Latest [Nov 15, 2021] IF1 Exam with Accurate Insurance Legal and Regulatory (IF1) Exam PDF Questions
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NEW QUESTION 29
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. Assignment.
- B. Contribution.
- C. Subrogation.
- D. Salvage.
Answer: C
NEW QUESTION 30
It is important to ensure the fair treatment of customers in order to comply with rules set by the
- A. Chartered Insurance Institute.
- B. Financial Conduct Authority.
- C. Association of British Insurers.
- D. British Insurance Brokers' Association.
Answer: B
NEW QUESTION 31
Reinsurance is usually purchased by the
- A. intermediary.
- B. regulator.
- C. insured.
- D. insurer.
Answer: D
NEW QUESTION 32
The purpose of the EU solvency requirements for insurers and intermediaries is to
- A. create a standard format for the presentation of accounting data.
- B. strengthen the financial security of the insurer or intermediary.
- C. provide authorisation to transact insurance business.
- D. introduce monitoring procedures by the Prudential Regulation Authority.
Answer: A
NEW QUESTION 33
If a surveyor is sent lo survey a risk, what does risk primarily refer to in this context?
- A. The premises.
- B. The insured perils.
- C. The policyholder.
- D. The policy cover details.
Answer: A
NEW QUESTION 34
How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
- A. Subrogation rights apply under both policies.
- B. Subrogation rights only apply under a personal accident policy.
- C. Subrogation rights only apply under a theft policy.
- D. Subrogation rights do not apply under either policy.
Answer: C
NEW QUESTION 35
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 Chartered Insurance Institute.
- 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 Prudential Regulation Authority.
- D. He must apply to the British Insurance Brokers' Association.
Answer: A
NEW QUESTION 36
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 37
A risk that is always insurable is a
- A. capital risk.
- B. fundamental risk.
- C. speculative risk.
- D. pure risk.
Answer: D
NEW QUESTION 38
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 39
What is the current rate of Insurance Premium Tax for a motor insurance policy?
- A. 12%
- B. 9.5%
- C. 20%
- D. 10%
Answer: A
NEW QUESTION 40
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. moral hazard.
- B. fundamental risk.
- C. pure risk.
- D. physical hazard.
Answer: D
NEW QUESTION 41
What is the legal standing of the Charioted Insurance Institute's Code of Ethics?
- A. It is to be applied in conjunction with existing Acts.
- B. It has full stand-alone legal recognition.
- C. It has full force of Jaw except where overridden by pre-existing Acts.
- D. It does not have the force of law.
Answer: D
NEW QUESTION 42
What type of organisation is the British Insurance Brokers' Association?
- A. A public limited company.
- B. A trade body.
- C. An educational body.
- D. A specialist regulator.
Answer: B
NEW QUESTION 43
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 moral hazard.
- B. It represents a physical hazard.
- C. It is a spent conviction.
- D. It is information that would not influence an underwriter.
Answer: C
NEW QUESTION 44
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 45
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 46
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 47
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. In no circumstances.
- B. In all circumstances.
- C. Only if the records include details of race.
- D. Only if the records include dates of birth.
Answer: B
NEW QUESTION 48
A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder
- A. outside normal business hours,
- B. only when collecting premiums.
- C. via the intermediary.
- D. on a direct basis,
Answer: C
NEW QUESTION 49
The Financial Services Compensation Scheme was established to help policyholders in the event of
- A. the financial failure of an insurance company.
- B. the repudiation of liability by an insurer.
- C. fraud perpetrated by an insurance broker.
- D. unreasonable policy terms and conditions.
Answer: A
NEW QUESTION 50
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. conditional acceptance.
- B. an offer.
- C. unconditional acceptance.
- D. a Terms of Business Agreement.
Answer: C
NEW QUESTION 51
How does insurable interest arise, if at all. when an insurer arranges reinsurance?
- A. The policyholder is considered to have assigned the insurable interest to the insurer.
- B. The insurer is considered to have insurable interest by virtue of its liability to pay claims.
- C. Insurable interest is created by statute.
- D. Insurable interest does not arise.
Answer: B
NEW QUESTION 52
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