Certificate in Insurance IF1 Dumps Full Questions with Free PDF Questions to Pass
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NEW QUESTION 56
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 57
A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder
- A. only when collecting premiums.
- B. on a direct basis,
- C. outside normal business hours,
- D. via the intermediary.
Answer: D
NEW QUESTION 58
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 59
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 real statement.
- B. a new for old policy.
- C. an indemnity policy.
- D. a first loss policy.
Answer: D
NEW QUESTION 60
A retail customer CANNOT buy insurance directly from which type of insurer?
- A. A direct insurer.
- B. A captive insurer.
- C. A composite insurer.
- D. A mutual insurer.
Answer: B
NEW QUESTION 61
What is the principal reason for which a proposer is asked by the insurer whether his car will be driven by anyone else?
- A. To enable a loading to be applied.
- B. It is a material circumstance.
- C. To enable a discount to be applied.
- D. To establish whether insurable interest exists.
Answer: B
NEW QUESTION 62
In a chain of events, the proximate cause of a loss is always the
- A. only event which is not excluded by the terms of the policy.
- B. only event contributing towards the loss.
- C. last event before the loss occurs.
- D. dominant event leading to the loss.
Answer: D
NEW QUESTION 63
Reinsurance is usually purchased by the
- A. intermediary.
- B. regulator.
- C. insurer.
- D. insured.
Answer: C
NEW QUESTION 64
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 65
A house slatls to have subsidence problems due to the negligence of a cable-laying company. The owner of the house claims under his household buildings insurance policy. Which principle allows the insurer to recover from the cable-laying company?
- A. Salvage.
- B. Contribution.
- C. Subrogation.
- D. Assignment.
Answer: C
NEW QUESTION 66
If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from
- A. pursuing subrogation rights.
- B. disclosing details to a third party.
- C. reinsuring the risk.
- D. increasing the premium.
Answer: A
NEW QUESTION 67
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. pure risk.
- B. physical hazard.
- C. moral hazard.
- D. fundamental risk.
Answer: B
NEW QUESTION 68
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 69
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 cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
- B. He must apply to the Chartered Insurance Institute.
- C. He must apply to the Prudential Regulation Authority.
- D. He must apply to the British Insurance Brokers' Association.
Answer: B
NEW QUESTION 70
If a firm is said to be risk averse, this means that it
- A. tenders its insurance needs to the market.
- B. undertakes its own risk management research.
- C. carries its own risk wherever possible.
- D. arranges insurance protection wherever possible.
Answer: C
NEW QUESTION 71
Barbara owns a factory employing 20 people. What insurance is she required to hold by law?
- A. Public liability insurance.
- B. Employers' liability insurance.
- C. Products liability insurance.
- D. Professional indemnity insurance.
Answer: B
NEW QUESTION 72
The principle of indemnity is the
- A. obligation of the insurer to provide a maximum sum insured or limit of liability.
- B. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
- C. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
- D. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
Answer: C
NEW QUESTION 73
How would an insurer's portfolio of motor claims be shown in terms of frequency and severity?
- A. Low frequency, low seventy.
- B. High frequency, low severity.
- C. High frequency, high seventy.
- D. Low frequency, high seventy.
Answer: B
NEW QUESTION 74
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. High frequency, high severity.
- C. Low frequency, low severity.
- D. High frequency, low severity.
Answer: A
NEW QUESTION 75
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 76
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 77
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 78
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 79
John and his wife arrange a household contents insurance policy in joint names with insurer A for a sum insured of £10,000. His wife arranges a second policy on the same basis with insurer B for a sum insured of
£20,000. Both policies have identical terms and conditions. What is insurer A's liability if a valid claim of
£3,000 is subsequently made?
- A. £3,000
- B. £1,000
- C. £2,000
- D. £1,500
Answer: B
NEW QUESTION 80
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 81
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