IIC Principles and Practice of Insurance : C11

  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Updated: Oct 13, 2026
  • Q&As: 103 Questions and Answers

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IIC C11 Exam Syllabus Topics:

SectionObjectives
Topic 1: 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 2: Insurance Principles- Insurance Market Structure
          • 1. Regulatory environment overview
            • 2. Roles of insurers, brokers, and intermediaries
              - Fundamentals of Insurance
              • 1. Nature and purpose of insurance
                • 2. Risk concepts and risk pooling
                  Topic 3: Insurance Practice- Underwriting and Pricing
                  • 1. Premium calculation principles
                    • 2. Risk assessment methods
                      - Claims Handling
                      • 1. Fraud detection and prevention
                        • 2. Claims process stages

                          IIC Principles and Practice of Insurance Sample Questions:

                          Question #1

                          A retailer reports $250,000 revenues and $100,000 expenses, and projects $50,000 in sustained growth next year. What is its net income for the past year?

                          • A. $250,000
                          • B. $300,000
                          • C. $150,000
                          • D. $200,000
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

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

                          Question #2

                          What is his responsibility?

                          • A. Record preliminary information and ask further details
                          • B. Advise an underwriter the policy requires a premium increase at renewal
                          • C. Advise the insured the policy covers the loss, if he confirms it
                          • D. Verify the independent adjuster's report has no errors
                          Reveal Solution  Discussion  0

                          Correct Answer: A  🗳️

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                          Question #3

                          Rashida claims she told her broker about the swimming pool when binding coverage. The adjuster disputes coverage because the insurer was not informed. What should have been done to prevent this dispute?

                          • A. Insurer should have contacted Rashida directly before binding coverage
                          • B. Broker should have sent written confirmation to Rashida and the insurer
                          • C. Broker should have requested a witness during the oral application
                          • D. Broker should have requested Rashida send in a signed notice after issuance
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

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                          Question #4

                          Which financial outcome would be expected when engaging in a speculative risk?

                          • A. No possibility of gain
                          • B. Possibility of gain only
                          • C. Possibility of either gain or loss
                          • D. No possibility of loss
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

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                          Question #5

                          What is binding authority?

                          • A. Agreement between an insurer and an insured regarding reinsurance
                          • B. Permission to confirm coverage before submitting it to the insurer
                          • C. List of clients who the broker can contact for coverage
                          • D. Equivalent to an insurers cover note
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

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