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Updated: Aug 13, 2026
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| Certification Vendor: | Insurance Institute of Canada (IIC) |
| Exam Name: | Principles and Practice of Insurance |
| Exam Number: | C11 |
| Passing Score: | 60% (120/200 points) |
| Exam Format: | Multiple-choice questions, Knowledge-based questions, Scenario-based questions |
| Related Certifications: | C12 Insurance on Property C13 Insurance Against Liability – Part 1 C14 Automobile Insurance – Part 1 |
| Exam Duration: | 120 minutes |
| Certificate Validity Period: | Valid while CIP program requirements are met; no fixed expiry |
| Available Languages: | English, French |
| Exam Price: | CAD 418 |
| Real Exam Qty: | 100 |
| Recommended Training: | C11 Official Course Materials |
| Exam Registration: | Official Registration |
| Sample Questions: | IIC C11 Sample Questions |
| Exam Way: | Online proctored or in-person at authorized centres |
| Pre Condition: | None; recommended as first course in CIP program |
| Official Syllabus URL: | https://www.insuranceinstitute.ca/en/Courses/CIP/C11 |
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Legal Principles of Insurance | 20–25% | - Subrogation and contribution - Principle of indemnity - Insurable interest, utmost good faith - Contract law fundamentals |
| Topic 2: Insurance Policy Structure and Provisions | 20–25% | - Endorsements and modifications - Policy components: declarations, insuring agreement, exclusions, conditions - Interpretation of policy wording |
| Topic 3: Risk Management and Application | 15–20% | - Ethics and professional conduct - Risk identification, assessment, treatment - Application of principles to personal and commercial contexts |
| Topic 4: Introduction to Insurance | 10–15% | - Basic concepts: risk, peril, hazard - Role of insurance in economy and society - Purpose and function of insurance |
| Topic 5: Insurance Industry Structure and Stakeholders | 15–20% | - Roles: underwriting, claims, reinsurance - Insurers, intermediaries, regulators - Legislation and regulation in Canada |
1. What is the correct placement of statutory conditions to their respective insurance policy?
A) A: accident & sickness, B: fire, C: automobile
B) A: automobile, B: accident & sickness, C: fire
C) A: accident & sickness, B: automobile, C: fire
D) A: fire, B: accident & sickness, C: automobile
2. Maritime Insurance has met all requirements to be incorporated as an insurance company in Canada. Why would it prefer to incorporate under the Nova Scotia provincial statute rather than the federal statute?
A) It plans to sell insurance nationally but operate out of one Nova Scotia office
B) It intends to only do business in Nova Scotia
C) Another company with the same name is already federally licensed
D) It requires no capitalization
3. Which statement best describes unearned premium?
A) The premium that covers the policy period that has expired
B) The accumulated premium that has not been paid out against a loss
C) The premium that covers the policy duration that has not yet passed
D) The earned premium that has been paid out as the broker's commission
4. What is a disadvantage of loss retention through borrowing?
A) Special accounting is always required
B) It requires significant commitment from senior management
C) It reduces the company's line of credit
D) It is difficult even if the company has assets to cover the loan
5. 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 $80,000; Insurer Y pays $20,000
B) Insurer X pays $100,000; Insurer Y pays $0
C) Insurer X pays $50,000; Insurer Y pays $50,000
D) Insurer X pays $0; Insurer Y pays $100,000
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: A |
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