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IIC C11

C11

Exam Code: C11

Exam Name: Principles and Practice of Insurance

Updated: Aug 23, 2026

Q & A: 103 Questions and Answers

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IIC C11 Exam Syllabus Topics:

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

                          IIC Principles and Practice of Insurance Sample Questions:

                          1. An insurer's agency or production department is the equivalent of which department in other businesses?

                          A) Finance and production
                          B) Information technology and business services
                          C) Administration and human resources
                          D) Sales and marketing


                          2. 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, intention, co-operation, and lesion
                          D) Capacity, cause, consent, and object of contract


                          3. A person applies for fire insurance on their house but fails to mention that in winter they leave the house unoccupied for two months while vacationing. What is this an example of?

                          A) Breach of warranty
                          B) Discharge of contract
                          C) Negligence
                          D) Non-disclosure


                          4. Why does the Office of the Superintendent of Financial Institutions (OSFI) control the types of investments insurers are allowed to make?

                          A) To minimize industry indemnifications
                          B) To maximize insurers' returns on investments
                          C) To minimize insurers' investment loss exposures
                          D) To maximize industry profits


                          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: D
                          Question # 2
                          Answer: D
                          Question # 3
                          Answer: D
                          Question # 4
                          Answer: C
                          Question # 5
                          Answer: A

                          C11 Related Exams
                          C131 - Advanced Skills for the Insurance Broker and Agent
                          C130 - Essential Skills for the Insurance Broker and Agent
                          Related Certifications
                          RIBO Insurance Broker
                          Chartered Insurance Professional (CIP)
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