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CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. 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) fundamental risk.
B) moral hazard.
C) pure risk.
D) physical hazard.
2. 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 Prudential Regulation Authority.
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 Chartered Insurance Institute.
3. If a surveyor is sent lo survey a risk, what does risk primarily refer to in this context?
A) The insured perils.
B) The premises.
C) The policy cover details.
D) The policyholder.
4. Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity
A) indefinitely.
B) for 20 years after the employee stops carrying out the activity.
C) for 3 years after the employee stops carrying out the activity.
D) for 10 years after the employee stops carrying out the activity.
5. The purpose of the EU solvency requirements for insurers and intermediaries is to
A) introduce monitoring procedures by the Prudential Regulation Authority.
B) provide authorisation to transact insurance business.
C) strengthen the financial security of the insurer or intermediary.
D) create a standard format for the presentation of accounting data.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: D |
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