IIC Principles and Practice of Insurance : C11

  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Updated: Oct 02, 2026     Q & A: 103 Questions and Answers

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IIC C11 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Legal Principles of Insurance20–25%- Contract law fundamentals
- Principle of indemnity
- Insurable interest, utmost good faith
- Subrogation and contribution
Topic 2: Risk Management and Application15–20%- Application of principles to personal and commercial contexts
- Ethics and professional conduct
- Risk identification, assessment, treatment
Topic 3: Insurance Industry Structure and Stakeholders15–20%- Roles: underwriting, claims, reinsurance
- Legislation and regulation in Canada
- Insurers, intermediaries, regulators
Topic 4: Insurance Policy Structure and Provisions20–25%- Endorsements and modifications
- Policy components: declarations, insuring agreement, exclusions, conditions
- Interpretation of policy wording
Topic 5: Introduction to Insurance10–15%- Basic concepts: risk, peril, hazard
- Role of insurance in economy and society
- Purpose and function of insurance

IIC Principles and Practice of Insurance Sample Questions:

Question #1

Which statement best describes unearned premium?

  • A. The accumulated premium that has not been paid out against a loss
  • B. The premium that covers the policy period that has expired
  • C. The premium that covers the policy duration that has not yet passed
  • D. The earned premium that has been paid out as the broker's commission
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

What is the correct placement of statutory conditions to their respective insurance policy?

  • A. A: fire, B: accident & sickness, C: automobile
  • B. A: accident & sickness, B: fire, C: automobile
  • C. A: automobile, B: accident & sickness, C: fire
  • D. A: accident & sickness, B: automobile, C: fire
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

What should the broker provide in the broker report?

  • A. Any personal knowledge of the client
  • B. Comparable accounts to assist the insurer in rating
  • C. The client's past premium and deductibles
  • D. Their suggested premium for the client
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

A commercial brokerage failed to advise the insurer of a client's modified risk. The insurer discovered this only at the time of a major loss and denied the claim due to material change. How will the client MOST LIKELY proceed?

  • A. Take legal action against the insurer, stating the insurer knew the full risk
  • B. Take legal action against the brokerage, stating it had a contractual responsibility to disclose the material change
  • C. Pay for the loss, and oblige the brokerage to reimburse the deductible
  • D. Pay for the loss, and cancel the policy backdated to before the loss
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

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

Correct Answer: B  🗳️

Explanation: Only visible for Pass4guide members. You can sign-up / login (it's free).

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