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IF1 Exam Dumps For Certification Exam Preparation
NEW QUESTION 53
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 number of days the settlement should take.
- B. The contact details of the insurer.
- C. The policy number only.
- D. The contact details of the loss adjuster used by the insurer.
Answer: D
NEW QUESTION 54
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. indemnity.
- B. good faith.
- C. contribution.
- D. subrogation.
Answer: B
NEW QUESTION 55
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 new for old policy.
- B. an indemnity policy.
- C. a real statement.
- D. a first loss policy.
Answer: D
NEW QUESTION 56
Lloyd's is known as a subscription market because
- A. a fee must be paid.
- B. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
- C. the underwriter assigns his signature individually to each risk.
- D. a number of syndicates accept a share of the same risk.
Answer: D
NEW QUESTION 57
Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?
- A. The Lloyd's Market Association.
- B. The Institute and Faculty of Actuaries.
- C. The International Underwriting Association of London.
- D. The Chartered Institute of Loss Adjusters.
Answer: B
NEW QUESTION 58
The accident record for a printworks show that for every one major injury, there have been 30 minor incidents and 900 non-injury events reported. How would major work injuries be classified in relation to frequency and severity?
- A. High frequency, high severity.
- B. High frequency, low severity.
- C. Low frequency, high severity.
- D. Low frequency, low severity.
Answer: C
NEW QUESTION 59
The capital requirements of insurers and intermediaries are set out by
- A. Proceeds of Crime Act 2002.
- B. Prudential Regulation Authority rules.
- C. Money Laundering Regulations.
- D. Data Protection legislation.
Answer: B
NEW QUESTION 60
In order for a contract to be legally enforceable, what further action is required after offer and acceptance?
- A. Witnessing by a third party.
- B. Exchange of consideration between the two parties.
- C. Delivery of goods or services concerned.
- D. Provision of written terms and conditions.
Answer: B
NEW QUESTION 61
An insurance company has employed an individual from a rival firm to carry out a similar job. At which stage would the regulatory requirements for retaining training and competence records first apply to the new employee, if at all?
- A. When the employee first has contact with members of the public.
- B. It would not apply, as the employee is already fully competent.
- C. From the initial interview.
- D. Within 18 months of employment.
Answer: A
NEW QUESTION 62
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. contractual terms.
- B. material circumstances.
- C. indemnity.
- D. warranties.
Answer: B
NEW QUESTION 63
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 be qualified to a minimum of the CD's diploma qualification.
- B. The member must provide the client with a copy of appropriate qualifications.
- C. The member must notify the Cll of any shortcomings in his knowledge.
- D. The member's knowledge and expertise must be kept up to date and relevant.
Answer: D
NEW QUESTION 64
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 65
To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?
- A. To anyone able to fulfil the duties.
- B. To suitably experienced individuals only.
- C. To suitably qualified individuals only.
- D. The agent cannot delegate her responsibility.
Answer: D
NEW QUESTION 66
Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?
- A. Subrogation.
- B. Privity of contract.
- C. Good faith.
- D. Contra proferentem.
Answer: B
NEW QUESTION 67
When motor insurance is purchased directly with an insurer, what is usually the main disadvantage to the policyholder in the event of a claim compared to purchasing indirectly through a different marketing channel?
- A. There is no intermediary to provide assistance.
- B. The policy excess is higher.
- C. The risk of losing a no claims discount is greater.
- D. A courtesy car is not available.
Answer: A
NEW QUESTION 68
How would an insurer's portfolio of motor claims be shown in terms of frequency and severity?
- A. High frequency, low severity.
- B. High frequency, high seventy.
- C. Low frequency, high seventy.
- D. Low frequency, low seventy.
Answer: A
NEW QUESTION 69
What is the basis of settlement under a new for old insurance policy if a television is stolen?
- A. The replacement cost, less wear and tear.
- B. The original cost, less wear and tear.
- C. The original cost in full.
- D. The replacement cost in full.
Answer: A
NEW QUESTION 70
Barbara owns a factory employing 20 people. What insurance is she required to hold by law?
- A. Public liability insurance.
- B. Products liability insurance.
- C. Professional indemnity insurance.
- D. Employers' liability insurance.
Answer: D
NEW QUESTION 71
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. £300.000
- B. £500.000
- C. £200.000
- D. £150.000
Answer: C
NEW QUESTION 72
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. Apply for a second payment from the policyholders.
- B. Write to the liquidator to register the debt.
- C. Offer a discounted premium payment to the policyholders.
- D. Cancel the policies from inception for non-payment.
Answer: B
NEW QUESTION 73
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