Exam Code: C11
Exam Name: Principles and Practice of Insurance
Certification Provider: IIC
Corresponding Certification: Chartered Insurance Professional (CIP)
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IIC C11 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Principles- Fundamentals of Insurance
  • 1. Risk concepts and risk pooling
    • 2. Nature and purpose of insurance
      - Insurance Market Structure
      • 1. Roles of insurers, brokers, and intermediaries
        • 2. Regulatory environment overview
          Topic 2: Legal Principles of Insurance- Contract Law Basics
          • 1. Formation of insurance contracts
            • 2. Utmost good faith principle
              - Insurable Interest and Indemnity
              • 1. Insurable interest requirements
                • 2. Principle of indemnity and application
                  Topic 3: Insurance Practice- Underwriting and Pricing
                  • 1. Premium calculation principles
                    • 2. Risk assessment methods
                      - Claims Handling
                      • 1. Claims process stages
                        • 2. Fraud detection and prevention

                          IIC Principles and Practice of Insurance Sample Questions:

                          1. Jack is a first-time homeowner. How can he mitigate his risk?

                          A) Purchase insurance
                          B) Increase his volume of risk
                          C) Purchase many different kinds of goods
                          D) Decrease his volume of risk


                          2. A commercial brokerage failed to advise the insurer of a client's modified risk. The insurer discovered this only at the time of a major loss and denied the claim due to material change. How will the client MOST LIKELY proceed?

                          A) Pay for the loss, and cancel the policy backdated to before the loss
                          B) Pay for the loss, and oblige the brokerage to reimburse the deductible
                          C) Take legal action against the brokerage, stating it had a contractual responsibility to disclose the material change
                          D) Take legal action against the insurer, stating the insurer knew the full risk


                          3. What is a cover note?

                          A) Document issued by intermediaries to inform the insured that coverage has been arranged
                          B) An amendment added to a written document that alters its provisions
                          C) File notes confirming insurance discussions between the intermediary and the insured
                          D) Purchase agreement between the agent or broker and the insurer


                          4. Which is NOT one of the three types of knowledge an underwriter requires to be successful in their role?

                          A) Insurance product knowledge
                          B) Claims knowledge
                          C) Industry knowledge
                          D) Prescription knowledge


                          5. 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) $20,000
                          B) $36,000
                          C) $60,000
                          D) $0


                          Solutions:

                          Question # 1
                          Answer: D
                          Question # 2
                          Answer: C
                          Question # 3
                          Answer: A
                          Question # 4
                          Answer: D
                          Question # 5
                          Answer: C

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