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Last Updated: Oct 17, 2026

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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. Regulatory environment overview
        • 2. Roles of insurers, brokers, and intermediaries
          Topic 2: Legal Principles of Insurance- Insurable Interest and Indemnity
          • 1. Insurable interest requirements
            • 2. Principle of indemnity and application
              - 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. Risk assessment methods
                        • 2. Premium calculation principles

                          IIC Principles and Practice of Insurance Sample Questions:

                          Question #1

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

                          • A. Original Insurance Company provided quotes on all broker applications
                          • B. Original Insurance Company did not set service standards
                          • C. TOY Insurance Brokers did not remit commissions owed to the insurer
                          • D. TOY Insurance Brokers did not keep premiums in a trust account and used them to pay expenses
                          Reveal Solution  Discussion  0

                          Correct Answer: D  🗳️

                          Explanation: Only visible for Exam-Killer members. You can sign-up / login (it's free).

                          Question #2

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

                          • A. To maximize industry profits
                          • B. To maximize insurers' returns on investments
                          • C. To minimize industry indemnifications
                          • D. To minimize insurers' investment loss exposures
                          Reveal Solution  Discussion  0

                          Correct Answer: D  🗳️

                          Explanation: Only visible for Exam-Killer members. You can sign-up / login (it's free).

                          Question #3

                          What type of company has the authority to bind coverage for a specific line of business as outlined by an insurer?

                          • A. Factory mutual
                          • B. Syndicate mutual
                          • C. Cover holder
                          • D. Reinsurer
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

                          Explanation: Only visible for Exam-Killer members. You can sign-up / login (it's free).

                          Question #4

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

                          • A. Through specializing in one or two kinds of risk
                          • B. By having a good spread of risk
                          • C. Through insuring a small number of superior risks
                          • D. By writing as much business in one location as possible
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

                          Explanation: Only visible for Exam-Killer members. You can sign-up / login (it's free).

                          Question #5

                          Deanna owns a house worth $1,000,000 but chooses to insure it for $500,000. What clause might prevent her from being fully reimbursed in the event of a loss?

                          • A. Forfeiture
                          • B. Contribution
                          • C. Subscription
                          • D. Coinsurance
                          Reveal Solution  Discussion  0

                          Correct Answer: D  🗳️

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