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IIC C11 Actual Tests : Principles and Practice of Insurance

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IIC C11 Exam Syllabus Topics:

SectionObjectives
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
          Legal Principles of Insurance- Contract Law Basics
          • 1. Utmost good faith principle
            • 2. Formation of insurance contracts
              - Insurable Interest and Indemnity
              • 1. Insurable interest requirements
                • 2. Principle of indemnity and application
                  Insurance Practice- Claims Handling
                  • 1. Fraud detection and prevention
                    • 2. Claims process stages
                      - Underwriting and Pricing
                      • 1. Premium calculation principles
                        • 2. Risk assessment methods

                          IIC Principles and Practice of Insurance Sample Questions:

                          Question #1

                          An insurer writes a $60,000,000 risk for a premium of $30,000. Using pro rata reinsurance, it transfers 25% of the risk to the reinsurer. The risk then suffers a $100,000 loss. How much does the reinsurer contribute to this loss?

                          • A. $25,000
                          • B. $60,000
                          • C. $75,000
                          • D. $100,000
                          Reveal Solution  Discussion  0

                          Correct Answer: A  🗳️

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                          Question #2

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

                          • A. Partial-term
                          • B. Half-term
                          • C. Short rate
                          • D. Pro rata
                          Reveal Solution  Discussion  0

                          Correct Answer: C,D  🗳️

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                          Question #3

                          [Insurance Companies - Reinsurance (Non-Proportional / Excess of Loss)] Cover It Insurance has a non-proportional reinsurance agreement with ZYX-Reinsurance:
                          $600,000 excess of $300,000.
                          Which payout is accurate?

                          • A. On a $600,000 loss, Cover It pays $300,000 and ZYX pays $300,000
                          • B. On a $900,000 loss, Cover It pays $200,000 and ZYX pays $600,000
                          • C. On a $100,000 loss, Cover It pays $33,333 and ZYX pays $66,667
                          • D. On a $200,000 loss, Cover It pays $100,000 and ZYX pays $100,000
                          Reveal Solution  Discussion  0

                          Correct Answer: A  🗳️

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                          Question #4

                          If a dispute arises between the insurer and insured over a claim, which party is responsible for satisfying the courts that a concealment of material facts has occurred?

                          • A. Third party
                          • B. Insurer
                          • C. Insured
                          • D. Broker
                          Reveal Solution  Discussion  0

                          Correct Answer: B  🗳️

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                          Question #5

                          Who has authority from a company to manage that company's business within their territory, to appoint other agents, and to settle claims?

                          • A. Operating agent
                          • B. Wholesaler
                          • C. General agent
                          • D. Analyst
                          Reveal Solution  Discussion  0

                          Correct Answer: C  🗳️

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