Certificate in Insurance IF1 Practice Test Engine: Try These 100 Exam Questions
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NEW QUESTION 59
The website of an insurer must include the company's registered name, trading address, contact details and regulator. This is in accordance with rules enforced by the
- A. Financial Ombudsman Service.
- B. Prudential Regulation Authority.
- C. Advertising Standards Authority.
- D. Competition and Markets Authority.
Answer: A
NEW QUESTION 60
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. It is a material circumstance.
- C. To enable a discount to be applied.
- D. To establish whether insurable interest exists.
Answer: B
NEW QUESTION 61
A loss adjuster normally acts on behalf of the
- A. Financial Services Compensation Scheme.
- B. insurer.
- C. Financial Ombudsman Service.
- D. insured.
Answer: B
NEW QUESTION 62
If a firm is said to be risk averse, this means that it
- A. tenders its insurance needs to the market.
- B. undertakes its own risk management research.
- C. carries its own risk wherever possible.
- D. arranges insurance protection wherever possible.
Answer: C
NEW QUESTION 63
The purpose of the EU solvency requirements for insurers and intermediaries is to
- A. introduce monitoring procedures by the Prudential Regulation Authority.
- B. create a standard format for the presentation of accounting data.
- C. strengthen the financial security of the insurer or intermediary.
- D. provide authorisation to transact insurance business.
Answer: B
NEW QUESTION 64
Reinsurance is usually purchased by the
- A. intermediary.
- B. regulator.
- C. insurer.
- D. insured.
Answer: C
NEW QUESTION 65
An owner of a building reduces its sum insured from £1,000.000 lo £500.000 to save premiums. A Tire causes
£300,000 damage to the building. If the building has a reinstatement value of £750,000 and average is applied, how much will the insured receive in settlement?
- A. £200.000
- B. £300.000
- C. £150.000
- D. £500.000
Answer: A
NEW QUESTION 66
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. £3,500,000
- C. £6,000,000
- D. £6,500,000
Answer: A
NEW QUESTION 67
How would an employee benefit directly from her employer's business interruption insurance if its factory was forced to close temporarily due to flood damage?
- A. By payment of an early retirement pension.
- B. By continuation of her wages.
- C. By payment of a redundancy lump sum.
- D. By compensation for loss of bonus.
Answer: B
NEW QUESTION 68
If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of
- A. good faith.
- B. indemnity.
- C. subrogation.
- D. contribution.
Answer: B
NEW QUESTION 69
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 criminal offence.
- B. It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.
- C. It is a civil offence.
- D. It is a disciplinary offence under the Banking Code.
Answer: B
NEW QUESTION 70
Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity
- A. for 10 years after the employee stops carrying out the activity.
- B. for 3 years after the employee stops carrying out the activity.
- C. for 20 years after the employee stops carrying out the activity.
- D. indefinitely.
Answer: B
NEW QUESTION 71
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 the policy contract lakes effect.
- B. When a claim is submitted.
- C. When a claim is paid.
- D. At renewal.
Answer: D
NEW QUESTION 72
In accordance with the principle of good faith, which facts must a potential policyholder disclose to the insurer when applying for insurance?
- A. Any facts of law.
- B. Any facts which are considered material to the risk.
- C. Only those facts considered likely to reduce the cost of cover
- D. Any facts which are in the public domain.
Answer: B
NEW QUESTION 73
How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
- A. Subrogation rights do not apply under either policy.
- B. Subrogation rights only apply under a theft policy.
- C. Subrogation rights apply under both policies.
- D. Subrogation rights only apply under a personal accident policy.
Answer: B
NEW QUESTION 74
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