Prepare for the Actual Certificate in Insurance IF1 Exam Practice Materials Collection [Q56-Q70]

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Prepare for the Actual Certificate in Insurance IF1 Exam Practice Materials Collection

Certificate in Insurance Certified Official Practice Test IF1 – Dec-2023

NO.56 Under the Consumer Rights Act 2015. a clause in a household insurance policy may be considered unfair if it

discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.

causes a significant imbalance in the parties’ rights and obligations arising under the contract, to the disadvantage of the insured.

allows any party other than the insured to enforce the insurer’s obligations under the policy.

imposes unreasonable obligations on the insurer in terms of costs or expenses that must be paid in addition to the amount of any loss.

NO.57 What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?

Insurable interest.

Risk indemnity.

Vicarious liability.

Delegated authority.

NO.58 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?

High frequency, low severity.

Low frequency, low severity.

High frequency, high severity.

Low frequency, high severity.

NO.59 Lloyd’s is known as a subscription market because

a number of syndicates accept a share of the same risk.

if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.

a fee must be paid.

the underwriter assigns his signature individually to each risk.

NO.60 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

indemnity.

warranties.

contractual terms.

material circumstances.

NO.61 Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?

The Lloyd’s Market Association.

The Chartered Institute of Loss Adjusters.

The International Underwriting Association of London.

The Institute and Faculty of Actuaries.

NO.62 Under a coinsurance arrangement, who is ultimately responsible for payment of an agreed claim?

Each coinsurer for its own proportion, but also a share of any proportion unpaid due to the default of another coinsurer.

The lead insurer.

The intermediary.

Each coinsurer for its own proportion only.

NO.63 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?

£1,000

£1,500

£2,000

£3,000

NO.64 Harry owns a sports car valued at £1.000 and agrees to sell it to Ben for £500. Ben discusses this with his solicitor who states the contract is

unenforceable as the consideration is inadequate.

enforceable as consideration does not need to be adequate.

enforceable but only if Harry does not refute the contract within six months of the contract date.

unenforceable unless Harry signs a disclaimer acknowledging the consideration as acceptable.

NO.65 A survey of a car repairers reveals a spray booth exists by an unguarded paraffin space beater. Also, a day’s supply of paint is kept within the building and waste is removed daily from a metal bin. What will the underwriter perceive as the main physical hazard?

The spray booth.

The paint.

The waste bin.

The unguarded paraffin space heater.

NO.66 What type of organisation is the British Insurance Brokers’ Association?

A specialist regulator.

A trade body.

An educational body.

A public limited company.

NO.67 What is the principal reason for which a proposer is asked by the insurer whether his car will be driven by anyone else?

To enable a loading to be applied.

To establish whether insurable interest exists.

To enable a discount to be applied.

It is a material circumstance.

NO.68 The principle of indemnity is the

obligation of the insurer to provide a maximum sum insured or limit of liability.

placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.

obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.

placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.

NO.69 An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?

Coinsurance.

Dual insurance.

Self-insurance.

Reinsurance.

NO.70 Julie has cancelled her trip to tlaly as she has broken her leg. Which type of insurance policy is specifically designed to compensate Julie for any cancellation charges she has incurred?

An income protection insurance policy.

A personal accident and sickness insurance policy.

A travel insurance policy.

A money insurance policy.

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Ace CII IF1 Certification with Actual Questions Dec 30, 2023 Updated: https://www.actualcollection.com/IF1-exam-questions.html

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