IIC C11 : Principles and Practice of Insurance

C11 exam collection

Exam Code: C11

Exam Name: Principles and Practice of Insurance

Updated: Aug 11, 2026

Q & A: 103 Questions and Answers

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IIC C11 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Principles- Insurance Market Structure
  • 1. Regulatory environment overview
    • 2. Roles of insurers, brokers, and intermediaries
      - Fundamentals of Insurance
      • 1. Risk concepts and risk pooling
        • 2. Nature and purpose of insurance
          Topic 2: Legal Principles of Insurance- Insurable Interest and Indemnity
          • 1. Principle of indemnity and application
            • 2. Insurable interest requirements
              - Contract Law Basics
              • 1. Utmost good faith principle
                • 2. Formation of insurance contracts
                  Topic 3: Insurance Practice- Claims Handling
                  • 1. Claims process stages
                    • 2. Fraud detection and prevention
                      - Underwriting and Pricing
                      • 1. Premium calculation principles
                        • 2. Risk assessment methods

                          IIC Principles and Practice of Insurance Sample Questions:

                          1. Original Insurance Company terminated its broker agreement with TOY Insurance Brokers. Which situation likely resulted in this termination?

                          A) TOY Insurance Brokers did not keep premiums in a trust account and used them to pay expenses
                          B) Original Insurance Company did not set service standards
                          C) Original Insurance Company provided quotes on all broker applications
                          D) TOY Insurance Brokers did not remit commissions owed to the insurer


                          2. Which principle of insurance requires that an insured must have a financial interest in the subject matter of insurance at the time of loss?

                          A) Utmost good faith
                          B) Insurable interest
                          C) Indemnity
                          D) Subrogation


                          3. What type of cancellation occurs if theinsuredcancels the policy before expiry?

                          A) Short rate
                          B) Half-term
                          C) Partial-term
                          D) Pro rata


                          4. What is binding authority?

                          A) Permission to confirm coverage before submitting it to the insurer
                          B) Agreement between an insurer and an insured regarding reinsurance
                          C) Equivalent to an insurers cover note
                          D) List of clients who the broker can contact for coverage


                          5. 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 brokerage, stating it had a contractual responsibility to disclose the material change
                          B) Take legal action against the insurer, stating the insurer knew the full risk
                          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


                          Solutions:

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

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