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Last Updated: Jul 01, 2026

No. of Questions: 103 Questions & Answers with Testing Engine

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IIC Principles and Practice of Insurance Sample Questions:

1. Jack is a first-time homeowner. How can he mitigate his risk?

A) Purchase insurance
B) Increase his volume of risk
C) Decrease his volume of risk
D) Purchase many different kinds of goods


2. Stuart sells his vehicle and cancels his auto policy. The insurer refunds the full unearned portion of the premium. What type of cancellation is this?

A) Fully fixed
B) Pro rata
C) Non-adjusted rate
D) Total rate


3. Which is a pre-loss objective of risk management for an organization?

A) Sustained growth
B) External obligations
C) Business development
D) Operational continuity


4. Which type of policy must be signed by a member of each participating insurer?

A) Subrogation
B) All-inclusive
C) Subscription
D) Prescription


5. What should an insurer do if it wishes to have additional terms incorporated in an interim cover?

A) Rely on Statutory Conditions / General Conditions
B) Verbally declare its intent to the intermediary
C) Avoid releasing an interim cover prior to policy inception
D) Set the terms down in writing


Solutions:

Question # 1
Answer: C
Question # 2
Answer: B
Question # 3
Answer: D
Question # 4
Answer: C
Question # 5
Answer: D

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