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【General】 Flexible C11 Learning Mode | Valid C11 Test Cram

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IIC Principles and Practice of Insurance Sample Questions (Q36-Q41):NEW QUESTION # 36
Robin is employed as a loss adjuster handling a large residential fire claim. Which is NOT one of their responsibilities?
  • A. Assess the claim with integrity
  • B. Uphold the law with respect to its interpretation
  • C. Provide legal advice even if the claimant has legal counsel
  • D. Explain relevant insurance coverage
Answer: C
Explanation:
Loss adjusters are required to conduct themselves with professionalism, fairness, and integrity. Their responsibilities include explaining how coverage applies, gathering facts, assessing damage, and ensuring the claim is handled according to policy terms and applicable law. This includes respecting legal requirements and proper interpretation of insurance statutes and conditions.
However, adjusters must not provide legal advice. Legal advice is the domain of licensed lawyers. Adjusters may explain policy terms, clarify obligations, or interpret claims procedures, but they cannot advise a claimant on legal strategy, liability, lawsuit responses, or legal rights beyond policy interpretation. Doing so breaches professional boundaries and regulatory expectations.
Therefore, the only option that isnota responsibility is D: Provide legal advice, making it the correct answer.

NEW QUESTION # 37
Which risk could be insured bychattel coverage?
  • A. Errors and omissions for a lawyer's office
  • B. Trip cancellation for a honeymoon
  • C. A half-court shot contest at a basketball game
  • D. A mobile home belonging to a family
Answer: D
Explanation:
Chattelrefers tomovable personal property(as opposed to real property/land). Insurance policies that cover chattels protect items such as furniture, machinery, mobile homes, and other movable property.
Amobile homeis specifically recognized as chattel because it is transportable and not permanently affixed to land. Therefore, a mobile home qualifies for chattel insurance coverage.
Option A is atravel insurancerisk.
Option C is anevent prize indemnity risk, not related to chattel.
Option D isprofessional liability(errors & omissions), which covers negligence, not movable property.
Thus, the risk insurable under chattel coverage is amobile home, makingBthe correct choice.

NEW QUESTION # 38
Which peril of operating a business is insurable?
  • A. Product obsolescence
  • B. Mismanagement
  • C. Under-capitalization
  • D. Cybersecurity
Answer: D
Explanation:
To be insurable, a peril must befortuitous, measurable, and not within the direct control of the insured.
Cybersecurity risksmeet these criteria, which is why insurers offercyber liability and data breach insurance.
These policies cover hacking, ransomware, privacy breaches, and business interruption caused by cyber events.
Mismanagement (B) is uninsurable because it results from internal decision failure.
Under-capitalization (C) is a business failure, not a fortuitous peril.
Product obsolescence (D) is a predictable business cycle risk and cannot be insured.
Thus, the only insurable peril listed isA: Cybersecurity.

NEW QUESTION # 39
Which clause paysreplacement costeven if the lossexceeds the amount of insuranceon the dwelling?
  • A. Pure restitution replacement clause
  • B. Outright replacement clause
  • C. Guaranteed replacement cost clause
  • D. Total replacement cost clause
Answer: A,B,C
Explanation:
AGuaranteed Replacement Cost (GRC)clause is a special provision in homeowners' insurance that ensures the insurer will pay thefull cost to rebuild or repairthe dwellingeven if the loss exceeds the stated policy limit, provided all policy conditions are met (such as insuring to value and notifying the insurer of changes to the building).
This clause protects homeowners from unexpected increases in construction costs due to inflation, labour shortages, or material price spikes. The insurer guarantees complete reconstruction of the home, not merely up to policy limits.
Option A is not a recognized policy clause.
Option B (total replacement cost clause) is not the standard industry term.
Option C (pure restitution clause) does not exist in homeowners insurance terminology.
The only accurate clause that obligates the insurer to pay above policy limits is theGuaranteed Replacement Cost clause.

NEW QUESTION # 40
What does the acronymPIPEDAstand for?
  • A. Private Information Protected from Email Decoding Attacks
  • B. Protect Insurance Products by Electronic Decoding Algorithms
  • C. Personal Information Protection and Electronic Documents Act
  • D. Personal Insurance Products Electronically Delivered Act
Answer: C
Explanation:
PIPEDAis the federal Canadian privacy legislation governing how private-sector organizations-including insurance companies, brokers, and adjusters-collect, use, and disclosepersonal informationduring commercial activities. Its full and correct name is:
Personal Information Protection and Electronic Documents Act
PIPEDA sets out requirements for informed consent, accuracy, safeguarding of data, client access rights, and limitations on secondary use of personal information. Insurance operations rely heavily on personal data, so compliance is mandatory.
Options A, B, and C are fictitious and have no connection to Canadian insurance regulation or privacy law.
Thus, the correct answer isD.

NEW QUESTION # 41
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