Verified IF1 dumps Q&As - 100% Pass from PassReview
Pass IF1 Exam in First Attempt Guaranteed 2022 Dumps!
NEW QUESTION 49
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. Good faith.
- B. Indemnity.
- C. Insurable interest.
- D. Proximate cause.
Answer: C
NEW QUESTION 50
In order for a contract to be legally enforceable, what further action is required after offer and acceptance?
- A. Exchange of consideration between the two parties.
- B. Witnessing by a third party.
- C. Delivery of goods or services concerned.
- D. Provision of written terms and conditions.
Answer: A
NEW QUESTION 51
What type of risk is a widespread natural disaster?
- A. A speculative risk.
- B. A particular risk.
- C. A pure risk.
- D. A fundamental risk.
Answer: D
NEW QUESTION 52
The Financial Ombudsman Service will make a ruling on a dispute between
- A. an insurance broker and an insurer.
- B. an insurer and a reinsurer.
- C. a third party and the insurer against whom he is making a liability claim.
- D. a private individual and an insurer.
Answer: D
NEW QUESTION 53
In a chain of events, the proximate cause of a loss is always the
- A. dominant event leading to the loss.
- B. last event before the loss occurs.
- C. only event which is not excluded by the terms of the policy.
- D. only event contributing towards the loss.
Answer: A
NEW QUESTION 54
A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder
- A. on a direct basis,
- B. via the intermediary.
- C. only when collecting premiums.
- D. outside normal business hours,
Answer: B
NEW QUESTION 55
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 represents a moral hazard.
- B. It is information that would not influence an underwriter.
- C. It represents a physical hazard.
- D. It is a spent conviction.
Answer: D
NEW QUESTION 56
The requirement 10 notify the fitting of a more powerful engine under a motor insurance policy is an example of a policy wording modifying the principle of
- A. good faith.
- B. contribution.
- C. subrogation.
- D. indemnity.
Answer: A
NEW QUESTION 57
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. Uncertainty.
- B. Certainty.
- C. Frequency.
- D. Statutory requirements.
Answer: A
NEW QUESTION 58
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?
- A. £3,000
- B. £2,000
- C. £1,000
- D. £1,500
Answer: C
NEW QUESTION 59
A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?
- A. Offer a discounted premium payment to the policyholders.
- B. Cancel the policies from inception for non-payment.
- C. Apply for a second payment from the policyholders.
- D. Write to the liquidator to register the debt.
Answer: D
NEW QUESTION 60
It is important to ensure the fair treatment of customers in order to comply with rules set by the
- A. Financial Conduct Authority.
- B. British Insurance Brokers' Association.
- C. Chartered Insurance Institute.
- D. Association of British Insurers.
Answer: A
NEW QUESTION 61
Under a coinsurance arrangement, who is ultimately responsible for payment of an agreed claim?
- A. The intermediary.
- B. The lead insurer.
- C. Each coinsurer for its own proportion, but also a share of any proportion unpaid due to the default of another coinsurer.
- D. Each coinsurer for its own proportion only.
Answer: D
NEW QUESTION 62
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?
- A. He does not need to disclose this.
- B. At the date of the next premium payment.
- C. Immediately, but only if the diagnosis is terminal.
- D. Immediately, irrespective of prognosis.
Answer: A
NEW QUESTION 63
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. did not request further information.
- B. does not have the right to ask the proposer for more information.
- C. has statistics on similar risks.
- D. should be able to underwrite the risk based on the information already provided.
Answer: A
NEW QUESTION 64
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 65
......
IF1 Dumps Full Questions - Exam Study Guide: https://www.passreview.com/IF1_exam-braindumps.html
Use Real IF1 - 100% Cover Real Exam Questions: https://drive.google.com/open?id=1RA8gNhCMfwmLWGZTVwKVACbXwqNgemP8