[Apr 05, 2022] Passing Key To Getting IF1 Certified Exam Engine PDF
IF1 Exam Dumps Pass with Updated Apr-2022 Tests Dumps
NEW QUESTION 60
Alex decides to insure his factory. In doing this he is primarily
- A. reducing his physical hazard.
- B. protecting his business against certainty of loss.
- C. transferring the risk to the insurer.
- D. reducing his moral hazard.
Answer: C
NEW QUESTION 61
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 Criminal Justice Act 1993.
- C. The Contracts (Rights of Third Parties) Act 1999.
- D. The Consumer Rights Act 2015.
Answer: D
NEW QUESTION 62
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. Low frequency, high severity.
- B. Low frequency, low severity.
- C. High frequency, high severity.
- D. High frequency, low severity.
Answer: A
NEW QUESTION 63
The capital requirements of insurers and intermediaries are set out by
- A. Proceeds of Crime Act 2002.
- B. Prudential Regulation Authority rules.
- C. Data Protection legislation.
- D. Money Laundering Regulations.
Answer: B
NEW QUESTION 64
An agent, acting outside the terms of her agency agreement, binds her principal to a contract with a third party who has reason to believe that the agent can act in that capacity. On what basis, if al all, is the principal bound by the agent's actions?
- A. Necessity.
- B. Apparent authority.
- C. Not at all.
- D. Consent.
Answer: B
NEW QUESTION 65
A house slatls to have subsidence problems due to the negligence of a cable-laying company. The owner of the house claims under his household buildings insurance policy. Which principle allows the insurer to recover from the cable-laying company?
- A. Contribution.
- B. Salvage.
- C. Subrogation.
- D. Assignment.
Answer: C
NEW QUESTION 66
Self-insurance arises when a
- A. policyholder decides to insure proportions of his property with different insurers.
- B. policyholder finds that he has inadvertently taken out more than one policy covering the same risk.
- C. number of insurers agree to collectively insure a particular risk in agreed proportions.
- D. company decides to set aside a fund to pay losses that may occur.
Answer: D
NEW QUESTION 67
When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
- A. At the lime of a claim.
- B. Within 30 days of cover being incepted.
- C. At the time of the sale or immediately afterwards.
- D. Within 7 days of a complaint being made.
Answer: C
NEW QUESTION 68
Lloyd's is known as a subscription market because
- A. the underwriter assigns his signature individually to each risk.
- B. a number of syndicates accept a share of the same 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: B
NEW QUESTION 69
If a firm is said to be risk averse, this means that it
- A. carries its own risk wherever possible.
- B. undertakes its own risk management research.
- C. tenders its insurance needs to the market.
- D. arranges insurance protection wherever possible.
Answer: A
NEW QUESTION 70
The main function of an insurance broker is to
- A. introduce business lo a particular insurer.
- B. act as the agent of the insurer.
- C. negotiate claims.
- D. provide independent advice to clients.
Answer: D
NEW QUESTION 71
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 no circumstances.
- C. In all circumstances.
- D. Only if the records include dates of birth.
Answer: C
NEW QUESTION 72
Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity
- A. for 20 years after the employee stops carrying out the activity.
- B. for 3 years after the employee stops carrying out the activity.
- C. for 10 years after the employee stops carrying out the activity.
- D. indefinitely.
Answer: B
NEW QUESTION 73
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. Prudential Regulation Authority.
- B. Financial Ombudsman Service.
- C. Competition and Markets Authority.
- D. Advertising Standards Authority.
Answer: B
NEW QUESTION 74
When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as
- A. a new for old policy.
- B. a real statement.
- C. an indemnity policy.
- D. a first loss policy.
Answer: D
NEW QUESTION 75
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. contractual terms.
- B. indemnity.
- C. warranties.
- D. material circumstances.
Answer: D
NEW QUESTION 76
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. pure risk.
- C. moral hazard.
- D. physical hazard.
Answer: D
NEW QUESTION 77
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. Proximate cause.
- B. Indemnity.
- C. Good faith.
- D. Insurable interest.
Answer: D
NEW QUESTION 78
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. indemnity.
- B. subrogation.
- C. contribution.
- D. good faith.
Answer: D
NEW QUESTION 79
When motor insurance is purchased directly with an insurer, what is usually the main disadvantage to the policyholder in the event of a claim compared to purchasing indirectly through a different marketing channel?
- A. There is no intermediary to provide assistance.
- B. A courtesy car is not available.
- C. The policy excess is higher.
- D. The risk of losing a no claims discount is greater.
Answer: A
NEW QUESTION 80
If a surveyor is sent lo survey a risk, what does risk primarily refer to in this context?
- A. The policyholder.
- B. The premises.
- C. The policy cover details.
- D. The insured perils.
Answer: B
NEW QUESTION 81
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 personal accident policy.
- C. Subrogation rights apply under both policies.
- D. Subrogation rights only apply under a theft policy.
Answer: D
NEW QUESTION 82
Sara searches on a comparison website for car insurance. She selects the cheapest quotation and pays by credit card for immediate cover. This is known as
- A. an offer.
- B. conditional acceptance.
- C. a Terms of Business Agreement.
- D. unconditional acceptance.
Answer: D
NEW QUESTION 83
A retail customer CANNOT buy insurance directly from which type of insurer?
- A. A composite insurer.
- B. A mutual insurer.
- C. A direct insurer.
- D. A captive insurer.
Answer: D
NEW QUESTION 84
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IF1 exam questions for practice in 2022 Updated 100 Questions: https://actualtests.testbraindump.com/IF1-exam-prep.html
