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IIC C11 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Insurance Practice | - Underwriting and Pricing
|
| Topic 2: Legal Principles of Insurance | - Contract Law Basics
|
| Topic 3: Insurance Principles | - Fundamentals of Insurance
|
IIC Principles and Practice of Insurance Sample Questions:
1. 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 maximize industry profits
D) To minimize insurers' investment loss exposures
2. Which type of policy must be signed by a member of each participating insurer?
A) Subscription
B) Prescription
C) Subrogation
D) All-inclusive
3. What is binding authority?
A) Agreement between an insurer and an insured regarding reinsurance
B) List of clients who the broker can contact for coverage
C) Permission to confirm coverage before submitting it to the insurer
D) Equivalent to an insurers cover note
4. Samuel is a broker who does NOT have claims-handling authority. He received a call from an insured at the scene of an auto accident. The insured was upset, and Samuel reassured her that everything would be fine because she had coverage. Later, the insurer denied the claim due to impaired driving. What should Samuel have done differently?
A) Told the insured that the insurer would have to investigate before he could answer her concerns
B) Told the insured to take immediate responsibility for the accident to uphold utmost good faith
C) Asked to speak to the police officer at the scene to determine legal implications
D) Asked the insured more details and informed her the claim would not be covered
5. Which financial outcome would be expected when engaging in a speculative risk?
A) No possibility of gain
B) Possibility of gain only
C) No possibility of loss
D) Possibility of either gain or loss
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: D |
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