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Insurance Legal and Regulatory (IF1) Exam

Last Update 6 days ago
Total Questions : 100

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Question # 1

In a chain of events, the proximate cause of a loss is always the

Options:

A.  

only event contributing towards the loss.

B.  

last event before the loss occurs.

C.  

dominant event leading to the loss.

D.  

only event which is not excluded by the terms of the policy.

Discussion 0
Question # 2

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

Options:

A.  

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

B.  

The lead insurer.

C.  

The intermediary.

D.  

Each coinsurer for its own proportion only.

Discussion 0
Question # 3

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?

Options:

A.  

At the time of the loss only.

B.  

At policy inception only.

C.  

At policy inception and at the time of the loss.

D.  

At the time of the proposal.

Discussion 0
Question # 4

How is Insurance Premium Tax collected within the UK?

Options:

A.  

By HM Revenue & Customs on the whole general account.

B.  

By the insurer on individual insurance contracts.

C.  

By the insurer on the whole general and life accounts.

D.  

By HM Revenue & Customs on individual insurance contracts.

Discussion 0
Question # 5

How would an employee benefit directly from her employer's business interruption insurance if its factory was forced to close temporarily due to flood damage?

Options:

A.  

By payment of a redundancy lump sum.

B.  

By continuation of her wages.

C.  

By compensation for loss of bonus.

D.  

By payment of an early retirement pension.

Discussion 0
Question # 6

How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?

Options:

A.  

Subrogation rights only apply under a theft policy.

B.  

Subrogation rights do not apply under either policy.

C.  

Subrogation rights only apply under a personal accident policy.

D.  

Subrogation rights apply under both policies.

Discussion 0
Question # 7

What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?

Options:

A.  

Wear and tear.

B.  

An excess.

C.  

Brokerage.

D.  

Loss of interest.

Discussion 0
Question # 8

The Principles for Business slate that all customers should be treated

Options:

A.  

to a minimum standard.

B.  

fairly.

C.  

equally.

D.  

with due respect.

Discussion 0
Question # 9

The main purpose of the fair treatment of customers initiative is to

Options:

A.  

make firms more competitive.

B.  

ensure all firms have a similar service standard.

C.  

apply fixed times for responding to claims and complaints.

D.  

build consumer confidence in the financial services industry.

Discussion 0
Question # 10

Michael, an insurance company employee, strongly suspects that a recent transaction involved money laundering but decides NOT to report his suspicions to anyone. How is this treated under the current Money Laundering Regulations?

Options:

A.  

It is a disciplinary offence under the Banking Code.

B.  

It is a civil offence.

C.  

It is a criminal offence.

D.  

It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.

Discussion 0
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