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IIC Principles and Practice of Insurance Sample Questions:
1. Which type of insurance company has the same capital structure as any other capital enterprise?
A) Captive company
B) Factory mutual company
C) Stock company
D) Co-operative company
2. What are the four requirements of a binding contract under the Civil Code of Quebec?
A) Capacity, intention, co-operation, and lesion
B) Acceptance, cause, consent, and subject of contract
C) Capacity, cause, consent, and object of contract
D) Acceptance, agreement, capacity, and offer
3. 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) Calvin wants to start a tutoring business and may charge $40 per hour
C) Jennifer agrees to sell a $20,000 painting for $10,000 to her friend Shania
D) Martin is returning a shirt he purchased online for $35 because he found it cheaper elsewhere
4. 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) Retain the risk
B) Transfer the risk using a surety bond
C) Use a non-insurance loss-financing transfer agreement to insure the risk
D) Add the risk to the company's standard commercial property and liability policies
5. Which risk could be insured bychattel coverage?
A) Trip cancellation for a honeymoon
B) Errors and omissions for a lawyer's office
C) A half-court shot contest at a basketball game
D) A mobile home belonging to a family
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |






