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Free Principles and Practice of Insurance Practice Questions

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Exam style questions across every C11 domain

Last Update 1 day ago
Total Questions : 100

Start with our free C11 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real Chartered Insurance Professional (CIP) exam. Each C11 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your IIC weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 11

[Claims]

Ivana is in an auto accident. The agreed market value of her vehicle is$17,000.

Her policy deductible is$1,500.

A wrecking company offers$3,000for the salvage.

Ivana chooses tokeep the salvage.

What amount will Ivana receive?

Options:

A.  

$12,500

B.  

$14,000

C.  

$15,500

D.  

$17,000

Discussion 0
Question # 12

[Insurance as a Contract: The Insurance Policy]

What are the four requirements of a binding contract under the Civil Code of Quebec?

Options:

A.  

Acceptance, agreement, capacity, and offer

B.  

Capacity, intention, co-operation, and lesion

C.  

Capacity, cause, consent, and object of contract

D.  

Acceptance, cause, consent, and subject of contract

Discussion 0
Question # 13

[Insurance Documents and Processes]

Usually, what must an insurance intermediary do before using the personal information of a client for a purpose other than that for which the information was originally collected?

Options:

A.  

Obtain permission from the client to do so

B.  

Write to the client advising of the alternate usage

C.  

Advise the insurer’s ombudsperson of the intended usage

D.  

Obtain permission from the federal privacy officer to continue

Discussion 0
Question # 14

[Insurance as a Contract: The Insurance Policy]

What is stated in the insuring agreements of a policy?

Options:

A.  

Premium

B.  

Lienholder

C.  

Signature clause

D.  

Description of the property covered

Discussion 0
Question # 15

Which principle of insurance requires that an insured must have a financial interest in the subject matter of insurance at the time of loss?

Options:

A.  

Utmost good faith

B.  

Insurable interest

C.  

Indemnity

D.  

Subrogation

Discussion 0
Question # 16

[Regulatory Framework / Automobile Insurance]

What is the name of the pooling agreement where all high-risk drivers are underwritten in a common pool?

Options:

A.  

Facility Association

B.  

Substandard Group

C.  

Underwriters Association

D.  

High-risk Drivers of Canada

Discussion 0
Question # 17

[Underwriting – Rates, Hazards, Perils]

What is the effect of perils and hazards on insurance rates for the underwriter?

Options:

A.  

An underwriter may increase the rate if the insured event is likely to increase the hazard

B.  

The rate is determined by the law of large numbers for the hazards listed on the policy

C.  

An underwriter may use a higher rate if a hazard increases the likelihood of a loss by an insured peril

D.  

The rate is calculated by multiplying the premium by the amount insured for each peril

Discussion 0
Question # 18

[Sales and Distribution of Insurance]

Why would a policyholder use an intermediary?

Options:

A.  

They represent all insurers

B.  

They have unlimited liability

C.  

They help to identify clients' insurance needs

D.  

They make reinsurance arrangements for clients

Discussion 0
Question # 19

[Introduction to Risk and Insurance – Perils & Loss Types]

What best describes a direct loss?

Options:

A.  

Damage to property caused directly by the insured

B.  

Damage to property by direct action of a peril insured against

C.  

A loss not covered on the policy but covered by an endorsement

D.  

A loss covered by an insured peril, but not caused directly by the peril

Discussion 0
Question # 20

[Claims]

How are staff adjusters and independent adjusters similar?

Options:

A.  

Neither is allowed to perform an investigation

B.  

Both work on behalf of, and are paid by, the insurer

C.  

Both are licensed only in Quebec and New Brunswick

D.  

Neither has any limitation on their authority to settle claims

Discussion 0

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