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IF1 Examinations Actual Questions | CII New IF1 Test Objectives & IF1 Pass Guarantee
IF1 Examinations Actual Questions | CII New IF1 Test Objectives & IF1 Pass Guarantee
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NEW QUESTION 25
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 26
Under the Consumer Rights Act 2015. a clause in a household insurance policy may be considered unfair if it

  • A. imposes unreasonable obligations on the insurer in terms of costs or expenses that must be paid in addition to the amount of any loss.
  • B. allows any party other than the insured to enforce the insurer's obligations under the policy.
  • C. discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
  • D. causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.

Answer: D

 

NEW QUESTION 27
A firm of insurance brokers invite Stuart. an underwriter who handles its account, on a Caribbean cruise with his family. How should Stuart react to this invitation in order to comply with the Chartered Insurance Institute's Code of Ethics?

  • A. Accept on the basis that this is an accepted business practice.
  • B. Accept only on the basis that the cost is less than £1.000.
  • C. Decline to avoid any suggestion he is being compromised.
  • D. Decline as this is against the Financial Ombudsman Service regulations.

Answer: C

 

NEW QUESTION 28
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. protecting his business against certainty of loss.
  • D. reducing his moral hazard.

Answer: A

 

NEW QUESTION 29
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