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IIC C11 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Insurance Practice | - Claims Handling
|
| Topic 2: Legal Principles of Insurance | - Contract Law Basics
|
| Topic 3: Insurance Principles | - Insurance Market Structure
|
IIC Principles and Practice of Insurance Sample Questions:
Tame Insurance Company recently decided to terminate its broker agreement with XYZ Insurance Brokers.
Which situation would likely have resulted in this termination?
- A. XYZ Insurance Brokers did not remit commissions owed to the insurer immediately after issuing a policy
- B. XYZ Insurance Brokers did not keep handled premiums in a trust account and instead used them to pay expenses
- C. Tame Insurance Company set a standard deductible for certain classes of business
- D. Tame Insurance Company provided quotes on all applications received from the broker
Correct Answer: B 🗳️
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In a non-proportional (excess of loss) reinsurance contract, the reinsurer agrees to pay the portion of any loss thatexceeds $80,000, up to an additional$100,000.
How much would the primary insurer pay for an insured loss of$60,000?
- A. $60,000
- B. $0
- C. $36,000
- D. $20,000
Correct Answer: A 🗳️
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Mark was involved in an at-fault accident one year ago. As there was minimal vehicle damage and no apparent injuries, Mark settled with the third party and did NOT report the accident to his insurer. Today, Mark has been served a statement of claim alleging long-term injuries. Which action will Mark's insurer MOST LIKELY take, and why?
- A. Deny the claim because a limitation period is in effect
- B. Pay the claim because Mark's current policy must respond to a liability claim
- C. Pay the claim because accident benefit coverages have no expiration date
- D. Deny the claim because Mark had forfeited the right of recovery
Correct Answer: D 🗳️
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Which role is directly employed by the Canadian property and casualty insurance industry?
- A. Travel agent
- B. Lawyer
- C. Health professional
- D. Mechanic
Correct Answer: B 🗳️
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Orianna is an insurance professional who acts on behalf of the insurerandthe insured. She owns her client list and is paid commission once policies are arranged. What is her profession?
- A. Broker
- B. Independent adjuster
- C. Underwriter
- D. Exclusive agent
Correct Answer: A 🗳️
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