[Jan 01, 2022] New Updated IF1 Exam Questions 2022
Updated Free CII IF1 Test Engine Questions with 100 Q&As
NEW QUESTION 30
Who is represented by a loss assessor?
- A. A claims handler.
- B. A broker.
- C. An underwriter.
- D. A policyholder.
Answer: D
NEW QUESTION 31
A firm of insurance brokers invite Stuart. an underwriter who handles its account, on a Caribbean cruise with his family. How should Stuart react to this invitation in order to comply with the Chartered Insurance Institute's Code of Ethics?
- A. Decline as this is against the Financial Ombudsman Service regulations.
- B. Accept on the basis that this is an accepted business practice.
- C. Decline to avoid any suggestion he is being compromised.
- D. Accept only on the basis that the cost is less than £1.000.
Answer: C
NEW QUESTION 32
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 33
Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?
- A. Appointed representatives.
- B. Direct insurers.
- C. Independent brokers.
- D. Lloyd's.
Answer: B
NEW QUESTION 34
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 35
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 spray booth.
- C. The unguarded paraffin space heater.
- D. The paint.
Answer: C
NEW QUESTION 36
How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
- A. Subrogation rights do not apply under either policy.
- B. Subrogation rights only apply under a theft policy.
- C. Subrogation rights apply under both policies.
- D. Subrogation rights only apply under a personal accident policy.
Answer: B
NEW QUESTION 37
For which professional is professional indemnity insurance compulsory by statute?
- A. A loss assessor.
- B. A solicitor.
- C. A chartered surveyor. .
- D. A loss adjuster,
Answer: B
NEW QUESTION 38
Under the Insurance: Conduct of Business sourcebook (ICOBS) on product disclosure, what information about the claims-handling process must an intermediary provide to a consumer?
- A. The policy number only.
- B. The contact details of the insurer.
- C. The contact details of the loss adjuster used by the insurer.
- D. The number of days the settlement should take.
Answer: C
NEW QUESTION 39
Under the Consumer Rights Act 2015. a clause in a household insurance policy may be considered unfair if it
- A. allows any party other than the insured to enforce the insurer's obligations under the policy.
- B. discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
- C. imposes unreasonable obligations on the insurer in terms of costs or expenses that must be paid in addition to the amount of any loss.
- D. causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
Answer: D
NEW QUESTION 40
If a proposer has failed to fully answer a question on a proposal form, the insurer is deemed to have waived its rights to this information because it
- A. should be able to underwrite the risk based on the information already provided.
- B. did not request further information.
- C. has statistics on similar risks.
- D. does not have the right to ask the proposer for more information.
Answer: B
NEW QUESTION 41
When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
- A. At the lime of a claim.
- B. Within 7 days of a complaint being made.
- C. At the time of the sale or immediately afterwards.
- D. Within 30 days of cover being incepted.
Answer: C
NEW QUESTION 42
What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?
- A. An excess.
- B. Loss of interest.
- C. Brokerage.
- D. Wear and tear.
Answer: D
NEW QUESTION 43
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. Statutory requirements.
- B. Frequency.
- C. Uncertainty.
- D. Certainty.
Answer: C
NEW QUESTION 44
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 45
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. Only if the records include dates of birth.
- C. In all circumstances.
- D. In no circumstances.
Answer: C
NEW QUESTION 46
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. £300.000
- C. £150.000
- D. £500.000
Answer: A
NEW QUESTION 47
The capital requirements of insurers and intermediaries are set out by
- A. Money Laundering Regulations.
- B. Proceeds of Crime Act 2002.
- C. Prudential Regulation Authority rules.
- D. Data Protection legislation.
Answer: C
NEW QUESTION 48
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 49
In the event of an insurer including an unclear clause in its household insurance policy, which statute could the policyholder rely upon if there was a contractual dispute?
- A. The Criminal Justice Act 1993.
- B. The Contracts (Rights of Third Parties) Act 1999.
- C. The Consumer Rights Act 2015.
- D. The Data Protection Act 2018.
Answer: C
NEW QUESTION 50
Michael, an insurance company employee, strongly suspects that a recent transaction involved money laundering but decides NOT to report his suspicions to anyone. How is this treated under the current Money Laundering Regulations?
- A. It is a criminal offence.
- B. It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.
- C. It is a civil offence.
- D. It is a disciplinary offence under the Banking Code.
Answer: B
NEW QUESTION 51
If a surveyor is sent lo survey a risk, what does risk primarily refer to in this context?
- A. The policy cover details.
- B. The insured perils.
- C. The policyholder.
- D. The premises.
Answer: D
NEW QUESTION 52
Under a coinsurance arrangement, who is ultimately responsible for payment of an agreed claim?
- A. Each coinsurer for its own proportion, but also a share of any proportion unpaid due to the default of another coinsurer.
- B. The lead insurer.
- C. Each coinsurer for its own proportion only.
- D. The intermediary.
Answer: C
NEW QUESTION 53
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