[Sep-2022] IF1 Dumps are Available for Instant Access from TestKingFree [Q24-Q48]

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[Sep-2022] IF1 Dumps are Available for Instant Access from TestKingFree

Study resources for the Valid IF1 Braindumps!

Q24. The Financial Services Compensation Scheme was established to help policyholders in the event of

unreasonable policy terms and conditions.

the financial failure of an insurance company.

the repudiation of liability by an insurer.

fraud perpetrated by an insurance broker.

Q25. 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.

Q26. 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.

Q27. Barbara owns a factory employing 20 people. What insurance is she required to hold by law?

Public liability insurance.

Products liability insurance.

Professional indemnity insurance.

Employers’ liability insurance.

Q28. When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?

Within 7 days of a complaint being made.

Within 30 days of cover being incepted.

At the time of the sale or immediately afterwards.

At the lime of a claim.

Q29. Sunita suffers a loss and makes a claim under her household contents insurance policy. When must insurable interest exist for her claim to be valid?

At the time of the loss only.

At policy inception only.

At policy inception and at the time of the loss.

At the time of the proposal.

Q30. 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.

Q31. What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?

Insurable interest.

Risk indemnity.

Vicarious liability.

Delegated authority.

Q32. From April 2019. a small company with nine employees is in dispute with its insurer and wishes to refer the matter to the Financial Ombudsman Service (FOS). The FOS is only permitted lo deal with the dispute if the insured’s turnover does NOT exceed

£1,000,000

£3,500,000

£6,000,000

£6,500,000

Q33. 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?

Apparent authority.

Consent.

Necessity.

Not at all.

Q34. An insured is temporarily disabled due to illness and unable to work. During this period, what type of insurance policy will typically pay a weekly benefit for up to two years?

A critical illness insurance policy.

A medical expenses insurance policy.

An employers’ liability insurance policy.

A personal accident and sickness insurance policy.

Q35. Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?

Appointed representatives.

Lloyd’s.

Independent brokers.

Direct insurers.

Q36. Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?

The Lloyd’s Market Association.

The Chartered Institute of Loss Adjusters.

The International Underwriting Association of London.

The Institute and Faculty of Actuaries.

Q37. Self-insurance arises when a

company decides to set aside a fund to pay losses that may occur.

number of insurers agree to collectively insure a particular risk in agreed proportions.

policyholder finds that he has inadvertently taken out more than one policy covering the same risk.

policyholder decides to insure proportions of his property with different insurers.

Q38. What type of risk is a widespread natural disaster?

A pure risk.

A speculative risk.

A particular risk.

A fundamental risk.

Q39. 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.

Q40. A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?

Only if the records include dates of birth.

In all circumstances.

Only if the records include details of race.

In no circumstances.

Q41. Bye-laws are passed at the Lloyd’s Market by the

Corporation of Lloyd’s.

Lloyd’s Market Association.

Lloyds Managing Agent.

Council of Lloyd’s.

Q42. Alex decides to insure his factory. In doing this he is primarily

transferring the risk to the insurer.

reducing his physical hazard.

protecting his business against certainty of loss.

reducing his moral hazard.

Q43. 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

Advertising Standards Authority.

Competition and Markets Authority.

Prudential Regulation Authority.

Financial Ombudsman Service.

Q44. 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.

Q45. 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.

Q46. A risk that is always insurable is a

fundamental risk.

pure risk.