[Jan 15, 2022] Fully Updated Certificate in Insurance (IF1) Certification Sample Questions
Latest CII IF1 Real Exam Dumps PDF
NEW QUESTION 11
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. High frequency, high severity.
- C. Low frequency, low severity.
- D. High frequency, low severity.
Answer: A
NEW QUESTION 12
In a chain of events, the proximate cause of a loss is always the
- A. last event before the loss occurs.
- B. only event contributing towards the loss.
- C. only event which is not excluded by the terms of the policy.
- D. dominant event leading to the loss.
Answer: D
NEW QUESTION 13
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 14
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 15
The Principles for Business slate that all customers should be treated
- A. with due respect.
- B. to a minimum standard.
- C. fairly.
- D. equally.
Answer: C
NEW QUESTION 16
Who is represented by a loss assessor?
- A. A policyholder.
- B. A claims handler.
- C. A broker.
- D. An underwriter.
Answer: A
NEW QUESTION 17
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 discount to be applied.
- B. It is a material circumstance.
- C. To establish whether insurable interest exists.
- D. To enable a loading to be applied.
Answer: B
NEW QUESTION 18
Barbara owns a factory employing 20 people. What insurance is she required to hold by law?
- A. Employers' liability insurance.
- B. Products liability insurance.
- C. Professional indemnity insurance.
- D. Public liability insurance.
Answer: A
NEW QUESTION 19
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 20
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. Competition and Markets Authority.
- B. Prudential Regulation Authority.
- C. Financial Ombudsman Service.
- D. Advertising Standards Authority.
Answer: C
NEW QUESTION 21
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. £6,000,000
- B. £1,000,000
- C. £6,500,000
- D. £3,500,000
Answer: B
NEW QUESTION 22
The capital requirements of insurers and intermediaries are set out by
- A. Money Laundering Regulations.
- B. Prudential Regulation Authority rules.
- C. Proceeds of Crime Act 2002.
- D. Data Protection legislation.
Answer: B
NEW QUESTION 23
A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?
- A. Write to the liquidator to register the debt.
- B. Offer a discounted premium payment to the policyholders.
- C. Cancel the policies from inception for non-payment.
- D. Apply for a second payment from the policyholders.
Answer: A
NEW QUESTION 24
Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?
- A. Independent brokers.
- B. Appointed representatives.
- C. Lloyd's.
- D. Direct insurers.
Answer: D
NEW QUESTION 25
Under the Insurance: Conduct of Business sourcebook (ICOBS) on product disclosure, what information about the claims-handling process must an intermediary provide to a consumer?
- A. The contact details of the insurer.
- B. The policy number only.
- C. The number of days the settlement should take.
- D. The contact details of the loss adjuster used by the insurer.
Answer: D
NEW QUESTION 26
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 compensation for loss of bonus.
- B. By payment of an early retirement pension.
- C. By continuation of her wages.
- D. By payment of a redundancy lump sum.
Answer: C
NEW QUESTION 27
How is Insurance Premium Tax collected within the UK?
- A. By HM Revenue & Customs on individual insurance contracts.
- B. By the insurer on the whole general and life accounts.
- C. By HM Revenue & Customs on the whole general account.
- D. By the insurer on individual insurance contracts.
Answer: B
NEW QUESTION 28
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. £300.000
- B. £150.000
- C. £500.000
- D. £200.000
Answer: D
NEW QUESTION 29
When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
- A. Within 7 days of a complaint being made.
- B. Within 30 days of cover being incepted.
- C. At the lime of a claim.
- D. At the time of the sale or immediately afterwards.
Answer: D
NEW QUESTION 30
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. A courtesy car is not available.
- B. There is no intermediary to provide assistance.
- C. The policy excess is higher.
- D. The risk of losing a no claims discount is greater.
Answer: B
NEW QUESTION 31
Which typo of insurer is owned by multiple policyholders?
- A. A captive insurer.
- B. A composite insurer.
- C. A mutual insurer.
- D. A proprietary insurer.
Answer: C
NEW QUESTION 32
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. has statistics on similar risks.
- B. should be able to underwrite the risk based on the information already provided.
- C. does not have the right to ask the proposer for more information.
- D. did not request further information.
Answer: D
NEW QUESTION 33
Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?
- A. Subrogation.
- B. Contra proferentem.
- C. Privity of contract.
- D. Good faith.
Answer: C
NEW QUESTION 34
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