CII IF1 Certification All-in-One Exam Guide Apr-2023
Get Real IF1 Exam Dumps [Apr-2023] Practice Tests
NEW QUESTION 46
A policyholder achieves peace of mind when insuring his car by
- A. eliminating the risk of loss.
- B. preventing the chance of a loss occurring.
- C. transferring the risk to the insurer.
- D. reducing the chance of a loss occurring.
Answer: C
NEW QUESTION 47
The purpose of the EU solvency requirements for insurers and intermediaries is to
- A. strengthen the financial security of the insurer or intermediary.
- B. create a standard format for the presentation of accounting data.
- C. introduce monitoring procedures by the Prudential Regulation Authority.
- D. provide authorisation to transact insurance business.
Answer: B
NEW QUESTION 48
Bye-laws are passed at the Lloyd's Market by the
- A. Lloyd's Market Association.
- B. Lloyds Managing Agent.
- C. Council of Lloyd's.
- D. Corporation of Lloyd's.
Answer: C
NEW QUESTION 49
Under common law. when does the insured's duly of fair presentation cease with regard to declarations that do NOT affect policy cover?
- A. At renewal.
- B. When a claim is paid.
- C. When the policy contract lakes effect.
- D. When a claim is submitted.
Answer: A
NEW QUESTION 50
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 policy inception only.
- B. At policy inception and at the time of the loss.
- C. At the time of the proposal.
- D. At the time of the loss only.
Answer: B
NEW QUESTION 51
An insurance company has employed an individual from a rival firm to carry out a similar job. At which stage would the regulatory requirements for retaining training and competence records first apply to the new employee, if at all?
- A. Within 18 months of employment.
- B. When the employee first has contact with members of the public.
- C. From the initial interview.
- D. It would not apply, as the employee is already fully competent.
Answer: B
NEW QUESTION 52
Under the provisions of the Financial Services Act 2012. what action, if any, can the regulator take against a firm that has committed money laundering offences?
- A. No action can be taken.
- B. Criminal prosecution.
- C. Civil proceedings.
- D. Arbitration.
Answer: B
NEW QUESTION 53
Which principle of insurance prevents a member of the public from taking out an insurance policy on the life of a celebrity in the hope of receiving a windfall on the celebrity's death?
- A. Good faith.
- B. Proximate cause.
- C. Indemnity.
- D. Insurable interest.
Answer: D
NEW QUESTION 54
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. contractual terms.
- B. material circumstances.
- C. warranties.
- D. indemnity.
Answer: B
NEW QUESTION 55
When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as
- A. a real statement.
- B. a first loss policy.
- C. an indemnity policy.
- D. a new for old policy.
Answer: B
NEW QUESTION 56
How is Insurance Premium Tax collected within the UK?
- A. By the insurer on individual insurance contracts.
- B. By the insurer on the whole general and life accounts.
- C. By HM Revenue & Customs on individual insurance contracts.
- D. By HM Revenue & Customs on the whole general account.
Answer: B
NEW QUESTION 57
If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from
- A. increasing the premium.
- B. pursuing subrogation rights.
- C. reinsuring the risk.
- D. disclosing details to a third party.
Answer: B
NEW QUESTION 58
What is the basis of settlement under a new for old insurance policy if a television is stolen?
- A. The original cost in full.
- B. The replacement cost in full.
- C. The original cost, less wear and tear.
- D. The replacement cost, less wear and tear.
Answer: D
NEW QUESTION 59
Why is effective risk management important to an insurer?
- A. It increases premium income.
- B. It increases the insurer's capacity.
- C. It helps to reduce a company's loss exposure.
- D. It always reduces costs.
Answer: C
NEW QUESTION 60
When motor insurance is purchased directly with an insurer, what is usually the main disadvantage to the policyholder in the event of a claim compared to purchasing indirectly through a different marketing channel?
- A. There is no intermediary to provide assistance.
- B. The policy excess is higher.
- C. A courtesy car is not available.
- D. The risk of losing a no claims discount is greater.
Answer: A
NEW QUESTION 61
A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a
- A. pure risk.
- B. physical hazard.
- C. fundamental risk.
- D. moral hazard.
Answer: B
NEW QUESTION 62
A Terms of Business Agreement between an insurer and an intermediary sets out the
- A. disaster recovery procedures to apply if there is a major disaster affecting the insurer.
- B. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
- C. framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
- D. agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
Answer: C
NEW QUESTION 63
The principle of indemnity is the
- A. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
- B. obligation of the insurer to provide a maximum sum insured or limit of liability.
- C. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
- D. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
Answer: A
NEW QUESTION 64
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