IIC C11 : Principles and Practice of Insurance

C11 real exams

Exam Code: C11

Exam Name: Principles and Practice of Insurance

Updated: Oct 07, 2026

Q & A: 103 Questions and Answers

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IIC C11 Exam Syllabus Topics:

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

                          IIC Principles and Practice of Insurance Sample Questions:

                          Question #1

                          If one in every five houses suffers a $50,000 loss each year, and all houses have the same value, what would the pure premium be for each homeowner?

                          • A. $5,000
                          • B. $100,000
                          • C. $10,000
                          • D. $2,500
                          Reveal Solution  Discussion  0

                          Correct Answer: A  🗳️

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                          Question #2

                          Which principle of insurance requires that an insured must have a financial interest in the subject matter of insurance at the time of loss?

                          • A. Indemnity
                          • B. Utmost good faith
                          • C. Subrogation
                          • D. Insurable interest
                          Reveal Solution  Discussion  0

                          Correct Answer: D  🗳️

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                          Question #3

                          Why does the Office of the Superintendent of Financial Institutions (OSFI) control the types of investments insurers are allowed to make?

                          • A. To maximize insurers' returns on investments
                          • B. To maximize industry profits
                          • C. To minimize industry indemnifications
                          • D. To minimize insurers' investment loss exposures
                          Reveal Solution  Discussion  0

                          Correct Answer: D  🗳️

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                          Question #4

                          Original Insurance Company terminated its broker agreement with TOY Insurance Brokers. Which situation likely resulted in this termination?

                          • A. Original Insurance Company provided quotes on all broker applications
                          • B. TOY Insurance Brokers did not remit commissions owed to the insurer
                          • C. TOY Insurance Brokers did not keep premiums in a trust account and used them to pay expenses
                          • D. Original Insurance Company did not set service standards
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

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                          Question #5

                          Usually, what must an insurance intermediary do before using the personal information of a client for a purpose other than that for which the information was originally collected?

                          • A. Write to the client advising of the alternate usage
                          • B. Obtain permission from the client to do so
                          • C. Advise the insurer's ombudsperson of the intended usage
                          • D. Obtain permission from the federal privacy officer to continue
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

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