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IIC C11 exam : Principles and Practice of Insurance

C11 Exam Simulator
  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Updated: Sep 12, 2026
  • Q & A: 103 Questions and Answers
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IIC C11 Exam Syllabus Topics:

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

IIC Principles and Practice of Insurance Sample Questions:

Question #1

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

  • A. A: accident & sickness, B: fire, C: automobile
  • B. A: automobile, B: accident & sickness, C: fire
  • C. A: accident & sickness, B: automobile, C: fire
  • D. A: fire, B: accident & sickness, C: automobile
Answer: D

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Question #2

Samuel is a broker who does NOT have claims-handling authority. He received a call from an insured at the scene of an auto accident. The insured was upset, and Samuel reassured her that everything would be fine because she had coverage. Later, the insurer denied the claim due to impaired driving. What should Samuel have done differently?

  • A. Asked the insured more details and informed her the claim would not be covered
  • B. Asked to speak to the police officer at the scene to determine legal implications
  • C. Told the insured to take immediate responsibility for the accident to uphold utmost good faith
  • D. Told the insured that the insurer would have to investigate before he could answer her concerns
Answer: D

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Question #3

Tame Insurance Company recently decided to terminate its broker agreement with XYZ Insurance Brokers.
Which situation would likely have resulted in this termination?

  • A. Tame Insurance Company set a standard deductible for certain classes of business
  • B. XYZ Insurance Brokers did not remit commissions owed to the insurer immediately after issuing a policy
  • C. Tame Insurance Company provided quotes on all applications received from the broker
  • D. XYZ Insurance Brokers did not keep handled premiums in a trust account and instead used them to pay expenses
Answer: D

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Question #4

What best describes a direct loss?

  • A. A loss covered by an insured peril, but not caused directly by the peril
  • B. A loss not covered on the policy but covered by an endorsement
  • C. Damage to property caused directly by the insured
  • D. Damage to property by direct action of a peril insured against
Answer: D

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Question #5

Orianna is an insurance professional who acts on behalf of the insurerandthe insured. She owns her client list and is paid commission once policies are arranged. What is her profession?

  • A. Underwriter
  • B. Broker
  • C. Exclusive agent
  • D. Independent adjuster
Answer: B

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