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:
| Section | Objectives |
|---|---|
| Topic 1: Insurance Principles | - Fundamentals of Insurance
|
| Topic 2: Legal Principles of Insurance | - Contract Law Basics
|
| Topic 3: Insurance Practice | - Underwriting and Pricing
|
IIC Principles and Practice of Insurance Sample Questions:
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
Correct Answer: D 🗳️
Explanation: Only visible for PrepAwayPDF members. You can sign-up / login (it's free).
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
Correct Answer: C 🗳️
Explanation: Only visible for PrepAwayPDF members. You can sign-up / login (it's free).
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
Correct Answer: A 🗳️
Explanation: Only visible for PrepAwayPDF members. You can sign-up / login (it's free).
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
Correct Answer: D 🗳️
Explanation: Only visible for PrepAwayPDF members. You can sign-up / login (it's free).
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
Correct Answer: C 🗳️
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