IF1 Braindumps Real Exam Updated on Nov 26, 2021 with 100 Questions
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NEW QUESTION 46
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 47
Which key test for money laundering is defined under the Proceeds of Crime Act 2002?
- A. Criminal possession.
- B. Criminal intelligence.
- C. Criminal record.
- D. Criminal lifestyle.
Answer: D
NEW QUESTION 48
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. £1,000
- C. £2,000
- D. £3,000
Answer: B
NEW QUESTION 49
The capital requirements of insurers and intermediaries are set out by
- A. Money Laundering Regulations.
- B. Proceeds of Crime Act 2002.
- C. Data Protection legislation.
- D. Prudential Regulation Authority rules.
Answer: D
NEW QUESTION 50
The purpose of the EU solvency requirements for insurers and intermediaries is to
- A. create a standard format for the presentation of accounting data.
- B. introduce monitoring procedures by the Prudential Regulation Authority.
- C. provide authorisation to transact insurance business.
- D. strengthen the financial security of the insurer or intermediary.
Answer: A
NEW QUESTION 51
What is the basis of settlement under a new for old insurance policy if a television is stolen?
- A. The replacement cost in full.
- B. The original cost in full.
- C. The replacement cost, less wear and tear.
- D. The original cost, less wear and tear.
Answer: C
NEW QUESTION 52
Who is represented by a loss assessor?
- A. A policyholder.
- B. A broker.
- C. A claims handler.
- D. An underwriter.
Answer: A
NEW QUESTION 53
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. warranties.
- C. indemnity.
- D. material circumstances.
Answer: D
NEW QUESTION 54
A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder
- A. only when collecting premiums.
- B. via the intermediary.
- C. on a direct basis,
- D. outside normal business hours,
Answer: B
NEW QUESTION 55
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 56
An owner of a building reduces its sum insured from £1,000.000 lo £500.000 to save premiums. A Tire causes
£300,000 damage to the building. If the building has a reinstatement value of £750,000 and average is applied, how much will the insured receive in settlement?
- A. £200.000
- B. £500.000
- C. £300.000
- D. £150.000
Answer: A
NEW QUESTION 57
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. Not at all.
- B. Necessity.
- C. Consent.
- D. Apparent authority.
Answer: D
NEW QUESTION 58
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 the insurer on individual insurance contracts.
- D. By HM Revenue & Customs on individual insurance contracts.
Answer: B
NEW QUESTION 59
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 cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
- B. He must apply to the Prudential Regulation Authority.
- C. He must apply to the Chartered Insurance Institute.
- D. He must apply to the British Insurance Brokers' Association.
Answer: C
NEW QUESTION 60
The principle of indemnity is the
- A. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
- B. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
- C. obligation of the insurer to provide a maximum sum insured or limit of liability.
- D. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
Answer: B
NEW QUESTION 61
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 must notify the Cll of any shortcomings in his knowledge.
- D. The member's knowledge and expertise must be kept up to date and relevant.
Answer: D
NEW QUESTION 62
Lloyd's is known as a subscription market because
- A. a number of syndicates accept a share of the same risk.
- B. the underwriter assigns his signature individually to each risk.
- C. a fee must be paid.
- D. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
Answer: A
NEW QUESTION 63
What type of organisation is the British Insurance Brokers' Association?
- A. An educational body.
- B. A specialist regulator.
- C. A trade body.
- D. A public limited company.
Answer: C
NEW QUESTION 64
A Terms of Business Agreement between an insurer and an intermediary sets out the
- A. agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
- B. disaster recovery procedures to apply if there is a major disaster affecting the insurer.
- C. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
- D. framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
Answer: D
NEW QUESTION 65
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