[Aug-2022 Newly Released] Pass IF1 Exam - Real Questions and Answers
Pass IF1 Review Guide, Reliable IF1 Test Engine
NEW QUESTION 53
What is the basis of settlement under a new for old insurance policy if a television is stolen?
- A. The original cost, less wear and tear.
- B. The replacement cost, less wear and tear.
- C. The original cost in full.
- D. The replacement cost in full.
Answer: B
NEW QUESTION 54
When Susan applied for a new household contents insurance policy, she was obliged to disclose her extensive claims history. Such details are normally known as
- A. warranties.
- B. indemnity.
- C. material circumstances.
- D. contractual terms.
Answer: C
NEW QUESTION 55
A risk that is always insurable is a
- A. speculative risk.
- B. fundamental risk.
- C. capital risk.
- D. pure risk.
Answer: D
NEW QUESTION 56
An investor is unable to obtain insurance to protect his potential losses while trading on the stock market because the category of risk is deemed to be
- A. particular.
- B. pure.
- C. financial.
- D. speculative.
Answer: D
NEW QUESTION 57
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. At renewal.
- D. When a claim is paid.
Answer: C
NEW QUESTION 58
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 details of race.
- B. In all circumstances.
- C. Only if the records include dates of birth.
- D. In no circumstances.
Answer: B
NEW QUESTION 59
The purpose of the EU solvency requirements for insurers and intermediaries is to
- A. provide authorisation to transact insurance business.
- B. strengthen the financial security of the insurer or intermediary.
- C. introduce monitoring procedures by the Prudential Regulation Authority.
- D. create a standard format for the presentation of accounting data.
Answer: D
NEW QUESTION 60
John and his wife arrange a household contents insurance policy in joint names with insurer A for a sum insured of £10,000. His wife arranges a second policy on the same basis with insurer B for a sum insured of
£20,000. Both policies have identical terms and conditions. What is insurer A's liability if a valid claim of
£3,000 is subsequently made?
- A. £3,000
- B. £1,500
- C. £2,000
- D. £1,000
Answer: D
NEW QUESTION 61
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 62
It is important to ensure the fair treatment of customers in order to comply with rules set by the
- A. Chartered Insurance Institute.
- B. British Insurance Brokers' Association.
- C. Financial Conduct Authority.
- D. Association of British Insurers.
Answer: C
NEW QUESTION 63
Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?
- A. Contra proferentem.
- B. Good faith.
- C. Subrogation.
- D. Privity of contract.
Answer: D
NEW QUESTION 64
Reinsurance is usually purchased by the
- A. intermediary.
- B. insurer.
- C. insured.
- D. regulator.
Answer: B
NEW QUESTION 65
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 notify the Cll of any shortcomings in his knowledge.
- B. The member's knowledge and expertise must be kept up to date and relevant.
- C. The member must provide the client with a copy of appropriate qualifications.
- D. The member must be qualified to a minimum of the CD's diploma qualification.
Answer: B
NEW QUESTION 66
Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?
- A. Statutory requirements.
- B. Certainty.
- C. Frequency.
- D. Uncertainty.
Answer: D
NEW QUESTION 67
Alex decides to insure his factory. In doing this he is primarily
- A. transferring the risk to the insurer.
- B. reducing his physical hazard.
- C. reducing his moral hazard.
- D. protecting his business against certainty of loss.
Answer: A
NEW QUESTION 68
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 cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
- C. He must apply to the Chartered Insurance Institute.
- D. He must apply to the Prudential Regulation Authority.
Answer: C
NEW QUESTION 69
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. Immediately, irrespective of prognosis.
- C. He does not need to disclose this.
- D. At the date of the next premium payment.
Answer: C
NEW QUESTION 70
Why is effective risk management important to an insurer?
- A. It increases the insurer's capacity.
- B. It increases premium income.
- C. It always reduces costs.
- D. It helps to reduce a company's loss exposure.
Answer: D
NEW QUESTION 71
......
100% Free IF1 Daily Practice Exam With 100 Questions: https://www.dumpexams.com/IF1-real-answers.html
IF1 Test Engine Practice Test Questions, Exam Dumps: https://drive.google.com/open?id=10gvEsEN71JhsVZN4SkG4ZGTrIOEhMEGp