CII Insurance Legal and Regulatory (IF1) - IF1 Exam Practice Test
Question 1
A storm blew down the wall of a limber building. The failing wall broke electrical wiring, which short-circuited and the resultant sparks caused a fire. The lire brigade used water to put out the fire and the water caused damage to the unburnt contents. What is the proximate cause of the damage to the unburnt contents?
Correct Answer: B
Question 2
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?
Correct Answer: B
Question 3
A risk that is always insurable is a
Correct Answer: A
Question 4
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?
Correct Answer: A
Question 5
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?
Correct Answer: B
Question 6
Who can place business directly with a Lloyd's underwriter?
Correct Answer: A
Question 7
A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder
Correct Answer: D
Question 8
John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?
Correct Answer: B
Question 9
An agent, acting outside the terms of her agency agreement, binds her principal to a contract with a third party who has reason to believe that the agent can act in that capacity. On what basis, if al all, is the principal bound by the agent's actions?
Correct Answer: B
Question 10
How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
Correct Answer: C
