Updated Jun-2022 Official licence for IF1 Certified by IF1 Dumps PDF [Q33-Q54]

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Updated Jun-2022 Official licence for IF1 Certified by IF1 Dumps PDF

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NEW QUESTION 33
When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as

a real statement.

a new for old policy.

a first loss policy.

an indemnity policy.

NEW QUESTION 34
Under the provisions of the Financial Services Act 2012. what action, if any, can the regulator take against a firm that has committed money laundering offences?

Criminal prosecution.

No action can be taken.

Civil proceedings.

Arbitration.

NEW QUESTION 35
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

does not have the right to ask the proposer for more information.

should be able to underwrite the risk based on the information already provided.

has statistics on similar risks.

did not request further information.

NEW QUESTION 36
What type of risk is a widespread natural disaster?

A pure risk.

A speculative risk.

A particular risk.

A fundamental risk.

NEW QUESTION 37
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.

NEW QUESTION 38
An insurance company has employed an individual from a rival firm to carry out a similar job. At which stage would the regulatory requirements for retaining training and competence records first apply to the new employee, if at all?

From the initial interview.

It would not apply, as the employee is already fully competent.

Within 18 months of employment.

When the employee first has contact with members of the public.

NEW QUESTION 39
An investor is unable to obtain insurance to protect his potential losses while trading on the stock market because the category of risk is deemed to be

pure.

financial.

particular.

speculative.

NEW QUESTION 40
Under common law. when does the insured’s duly of fair presentation cease with regard to declarations that do NOT affect policy cover?

When the policy contract lakes effect.

When a claim is paid.

When a claim is submitted.

At renewal.

NEW QUESTION 41
Michael, an insurance company employee, strongly suspects that a recent transaction involved money laundering but decides NOT to report his suspicions to anyone. How is this treated under the current Money Laundering Regulations?

It is a disciplinary offence under the Banking Code.

It is a civil offence.

It is a criminal offence.

It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.

NEW QUESTION 42
For which professional is professional indemnity insurance compulsory by statute?

A loss adjuster,

A chartered surveyor. .

A solicitor.

A loss assessor.

NEW QUESTION 43
How would an insurer’s portfolio of motor claims be shown in terms of frequency and severity?

Low frequency, high seventy.

High frequency, high seventy.

Low frequency, low seventy.

High frequency, low severity.

NEW QUESTION 44
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 45
The purpose of the EU solvency requirements for insurers and intermediaries is to

create a standard format for the presentation of accounting data.

introduce monitoring procedures by the Prudential Regulation Authority.

provide authorisation to transact insurance business.

strengthen the financial security of the insurer or intermediary.

NEW QUESTION 46
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.

NEW QUESTION 47
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.

NEW QUESTION 48
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?

He must apply to the British Insurance Brokers’ Association.

He must apply to the Chartered Insurance Institute.

He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).

He must apply to the Prudential Regulation Authority.

NEW QUESTION 49
Reinsurance is usually purchased by the

intermediary.

insurer.

regulator.

insured.

NEW QUESTION 50
A Terms of Business Agreement between an insurer and an intermediary sets out the

agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).

criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.

framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.

disaster recovery procedures to apply if there is a major disaster affecting the insurer.

NEW QUESTION 51
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 52
If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from

disclosing details to a third party.

reinsuring the risk.

pursuing subrogation rights.

increasing the premium.

NEW QUESTION 53
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 54
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

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