100+ Free C14: Automobile Insurance Part 1 Practice Questions

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Key Facts: C14: Automobile Insurance Part 1 Exam

100

Total Questions

IIC Blueprint

60%

Exam Pass Mark

IIC Guidelines

2.0h

Exam Duration

IIC Blueprint

CAD $383

Exam/Rewrite Fee (Aug 2025)

IIC CIP Fees

This practice exam prepares you for the IIC CIP C14 exam by testing your knowledge of Canadian automobile insurance systems, SPF 1 / O.A.P. 1 policy provisions, liability, accident benefits, DCPD, physical damage, and endorsements.

Sample C14: Automobile Insurance Part 1 Practice Questions

Try these sample questions to test your C14: Automobile Insurance Part 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following Canadian provinces operate their compulsory automobile insurance systems through a government-run public monopoly?

A.Ontario, Alberta, and Nova Scotia

B.British Columbia, Manitoba, and Saskatchewan

C.Quebec, New Brunswick, and Prince Edward Island

D.Newfoundland and Labrador, Alberta, and British Columbia

Explanation: British Columbia (ICBC), Manitoba (MPI), and Saskatchewan (SGI) are the three Canadian provinces that operate public monopolies for compulsory automobile insurance coverages. In these provinces, drivers must purchase their basic coverage directly from the government crown corporation, though private insurers may write excess coverages.

2What is the primary purpose of the Facility Association in Canadian provinces with private automobile insurance markets?

A.To regulate the insurance rates charged by private companies to ensure fair pricing.

B.To act as an insurer of last resort, ensuring that automobile insurance is available to high-risk drivers who cannot obtain coverage in the voluntary market.

C.To handle all subrogation claims between private insurance companies on a no-fault basis.

D.To provide public funding for road safety initiatives and driver licensing programs.

Explanation: The Facility Association is an unincorporated non-profit association of insurers that ensures automobile insurance is available to owners and licensed drivers who are otherwise unable to obtain it in the voluntary market (high-risk risks). All companies writing automobile insurance in a province where the Facility Association operates must belong to the association and share in its operating results.

3In the province of Quebec, which entity is responsible for administering the compulsory public insurance scheme that covers bodily injury for all residents?

A.The Groupement des assureurs automobiles (GAA)

B.The Insurance Bureau of Canada (IBC)

C.The Société de l'assurance automobile du Québec (SAAQ)

D.The Superintendent of Financial Institutions (OSFI)

Explanation: In Quebec's split system, the Société de l'assurance automobile du Québec (SAAQ) is the government body that administers the public no-fault insurance plan covering bodily injuries resulting from automobile accidents. Property damage, however, is underwritten by private insurers.

4Under Manitoba's public insurance system administered by Manitoba Public Insurance (MPI), which of the following is true regarding basic compulsory coverages?

A.MPI covers bodily injury claims, but property damage must be purchased from private insurers.

B.MPI provides basic Third-Party Liability, Personal Injury Protection, and basic Physical Damage (All Perils) coverage.

C.Drivers can opt out of MPI coverage if they can prove they have equal coverage through an employer.

D.MPI covers only property damage, while bodily injury claims are resolved through the civil court system.

Explanation: Manitoba's Autopac program, administered by MPI, is a comprehensive monopoly that provides basic compulsory coverage including Third-Party Liability, the Personal Injury Protection Plan (PIPP) for bodily injuries, and basic Physical Damage coverage (All Perils) subject to a standard deductible.

5In Saskatchewan, SGI's Auto Fund provides basic compulsory coverage. What unique choice are Saskatchewan drivers given regarding their bodily injury coverage?

A.They can choose to buy coverage either from SGI or a private insurer.

B.They can choose between a standard No-Fault coverage program or a Tort coverage option.

C.They can choose to opt out of bodily injury coverage entirely if they do not carry passengers.

D.They can choose between a $200,000 limit or a $2,000,000 limit for no-fault medical benefits.

Explanation: Saskatchewan is unique because it offers drivers a choice between two auto injury programs: the default No-Fault Coverage (which provides comprehensive care benefits and bars most lawsuits) and Tort Coverage (which provides lower immediate benefits but preserves the right to sue for pain, suffering, and economic loss).

6Which of the following Canadian provinces features an automobile insurance market where all coverages are written exclusively by private insurance companies?

A.Alberta

B.British Columbia

C.Saskatchewan

D.Manitoba

Explanation: Alberta has an entirely private automobile insurance market. Insureds purchase all their auto insurance coverages—including compulsory Third-Party Liability, Accident Benefits, and optional Physical Damage coverages—from private insurance companies. British Columbia, Saskatchewan, and Manitoba all have crown corporations providing compulsory basic coverages.

7Who must sign the SAF 1 (Standard Application Form) for automobile insurance to ensure that all declarations are legally binding?

A.Only the insurance broker or agent who takes the application.

B.The applicant (or their authorized representative) and, in some cases, the principal driver.

C.Only the registry agent who registers the vehicle.

D.No signature is legally required as long as the premium has been paid.

Explanation: The applicant or their authorized representative must sign the SAF 1. The signature confirms that the statements made on the application are true, accurate, and complete. It forms the basis of the insurance contract, and misrepresentation of these facts can render the contract void.

8Which of the following parties possesses an 'insurable interest' in an automobile for the purpose of purchasing an owner's policy?

A.A neighbor who occasionally borrows the vehicle with permission.

B.The registered owner, a lessee under a long-term lease, or a named lienholder.

C.A mechanic who performs routine maintenance on the vehicle.

D.A pedestrian who lives on the same street where the vehicle is parked.

Explanation: Insurable interest in automobile insurance requires that a person will suffer a financial loss if the vehicle is damaged or destroyed, or will face legal liability from its use. The registered owner, a lessee (who is contractually responsible for the car), and a lienholder or lessor (who has a financial stake in the vehicle) all have a valid insurable interest.

9Which standard automobile policy form is approved and mandated for use for private passenger vehicles in the province of Ontario?

A.SPF 1 (Standard Policy Form 1)

B.SPF 4 (Standard Garage Policy Form)

C.O.A.P. 1 (Ontario Automobile Policy 1)

D.O.A.P. 2 (Ontario Driver's Policy)

Explanation: Ontario uses the O.A.P. 1 (Ontario Automobile Policy 1) Owner's Policy. It is a standard form approved by the Superintendent of Financial Services / FSRA, containing specific sections and wording unique to Ontario's auto insurance system, including its unique accident benefits and DCPD frameworks.

10Under the Standard Owner's Policy (SPF 1), what is the statutory time limit for the insured to notify the insurer of a newly acquired vehicle that replaces the described vehicle?

A.7 days

B.14 days

C.30 days

D.60 days

Explanation: Under the SPF 1, an insured is granted automatic coverage for a newly acquired automobile that replaces the described vehicle for a period of 14 days. The insured must notify the insurer and pay any additional premium within this 14-day window to maintain continuous coverage.

About the C14: Automobile Insurance Part 1 Exam

C14: Automobile Insurance Part 1 introduces the student to the legislation, policies, and practices governing automobile insurance in Canada. As part of the Chartered Insurance Professional (CIP) designation program from the Insurance Institute of Canada, this course covers the differences between government-run (public) and private insurance systems, the structure of the Standard Owner's Policy (SPF 1) and the Ontario Automobile Policy (O.A.P. 1), Third-Party Liability coverages, Accident Benefits (no-fault bodily injury coverages), Direct Compensation - Property Damage (DCPD), physical damage coverages (Collision, Comprehensive, Specified Perils, All Perils), Statutory Conditions, key endorsements (SEF/OPCF), and the fundamentals of underwriting, ratemaking, and claims handling. Mastering C14 is a critical step for insurance professionals pursuing careers in underwriting, claims adjusting, or brokerage in Canada.

Assessment

Multiple-choice examination (100 questions, 2 hours)

Time Limit

2.0 hours

Passing Score

60% course / 55% exam min

Exam Fee

CAD $383 (Insurance Institute of Canada (IIC))

C14: Automobile Insurance Part 1 Exam Content Outline

15%

Automobile Insurance Systems

Government vs private systems, public providers (ICBC, MPI, SGI, SAAQ), Facility Association, basic legal frameworks.

20%

Policy Structure and Application

Standard Owner's Policy Forms (SPF 1 & O.A.P. 1), Standard Application Form (SAF 1), insurable interest, disclosure, and misrepresentation.

25%

Third-Party Liability and DCPD

Third-Party Liability (bodily injury and property damage, priorities of payment, absolute liability) and Direct Compensation - Property Damage (DCPD, fault determination rules).

20%

Accident Benefits

No-fault bodily injury benefits (medical, rehabilitation, income replacement, death/funeral), tort thresholds, and provincial variations.

20%

Physical Damage, Endorsements, and Underwriting

Physical damage coverages (collision, comprehensive, specified perils, all perils), Statutory Conditions, standard endorsements (SEF/OPCF), and underwriting/claims processes.

How to Pass the C14: Automobile Insurance Part 1 Exam

What You Need to Know

Passing score: 60% course / 55% exam min
Assessment: Multiple-choice examination (100 questions, 2 hours)
Time limit: 2.0 hours
Exam fee: CAD $383

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

C14: Automobile Insurance Part 1 Study Tips from Top Performers

1Learn the differences between government monopolies (BC, MB, SK), split systems (Quebec), and private systems (AB, ON, Atlantic) regarding who sells basic coverages and how bodily injury claims are resolved.

2Master the Fault Determination Rules (FDR) under the DCPD system. Understand how fault is allocated automatically in typical scenarios like rear-end collisions, chain-reactions, and left turns.

3Memorize key endorsements such as SEF 44/OPCF 44R (Family Protection), SEF 27/OPCF 27 (Non-Owned Automobiles), and SEF 43R/OPCF 43 (Waiver of Depreciation), and how they modify standard coverages.

4Review the Statutory Conditions for automobile policies, especially regarding authority to drive, requirements after a loss, and the appraisal process.

Frequently Asked Questions

What is the passing score for the IIC C14 exam?

The Insurance Institute requires a minimum of 60% overall course grade and at least 55% on the final examination itself to pass.

Does the exam cover both SPF 1 and O.A.P. 1?

Yes, the Canadian CIP curriculum covers the Standard Owner's Policy Form (SPF 1) used in provinces like Alberta and Atlantic Canada, as well as the Ontario Automobile Policy 1 (O.A.P. 1) used in Ontario, highlighting their differences in accident benefits, DCPD, and structural layout.

Is there a prerequisite for the C14 course?

While there are no mandatory prerequisites, C11: Principles and Practice of Insurance is strongly recommended to establish a foundation in insurance law, contract principles, and general terminology.