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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: Oct 30, 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:

Question #1

What is stated in the insuring agreements of a policy?

  • A. Signature clause
  • B. Premium
  • C. Lienholder
  • D. Description of the property covered
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #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
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #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
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #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
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #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
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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