Get Latest May-2022 Conduct effective penetration tests using PassLeaderVCE IF1 [Q20-Q37]

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Get Latest [May-2022] Conduct effective penetration tests using PassLeaderVCE IF1

Penetration testers simulate IF1 exam PDF

NEW QUESTION 20
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.

NEW QUESTION 21
When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter’s decision to write the risk?

They will not be considered as this is not an underwriting factor in motor insurance risk assessment.

They will only be considered if Tom had a further speeding conviction in the last 12 months.

They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.

They will be classed as relevant information and will affect the premium.

NEW QUESTION 22
If an insurer invokes the cancellation clause to cancel a policy mid-year due to a change in the risk, how much of the premium, if anything, is normally returned to the policyholder?

The full year’s premium less a fixed nominal charge.

The full year’s premium.

None of the premium.

A pro rata amount.

NEW QUESTION 23
John wishes to insure his friend’s house. Why would an insurer refuse to provide a quotation?

His name is not on the mortgage.

He does not have any subrogation rights.

He does not live in the house.

He does not have any insurable interest.

NEW QUESTION 24
Which key test for money laundering is defined under the Proceeds of Crime Act 2002?

Criminal record.

Criminal lifestyle.

Criminal possession.

Criminal intelligence.

NEW QUESTION 25
Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the

Financial Services Compensation Scheme.

Financial Ombudsman Service.

Association of British Insurers.

European Union.

NEW QUESTION 26
A retail customer CANNOT buy insurance directly from which type of insurer?

A captive insurer.

A mutual insurer.

A direct insurer.

A composite insurer.

NEW QUESTION 27
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.

NEW QUESTION 28
Under the regulator’s training and competency rules, a general insurance employee carrying out a non-WiFID business activity

for 3 years after the employee stops carrying out the activity.

for 10 years after the employee stops carrying out the activity.

for 20 years after the employee stops carrying out the activity.

indefinitely.

NEW QUESTION 29
Who cedes business to a reinsurer?

The insurer.

The assessor.

The agent.

The insured.

NEW QUESTION 30
The purpose of Insurance Premium Tax is to

pay for flood defences.

raise revenue for the Government.

reimburse for claims of insolvent insurers

fund the Association of British Insurers.

NEW QUESTION 31
It is important to ensure the fair treatment of customers in order to comply with rules set by the

British Insurance Brokers’ Association.

Association of British Insurers.

Financial Conduct Authority.

Chartered Insurance Institute.

NEW QUESTION 32
Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?

Uncertainty.

Statutory requirements.

Frequency.

Certainty.

NEW QUESTION 33
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.

NEW QUESTION 34
Why is effective risk management important to an insurer?

It increases premium income.

It always reduces costs.

It increases the insurer’s capacity.

It helps to reduce a company’s loss exposure.

NEW QUESTION 35
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?

Subrogation.

Assignment.

Contribution.

Salvage.

NEW QUESTION 36
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?

The policy number only.

The number of days the settlement should take.

The contact details of the insurer.

The contact details of the loss adjuster used by the insurer.

NEW QUESTION 37
If a firm is said to be risk averse, this means that it

arranges insurance protection wherever possible.

undertakes its own risk management research.

carries its own risk wherever possible.

tenders its insurance needs to the market.

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