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IIC Principles and Practice of Insurance Sample Questions:
1. 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?
A) $15,500
B) $17,000
C) $14,000
D) $12,500
2. Karl recently purchased a house in Winnipeg. Prior to the purchase he asked if the house had termites. The house was infested, but the seller falsely stated there were none. After signing the contract, Karl discovered the infestation. Which element makes the purchase contract voidable?
A) Fraudulent misrepresentation
B) Mistake about assumptions
C) Innocent misrepresentation
D) Undue influence
3. Why would a policyholder use an intermediary?
A) They help to identify clients' insurance needs
B) They have unlimited liability
C) They make reinsurance arrangements for clients
D) They represent all insurers
4. Which is NOT one of the three types of knowledge an underwriter requires to be successful in their role?
A) Claims knowledge
B) Industry knowledge
C) Prescription knowledge
D) Insurance product knowledge
5. Ace Brokerage Inc., a liability insurer, has been in business for three years. It is suffering financial difficulties despite writing a significant amount of new business. What is the most likely reason?
A) Premiums were discounted when policyholders paid in full
B) Poor handling of its accounts receivable
C) Many clients have added endorsements to their policies
D) Lack of profit-sharing commissions earned
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: B |




