Pass Your IF1 Dumps as PDF Updated on 2022 With 100 Questions
CII IF1 Real Exam Questions and Answers FREE
NEW QUESTION 47
Reinsurance is usually purchased by the
- A. insurer.
- B. regulator.
- C. intermediary.
- D. insured.
Answer: A
NEW QUESTION 48
An agent, acting outside the terms of her agency agreement, binds her principal to a contract with a third party who has reason to believe that the agent can act in that capacity. On what basis, if al all, is the principal bound by the agent's actions?
- A. Necessity.
- B. Consent.
- C. Apparent authority.
- D. Not at all.
Answer: C
NEW QUESTION 49
How is Insurance Premium Tax collected within the UK?
- A. By HM Revenue & Customs on the whole general account.
- B. By the insurer on the whole general and life accounts.
- C. By HM Revenue & Customs on individual insurance contracts.
- D. By the insurer on individual insurance contracts.
Answer: B
NEW QUESTION 50
A loss adjuster normally acts on behalf of the
- A. insurer.
- B. Financial Services Compensation Scheme.
- C. insured.
- D. Financial Ombudsman Service.
Answer: A
NEW QUESTION 51
Julie has cancelled her trip to tlaly as she has broken her leg. Which type of insurance policy is specifically designed to compensate Julie for any cancellation charges she has incurred?
- A. A money insurance policy.
- B. A personal accident and sickness insurance policy.
- C. A travel insurance policy.
- D. An income protection insurance policy.
Answer: C
NEW QUESTION 52
An insured is temporarily disabled due to illness and unable to work. During this period, what type of insurance policy will typically pay a weekly benefit for up to two years?
- A. An employers' liability insurance policy.
- B. A medical expenses insurance policy.
- C. A critical illness insurance policy.
- D. A personal accident and sickness insurance policy.
Answer: D
NEW QUESTION 53
Who cedes business to a reinsurer?
- A. The insurer.
- B. The assessor.
- C. The insured.
- D. The agent.
Answer: A
NEW QUESTION 54
When a member of the Chartered Insurance Institute (CM) is dealing with a client, what specific guidance does the Code of Ethics give in relation to the member's knowledge and expertise?
- A. The member must be qualified to a minimum of the CD's diploma qualification.
- B. The member must provide the client with a copy of appropriate qualifications.
- C. The member's knowledge and expertise must be kept up to date and relevant.
- D. The member must notify the Cll of any shortcomings in his knowledge.
Answer: C
NEW QUESTION 55
An investor is unable to obtain insurance to protect his potential losses while trading on the stock market because the category of risk is deemed to be
- A. particular.
- B. financial.
- C. speculative.
- D. pure.
Answer: C
NEW QUESTION 56
The accident record for a printworks show that for every one major injury, there have been 30 minor incidents and 900 non-injury events reported. How would major work injuries be classified in relation to frequency and severity?
- A. High frequency, low severity.
- B. Low frequency, high severity.
- C. Low frequency, low severity.
- D. High frequency, high severity.
Answer: B
NEW QUESTION 57
The main purpose of the fair treatment of customers initiative is to
- A. ensure all firms have a similar service standard.
- B. apply fixed times for responding to claims and complaints.
- C. build consumer confidence in the financial services industry.
- D. make firms more competitive.
Answer: C
NEW QUESTION 58
Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?
- A. The International Underwriting Association of London.
- B. The Chartered Institute of Loss Adjusters.
- C. The Lloyd's Market Association.
- D. The Institute and Faculty of Actuaries.
Answer: D
NEW QUESTION 59
Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?
- A. Good faith.
- B. Subrogation.
- C. Contra proferentem.
- D. Privity of contract.
Answer: D
NEW QUESTION 60
What is the principal reason for which a proposer is asked by the insurer whether his car will be driven by anyone else?
- A. To establish whether insurable interest exists.
- B. To enable a discount to be applied.
- C. To enable a loading to be applied.
- D. It is a material circumstance.
Answer: D
NEW QUESTION 61
When Susan applied for a new household contents insurance policy, she was obliged to disclose her extensive claims history. Such details are normally known as
- A. material circumstances.
- B. warranties.
- C. indemnity.
- D. contractual terms.
Answer: A
NEW QUESTION 62
John and his wife arrange a household contents insurance policy in joint names with insurer A for a sum insured of £10,000. His wife arranges a second policy on the same basis with insurer B for a sum insured of
£20,000. Both policies have identical terms and conditions. What is insurer A's liability if a valid claim of
£3,000 is subsequently made?
- A. £1,500
- B. £3,000
- C. £1,000
- D. £2,000
Answer: C
NEW QUESTION 63
What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?
- A. Brokerage.
- B. Loss of interest.
- C. An excess.
- D. Wear and tear.
Answer: D
NEW QUESTION 64
A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?
- A. Write to the liquidator to register the debt.
- B. Cancel the policies from inception for non-payment.
- C. Offer a discounted premium payment to the policyholders.
- D. Apply for a second payment from the policyholders.
Answer: A
NEW QUESTION 65
Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?
- A. Frequency.
- B. Certainty.
- C. Statutory requirements.
- D. Uncertainty.
Answer: D
NEW QUESTION 66
The Principles for Business slate that all customers should be treated
- A. equally.
- B. to a minimum standard.
- C. fairly.
- D. with due respect.
Answer: C
NEW QUESTION 67
Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the
- A. European Union.
- B. Financial Services Compensation Scheme.
- C. Association of British Insurers.
- D. Financial Ombudsman Service.
Answer: A
NEW QUESTION 68
Joe is a broker who has become a Fellow of the Chattered Insurance Institute. If he would like to use the title Chartered Insurance Broker, what must he do. if anything?
- A. He must apply to the Prudential Regulation Authority.
- B. He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
- C. He must apply to the Chartered Insurance Institute.
- D. He must apply to the British Insurance Brokers' Association.
Answer: C
NEW QUESTION 69
How does insurable interest arise, if at all. when an insurer arranges reinsurance?
- A. The insurer is considered to have insurable interest by virtue of its liability to pay claims.
- B. Insurable interest does not arise.
- C. The policyholder is considered to have assigned the insurable interest to the insurer.
- D. Insurable interest is created by statute.
Answer: A
NEW QUESTION 70
The capital requirements of insurers and intermediaries are set out by
- A. Proceeds of Crime Act 2002.
- B. Money Laundering Regulations.
- C. Data Protection legislation.
- D. Prudential Regulation Authority rules.
Answer: D
NEW QUESTION 71
Under the Insurance: Conduct of Business sourcebook (ICOBS) on product disclosure, what information about the claims-handling process must an intermediary provide to a consumer?
- A. The contact details of the loss adjuster used by the insurer.
- B. The number of days the settlement should take.
- C. The policy number only.
- D. The contact details of the insurer.
Answer: A
NEW QUESTION 72
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