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All Obstacles During IF1 Exam Preparation with IF1 Real Test Questions
The CII IF1 exam is highly respected within the insurance industry and is recognized by employers and professional bodies worldwide. It is one of the requirements for achieving the CII Diploma in Insurance, which is a highly regarded qualification for insurance professionals. The CII IF1 exam is also recognized by the Financial Conduct Authority (FCA) in the UK, which regulates the insurance industry.
NEW QUESTION # 17
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. fundamental risk.
- C. physical hazard.
- D. moral hazard.
Answer: C
NEW QUESTION # 18
Who can place business directly with a Lloyd's underwriter?
- A. Lloyd's brokers only.
- B. Lloyd's brokers and other intermediaries.
- C. Lloyd's agents.
- D. Members of the public.
Answer: B
NEW QUESTION # 19
Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?
- A. The Chartered Institute of Loss Adjusters.
- B. The International Underwriting Association of London.
- C. The Institute and Faculty of Actuaries.
- D. The Lloyd's Market Association.
Answer: C
NEW QUESTION # 20
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 20 years after the employee stops carrying out the activity.
- C. for 10 years after the employee stops carrying out the activity.
- D. indefinitely.
Answer: A
NEW QUESTION # 21
A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?
- A. Offer a discounted premium payment to the policyholders.
- B. Write to the liquidator to register the debt.
- C. Cancel the policies from inception for non-payment.
- D. Apply for a second payment from the policyholders.
Answer: B
NEW QUESTION # 22
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.
Answer: D
NEW QUESTION # 23
Under common law. when does the insured's duly of fair presentation cease with regard to declarations that do NOT affect policy cover?
- A. When a claim is paid.
- B. When the policy contract lakes effect.
- C. When a claim is submitted.
- D. At renewal.
Answer: D
NEW QUESTION # 24
Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?
- A. Lloyd's.
- B. Appointed representatives.
- C. Direct insurers.
- D. Independent brokers.
Answer: C
NEW QUESTION # 25
A retail customer CANNOT buy insurance directly from which type of insurer?
- A. A composite insurer.
- B. A captive insurer.
- C. A direct insurer.
- D. A mutual insurer.
Answer: B
NEW QUESTION # 26
In the event of an insurer including an unclear clause in its household insurance policy, which statute could the policyholder rely upon if there was a contractual dispute?
- A. The Data Protection Act 2018.
- B. The Consumer Rights Act 2015.
- C. The Criminal Justice Act 1993.
- D. The Contracts (Rights of Third Parties) Act 1999.
Answer: B
NEW QUESTION # 27
A risk that is always insurable is a
- A. pure risk.
- B. capital risk.
- C. fundamental risk.
- D. speculative risk.
Answer: A
NEW QUESTION # 28
What is the current rate of Insurance Premium Tax for a motor insurance policy?
- A. 10%
- B. 12%
- C. 20%
- D. 9.5%
Answer: B
NEW QUESTION # 29
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 dealt with by the Money Laundering Joint Steering Committee.
- B. It is a civil offence.
- C. It is a disciplinary offence under the Banking Code.
- D. It is a criminal offence.
Answer: A
NEW QUESTION # 30
Reinsurance is usually purchased by the
- A. intermediary.
- B. insurer.
- C. insured.
- D. regulator.
Answer: B
NEW QUESTION # 31
A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder
- A. outside normal business hours,
- B. via the intermediary.
- C. on a direct basis,
- D. only when collecting premiums.
Answer: B
NEW QUESTION # 32
The capital requirements of insurers and intermediaries are set out by
- A. Data Protection legislation.
- B. Money Laundering Regulations.
- C. Proceeds of Crime Act 2002.
- D. Prudential Regulation Authority rules.
Answer: D
NEW QUESTION # 33
How is Insurance Premium Tax collected within the UK?
- A. By HM Revenue & Customs on individual insurance contracts.
- B. By the insurer on individual insurance contracts.
- C. By the insurer on the whole general and life accounts.
- D. By HM Revenue & Customs on the whole general account.
Answer: C
NEW QUESTION # 34
What type of organisation is the British Insurance Brokers' Association?
- A. A public limited company.
- B. A specialist regulator.
- C. An educational body.
- D. A trade body.
Answer: D
NEW QUESTION # 35
An insurance company has employed an individual from a rival firm to carry out a similar job. At which stage would the regulatory requirements for retaining training and competence records first apply to the new employee, if at all?
- A. When the employee first has contact with members of the public.
- B. From the initial interview.
- C. Within 18 months of employment.
- D. It would not apply, as the employee is already fully competent.
Answer: A
NEW QUESTION # 36
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. causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
- C. allows any party other than the insured to enforce the insurer's obligations under the policy.
- D. discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
Answer: B
NEW QUESTION # 37
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 # 38
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. Immediately, but only if the diagnosis is terminal.
- B. He does not need to disclose this.
- C. At the date of the next premium payment.
- D. Immediately, irrespective of prognosis.
Answer: B
NEW QUESTION # 39
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.
Answer: B
NEW QUESTION # 40
The main purpose of the fair treatment of customers initiative is to
- A. make firms more competitive.
- B. build consumer confidence in the financial services industry.
- C. apply fixed times for responding to claims and complaints.
- D. ensure all firms have a similar service standard.
Answer: B
NEW QUESTION # 41
The requirement 10 notify the fitting of a more powerful engine under a motor insurance policy is an example of a policy wording modifying the principle of
- A. contribution.
- B. good faith.
- C. indemnity.
- D. subrogation.
Answer: B
NEW QUESTION # 42
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