C11 PRINCIPLES AND PRACTICE OF INSURANCE ACTUAL EXAM
QUESTIONS WITH SOLUTIONS GRADED A+2025/2026
✔✔Reasons for voiding a contract: - ✔✔1.) Mistake - Terms, Assumptions,
2.) Misrepresentation - Incorrect statement about a fundamental fact
3.) Undue influence - Signed because of overpowering influence I.e. Nurse/patient
4.) Duress - Forced to enter a contract by the use of violence
✔✔Contrast between public and private law - ✔✔Public:
Administrative
Criminal law
Constitutional law
Private:
Tort law -
Contract law-
✔✔Parts of a policy: - ✔✔- Declarations
- Insurance Agreements
- Statutory conditions
- Policy conditions
- Signature clause
✔✔Insurance: - ✔✔Insurance is the method of sharing the losses of few in a group who
suffer them among the many members of the group who do not.
✔✔3 things about Treaty Reinsurance: - ✔✔- Agreement between insurer and reinsurer
- Automatic reinsurance coverage for a certain complete class of risks
- Can be proportional or non-proportional
✔✔6 Steps of protecting insurer's interest? - ✔✔- Acts within contract
- Follows instructions regarding acceptable classes of business
- Collect premiums
- Remit premiums
- Do not delegate authority
- Notification - advice insure when business is written.
✔✔7 Contents of a binder: - ✔✔- Name and address of insured
- Address the risk
- Time and date that coverage starts
- Time and date that coverage stops
- Description of property insured
- Amount of insurance bound (broken down by class or item, as applicable)
- Any special terms such as deductibles
, ✔✔3 things about Facultative reinsurance: - ✔✔- Reinsured placed on an individual
case basis
- More time-consuming and more expensive than treaty
- Can be proportionally or non-proportionally
✔✔Requirements of a valid contract under the Civil code of Quebec : - ✔✔Capacity to
contract -
- Cannot be a minor unless under special provisions
- Cannot be a Prodigal person
- Cannot be a Person the courts have placed under tutorship.
Cause
- Reason to enter contract
- Must be legal
Consent
- Offer and Acceptance
- Expressed or Implied
- Made to a particular individual or to a group
- Genuine intention
- Must be freely given
Object of contract
- Must entail an obligation
- Not necessarily a material thing
- Must be within the law
✔✔5 things Supreme court of Canada and the types of cases and issues that it handles:
- ✔✔- Final court of appeal in the country
- Hears both criminal and civil cases - but only those cases that reinforce important
principles
- Before a civil case may be appealed to the Supreme Court must give permission to do
so
- Gives opinions on constitutional matters
- Purpose - to lend uniformity to the law across Canada
✔✔Agent/broker responsibilities: - ✔✔- Production: Product knowledge, Product targets,
Prospecting and selling, time control, curiosity.
- Service: Client service, market knowledge, Claims service.
- Claims handling: Monitor progress of the claim, assist the client, adjuster, and insurer
whenever requested.
✔✔Who are the Lloyds of London: - ✔✔- Not an insurance company but an insurance
market
- Llyod's brokers bring business to Lloyd's underwriters who represent syndicates of
members.
QUESTIONS WITH SOLUTIONS GRADED A+2025/2026
✔✔Reasons for voiding a contract: - ✔✔1.) Mistake - Terms, Assumptions,
2.) Misrepresentation - Incorrect statement about a fundamental fact
3.) Undue influence - Signed because of overpowering influence I.e. Nurse/patient
4.) Duress - Forced to enter a contract by the use of violence
✔✔Contrast between public and private law - ✔✔Public:
Administrative
Criminal law
Constitutional law
Private:
Tort law -
Contract law-
✔✔Parts of a policy: - ✔✔- Declarations
- Insurance Agreements
- Statutory conditions
- Policy conditions
- Signature clause
✔✔Insurance: - ✔✔Insurance is the method of sharing the losses of few in a group who
suffer them among the many members of the group who do not.
✔✔3 things about Treaty Reinsurance: - ✔✔- Agreement between insurer and reinsurer
- Automatic reinsurance coverage for a certain complete class of risks
- Can be proportional or non-proportional
✔✔6 Steps of protecting insurer's interest? - ✔✔- Acts within contract
- Follows instructions regarding acceptable classes of business
- Collect premiums
- Remit premiums
- Do not delegate authority
- Notification - advice insure when business is written.
✔✔7 Contents of a binder: - ✔✔- Name and address of insured
- Address the risk
- Time and date that coverage starts
- Time and date that coverage stops
- Description of property insured
- Amount of insurance bound (broken down by class or item, as applicable)
- Any special terms such as deductibles
, ✔✔3 things about Facultative reinsurance: - ✔✔- Reinsured placed on an individual
case basis
- More time-consuming and more expensive than treaty
- Can be proportionally or non-proportionally
✔✔Requirements of a valid contract under the Civil code of Quebec : - ✔✔Capacity to
contract -
- Cannot be a minor unless under special provisions
- Cannot be a Prodigal person
- Cannot be a Person the courts have placed under tutorship.
Cause
- Reason to enter contract
- Must be legal
Consent
- Offer and Acceptance
- Expressed or Implied
- Made to a particular individual or to a group
- Genuine intention
- Must be freely given
Object of contract
- Must entail an obligation
- Not necessarily a material thing
- Must be within the law
✔✔5 things Supreme court of Canada and the types of cases and issues that it handles:
- ✔✔- Final court of appeal in the country
- Hears both criminal and civil cases - but only those cases that reinforce important
principles
- Before a civil case may be appealed to the Supreme Court must give permission to do
so
- Gives opinions on constitutional matters
- Purpose - to lend uniformity to the law across Canada
✔✔Agent/broker responsibilities: - ✔✔- Production: Product knowledge, Product targets,
Prospecting and selling, time control, curiosity.
- Service: Client service, market knowledge, Claims service.
- Claims handling: Monitor progress of the claim, assist the client, adjuster, and insurer
whenever requested.
✔✔Who are the Lloyds of London: - ✔✔- Not an insurance company but an insurance
market
- Llyod's brokers bring business to Lloyd's underwriters who represent syndicates of
members.
