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CII IF1 - Insurance Legal and Regulatory (IF1) Exam

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Total 100 questions

Which principle of insurance prevents a member of the public from taking out an insurance policy on the life of a celebrity in the hope of receiving a windfall on the celebrity's death?

A.

Indemnity.

B.

Insurable interest.

C.

Good faith.

D.

Proximate cause.

Julie has cancelled her trip to tlaly as she has broken her leg. Which type of insurance policy is specifically designed to compensate Julie for any cancellation charges she has incurred?

A.

An income protection insurance policy.

B.

A personal accident and sickness insurance policy.

C.

A travel insurance policy.

D.

A money insurance policy.

If a proposer has failed to fully answer a question on a proposal form, the insurer is deemed to have waived its rights to this information because it

A.

does not have the right to ask the proposer for more information.

B.

should be able to underwrite the risk based on the information already provided.

C.

has statistics on similar risks.

D.

did not request further information.

Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity

A.

for 3 years after the employee stops carrying out the activity.

B.

for 10 years after the employee stops carrying out the activity.

C.

for 20 years after the employee stops carrying out the activity.

D.

indefinitely.

Sunita suffers a loss and makes a claim under her household contents insurance policy. When must insurable interest exist for her claim to be valid?

A.

At the time of the loss only.

B.

At policy inception only.

C.

At policy inception and at the time of the loss.

D.

At the time of the proposal.

To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?

A.

The agent cannot delegate her responsibility.

B.

To suitably experienced individuals only.

C.

To suitably qualified individuals only.

D.

To anyone able to fulfil the duties.

Self-insurance arises when a

A.

company decides to set aside a fund to pay losses that may occur.

B.

number of insurers agree to collectively insure a particular risk in agreed proportions.

C.

policyholder finds that he has inadvertently taken out more than one policy covering the same risk.

D.

policyholder decides to insure proportions of his property with different insurers.

What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?

A.

Wear and tear.

B.

An excess.

C.

Brokerage.

D.

Loss of interest.

How does insurable interest arise, if at all. when an insurer arranges reinsurance?

A.

Insurable interest does not arise.

B.

Insurable interest is created by statute.

C.

The insurer is considered to have insurable interest by virtue of its liability to pay claims.

D.

The policyholder is considered to have assigned the insurable interest to the insurer.

It is important to ensure the fair treatment of customers in order to comply with rules set by the

A.

British Insurance Brokers' Association.

B.

Association of British Insurers.

C.

Financial Conduct Authority.

D.

Chartered Insurance Institute.