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IIC Principles and Practice of Insurance Sample Questions:

1. What is a cover note?

A) File notes confirming insurance discussions between the intermediary and the insured
B) Document issued by intermediaries to inform the insured that coverage has been arranged
C) Purchase agreement between the agent or broker and the insurer
D) An amendment added to a written document that alters its provisions

2. How would a moving and storage company benefit from purchasing insurance to cover customers' goods while in transit?

A) Opportunity for more subscription policies
B) Greater acquisition potential
C) More capital for business ventures
D) Provides a feeling of security

3. What is stated in the insuring agreements of a policy?

A) Premium
B) Description of the property covered
C) Signature clause
D) Lienholder

4. Which insurance term is defined as providing compensation for losses or expenses that have been incurred?

A) Indemnify
B) Pure captive
C) Utmost good faith
D) Salvage

5. Which clause paysreplacement costeven if the lossexceeds the amount of insuranceon the dwelling?

A) Guaranteed replacement cost clause
B) Pure restitution replacement clause
C) Outright replacement clause
D) Total replacement cost clause

Solutions: