Pass IF1 Exam with Updated IF1 Exam Dumps PDF 2022
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NEW QUESTION 16
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 provide the client with a copy of appropriate qualifications.
- B. The member must notify the Cll of any shortcomings in his knowledge.
- C. The member must be qualified to a minimum of the CD's diploma qualification.
- D. The member's knowledge and expertise must be kept up to date and relevant.
Answer: D
NEW QUESTION 17
The website of an insurer must include the company's registered name, trading address, contact details and regulator. This is in accordance with rules enforced by the
- A. Competition and Markets Authority.
- B. Prudential Regulation Authority.
- C. Financial Ombudsman Service.
- D. Advertising Standards Authority.
Answer: C
NEW QUESTION 18
Self-insurance arises when a
- A. policyholder decides to insure proportions of his property with different insurers.
- B. policyholder finds that he has inadvertently taken out more than one policy covering the same risk.
- C. company decides to set aside a fund to pay losses that may occur.
- D. number of insurers agree to collectively insure a particular risk in agreed proportions.
Answer: C
NEW QUESTION 19
To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?
- A. The agent cannot delegate her responsibility.
- B. To suitably experienced individuals only.
- C. To anyone able to fulfil the duties.
- D. To suitably qualified individuals only.
Answer: A
NEW QUESTION 20
If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from
- A. reinsuring the risk.
- B. increasing the premium.
- C. disclosing details to a third party.
- D. pursuing subrogation rights.
Answer: D
NEW QUESTION 21
Lloyd's is known as a subscription market because
- A. a number of syndicates accept a share of the same risk.
- B. a fee must be paid.
- C. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
- D. the underwriter assigns his signature individually to each risk.
Answer: A
NEW QUESTION 22
Under the Consumer Rights Act 2015. a clause in a household insurance policy may be considered unfair if it
- A. imposes unreasonable obligations on the insurer in terms of costs or expenses that must be paid in addition to the amount of any loss.
- B. causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
- C. allows any party other than the insured to enforce the insurer's obligations under the policy.
- D. discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
Answer: B
NEW QUESTION 23
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. framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
- C. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
- D. agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
Answer: B
NEW QUESTION 24
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 personal accident and sickness insurance policy.
- C. A medical expenses insurance policy.
- D. A critical illness insurance policy.
Answer: B
NEW QUESTION 25
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. indemnity.
- D. good faith.
Answer: C
NEW QUESTION 26
How would an employee benefit directly from her employer's business interruption insurance if its factory was forced to close temporarily due to flood damage?
- A. By compensation for loss of bonus.
- B. By payment of an early retirement pension.
- C. By continuation of her wages.
- D. By payment of a redundancy lump sum.
Answer: C
NEW QUESTION 27
A loss adjuster normally acts on behalf of the
- A. insured.
- B. Financial Services Compensation Scheme.
- C. Financial Ombudsman Service.
- D. insurer.
Answer: D
NEW QUESTION 28
What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?
- A. Insurable interest.
- B. Vicarious liability.
- C. Risk indemnity.
- D. Delegated authority.
Answer: A
NEW QUESTION 29
What type of risk is a widespread natural disaster?
- A. A speculative risk.
- B. A fundamental risk.
- C. A particular risk.
- D. A pure risk.
Answer: B
NEW QUESTION 30
Reinsurance is usually purchased by the
- A. intermediary.
- B. regulator.
- C. insured.
- D. insurer.
Answer: D
NEW QUESTION 31
What type of organisation is the British Insurance Brokers' Association?
- A. A public limited company.
- B. A trade body.
- C. An educational body.
- D. A specialist regulator.
Answer: B
NEW QUESTION 32
In a chain of events, the proximate cause of a loss is always the
- A. last event before the loss occurs.
- B. only event contributing towards the loss.
- C. only event which is not excluded by the terms of the policy.
- D. dominant event leading to the loss.
Answer: D
NEW QUESTION 33
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. £6,000,000
- B. £1,000,000
- C. £6,500,000
- D. £3,500,000
Answer: B
NEW QUESTION 34
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