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IIC C11 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Legal Principles of Insurance | - Contract Law Basics
|
| Topic 2: Insurance Practice | - Underwriting and Pricing
|
| Topic 3: Insurance Principles | - Insurance Market Structure
|
IIC Principles and Practice of Insurance Sample Questions:
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 $0; Insurer Y pays $100,000
- B. Insurer X pays $50,000; Insurer Y pays $50,000
- C. Insurer X pays $100,000; Insurer Y pays $0
- D. Insurer X pays $80,000; Insurer Y pays $20,000
Correct Answer: D 🗳️
Explanation: Only visible for TestValid members. You can sign-up / login (it's free).
Which action reduces a hazard?
- A. Installing anti-slip floor tile in the hallway
- B. Removing protective packaging around items being moved
- C. Using high beams at night on a busy highway
- D. Shutting off sprinkler systems during renovations
Correct Answer: A 🗳️
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What does the acronymPIPEDAstand for?
- A. Personal Insurance Products Electronically Delivered Act
- B. Protect Insurance Products by Electronic Decoding Algorithms
- C. Private Information Protected from Email Decoding Attacks
- D. Personal Information Protection and Electronic Documents Act
Correct Answer: D 🗳️
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Kamal's home has an actual cash value (ACV) of $380,000 and is insured for $400,000. The house suffers
$180,000 damage. Which amount indemnifies Kamal?
- A. $180,000
- B. $400,000
- C. $380,000
- D. $200,000
Correct Answer: A 🗳️
Explanation: Only visible for TestValid members. You can sign-up / login (it's free).
Which statement best describes a valued contract?
- A. Settlements involve periodic payments due to the nature of valuation
- B. Settlements are based on a predetermined amount agreed upon at contract formation
- C. The policy pays the full cost of replacing items even if this amount exceeds policy limits
- D. The insured can reject settlement offers and force a higher payout
Correct Answer: B 🗳️
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