Latest [Oct 16, 2023] CII IF1 Exam Practice Test To Gain Brilliante Result
Take a Leap Forward in Your Career by Earning CII IF1
NEW QUESTION # 60
From April 2019. a small company with nine employees is in dispute with its insurer and wishes to refer the matter to the Financial Ombudsman Service (FOS). The FOS is only permitted lo deal with the dispute if the insured's turnover does NOT exceed
- A. £3,500,000
- B. £1,000,000
- C. £6,000,000
- D. £6,500,000
Answer: B
NEW QUESTION # 61
For which professional is professional indemnity insurance compulsory by statute?
- A. A loss adjuster,
- B. A chartered surveyor. .
- C. A loss assessor.
- D. A solicitor.
Answer: D
NEW QUESTION # 62
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. Cancel the policies from inception for non-payment.
- B. Apply for a second payment from the policyholders.
- C. Write to the liquidator to register the debt.
- D. Offer a discounted premium payment to the policyholders.
Answer: C
NEW QUESTION # 63
What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?
- A. Vicarious liability.
- B. Delegated authority.
- C. Insurable interest.
- D. Risk indemnity.
Answer: C
NEW QUESTION # 64
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 as this is against the Financial Ombudsman Service regulations.
- B. Accept only on the basis that the cost is less than £1.000.
- C. Decline to avoid any suggestion he is being compromised.
- D. Accept on the basis that this is an accepted business practice.
Answer: C
NEW QUESTION # 65
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 is created by statute.
- C. Insurable interest does not arise.
- D. The policyholder is considered to have assigned the insurable interest to the insurer.
Answer: A
NEW QUESTION # 66
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 enable a loading to be applied.
- B. It is a material circumstance.
- C. To enable a discount to be applied.
- D. To establish whether insurable interest exists.
Answer: B
NEW QUESTION # 67
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 personal accident and sickness insurance policy.
- B. An income protection insurance policy.
- C. A travel insurance policy.
- D. A money insurance policy.
Answer: C
NEW QUESTION # 68
What are the other key components of risk apart from uncertainty?
- A. The level of risk, peril and hazard.
- B. Financial losses.
- C. Financial losses and speculation.
- D. Low severity losses and low frequency losses.
Answer: A
NEW QUESTION # 69
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. Wear and tear.
- D. An excess.
Answer: C
NEW QUESTION # 70
Peter currently has no penalty points on his driving licence, although he was convicted of a minor motoring offence eight years ago. Why does Peter NOT need to disclose this to his motor insurer?
- A. It represents a moral hazard.
- B. It is a spent conviction.
- C. It is information that would not influence an underwriter.
- D. It represents a physical hazard.
Answer: B
NEW QUESTION # 71
Lloyd's is known as a subscription market because
- A. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
- B. a number of syndicates accept a share of the same risk.
- C. a fee must be paid.
- D. the underwriter assigns his signature individually to each risk.
Answer: B
NEW QUESTION # 72
Sara searches on a comparison website for car insurance. She selects the cheapest quotation and pays by credit card for immediate cover. This is known as
- A. unconditional acceptance.
- B. a Terms of Business Agreement.
- C. conditional acceptance.
- D. an offer.
Answer: A
NEW QUESTION # 73
If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of
- A. contribution.
- B. subrogation.
- C. good faith.
- D. indemnity.
Answer: D
NEW QUESTION # 74
Reinsurance is usually purchased by the
- A. intermediary.
- B. insured.
- C. insurer.
- D. regulator.
Answer: C
NEW QUESTION # 75
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, low severity.
- C. High frequency, high severity.
- D. Low frequency, high severity.
Answer: D
NEW QUESTION # 76
......
CII IF1 (Insurance Legal and Regulatory) Exam is an important certification for professionals working in the insurance industry. IF1 exam focuses on providing candidates with a comprehensive understanding of the legal and regulatory frameworks that govern the insurance industry. This knowledge is essential for professionals working in the industry, as it enables them to operate within the legal and ethical boundaries of the industry.
Authentic Best resources for IF1 Online Practice Exam: https://examcollection.prep4king.com/IF1-latest-questions.html
