- Exam Code: C11
- Exam Name: Principles and Practice of Insurance
- Certification Provider: IIC
- Corresponding Certification:Chartered Insurance Professional (CIP)
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IIC C11 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Legal Principles of Insurance | - Insurable Interest and Indemnity
|
| Insurance Principles | - Fundamentals of Insurance
|
| Insurance Practice | - Claims Handling
|
IIC Principles and Practice of Insurance Sample Questions:
Which problem could arise with an oral binder?
- A. It may override a policy warranty
- B. It is illegal in some provinces
- C. The intermediary may not have authority to bind coverage
- D. The insurer did not secure privacy documentation
Correct Answer: C 🗳️
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What are the four requirements of a binding contract under the Civil Code of Quebec?
- A. Acceptance, agreement, capacity, and offer
- B. Acceptance, cause, consent, and subject of contract
- C. Capacity, cause, consent, and object of contract
- D. Capacity, intention, co-operation, and lesion
Correct Answer: C 🗳️
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What type of cancellation occurs if theinsuredcancels the policy before expiry?
- A. Partial-term
- B. Short rate
- C. Pro rata
- D. Half-term
Correct Answer: B,C 🗳️
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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. Original Insurance Company did not set service standards
- C. TOY Insurance Brokers did not keep premiums in a trust account and used them to pay expenses
- D. TOY Insurance Brokers did not remit commissions owed to the insurer
Correct Answer: C 🗳️
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In their property insurance application, a Quebec client stated there wasnohome business. The underwriter binds the policy without knowing the client runs a daycare in a detached garage. If a loss occurs, will there be consequences?
- A. No; as long as the homeowner has at least three years' experience in the business
- B. No; in-home businesses with a low to medium hazard grade do not affect eligibility
- C. Yes; if the concealment is proven it could result in the contract being nullified
- D. Yes; any claims will be subject to an increased deductible depending on the size of the loss
Correct Answer: C 🗳️
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