Real CII Certification IF1 Exam Questions Online

Eleanor2024-10-14T15:20:55+00:00

By Eleanor CII, Insurance Legal and Regulatory

Are you still looking for the proper study materials to prepare well for the Insurance Legal and Regulatory (IF1) Exam? We know, the IF1 exam proves that you have the relative knowledge and good understanding of the basic principles of insurance, including the principal legal principles related to insurance contracts and insurance business and the key elements to protect consumers. To help you complete the CII IF1 exam, we have real IF1 exam questions online for good learning. No other need to do this, just download the real CII IF1 exam questions pdf to start learning.

Read Insurance Legal and Regulatory IF1 free dumps questions first:

Page 1 of 3

1. What type of organisation is the British Insurance Brokers' Association?

A specialist regulator.

A trade body.

An educational body.

A public limited company.

2. A loss adjuster normally acts on behalf of the

insured.

insurer.

Financial Ombudsman Service.

Financial Services Compensation Scheme.

3. Barbara owns a factory employing 20 people.

What insurance is she required to hold by law?

Public liability insurance.

Products liability insurance.

Professional indemnity insurance.

Employers' liability insurance.

4. 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?

Wear and tear.

An excess.

Brokerage.

Loss of interest.

5. In order for a contract to be legally enforceable, what further action is required after offer and acceptance?

Exchange of consideration between the two parties.

Witnessing by a third party.

Delivery of goods or services concerned.

Provision of written terms and conditions.

6. 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

subrogation.

contribution.

good faith.

indemnity.

7. Which key test for money laundering is defined under the Proceeds of Crime Act 2002?

Criminal record.

Criminal lifestyle.

Criminal possession.

Criminal intelligence.

8. The purpose of the EU solvency requirements for insurers and intermediaries is to

create a standard format for the presentation of accounting data.

introduce monitoring procedures by the Prudential Regulation Authority.

provide authorisation to transact insurance business.

strengthen the financial security of the insurer or intermediary.

9. John wishes to insure his friend's house.

Why would an insurer refuse to provide a quotation?

His name is not on the mortgage.

He does not have any subrogation rights.

He does not live in the house.

He does not have any insurable interest.

10. The principle of indemnity is the

obligation of the insurer to provide a maximum sum insured or limit of liability.

placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.

obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.

placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.

Page 2 of 3

11. 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?

Uncertainty.

Statutory requirements.

Frequency.

Certainty.

12. 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?

By payment of a redundancy lump sum.

By continuation of her wages.

By compensation for loss of bonus.

By payment of an early retirement pension.

13. If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from

disclosing details to a third party.

reinsuring the risk.

pursuing subrogation rights.

increasing the premium.

14. A Terms of Business Agreement between an insurer and an intermediary sets out the

agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).

criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.

framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.

disaster recovery procedures to apply if there is a major disaster affecting the insurer.

15. 1.To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?

The agent cannot delegate her responsibility.

To suitably experienced individuals only.

To suitably qualified individuals only.

To anyone able to fulfil the duties.

16. 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?

He must apply to the British Insurance Brokers' Association.

He must apply to the Chartered Insurance Institute.

He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).

He must apply to the Prudential Regulation Authority.

17. 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?

The policy number only.

The number of days the settlement should take.

The contact details of the insurer.

The contact details of the loss adjuster used by the insurer.

18. 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?

It represents a physical hazard.

It represents a moral hazard.

It is a spent conviction.

It is information that would not influence an underwriter.

19. 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?

Immediately, irrespective of prognosis.

He does not need to disclose this.

Immediately, but only if the diagnosis is terminal.

At the date of the next premium payment.

20. How does insurable interest arise, if at all. when an insurer arranges reinsurance?

Insurable interest does not arise.

Insurable interest is created by statute.

The insurer is considered to have insurable interest by virtue of its liability to pay claims.

The policyholder is considered to have assigned the insurable interest to the insurer.

Page 3 of 3

21. It is important to ensure the fair treatment of customers in order to comply with rules set by the

British Insurance Brokers' Association.

Association of British Insurers.

Financial Conduct Authority.

Chartered Insurance Institute.

22. 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?

It is a disciplinary offence under the Banking Code.

It is a civil offence.

It is a criminal offence.

It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.

23. Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the

Financial Services Compensation Scheme.

Financial Ombudsman Service.

Association of British Insurers.

European Union.

24. Harry owns a sports car valued at £1.000 and agrees to sell it to Ben for £500.

Ben discusses this with his solicitor who states the contract is

unenforceable as the consideration is inadequate.

enforceable as consideration does not need to be adequate.

enforceable but only if Harry does not refute the contract within six months of the contract date.

unenforceable unless Harry signs a disclaimer acknowledging the consideration as acceptable.

25. A risk that is always insurable is a

fundamental risk.

pure risk.

speculative risk.

capital risk.

Real CII Certification IF1 Exam Questions Online

Real CII Certification IF1 Exam Questions Online

Read Insurance Legal and Regulatory IF1 free dumps questions first:

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