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CII IF1 - Insurance Legal and Regulatory (IF1) Exam

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Total 100 questions

Who cedes business to a reinsurer?

A.

The insurer.

B.

The assessor.

C.

The agent.

D.

The insured.

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.

To establish whether insurable interest exists.

C.

To enable a discount to be applied.

D.

It is a material circumstance.

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 be qualified to a minimum of the CD's diploma qualification.

B.

The member must notify the Cll of any shortcomings in his knowledge.

C.

The member's knowledge and expertise must be kept up to date and relevant.

D.

The member must provide the client with a copy of appropriate qualifications.

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 disciplinary offence under the Banking Code.

B.

It is a civil offence.

C.

It is a criminal offence.

D.

It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.

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 British Insurance Brokers' Association.

B.

He must apply to the Chartered Insurance Institute.

C.

He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).

D.

He must apply to the Prudential Regulation Authority.

The main function of an insurance broker is to

A.

negotiate claims.

B.

act as the agent of the insurer.

C.

provide independent advice to clients.

D.

introduce business lo a particular insurer.

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.

The risk of losing a no claims discount is greater.

C.

The policy excess is higher.

D.

A courtesy car is not available.

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.

Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the

A.

Financial Services Compensation Scheme.

B.

Financial Ombudsman Service.

C.

Association of British Insurers.

D.

European Union.

Under a coinsurance arrangement, who is ultimately responsible for payment of an agreed claim?

A.

Each coinsurer for its own proportion, but also a share of any proportion unpaid due to the default of another coinsurer.

B.

The lead insurer.

C.

The intermediary.

D.

Each coinsurer for its own proportion only.