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IIC C11 Exam Syllabus Topics:

SectionWeightObjectives
Introduction to Insurance10–15%- Purpose and function of insurance
- Role of insurance in economy and society
- Basic concepts: risk, peril, hazard
Insurance Policy Structure and Provisions20–25%- Interpretation of policy wording
- Endorsements and modifications
- Policy components: declarations, insuring agreement, exclusions, conditions
Legal Principles of Insurance20–25%- Principle of indemnity
- Contract law fundamentals
- Subrogation and contribution
- Insurable interest, utmost good faith
Risk Management and Application15–20%- Application of principles to personal and commercial contexts
- Ethics and professional conduct
- Risk identification, assessment, treatment
Insurance Industry Structure and Stakeholders15–20%- Legislation and regulation in Canada
- Insurers, intermediaries, regulators
- Roles: underwriting, claims, reinsurance

IIC Principles and Practice of Insurance Sample Questions:

1. Why does the need for liability insurance arise?

A) Uphold ethical feelings of responsibility
B) Reduce personal risk to oneself
C) Meet societal obligations and norms
D) Fulfill legal obligations to others


2. With respect to an insurance contract, what is the best example ofconsideration?

A) Martin is returning a shirt he purchased online for $35 because he found it cheaper elsewhere
B) Yasmin offers to sell her dog for $500 but Paula refuses
C) Calvin wants to start a tutoring business and may charge $40 per hour
D) Jennifer agrees to sell a $20,000 painting for $10,000 to her friend Shania


3. Ivana is in an auto accident. The agreed market value of her vehicle is$17,000.
Her policy deductible is$1,500.
A wrecking company offers$3,000for the salvage.
Ivana chooses tokeep the salvage.
What amount will Ivana receive?

A) $14,000
B) $17,000
C) $15,500
D) $12,500


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

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


5. Which statement reflects how an insurer invests their capital?

A) Provincial regulations allow insurers to invest in foreign bond markets
B) There are no restrictions as to how an insurer can invest their capital
C) Insurers are compelled by regulations to invest in non-liquid assets
D) Government regulations specify the types of investmentsnot permittedto insurers


Solutions:

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

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