Summer Sale Limited Time 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: ecus65

CII IF1 - Insurance Legal and Regulatory (IF1) Exam

CII IF1 Premium Access     Download Demo    
Page: 3 / 3
Total 100 questions

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.

indemnity.

B.

warranties.

C.

contractual terms.

D.

material circumstances.

In order for a contract to be legally enforceable, what further action is required after offer and acceptance?

A.

Exchange of consideration between the two parties.

B.

Witnessing by a third party.

C.

Delivery of goods or services concerned.

D.

Provision of written terms and conditions.

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, low severity.

B.

Low frequency, low severity.

C.

High frequency, high severity.

D.

Low frequency, high severity.

A policyholder achieves peace of mind when insuring his car by

A.

eliminating the risk of loss.

B.

reducing the chance of a loss occurring.

C.

preventing the chance of a loss occurring.

D.

transferring the risk to the insurer.

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.

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 does not have the force of law.

C.

It has full stand-alone legal recognition.

D.

It is to be applied in conjunction with existing Acts.

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 Chartered Institute of Loss Adjusters.

C.

The International Underwriting Association of London.

D.

The Institute and Faculty of Actuaries.

What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?

A.

Insurable interest.

B.

Risk indemnity.

C.

Vicarious liability.

D.

Delegated authority.

How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?

A.

Subrogation rights only apply under a theft policy.

B.

Subrogation rights do not apply under either policy.

C.

Subrogation rights only apply under a personal accident policy.

D.

Subrogation rights apply under both policies.

John wishes to insure his friend's house. Why would an insurer refuse to provide a quotation?

A.

His name is not on the mortgage.

B.

He does not have any subrogation rights.

C.

He does not live in the house.

D.

He does not have any insurable interest.