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IIC C11 : Principles and Practice of Insurance

C11

Exam Code: C11

Exam Name: Principles and Practice of Insurance

Updated: Oct 15, 2026

Q & A: 103 Questions and Answers

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IIC C11 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Risk and Insurance15-20%- Risk Identification and Measurement
- Risk Management Process
- Insurable Risk
- Nature of Risk
Topic 2: Property Insurance15-20%- Property Coverage Forms
- Policy Conditions and Exclusions
- Valuation and Coinsurance
Topic 3: Liability Insurance15-20%- Professional Liability
- Commercial General Liability (CGL)
- General Liability Concepts
Topic 4: Insurance Industry Overview10-15%- Claims Handling
- Regulation and Legislation
- Insurance Market Structure
Topic 5: Insurance Operations and Contracts20-25%- Fundamental Principles of Insurance
- Underwriting Process
- Insurance Contract Basics
- Policy Structure and Interpretation
Topic 6: Automobile Insurance15-20%- Commercial Automobile Coverage
- Mandatory Coverage Requirements
- Personal Automobile Coverage

IIC Principles and Practice of Insurance Sample Questions:

Question #1
Robin is employed as a loss adjuster handling a large residential fire claim. Which is NOT one of their responsibilities?

A. Provide legal advice even if the claimant has legal counsel
B. Uphold the law with respect to its interpretation
C. Assess the claim with integrity
D. Explain relevant insurance coverage


Question #2
Which insurance term is defined as providing compensation for losses or expenses that have been incurred?

A. Indemnify
B. Salvage
C. Pure captive
D. Utmost good faith


Question #3
Maritime Insurance has met all requirements to be incorporated as an insurance company in Canada. Why would it prefer to incorporate under the Nova Scotia provincial statute rather than the federal statute?

A. Another company with the same name is already federally licensed
B. It intends to only do business in Nova Scotia
C. It plans to sell insurance nationally but operate out of one Nova Scotia office
D. It requires no capitalization


Question #4
What are many of the statutory conditions designed to accomplish?

A. Provide clarity on the intent of the policy
B. Shift the onus of proof from the insured to the insurer
C. State how PIPEDA applies to the insured and insurer
D. Outline the steps to take to cancel the policy


Question #5
How do insurers try to balance premiums against the losses they might have?

A. Through insuring a small number of superior risks
B. By writing as much business in one location as possible
C. Through specializing in one or two kinds of risk
D. By having a good spread of risk


Solutions:

Question #1
Correct Answer: A
Question #2
Correct Answer: A,D
Question #3
Correct Answer: B
Question #4
Correct Answer: A
Question #5
Correct Answer: D

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