First Attempt Guaranteed Success in IF1 Exam 2023 [Q58-Q78]

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First Attempt Guaranteed Success in IF1 Exam 2023

Real IF1 Exam Questions are the Best Preparation Material

NEW QUESTION 58
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 59
The Principles for Business slate that all customers should be treated

to a minimum standard.

fairly.

equally.

with due respect.

NEW QUESTION 60
Reinsurance is usually purchased by the

intermediary.

insurer.

regulator.

insured.

NEW QUESTION 61
If a firm is said to be risk averse, this means that it

arranges insurance protection wherever possible.

undertakes its own risk management research.

carries its own risk wherever possible.

tenders its insurance needs to the market.

NEW QUESTION 62
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.

NEW QUESTION 63
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.

NEW QUESTION 64
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.

NEW QUESTION 65
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 66
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 67
What is the basis of settlement under a new for old insurance policy if a television is stolen?

The original cost in full.

The original cost, less wear and tear.

The replacement cost in full.

The replacement cost, less wear and tear.

NEW QUESTION 68
What type of risk is a widespread natural disaster?

A pure risk.

A speculative risk.

A particular risk.

A fundamental risk.

NEW QUESTION 69
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 70
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.

NEW QUESTION 71
What is the legal standing of the Charioted Insurance Institute’s Code of Ethics?

It has full force of Jaw except where overridden by pre-existing Acts.

It does not have the force of law.

It has full stand-alone legal recognition.

It is to be applied in conjunction with existing Acts.

NEW QUESTION 72
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 73
The purpose of Insurance Premium Tax is to

pay for flood defences.

raise revenue for the Government.

reimburse for claims of insolvent insurers

fund the Association of British Insurers.

NEW QUESTION 74
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.

NEW QUESTION 75
Under a coinsurance arrangement, who is ultimately responsible for payment of an agreed claim?

Each coinsurer for its own proportion, but also a share of any proportion unpaid due to the default of another coinsurer.

The lead insurer.

The intermediary.

Each coinsurer for its own proportion only.

NEW QUESTION 76
A firm of insurance brokers invite Stuart. an underwriter who handles its account, on a Caribbean cruise with his family. How should Stuart react to this invitation in order to comply with the Chartered Insurance Institute’s Code of Ethics?

Accept only on the basis that the cost is less than £1.000.

Accept on the basis that this is an accepted business practice.

Decline to avoid any suggestion he is being compromised.

Decline as this is against the Financial Ombudsman Service regulations.

NEW QUESTION 77
The capital requirements of insurers and intermediaries are set out by

Proceeds of Crime Act 2002.

Money Laundering Regulations.

Data Protection legislation.

Prudential Regulation Authority rules.

NEW QUESTION 78
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.