IIC C11 : Principles and Practice of Insurance

  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Updated: Aug 26, 2026

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IIC C11 Exam Syllabus Topics:

SectionWeightObjectives
Property Insurance15-20%- Valuation and Coinsurance
- Property Coverage Forms
- Policy Conditions and Exclusions
Insurance Operations and Contracts20-25%- Fundamental Principles of Insurance
- Underwriting Process
- Policy Structure and Interpretation
- Insurance Contract Basics
Liability Insurance15-20%- Professional Liability
- Commercial General Liability (CGL)
- General Liability Concepts
Risk and Insurance15-20%- Risk Management Process
- Risk Identification and Measurement
- Nature of Risk
- Insurable Risk
Automobile Insurance15-20%- Commercial Automobile Coverage
- Personal Automobile Coverage
- Mandatory Coverage Requirements
Insurance Industry Overview10-15%- Claims Handling
- Regulation and Legislation
- Insurance Market Structure

IIC Principles and Practice of Insurance Sample Questions:

1. The risk manager of an oil refinery is seeking ways to transfer the pollution risk of a new drilling method.
What is the best option?

A) Use a non-insurance loss-financing transfer agreement to insure the risk
B) Retain the risk
C) Add the risk to the company's standard commercial property and liability policies
D) Transfer the risk using a surety bond


2. What best describes a direct loss?

A) A loss covered by an insured peril, but not caused directly by the peril
B) Damage to property caused directly by the insured
C) A loss not covered on the policy but covered by an endorsement
D) Damage to property by direct action of a peril insured against


3. What is the definition of subrogation?

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


4. Which risk could be insured bychattel coverage?

A) A mobile home belonging to a family
B) Errors and omissions for a lawyer's office
C) A half-court shot contest at a basketball game
D) Trip cancellation for a honeymoon


5. Why would a policyholder use an intermediary?

A) They have unlimited liability
B) They make reinsurance arrangements for clients
C) They represent all insurers
D) They help to identify clients' insurance needs


Solutions:

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

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