Dec 30, 2023 Updated IF1 Dumps Questions For CII Exam

Best Value Available Preparation Guide for IF1 Exam

NEW QUESTION # 39
Which key test for money laundering is defined under the Proceeds of Crime Act 2002?

• A. Criminal possession.
• B. Criminal lifestyle.
• C. Criminal intelligence.
• D. Criminal record.

Answer: B

NEW QUESTION # 40
Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?

• A. Contra proferentem.
• B. Good faith.
• C. Privity of contract.
• D. Subrogation.

Answer: C

NEW QUESTION # 41
When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?

• A. They will be classed as relevant information and will affect the premium.
• B. They will not be considered as this is not an underwriting factor in motor insurance risk assessment.
• C. They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.
• D. They will only be considered if Tom had a further speeding conviction in the last 12 months.

Answer: C

NEW QUESTION # 42
From April 2019. a small company with nine employees is in dispute with its insurer and wishes to refer the matter to the Financial Ombudsman Service (FOS). The FOS is only permitted lo deal with the dispute if the insured's turnover does NOT exceed

• A. £1,000,000
• B. £6,500,000
• C. £3,500,000
• D. £6,000,000

Answer: A

NEW QUESTION # 43
A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?

• A. Only if the records include dates of birth.
• B. Only if the records include details of race.
• C. In no circumstances.
• D. In all circumstances.

Answer: D

NEW QUESTION # 44
The principle of indemnity is the

• A. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
• B. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
• C. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
• D. obligation of the insurer to provide a maximum sum insured or limit of liability.

Answer: C

NEW QUESTION # 45
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. It would not apply, as the employee is already fully competent.
• C. From the initial interview.
• D. Within 18 months of employment.

Answer: A

NEW QUESTION # 46
Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?

• A. The International Underwriting Association of London.
• B. The Chartered Institute of Loss Adjusters.
• C. The Lloyd's Market Association.
• D. The Institute and Faculty of Actuaries.

Answer: D

NEW QUESTION # 47
Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the

• A. Financial Services Compensation Scheme.
• B. Association of British Insurers.
• C. European Union.
• D. Financial Ombudsman Service.

Answer: C

NEW QUESTION # 48
John wishes to insure his friend's house. Why would an insurer refuse to provide a quotation?

• A. He does not have any insurable interest.
• B. He does not have any subrogation rights.
• C. He does not live in the house.
• D. His name is not on the mortgage.

Answer: A

NEW QUESTION # 49
Peter currently has no penalty points on his driving licence, although he was convicted of a minor motoring offence eight years ago. Why does Peter NOT need to disclose this to his motor insurer?

• A. It represents a physical hazard.
• B. It represents a moral hazard.
• C. It is information that would not influence an underwriter.
• D. It is a spent conviction.

Answer: D

NEW QUESTION # 50
Under the Consumer Rights Act 2015. a clause in a household insurance policy may be considered unfair if it

• A. discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
• B. causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
• C. imposes unreasonable obligations on the insurer in terms of costs or expenses that must be paid in addition to the amount of any loss.
• D. allows any party other than the insured to enforce the insurer's obligations under the policy.

Answer: B

NEW QUESTION # 51
Harry owns a sports car valued at £1.000 and agrees to sell it to Ben for £500. Ben discusses this with his solicitor who states the contract is

• A. enforceable as consideration does not need to be adequate.
• B. unenforceable unless Harry signs a disclaimer acknowledging the consideration as acceptable.
• C. unenforceable as the consideration is inadequate.
• D. enforceable but only if Harry does not refute the contract within six months of the contract date.

Answer: A

NEW QUESTION # 52
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. High frequency, high severity.
• C. Low frequency, high severity.
• D. Low frequency, low severity.

Answer: C

NEW QUESTION # 53
If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from

• A. increasing the premium.
• B. pursuing subrogation rights.
• C. disclosing details to a third party.
• D. reinsuring the risk.

Answer: B

NEW QUESTION # 54
A loss adjuster normally acts on behalf of the

• A. Financial Services Compensation Scheme.
• B. Financial Ombudsman Service.
• C. insured.
• D. insurer.

Answer: D

NEW QUESTION # 55
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. did not request further information.
• B. should be able to underwrite the risk based on the information already provided.
• C. has statistics on similar risks.
• D. does not have the right to ask the proposer for more information.

Answer: A

NEW QUESTION # 56
Bye-laws are passed at the Lloyd's Market by the

• A. Council of Lloyd's.
• B. Lloyds Managing Agent.
• C. Corporation of Lloyd's.
• D. Lloyd's Market Association.

Answer: A

NEW QUESTION # 57
A Terms of Business Agreement between an insurer and an intermediary sets out the

• A. agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
• B. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
• C. disaster recovery procedures to apply if there is a major disaster affecting the insurer.
• D. framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.

Answer: D

NEW QUESTION # 58
Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?

• A. Direct insurers.
• B. Independent brokers.
• C. Lloyd's.
• D. Appointed representatives.

Answer: A

NEW QUESTION # 59
In order for a contract to be legally enforceable, what further action is required after offer and acceptance?

• A. Delivery of goods or services concerned.
• B. Exchange of consideration between the two parties.
• C. Provision of written terms and conditions.
• D. Witnessing by a third party.

Answer: B

NEW QUESTION # 60
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