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CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. 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) None of the premium.
C) The full year's premium.
D) A pro rata amount.
2. What is the principal reason for which a proposer is asked by the insurer whether his car will be driven by anyone else?
A) To enable a discount to be applied.
B) It is a material circumstance.
C) To enable a loading to be applied.
D) To establish whether insurable interest exists.
3. Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?
A) Appointed representatives.
B) Independent brokers.
C) Direct insurers.
D) Lloyd's.
4. What is the basis of settlement under a new for old insurance policy if a television is stolen?
A) The replacement cost, less wear and tear.
B) The original cost, less wear and tear.
C) The original cost in full.
D) The replacement cost in full.
5. A Terms of Business Agreement between an insurer and an intermediary sets out the
A) disaster recovery procedures to apply if there is a major disaster affecting the insurer.
B) criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
C) agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
D) framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: D |
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