Prepare IF1 Question Answers Free Update With 100% Exam Passing Guarantee [2021]
Dumps Real CII IF1 Exam Questions [Updated 2021]
NEW QUESTION 53
In order for a contract to be legally enforceable, what further action is required after offer and acceptance?
- A. Delivery of goods or services concerned.
- B. Exchange of consideration between the two parties.
- C. Provision of written terms and conditions.
- D. Witnessing by a third party.
Answer: B
NEW QUESTION 54
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. Low frequency, high severity.
- B. High frequency, high severity.
- C. Low frequency, low severity.
- D. High frequency, low severity.
Answer: A
NEW QUESTION 55
Self-insurance arises when a
- A. policyholder decides to insure proportions of his property with different insurers.
- B. policyholder finds that he has inadvertently taken out more than one policy covering the same risk.
- C. company decides to set aside a fund to pay losses that may occur.
- D. number of insurers agree to collectively insure a particular risk in agreed proportions.
Answer: C
NEW QUESTION 56
Which key test for money laundering is defined under the Proceeds of Crime Act 2002?
- A. Criminal lifestyle.
- B. Criminal record.
- C. Criminal intelligence.
- D. Criminal possession.
Answer: A
NEW QUESTION 57
A retail customer CANNOT buy insurance directly from which type of insurer?
- A. A composite insurer.
- B. A direct insurer.
- C. A captive insurer.
- D. A mutual insurer.
Answer: C
NEW QUESTION 58
The main function of an insurance broker is to
- A. introduce business lo a particular insurer.
- B. act as the agent of the insurer.
- C. negotiate claims.
- D. provide independent advice to clients.
Answer: D
NEW QUESTION 59
The principle of indemnity is the
- A. obligation of the insurer to provide a maximum sum insured or limit of liability.
- B. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
- C. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
- D. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
Answer: D
NEW QUESTION 60
In a chain of events, the proximate cause of a loss is always the
- A. last event before the loss occurs.
- B. only event contributing towards the loss.
- C. only event which is not excluded by the terms of the policy.
- D. dominant event leading to the loss.
Answer: D
NEW QUESTION 61
A firm of insurance brokers invite Stuart. an underwriter who handles its account, on a Caribbean cruise with his family. How should Stuart react to this invitation in order to comply with the Chartered Insurance Institute's Code of Ethics?
- A. Decline to avoid any suggestion he is being compromised.
- B. Accept on the basis that this is an accepted business practice.
- C. Decline as this is against the Financial Ombudsman Service regulations.
- D. Accept only on the basis that the cost is less than £1.000.
Answer: A
NEW QUESTION 62
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. Uncertainty.
- B. Statutory requirements.
- C. Frequency.
- D. Certainty.
Answer: A
NEW QUESTION 63
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. £2,000
- C. £1,000
- D. £3,000
Answer: C
NEW QUESTION 64
How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
- A. Subrogation rights apply under both policies.
- B. Subrogation rights only apply under a personal accident policy.
- C. Subrogation rights only apply under a theft policy.
- D. Subrogation rights do not apply under either policy.
Answer: C
NEW QUESTION 65
Sunita suffers a loss and makes a claim under her household contents insurance policy. When must insurable interest exist for her claim to be valid?
- A. At the time of the proposal.
- B. At policy inception only.
- C. At policy inception and at the time of the loss.
- D. At the time of the loss only.
Answer: C
NEW QUESTION 66
What type of organisation is the British Insurance Brokers' Association?
- A. A public limited company.
- B. A trade body.
- C. An educational body.
- D. A specialist regulator.
Answer: B
NEW QUESTION 67
Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity
- A. for 20 years after the employee stops carrying out the activity.
- B. for 3 years after the employee stops carrying out the activity.
- C. indefinitely.
- D. for 10 years after the employee stops carrying out the activity.
Answer: B
NEW QUESTION 68
The website of an insurer must include the company's registered name, trading address, contact details and regulator. This is in accordance with rules enforced by the
- A. Competition and Markets Authority.
- B. Prudential Regulation Authority.
- C. Financial Ombudsman Service.
- D. Advertising Standards Authority.
Answer: C
NEW QUESTION 69
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