IRC Test Full Actual Exam 100

IRC Test | / Full Actual Exam – 100 Verified Questions and Correct Detailed Answers​ Real Exam-Based Questions and Verified Answers | 100% Accuracy | Graded A+ | Fully Updated and Aligned with Official IRC Exam Standards

Introduction​ This complete and up-to-date guide includes 100 verified multiple-choice questions and correct detailed answers from the IRC (Insurance Regulatory Compliance) Exam for the / cycle. It covers essential topics including compliance regulations, ethical standards, policy procedures, and legal frameworks—ensuring candidates are well-prepared to pass with confidence.Answer Format​ All correct answers are clearly marked in bold and green for efficient review and confident preparation.

IRC Test | / Verified Q&A | Fully Updated | Graded A+ | Pass with Confidence Question 1​ What is the primary purpose of the IRC exam?​

• To sell insurance policies​

B) To ensure compliance with insurance regulations​

• To process claims​
• To design marketing campaigns​

Rationale: The IRC exam tests knowledge of regulatory compliance.

Question 2​ Which Canadian legislation governs insurance consumer protection?​

• Bank Act​

B) Insurance Companies Act​

• Canada Business Corporations Act​
• Competition Act​

Rationale: The Insurance Companies Act protects consumers.

Question 3​ What is a key component of an ethical insurance practice?​

• Misrepresenting policy terms​

B) Transparency with clients​ 1 / 3

• Ignoring client inquiries​
• Overcharging premiums​

Rationale: Transparency builds trust and compliance.

Question 4​ Which body regulates insurance in Ontario?​

• Insurance Bureau of Canada​

B) Financial Services Regulatory Authority (FSRA)​

• Office of the Superintendent of Financial Institutions​
• Canadian Insurance Services​

Rationale: FSRA oversees insurance in Ontario.

Question 5​ What is the purpose of an audit trail in insurance compliance?​

• To increase sales​

B) To track and verify transactions​

• To reduce staff training​
• To avoid regulatory oversight​

Rationale: Audit trails ensure accountability.

Question 6​ Which policy procedure requires written consent for data sharing?​

• Verbal agreement​

B) Privacy consent form​

• Oral notification​
• Implied consent​

Rationale: Written consent complies with privacy laws.

Question 7​ What is a common penalty for non-compliance with IRC standards?​

• Increased commissions​

B) Fines or license suspension​

• Bonus payments​
• Reduced workload​

Rationale: Penalties enforce regulatory adherence.

Question 8​ Which legal framework protects client confidentiality?​

• Criminal Code​

B) Personal Information Protection and Electronic Documents Act (PIPEDA)​

• Income Tax Act​
• Employment Standards Act​

Rationale: PIPEDA safeguards client data.

Question 9​ What is the role of an insurance compliance officer?​

• To sell policies​ 2 / 3

• To ensure regulatory adherence​
• To process claims​
• To design insurance products​

Rationale: They oversee compliance efforts.

Question 10​ Which regulation requires fair treatment of insurance customers?​

• Anti-Spam Legislation​

B) Fair Treatment of Customers Regulation​

• Trade Secrets Act​
• Consumer Packaging Act​

Rationale: It mandates fair customer practices.

Question 11​ What is the purpose of conducting a compliance review?​

• To increase premiums​

B) To identify and correct regulatory gaps​

• To reduce staff​
• To avoid audits​

Rationale: Reviews ensure ongoing compliance.

Question 12​ Which document outlines an insurer’s compliance obligations?​

• Marketing plan​

B) Compliance policy manual​

• Sales report​
• Employee handbook​

Rationale: It details regulatory requirements.

Question 13​ What is a key ethical standard for insurance brokers?​

• Prioritizing personal gain​

B) Acting in the client’s best interest​

• Ignoring client needs​
• Misleading clients​

Rationale: Client interest is a core ethical duty.

Question 14​ Which regulation governs anti-money laundering in insurance?​

• Proceeds of Crime (Money Laundering) and Terrorist Financing Act​

B) Proceeds of Crime (Money Laundering) and Terrorist Financing Act​

• Personal Information Protection Act​
• Competition Act​

Rationale: It prevents illegal financial activities.

Question 15​ What is the purpose of a disclosure statement in insurance?​

• / 3