Current IF1 Exam Dumps [2022] Complete CII Exam Smoothly
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NEW QUESTION 35
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 must apply to the Prudential Regulation Authority.
- B. He must apply to the Chartered Insurance Institute.
- C. He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
- D. He must apply to the British Insurance Brokers' Association.
Answer: B
NEW QUESTION 36
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 37
What type of organisation is the British Insurance Brokers' Association?
- A. A trade body.
- B. A specialist regulator.
- C. An educational body.
- D. A public limited company.
Answer: A
NEW QUESTION 38
The requirement 10 notify the fitting of a more powerful engine under a motor insurance policy is an example of a policy wording modifying the principle of
- A. contribution.
- B. indemnity.
- C. subrogation.
- D. good faith.
Answer: D
NEW QUESTION 39
The principle of indemnity is the
- A. obligation of the insurer to provide a maximum sum insured or limit of liability.
- B. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
- C. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
- D. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
Answer: D
NEW QUESTION 40
Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?
- A. Privity of contract.
- B. Subrogation.
- C. Contra proferentem.
- D. Good faith.
Answer: A
NEW QUESTION 41
If a firm is said to be risk averse, this means that it
- A. carries its own risk wherever possible.
- B. arranges insurance protection wherever possible.
- C. undertakes its own risk management research.
- D. tenders its insurance needs to the market.
Answer: A
NEW QUESTION 42
It is important to ensure the fair treatment of customers in order to comply with rules set by the
- A. British Insurance Brokers' Association.
- B. Chartered Insurance Institute.
- C. Association of British Insurers.
- D. Financial Conduct Authority.
Answer: D
NEW QUESTION 43
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. £6,500,000
- C. £3,500,000
- D. £1,000,000
Answer: D
NEW QUESTION 44
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. He does not live in the house.
- C. His name is not on the mortgage.
- D. He does not have any insurable interest.
Answer: D
NEW QUESTION 45
The purpose of the EU solvency requirements for insurers and intermediaries is to
- A. strengthen the financial security of the insurer or intermediary.
- B. introduce monitoring procedures by the Prudential Regulation Authority.
- C. provide authorisation to transact insurance business.
- D. create a standard format for the presentation of accounting data.
Answer: D
NEW QUESTION 46
What is the legal standing of the Charioted Insurance Institute's Code of Ethics?
- A. It has full force of Jaw except where overridden by pre-existing Acts.
- B. It does not have the force of law.
- C. It is to be applied in conjunction with existing Acts.
- D. It has full stand-alone legal recognition.
Answer: B
NEW QUESTION 47
Lloyd's is known as a subscription market because
- A. the underwriter assigns his signature individually to each risk.
- B. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
- C. a fee must be paid.
- D. a number of syndicates accept a share of the same risk.
Answer: D
NEW QUESTION 48
When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
- A. Within 30 days of cover being incepted.
- B. At the lime of a claim.
- C. At the time of the sale or immediately afterwards.
- D. Within 7 days of a complaint being made.
Answer: C
NEW QUESTION 49
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 is created by statute.
- C. Insurable interest does not arise.
- D. The policyholder is considered to have assigned the insurable interest to the insurer.
Answer: A
NEW QUESTION 50
Bye-laws are passed at the Lloyd's Market by the
- A. Council of Lloyd's.
- B. Lloyds Managing Agent.
- C. Corporation of Lloyd's.
- D. Lloyd's Market Association.
Answer: A
NEW QUESTION 51
Reinsurance is usually purchased by the
- A. insured.
- B. intermediary.
- C. regulator.
- D. insurer.
Answer: D
NEW QUESTION 52
A survey of a car repairers reveals a spray booth exists by an unguarded paraffin space beater. Also, a day's supply of paint is kept within the building and waste is removed daily from a metal bin. What will the underwriter perceive as the main physical hazard?
- A. The waste bin.
- B. The paint.
- C. The unguarded paraffin space heater.
- D. The spray booth.
Answer: C
NEW QUESTION 53
The main function of an insurance broker is to
- A. act as the agent of the insurer.
- B. negotiate claims.
- C. introduce business lo a particular insurer.
- D. provide independent advice to clients.
Answer: D
NEW QUESTION 54
What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?
- A. Vicarious liability.
- B. Risk indemnity.
- C. Delegated authority.
- D. Insurable interest.
Answer: D
NEW QUESTION 55
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