IF1 Braindumps Real Exam Updated on Nov 20, 2022 with 100 Questions
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NEW QUESTION 54
Lloyd's is known as a subscription market because
- A. a number of syndicates accept a share of the same risk.
- B. the underwriter assigns his signature individually to each risk.
- C. a fee must be paid.
- D. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
Answer: A
NEW QUESTION 55
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. Consent.
- B. Not at all.
- C. Necessity.
- D. Apparent authority.
Answer: D
NEW QUESTION 56
What is the legal standing of the Charioted Insurance Institute's Code of Ethics?
- A. It has full force of Jaw except where overridden by pre-existing Acts.
- B. It has full stand-alone legal recognition.
- C. It is to be applied in conjunction with existing Acts.
- D. It does not have the force of law.
Answer: D
NEW QUESTION 57
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, at expiry of a policy, in the same financial position as enjoyed at inception.
- D. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
Answer: D
NEW QUESTION 58
Who can place business directly with a Lloyd's underwriter?
- A. Members of the public.
- B. Lloyd's brokers and other intermediaries.
- C. Lloyd's brokers only.
- D. Lloyd's agents.
Answer: B
NEW QUESTION 59
Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?
- A. Subrogation.
- B. Contra proferentem.
- C. Good faith.
- D. Privity of contract.
Answer: D
NEW QUESTION 60
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. discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
- C. causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
- D. allows any party other than the insured to enforce the insurer's obligations under the policy.
Answer: C
NEW QUESTION 61
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. £6,500,000
- B. £1,000,000
- C. £6,000,000
- D. £3,500,000
Answer: B
NEW QUESTION 62
If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of
- A. good faith.
- B. contribution.
- C. indemnity.
- D. subrogation.
Answer: C
NEW QUESTION 63
The main function of an insurance broker is to
- A. provide independent advice to clients.
- B. negotiate claims.
- C. introduce business lo a particular insurer.
- D. act as the agent of the insurer.
Answer: A
NEW QUESTION 64
When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
- A. At the time of the sale or immediately afterwards.
- B. Within 30 days of cover being incepted.
- C. At the lime of a claim.
- D. Within 7 days of a complaint being made.
Answer: A
NEW QUESTION 65
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 British Insurance Brokers' Association.
- D. He must apply to the Prudential Regulation Authority.
Answer: A
NEW QUESTION 66
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. a new for old policy.
- C. an indemnity policy.
- D. a real statement.
Answer: A
NEW QUESTION 67
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. Accept only on the basis that the cost is less than £1.000.
- B. Accept on the basis that this is an accepted business practice.
- C. Decline to avoid any suggestion he is being compromised.
- D. Decline as this is against the Financial Ombudsman Service regulations.
Answer: C
NEW QUESTION 68
When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?
- A. They will only be considered if Tom had a further speeding conviction in the last 12 months.
- B. They will be classed as relevant information and will affect the premium.
- C. They will not be considered as this is not an underwriting factor in motor insurance risk assessment.
- D. They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.
Answer: D
NEW QUESTION 69
Alex decides to insure his factory. In doing this he is primarily
- A. reducing his physical hazard.
- B. protecting his business against certainty of loss.
- C. transferring the risk to the insurer.
- D. reducing his moral hazard.
Answer: C
NEW QUESTION 70
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