C11 by IIC Actual Free Exam Q&As

Question 1

Which insurance term is defined as providing compensation for losses or expenses that have been incurred?

A. Utmost good faith B. Pure captive C. Indemnify D. Salvage

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Correct Answer: A,C Vote an answer

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Question 2

Karl recently purchased a house in Winnipeg. Prior to the purchase he asked if the house had termites. The house was infested, but the seller falsely stated there were none. After signing the contract, Karl discovered the infestation. Which element makes the purchase contract voidable?

A. Undue influence B. Innocent misrepresentation C. Mistake about assumptions D. Fraudulent misrepresentation

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Correct Answer: D Vote an answer

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Question 3

What is the definition of subrogation?

A. A promise by one party to release another from responsibility in exchange for money B. The right of the insurer to take action against the insured in cases of fraud C. The process allowing an insurer that paid a claim to recover the amount from the legally responsible party D. The full payout an insurer makes before receiving the deductible

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Correct Answer: C Vote an answer

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Question 4

Which scenario is an example of insurable interest?

A. The interest an insurance company earns on its premiums B. An employee's interest in the life insurance policy of a fellow employee C. An employer's interest in the life of their employee D. The interest an underwriter has in writing profitable business

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Correct Answer: C Vote an answer

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Question 5

A company suffers a $100,000 property loss at its commercial location. If Insurer X and Insurer Y have policies subject to the same terms and conditions, and there is no deductible, what will each insurer pay based on the information below?

Insurer X insured amount: $400,000
Insurer Y insured amount: $100,000

A. Insurer X pays $50,000; Insurer Y pays $50,000 B. Insurer X pays $80,000; Insurer Y pays $20,000 C. Insurer X pays $100,000; Insurer Y pays $0 D. Insurer X pays $0; Insurer Y pays $100,000

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Correct Answer: B Vote an answer

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Question 6

What is a post-loss objective of risk management for an organization?

A. Stable earnings B. External development C. Internal obligations D. Peace of mind

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Correct Answer: A Vote an answer

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Question 7

MacMan Inc. employs several salespersons who travel throughout Canada with samples of its products.
Which type of coverage does MacMan Inc. require to protect its samples while in the salespersons' possession?

A. Personal Property Floater B. Aviation Insurance C. Accident Insurance D. Commercial Property Floater

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Correct Answer: D Vote an answer

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IIC Principles and Practice of Insurance - C11 Exam Practice Test