IIC C11 Actual Free Exam Questions & Community Discussion

Exam Code/Number: C11
Exam Name/Title: Principles and Practice of Insurance
Certification Provider: IIC
Corresponding Certification: Chartered Insurance Professional (CIP)

Exam Questions: 103
Updated On: Jun 01, 2026

Question #36

The risk manager of an oil refinery is seeking ways to transfer the pollution risk of a new drilling method.
What is the best option?

A. Retain the risk

B. Use a non-insurance loss-financing transfer agreement to insure the risk

C. Transfer the risk using a surety bond

D. Add the risk to the company's standard commercial property and liability policies

Discussion 0

Correct Answer: B Vote an answer

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Question #37

Which is NOT one of the three types of knowledge an underwriter requires to be successful in their role?

A. Insurance product knowledge

B. Industry knowledge

C. Claims knowledge

D. Prescription knowledge

Discussion 0

Correct Answer: D Vote an answer

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Question #38

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. It plans to sell insurance nationally but operate out of one Nova Scotia office

B. It intends to only do business in Nova Scotia

C. Another company with the same name is already federally licensed

D. It requires no capitalization

Discussion 0

Correct Answer: B Vote an answer

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Question #39

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. Pay for the loss, and cancel the policy backdated to before the loss

B. Pay for the loss, and oblige the brokerage to reimburse the deductible

C. Take legal action against the insurer, stating the insurer knew the full risk

D. Take legal action against the brokerage, stating it had a contractual responsibility to disclose the material change

Discussion 0

Correct Answer: D Vote an answer

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Question #40

Which peril of operating a business is insurable?

A. Product obsolescence

B. Mismanagement

C. Under-capitalization

D. Cybersecurity

Discussion 0

Correct Answer: D Vote an answer

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Question #41

Which statement reflects how an insurer invests their capital?

A. Insurers are compelled by regulations to invest in non-liquid assets

B. Government regulations specify the types of investmentsnot permittedto insurers

C. There are no restrictions as to how an insurer can invest their capital

D. Provincial regulations allow insurers to invest in foreign bond markets

Discussion 0

Correct Answer: B Vote an answer

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Question #42

Which risk could be insured bychattel coverage?

A. A mobile home belonging to a family

B. Errors and omissions for a lawyer's office

C. A half-court shot contest at a basketball game

D. Trip cancellation for a honeymoon

Discussion 0

Correct Answer: A Vote an answer

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