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IIC C11 Exam : Principles and Practice of Insurance

C11 actual test
  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Updated: Oct 04, 2026
  • Q & A: 103 Questions and Answers
  • PDF Demo
  • PC Test Engine
  • Online Test Engine
  • Total Price: $59.99  

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IIC C11 Exam Syllabus Topics:

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

                          IIC Principles and Practice of Insurance Sample Questions:

                          Question #1

                          What is a cover note?

                          • A. Purchase agreement between the agent or broker and the insurer
                          • B. An amendment added to a written document that alters its provisions
                          • C. File notes confirming insurance discussions between the intermediary and the insured
                          • D. Document issued by intermediaries to inform the insured that coverage has been arranged
                          Reveal Solution  Discussion  0

                          Correct Answer: D  🗳️

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                          Question #2

                          The risk manager of an oil refinery is seeking ways to transfer the pollution risk of a new drilling method.
                          What is the best option?

                          • A. Retain the risk
                          • B. Use a non-insurance loss-financing transfer agreement to insure the risk
                          • C. Transfer the risk using a surety bond
                          • D. Add the risk to the company's standard commercial property and liability policies
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

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                          Question #3

                          How would a moving and storage company benefit from purchasing insurance to cover customers' goods while in transit?

                          • A. Opportunity for more subscription policies
                          • B. Greater acquisition potential
                          • C. More capital for business ventures
                          • D. Provides a feeling of security
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

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                          Question #4

                          With respect to an insurance contract, what is the best example ofconsideration?

                          • A. Yasmin offers to sell her dog for $500 but Paula refuses
                          • B. Calvin wants to start a tutoring business and may charge $40 per hour
                          • C. Jennifer agrees to sell a $20,000 painting for $10,000 to her friend Shania
                          • D. Martin is returning a shirt he purchased online for $35 because he found it cheaper elsewhere
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

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                          Question #5

                          [Insurance Companies - Reinsurance (Non-Proportional / Excess of Loss)] Cover It Insurance has a non-proportional reinsurance agreement with ZYX-Reinsurance:
                          $600,000 excess of $300,000.
                          Which payout is accurate?

                          • A. On a $600,000 loss, Cover It pays $300,000 and ZYX pays $300,000
                          • B. On a $100,000 loss, Cover It pays $33,333 and ZYX pays $66,667
                          • C. On a $900,000 loss, Cover It pays $200,000 and ZYX pays $600,000
                          • D. On a $200,000 loss, Cover It pays $100,000 and ZYX pays $100,000
                          Reveal Solution  Discussion  0

                          Correct Answer: A  🗳️

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