Feb-2022 CII IF1 Actual Questions and 100% Cover Real Exam Questions
IF1 Free Exam Questions and Answers PDF Updated on Feb-2022
NEW QUESTION 55
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. £3,000
- D. £1,000
Answer: D
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
An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?
- A. Reinsurance.
- B. Dual insurance.
- C. Self-insurance.
- D. Coinsurance.
Answer: D
NEW QUESTION 58
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 loss only.
- B. At the time of the proposal.
- C. At policy inception only.
- D. At policy inception and at the time of the loss.
Answer: D
NEW QUESTION 59
The purpose of the EU solvency requirements for insurers and intermediaries is to
- A. introduce monitoring procedures by the Prudential Regulation Authority.
- B. provide authorisation to transact insurance business.
- C. strengthen the financial security of the insurer or intermediary.
- D. create a standard format for the presentation of accounting data.
Answer: D
NEW QUESTION 60
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. Offer a discounted premium payment to the policyholders.
- C. Cancel the policies from inception for non-payment.
- D. Apply for a second payment from the policyholders.
Answer: A
NEW QUESTION 61
It is important to ensure the fair treatment of customers in order to comply with rules set by the
- A. Association of British Insurers.
- B. British Insurance Brokers' Association.
- C. Financial Conduct Authority.
- D. Chartered Insurance Institute.
Answer: C
NEW QUESTION 62
John wishes to insure his friend's house. Why would an insurer refuse to provide a quotation?
- A. He does not have any subrogation rights.
- B. His name is not on the mortgage.
- C. He does not live in the house.
- D. He does not have any insurable interest.
Answer: D
NEW QUESTION 63
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. for 10 years after the employee stops carrying out the activity.
- D. indefinitely.
Answer: B
NEW QUESTION 64
Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?
- A. Lloyd's.
- B. Independent brokers.
- C. Direct insurers.
- D. Appointed representatives.
Answer: C
NEW QUESTION 65
A house slatls to have subsidence problems due to the negligence of a cable-laying company. The owner of the house claims under his household buildings insurance policy. Which principle allows the insurer to recover from the cable-laying company?
- A. Contribution.
- B. Salvage.
- C. Subrogation.
- D. Assignment.
Answer: C
NEW QUESTION 66
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. indemnity.
- C. warranties.
- D. material circumstances.
Answer: D
NEW QUESTION 67
A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?
- A. Only if the records include details of race.
- B. In no circumstances.
- C. In all circumstances.
- D. Only if the records include dates of birth.
Answer: C
NEW QUESTION 68
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. speculative.
- B. particular.
- C. financial.
- D. pure.
Answer: A
NEW QUESTION 69
Why is effective risk management important to an insurer?
- A. It increases the insurer's capacity.
- B. It helps to reduce a company's loss exposure.
- C. It increases premium income.
- D. It always reduces costs.
Answer: B
NEW QUESTION 70
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. Certainty.
- C. Statutory requirements.
- D. Frequency.
Answer: A
NEW QUESTION 71
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