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IIC Principles and Practice of Insurance Sample Questions:
1. Which insurance term is defined as providing compensation for losses or expenses that have been incurred?
A) Salvage
B) Pure captive
C) Utmost good faith
D) Indemnify
2. What is a cover note?
A) An amendment added to a written document that alters its provisions
B) Document issued by intermediaries to inform the insured that coverage has been arranged
C) File notes confirming insurance discussions between the intermediary and the insured
D) Purchase agreement between the agent or broker and the insurer
3. What does the acronymPIPEDAstand for?
A) Personal Information Protection and Electronic Documents Act
B) Personal Insurance Products Electronically Delivered Act
C) Protect Insurance Products by Electronic Decoding Algorithms
D) Private Information Protected from Email Decoding Attacks
4. Which type of insurance company has the same capital structure as any other capital enterprise?
A) Factory mutual company
B) Captive company
C) Co-operative company
D) Stock company
5. Which financial outcome would be expected when engaging in a speculative risk?
A) No possibility of loss
B) Possibility of gain only
C) No possibility of gain
D) Possibility of either gain or loss
Solutions:
| Question # 1 Answer: C,D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: D |




