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IIC Principles and Practice of Insurance Sample Questions:

1. Which is a pre-loss objective of risk management for an organization?

A) External obligations
B) Business development
C) Sustained growth
D) Operational continuity

2. Why does the need for liability insurance arise?

A) Meet societal obligations and norms
B) Reduce personal risk to oneself
C) Fulfill legal obligations to others
D) Uphold ethical feelings of responsibility

3. What is a post-loss objective of risk management for an organization?

A) Stable earnings
B) External development
C) Peace of mind
D) Internal obligations

4. A retailer reports $250,000 revenues and $100,000 expenses, and projects $50,000 in sustained growth next year. What is its net income for the past year?

A) $250,000
B) $300,000
C) $150,000
D) $200,000

5. What does the term "subject of insurance" refer to?

A) The company providing the coverage
B) The thing being insured
C) The type of wording applicable to the policy
D) The perils associated with the risk

Solutions: