2021 LatestCram CII IF1 Dumps and Exam Test Engine
CII IF1 DUMPS WITH REAL EXAM QUESTIONS
NEW QUESTION 45
Which typo of insurer is owned by multiple policyholders?
- A. A captive insurer.
- B. A composite insurer.
- C. A proprietary insurer.
- D. A mutual insurer.
Answer: D
NEW QUESTION 46
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 notify the Cll of any shortcomings in his knowledge.
- C. The member must provide the client with a copy of appropriate qualifications.
- D. The member's knowledge and expertise must be kept up to date and relevant.
Answer: D
NEW QUESTION 47
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 Chartered Insurance Institute.
- C. He must apply to the Prudential Regulation Authority.
- D. He must apply to the British Insurance Brokers' Association.
Answer: B
NEW QUESTION 48
What type of risk is a widespread natural disaster?
- A. A pure risk.
- B. A particular risk.
- C. A speculative risk.
- D. A fundamental risk.
Answer: D
NEW QUESTION 49
Alex decides to insure his factory. In doing this he is primarily
- A. transferring the risk to the insurer.
- B. reducing his physical hazard.
- C. protecting his business against certainty of loss.
- D. reducing his moral hazard.
Answer: A
NEW QUESTION 50
An insured is temporarily disabled due to illness and unable to work. During this period, what type of insurance policy will typically pay a weekly benefit for up to two years?
- A. An employers' liability insurance policy.
- B. A critical illness insurance policy.
- C. A medical expenses insurance policy.
- D. A personal accident and sickness insurance policy.
Answer: D
NEW QUESTION 51
John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?
- A. He does not need to disclose this.
- B. Immediately, irrespective of prognosis.
- C. At the date of the next premium payment.
- D. Immediately, but only if the diagnosis is terminal.
Answer: A
NEW QUESTION 52
When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?
- A. They will only be considered if Tom had a further speeding conviction in the last 12 months.
- B. They will be classed as relevant information and will affect the premium.
- C. They will not be considered as this is not an underwriting factor in motor insurance risk assessment.
- D. They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.
Answer: D
NEW QUESTION 53
The Principles for Business slate that all customers should be treated
- A. to a minimum standard.
- B. with due respect.
- C. equally.
- D. fairly.
Answer: D
NEW QUESTION 54
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. pure.
- C. particular.
- D. financial.
Answer: A
NEW QUESTION 55
How is Insurance Premium Tax collected within the UK?
- A. By the insurer on individual insurance contracts.
- B. By HM Revenue & Customs on the whole general account.
- C. By HM Revenue & Customs on individual insurance contracts.
- D. By the insurer on the whole general and life accounts.
Answer: D
NEW QUESTION 56
It is important to ensure the fair treatment of customers in order to comply with rules set by the
- A. Financial Conduct Authority.
- B. British Insurance Brokers' Association.
- C. Association of British Insurers.
- D. Chartered Insurance Institute.
Answer: A
NEW QUESTION 57
A claim has arisen which is fully covered under insurer A's policy and insurer B's policy. Insurer A's policy has a sum insured of £30,000 and insurer B's policy has a sum insured of £50,000. What proportion of the claim is insurer B liable for if the principle of contribution applies on a rateable proportion by sum insured basis?
- A. Three eighths.
- B. Five eighths.
- C. Two fifths.
- D. Three fifths.
Answer: B
NEW QUESTION 58
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. Offer a discounted premium payment to the policyholders.
- B. Cancel the policies from inception for non-payment.
- C. Apply for a second payment from the policyholders.
- D. Write to the liquidator to register the debt.
Answer: D
NEW QUESTION 59
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. Necessity.
- B. Apparent authority.
- C. Consent.
- D. Not at all.
Answer: B
NEW QUESTION 60
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