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IIC C11

C11

Exam Code: C11

Exam Name: Principles and Practice of Insurance

Updated: Oct 17, 2026

Q&A Number: 103 Q&As

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IIC C11 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Insurance Policy Structure and Provisions20–25%- Policy components: declarations, insuring agreement, exclusions, conditions
- Interpretation of policy wording
- Endorsements and modifications
Topic 2: Legal Principles of Insurance20–25%- Subrogation and contribution
- Principle of indemnity
- Insurable interest, utmost good faith
- Contract law fundamentals
Topic 3: Insurance Industry Structure and Stakeholders15–20%- Legislation and regulation in Canada
- Insurers, intermediaries, regulators
- Roles: underwriting, claims, reinsurance
Topic 4: Risk Management and Application15–20%- Application of principles to personal and commercial contexts
- Ethics and professional conduct
- Risk identification, assessment, treatment
Topic 5: Introduction to Insurance10–15%- Role of insurance in economy and society
- Basic concepts: risk, peril, hazard
- Purpose and function of insurance

IIC Principles and Practice of Insurance Sample Questions:

Question #1
Which problem could arise with an oral binder?

A. It may override a policy warranty
B. It is illegal in some provinces
C. The insurer did not secure privacy documentation
D. The intermediary may not have authority to bind coverage


Question #2
Huronial Insurance Company submitted incorporation documents and received approval to sell personal-lines property and automobile policies. Which document will the Office of the Superintendent of Financial Institutions (OSFI) issue?

A. Insurer establishment document
B. Insurer of record
C. National insurance notice
D. Order of commencement


Question #3
Which type of clause grants additional protection to the entity that has a registered interest on real property?

A. Additional Interest clause
B. Lienholder clause
C. Bailee clause
D. Mortgage clause


Question #4
Antonio lights a firecracker and throws it to Brett. Brett tosses it to Sandra. Sandra catches it and throws it to Celina. It explodes in Celina's hands, injuring her. Who is the immediate cause of the loss?

A. Sandra
B. Brett
C. Celina and Antonio
D. Antonio and Brett


Question #5
Which statement best explains the concept of utmost good faith?

A. Implies the ability to void an insurance policy
B. Requires a high standard of honesty
C. Is a requirement of all legal contracts
D. Is a lack of conduct that exceeds mere negligence


Solutions:

Question #1
Correct Answer: D
Question #2
Correct Answer: D
Question #3
Correct Answer: D
Question #4
Correct Answer: A
Question #5
Correct Answer: B

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