Valid IF1 Test Answers & CII IF1 Exam PDF
CII IF1 Certification Real 2022 Mock Exam
NEW QUESTION 30
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 30 days of cover being incepted.
- C. At the time of the sale or immediately afterwards.
- D. Within 7 days of a complaint being made.
Answer: C
NEW QUESTION 31
A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a
- A. fundamental risk.
- B. pure risk.
- C. moral hazard.
- D. physical hazard.
Answer: D
NEW QUESTION 32
Which key test for money laundering is defined under the Proceeds of Crime Act 2002?
- A. Criminal record.
- B. Criminal lifestyle.
- C. Criminal possession.
- D. Criminal intelligence.
Answer: B
NEW QUESTION 33
A risk that is always insurable is a
- A. speculative risk.
- B. fundamental risk.
- C. capital risk.
- D. pure risk.
Answer: D
NEW QUESTION 34
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. causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
- 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. discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
Answer: B
NEW QUESTION 35
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. for 10 years after the employee stops carrying out the activity.
- D. indefinitely.
Answer: B
NEW QUESTION 36
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 notify the Cll of any shortcomings in his knowledge.
- B. The member must be qualified to a minimum of the CD's diploma qualification.
- C. The member must provide the client with a copy of appropriate qualifications.
- D. The member's knowledge and expertise must be kept up to date and relevant.
Answer: D
NEW QUESTION 37
If a firm is said to be risk averse, this means that it
- A. carries its own risk wherever possible.
- B. undertakes its own risk management research.
- C. tenders its insurance needs to the market.
- D. arranges insurance protection wherever possible.
Answer: A
NEW QUESTION 38
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. From the initial interview.
- B. When the employee first has contact with members of the public.
- C. Within 18 months of employment.
- D. It would not apply, as the employee is already fully competent.
Answer: B
NEW QUESTION 39
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. £3,500,000
- B. £1,000,000
- C. £6,000,000
- D. £6,500,000
Answer: B
NEW QUESTION 40
An investor is unable to obtain insurance to protect his potential losses while trading on the stock market because the category of risk is deemed to be
- A. speculative.
- B. particular.
- C. financial.
- D. pure.
Answer: A
NEW QUESTION 41
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. Low frequency, high severity.
- B. Low frequency, low severity.
- C. High frequency, high severity.
- D. High frequency, low severity.
Answer: A
NEW QUESTION 42
An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?
- A. Reinsurance.
- B. Dual insurance.
- C. Self-insurance.
- D. Coinsurance.
Answer: D
NEW QUESTION 43
Self-insurance arises when a
- A. policyholder decides to insure proportions of his property with different insurers.
- B. policyholder finds that he has inadvertently taken out more than one policy covering the same risk.
- C. number of insurers agree to collectively insure a particular risk in agreed proportions.
- D. company decides to set aside a fund to pay losses that may occur.
Answer: D
NEW QUESTION 44
Under common law. when does the insured's duly of fair presentation cease with regard to declarations that do NOT affect policy cover?
- A. When a claim is submitted.
- B. At renewal.
- C. When a claim is paid.
- D. When the policy contract lakes effect.
Answer: B
NEW QUESTION 45
Sara searches on a comparison website for car insurance. She selects the cheapest quotation and pays by credit card for immediate cover. This is known as
- A. an offer.
- B. conditional acceptance.
- C. a Terms of Business Agreement.
- D. unconditional acceptance.
Answer: D
NEW QUESTION 46
A Terms of Business Agreement between an insurer and an intermediary sets out the
- A. framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
- B. agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
- C. disaster recovery procedures to apply if there is a major disaster affecting the insurer.
- D. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
Answer: A
NEW QUESTION 47
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 48
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 spray booth.
- B. The paint.
- C. The unguarded paraffin space heater.
- D. The waste bin.
Answer: C
NEW QUESTION 49
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. A courtesy car is not available.
- C. The policy excess is higher.
- D. The risk of losing a no claims discount is greater.
Answer: A
NEW QUESTION 50
A loss adjuster normally acts on behalf of the
- A. Financial Services Compensation Scheme.
- B. insured.
- C. insurer.
- D. Financial Ombudsman Service.
Answer: C
NEW QUESTION 51
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 civil offence.
- B. It is a disciplinary offence under the Banking Code.
- C. It is a criminal offence.
- D. It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.
Answer: D
NEW QUESTION 52
......
IF1 Exam Questions and Valid IF1 Dumps PDF: https://www.actual4dump.com/CII/IF1-actualtests-dumps.html
IF1 Brain Dump: A Study Guide with Tips & Tricks for passing Exam: https://drive.google.com/open?id=1JaAeWqzz7-mlzB0wO8P8vhaucjsg3x1_