Principles and Practice of Insurance: C11 Exam

"Principles and Practice of Insurance", also known as C11 exam, is a IIC Certification. With the complete collection of questions and answers, PrepPDF has assembled to take you through 103 Q&As to your C11 Exam preparation. In the C11 exam resources, you will cover every field and category in Chartered Insurance Professional (CIP) Certification helping to ready you for your successful IIC Certification.

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  • Exam Code: C11
  • Exam Name: Principles and Practice of Insurance
  • Certification Provider: IIC
  • Corresponding Certification: Chartered Insurance Professional (CIP)
  • Updated: Jun 18, 2026
  • No. of Questions: 103 Questions & Answers with Testing Engine
  • Download Limit: Unlimited

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IIC Principles and Practice of Insurance Sample Questions:

1. Which statement best explains the concept of utmost good faith?

A) Is a requirement of all legal contracts
B) Implies the ability to void an insurance policy
C) Requires a high standard of honesty
D) Is a lack of conduct that exceeds mere negligence


2. With respect to an insurance contract, what is the best example ofconsideration?

A) Yasmin offers to sell her dog for $500 but Paula refuses
B) Jennifer agrees to sell a $20,000 painting for $10,000 to her friend Shania
C) Calvin wants to start a tutoring business and may charge $40 per hour
D) Martin is returning a shirt he purchased online for $35 because he found it cheaper elsewhere


3. Why does the need for liability insurance arise?

A) Reduce personal risk to oneself
B) Fulfill legal obligations to others
C) Meet societal obligations and norms
D) Uphold ethical feelings of responsibility


4. Tame Insurance Company recently decided to terminate its broker agreement with XYZ Insurance Brokers.
Which situation would likely have resulted in this termination?

A) Tame Insurance Company set a standard deductible for certain classes of business
B) XYZ Insurance Brokers did not remit commissions owed to the insurer immediately after issuing a policy
C) XYZ Insurance Brokers did not keep handled premiums in a trust account and instead used them to pay expenses
D) Tame Insurance Company provided quotes on all applications received from the broker


5. What is a disadvantage of loss retention through borrowing?

A) It requires significant commitment from senior management
B) It is difficult even if the company has assets to cover the loan
C) It reduces the company's line of credit
D) Special accounting is always required


Solutions:

Question # 1
Answer: C
Question # 2
Answer: B
Question # 3
Answer: B
Question # 4
Answer: C
Question # 5
Answer: C

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