Study and Prepare with IIC C11 study material, That's Easy to pass With PracticeMaterial!
Updated: Jul 02, 2026
No. of Questions: 103 Questions & Answers with Testing Engine
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1. Dominika's house sustains a fire resulting in a $500,000 total loss to the house and contents. Some pieces of furniture are salvageable and valued at $4,000 by the insurer. Dominika chooses to keep these items for her next home. Dominika's policy has a guaranteed replacement cost clause with a limit of $500,000 and a deductible of $1,000. What settlement amount will Dominika recover from the loss?
A) $495,000
B) $496,000
C) $500,000
D) $499,000
2. Ivana is in an auto accident. The agreed market value of her vehicle is$17,000.
Her policy deductible is$1,500.
A wrecking company offers$3,000for the salvage.
Ivana chooses tokeep the salvage.
What amount will Ivana receive?
A) $12,500
B) $17,000
C) $14,000
D) $15,500
3. Insurer A and Insurer B cover the same building and the policies are NOT subject to contribution. The building sustains a loss of $450,000. How can the insured claim for their loss?
A) Claim the full amount from Insurer B and request them to subrogate against Insurer A
B) Claim the full amount from Insurer A and have Insurer B pay the loss deductible
C) Claim 50% of the loss from each insurer
D) Claim the full amount from insurer A
4. What does the Institute for Catastrophic Loss Reduction (ICLR) encourage?
A) The understanding of weather patterns to aid all citizens in predicting weather
B) The development of mandatory evacuation procedures in the event of any moderate weather changes
C) The building of resilient communities through cost-effective techniques that enable structures to withstand severe weather or earthquakes
D) The pooling of funds by all members of society to deal with the predicted cost of a large-scale natural disaster
5. Which principle of insurance requires that an insured must have a financial interest in the subject matter of insurance at the time of loss?
A) Indemnity
B) Subrogation
C) Insurable interest
D) Utmost good faith
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: C |
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