policy Structure and Provisions20–25%- Endorsements and modifications
- Interpretation of policy wording
- Policy components: declarations, insuring agreement, exclusions, conditions
Legal Principles of Insurance20–25%- Contract law fundamentals
- Principle of indemnity
- Subrogation and contribution
- Insurable interest, utmost good faith

IIC Principles and Practice of Insurance Sample Questions:

1. What is stated in the insuring agreements of a policy?

A) Signature clause
B) Premium
C) Lienholder
D) Description of the property covered


2. A company suffers a $100,000 property loss at its commercial location. If Insurer X and Insurer Y have policies subject to the same terms and conditions, and there is no deductible, what will each insurer pay based on the information below?

Insurer X insured amount: $400,000
Insurer Y insured amount: $100,000

A) Insurer X pays $100,000; Insurer Y pays $0
B) Insurer X pays $80,000; Insurer Y pays $20,000
C) Insurer X pays $0; Insurer Y pays $100,000
D) Insurer X pays $50,000; Insurer Y pays $50,000


3. Which insurance industry impact is an example of a surety?

A) A manufacturer accepting shipping risks that are insured
B) A bank issuing a mortgage on an insured building
C) A developer advancing funds to a building contractor for a guaranteed project
D) A doctor providing malpractice-covered services


4. Which type of clause grants additional protection to the entity that has a registered interest on real property?

A) Bailee clause
B) Mortgage clause
C) Lienholder clause
D) Additional interest clause


5. What is the effect of perils and hazards on insurance rates for the underwriter?

A) An underwriter may use a higher rate if a hazard increases the likelihood of a loss by an insured peril
B) An underwriter may increase the rate if the insured event is likely to increase the hazard
C) The rate is determined by the law of large numbers for the hazards listed on the policy
D) The rate is calculated by multiplying the premium by the amount insured for each peril


Solutions:

Question # 1
Answer: D
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: B
Question # 5
Answer: A

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