Real IIC C131 practice exam questions for easy pass!
Last Updated: Aug 07, 2026
No. of Questions: 79 Questions & Answers with Testing Engine
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| Section | Objectives |
|---|---|
| Risk and Insurance Fundamentals | - Risk identification and assessment - Insurance principles and coverage types |
| Underwriting and Policy Management | - Underwriting guidelines and decision-making - Policy administration and endorsements |
| Insurance Brokerage Practice | - Professional ethics and conduct - Client relationship management - Broker roles and responsibilities |
| Regulatory and Legal Environment | - Compliance and consumer protection - Insurance regulations in Canada |
| Claims and Loss Handling | - Loss adjustment principles - Claims processes and documentation |
1. How does a self-insured retention (SIR) differ from a deductible?
A) Applies to losses below a specific amount
B) Does not encourage loss prevention measures
C) Does not affect the policy limit
D) Is a method of insuring risk
2. A major automotive manufacturer is launching a line of electric vehicles. It intends to outsource the production of the vehicle batteries to a new supplier. The manufacturer's risk manager has requested that the supplier provide evidence of comprehensive vendor liability insurance, before the contract can be finalized.
What is the likely reason for the request?
A) The manufacturer wants to ensure that the supplier prioritizes its work over other manufacturers.
B) The manufacturer wants to be compensated in the event of the supplier's failure to perform the contract.
C) The manufacturer does not want to be held responsible for the supplier's contractual liability claims.
D) The manufacturer does not want to be held responsible for product liability claims.
3. A broker is using their prior market knowledge to place a risk with an insurer who accepts luxury log cabins.
Which insurer aspect is the broker considering?
A) Risk tolerance
B) Risk appetite
C) Risk management
D) Risk avoidance
4. The owner of a small bookstore arranges to have a reputable courier deliver an expensive set of antique encyclopedias to the store after it closes. The next morning, he notices several encyclopedias are missing from the set. He reports this situation to his broker, who advises that the loss will be covered under his commercial property broad form if he can provide which type of proof?
A) Declaration under oath confirming it was a fidelity loss
B) Evidence that the loss occurred as a result of mysterious disappearance
C) Documented evidence showing the encyclopedias were in the owner's care, custody, and control
D) Sworn statement from the courier that the set was delivered in its entirety
5. A broker is reviewing a client's risk profile. The client commonly sends their employees on international trips to source rare goods, which are often found in unstable parts of the world. The broker recommends a kidnap, ransom and extortion policy. Which type of client is this?
A) Freight forwarder
B) Distributor
C) Builder
D) Contractor
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: B |
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