[Nov 14, 2021] IF1 Exam Dumps - Try Best IF1 Exam Questions - Pass4Leader
Verified IF1 exam dumps Q&As with Correct 100 Questions and Answers
NEW QUESTION 18
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. Two fifths.
- B. Three fifths.
- C. Three eighths.
- D. Five eighths.
Answer: D
NEW QUESTION 19
The main function of an insurance broker is to
- A. introduce business lo a particular insurer.
- B. act as the agent of the insurer.
- C. negotiate claims.
- D. provide independent advice to clients.
Answer: D
NEW QUESTION 20
Who is represented by a loss assessor?
- A. A policyholder.
- B. A claims handler.
- C. A broker.
- D. An underwriter.
Answer: A
NEW QUESTION 21
What is the current rate of Insurance Premium Tax for a motor insurance policy?
- A. 12%
- B. 9.5%
- C. 20%
- D. 10%
Answer: A
NEW QUESTION 22
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 23
Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity
- A. for 20 years after the employee stops carrying out the activity.
- B. for 3 years after the employee stops carrying out the activity.
- C. indefinitely.
- D. for 10 years after the employee stops carrying out the activity.
Answer: B
NEW QUESTION 24
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. Not at all.
- D. Consent.
Answer: B
NEW QUESTION 25
When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as
- A. a first loss policy.
- B. an indemnity policy.
- C. a real statement.
- D. a new for old policy.
Answer: A
NEW QUESTION 26
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. Write to the liquidator to register the debt.
- B. Offer a discounted premium payment to the policyholders.
- C. Cancel the policies from inception for non-payment.
- D. Apply for a second payment from the policyholders.
Answer: A
NEW QUESTION 27
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 28
A risk that is always insurable is a
- A. capital risk.
- B. fundamental risk.
- C. speculative risk.
- D. pure risk.
Answer: D
NEW QUESTION 29
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. Immediately, but only if the diagnosis is terminal.
- B. Immediately, irrespective of prognosis.
- C. He does not need to disclose this.
- D. At the date of the next premium payment.
Answer: C
NEW QUESTION 30
It is important to ensure the fair treatment of customers in order to comply with rules set by the
- A. Chartered Insurance Institute.
- B. Financial Conduct Authority.
- C. Association of British Insurers.
- D. British Insurance Brokers' Association.
Answer: B
NEW QUESTION 31
Why is effective risk management important to an insurer?
- A. It helps to reduce a company's loss exposure.
- B. It always reduces costs.
- C. It increases the insurer's capacity.
- D. It increases premium income.
Answer: A
NEW QUESTION 32
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 unguarded paraffin space heater.
- C. The paint.
- D. The spray booth.
Answer: B
NEW QUESTION 33
The capital requirements of insurers and intermediaries are set out by
- A. Money Laundering Regulations.
- B. Prudential Regulation Authority rules.
- C. Proceeds of Crime Act 2002.
- D. Data Protection legislation.
Answer: B
NEW QUESTION 34
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
- A. unenforceable as the consideration is inadequate.
- B. unenforceable unless Harry signs a disclaimer acknowledging the consideration as acceptable.
- C. enforceable as consideration does not need to be adequate.
- D. enforceable but only if Harry does not refute the contract within six months of the contract date.
Answer: C
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 Chartered Insurance Institute.
- B. He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
- C. He must apply to the Prudential Regulation Authority.
- D. He must apply to the British Insurance Brokers' Association.
Answer: A
NEW QUESTION 36
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. Uncertainty.
- B. Statutory requirements.
- C. Frequency.
- D. Certainty.
Answer: A
NEW QUESTION 37
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 38
When Susan applied for a new household contents insurance policy, she was obliged to disclose her extensive claims history. Such details are normally known as
- A. indemnity.
- B. material circumstances.
- C. warranties.
- D. contractual terms.
Answer: B
NEW QUESTION 39
How is Insurance Premium Tax collected within the UK?
- A. By HM Revenue & Customs on individual insurance contracts.
- B. By the insurer on the whole general and life accounts.
- C. By HM Revenue & Customs on the whole general account.
- D. By the insurer on individual insurance contracts.
Answer: B
NEW QUESTION 40
The Financial Ombudsman Service will make a ruling on a dispute between
- A. an insurer and a reinsurer.
- B. an insurance broker and an insurer.
- C. a third party and the insurer against whom he is making a liability claim.
- D. a private individual and an insurer.
Answer: D
NEW QUESTION 41
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 42
......
CII IF1 Test Engine PDF - All Free Dumps: https://www.pass4leader.com/CII/IF1-exam.html
Get New IF1 Certification – Valid Exam Dumps Questions: https://drive.google.com/open?id=138jyEoaMvfQFMb0j6jvLt14a5Eyzs_Bz