[Dec 19, 2021] Fully Updated IF1 Dumps - 100% Same Q&A In Your Real Exam
Latest IF1 Exam Dumps - Valid and Updated Dumps
NEW QUESTION 47
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?
- A. Criminal prosecution.
- B. Civil proceedings.
- C. No action can be taken.
- D. Arbitration.
Answer: A
NEW QUESTION 48
Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?
- A. Appointed representatives.
- B. Direct insurers.
- C. Independent brokers.
- D. Lloyd's.
Answer: B
NEW QUESTION 49
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?
- A. The full year's premium less a fixed nominal charge.
- B. The full year's premium.
- C. None of the premium.
- D. A pro rata amount.
Answer: A
NEW QUESTION 50
The Financial Services Compensation Scheme was established to help policyholders in the event of
- A. unreasonable policy terms and conditions.
- B. fraud perpetrated by an insurance broker.
- C. the financial failure of an insurance company.
- D. the repudiation of liability by an insurer.
Answer: C
NEW QUESTION 51
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
- A. unenforceable unless Harry signs a disclaimer acknowledging the consideration as acceptable.
- B. enforceable but only if Harry does not refute the contract within six months of the contract date.
- C. unenforceable as the consideration is inadequate.
- D. enforceable as consideration does not need to be adequate.
Answer: D
NEW QUESTION 52
For which professional is professional indemnity insurance compulsory by statute?
- A. A loss assessor.
- B. A solicitor.
- C. A chartered surveyor. .
- D. A loss adjuster,
Answer: B
NEW QUESTION 53
Peter currently has no penalty points on his driving licence, although he was convicted of a minor motoring offence eight years ago. Why does Peter NOT need to disclose this to his motor insurer?
- A. It is information that would not influence an underwriter.
- B. It represents a moral hazard.
- C. It represents a physical hazard.
- D. It is a spent conviction.
Answer: D
NEW QUESTION 54
A policyholder achieves peace of mind when insuring his car by
- A. transferring the risk to the insurer.
- B. eliminating the risk of loss.
- C. preventing the chance of a loss occurring.
- D. reducing the chance of a loss occurring.
Answer: A
NEW QUESTION 55
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
- A. warranties.
- B. material circumstances.
- C. contractual terms.
- D. indemnity.
Answer: B
NEW QUESTION 56
Which principle of insurance prevents a member of the public from taking out an insurance policy on the life of a celebrity in the hope of receiving a windfall on the celebrity's death?
- A. Proximate cause.
- B. Good faith.
- C. Indemnity.
- D. Insurable interest.
Answer: D
NEW QUESTION 57
In a chain of events, the proximate cause of a loss is always the
- A. only event which is not excluded by the terms of the policy.
- B. only event contributing towards the loss.
- C. last event before the loss occurs.
- D. dominant event leading to the loss.
Answer: D
NEW QUESTION 58
The website of an insurer must include the company's registered name, trading address, contact details and regulator. This is in accordance with rules enforced by the
- A. Financial Ombudsman Service.
- B. Prudential Regulation Authority.
- C. Advertising Standards Authority.
- D. Competition and Markets Authority.
Answer: A
NEW QUESTION 59
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
- A. should be able to underwrite the risk based on the information already provided.
- B. did not request further information.
- C. has statistics on similar risks.
- D. does not have the right to ask the proposer for more information.
Answer: B
NEW QUESTION 60
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?
- A. Within 18 months of employment.
- B. It would not apply, as the employee is already fully competent.
- C. From the initial interview.
- D. When the employee first has contact with members of the public.
Answer: D
NEW QUESTION 61
Why is effective risk management important to an insurer?
- A. It always reduces costs.
- B. It increases the insurer's capacity.
- C. It helps to reduce a company's loss exposure.
- D. It increases premium income.
Answer: C
NEW QUESTION 62
The capital requirements of insurers and intermediaries are set out by
- A. Money Laundering Regulations.
- B. Proceeds of Crime Act 2002.
- C. Prudential Regulation Authority rules.
- D. Data Protection legislation.
Answer: C
NEW QUESTION 63
A claim has arisen which is fully covered under insurer A's policy and insurer B's policy. Insurer A's policy has a sum insured of £30,000 and insurer B's policy has a sum insured of £50,000. What proportion of the claim is insurer B liable for if the principle of contribution applies on a rateable proportion by sum insured basis?
- A. Three eighths.
- B. Five eighths.
- C. Two fifths.
- D. Three fifths.
Answer: B
NEW QUESTION 64
Lloyd's is known as a subscription market because
- A. the underwriter assigns his signature individually to each risk.
- B. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
- C. a fee must be paid.
- D. a number of syndicates accept a share of the same risk.
Answer: D
NEW QUESTION 65
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?
- A. Statutory requirements.
- B. Frequency.
- C. Uncertainty.
- D. Certainty.
Answer: C
NEW QUESTION 66
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. a real statement.
- B. a new for old policy.
- C. an indemnity policy.
- D. a first loss policy.
Answer: D
NEW QUESTION 67
To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?
- A. To suitably qualified individuals only.
- B. The agent cannot delegate her responsibility.
- C. To suitably experienced individuals only.
- D. To anyone able to fulfil the duties.
Answer: B
NEW QUESTION 68
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?
- A. Necessity.
- B. Apparent authority.
- C. Consent.
- D. Not at all.
Answer: B
NEW QUESTION 69
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