Exam (elaborations)
Cert CII - IF1 - Question bank with verified answers
- Course
- Institution
Cert CII - IF1 - Question bank with verified answers
[Show more]
Content preview
Cert CII - IF1 - Question bank withverified answers
Insurance cover can usually be purchased in the UK to protect against:
a. An investment loss on the stock market
b. Dishonesty of an employee
c. Failure of a business venture
d. War damage to a domestic property - correct answer ✔✔b. Dishonesty of an employee
An insurer that provides insurance cover to its parent company is known as a:
a. captive insurer
b. mutual company
c. proprietary company
d. reinsurance company - correct answer ✔✔a. captive insurer
Park Place Veterinary Surgery require insurance to protect the partners against professional negligence
claims. They are most likely to arrange this through:
a. a composite company
b. Lloyd's
c. a specialist insurer
d. a limited liability company - correct answer ✔✔c. a specialist insurer
Within the Lloyd's market, risks are placed by means of a:
a. Market risk contract
b. Market reform contract
c. Note
d. Risk reform contract - correct answer ✔✔b. Market reform contract
,Jacqui is an insurance broker. She is most likely to be remunerated by:
a. A fixed advice fee
b. Commission based on the sum insured
c. An ongoing advice fee
d. Commission based on the premiums charged - correct answer ✔✔d. Commission based on the
premiums charged
Ahmar has signed an agency agreement with Kent Regal Ltd. It is true to say that:
a. He can act for Kent Regal Ltd in bringing them into legal relationships with others
b. Any contracts he enters into will not be binding on Kent Regal Ltd
c. Any contracts he enters into will not be binding on the insured
d. He must act solely as a representative of the insured - correct answer ✔✔a. He can act for Kent Regal
Ltd in bringing them into legal relationships with others
Sulla, an independent intermediary, is placing business for new clients. Her services are least likely to
include:
a. Decisions on the best market in which to place the risk
b. Actions on behalf of the insurer
c. Advice relating to policy wording
d. Negotiating initial terms - correct answer ✔✔b. Actions on behalf of the insurer
An indirect marketing strategy would mean that an insurer would distribute their products via:
a. Insurance brokers
b. Company sales staff
c. Newspaper advertising
d. The internet - correct answer ✔✔a. Insurance brokers
The purpose of reinsurance is to:
a. transfer all of the cost to a third party
b. smooth peaks and troughs in the trading results
,c. enable claims to be settled quickly
d. reduce the cost for the client - correct answer ✔✔b. smooth peaks and troughs in the trading results
Insurance premium tax (IPT) applies to:
a. Insurers' premium income
b. Life insurance premiums only
c. Some general insurance premiums
d. All insurance premiums - correct answer ✔✔c. Some general insurance premiums
Income protection provides:
a. Fixed benefits in the event of accidental death or bodily injury
b. Fixed benefits in the event of an accident, illness or loss of job
c. Payments for inability to work due to sickness only
d. Payments in the event of diagnosis of a serious illness - correct answer ✔✔b. Fixed benefits in the
event of an accident, illness or loss of job
Jane offers to supply filing cabinets to Pam who accepts the offer. What further action is required in
order that a legally enforceable contract exists between them?
a. The terms of their agreement need to be written down
b. Another person needs to witness their agreement
c. The filing cabinets need to be delivered to Pam
d. Pam needs to agree to pay Jane for the filing cabinets - correct answer ✔✔d. Pam needs to agree to
pay Jane for the filing cabinets
An insurance broker recommends and arranges an insurance policy for the client and collects the
premium for the insurer. The broker subsequently advises the client on how to make a claim. At what
point in this scenario is the insurer the broker's principal?
a. Recommendation of the policy
b. Arrangement of the policy
c. Collection of the premium
, d. Advising of the claim - correct answer ✔✔c. Collection of the premium
A valid contract must include:
a. Signed documentation
b. A written offer
c. A legal disclaimer
d. Consideration - correct answer ✔✔d. Consideration
Sanjeev requires house insurance. He has spoken to an insurer over the telephone who has offered him a
policy with an excess of £500. Sanjeev accepts the policy but requests an excess of £250. In contract
terms, Sanjeev's acceptance represents:
a. A counter offer
b. An offer
c. Unconditional acceptance
d. Agreement - correct answer ✔✔a. A counter offer
Katie is selling her car for £2,000. May offers her £1,800, which Katie refuses.
Legally, a contract has not been formed between Katie and May because:
a. Katie's refusal of the counter offer acts as a withdrawal of the original offer
b. Katie and May did not sign a contract
c. May's counter offer acts as a rejection of the original offer
d. May offered less than Katie was prepared to accept - correct answer ✔✔c. May's counter offer acts as
a rejection of the original offer
Colin buys home contents insurance, having received a quote through the post which he is happy with.
Acceptance of the quote will be complete when:
a. A letter of acceptance is received
b. A letter of acceptance is posted
c. The policy is put on risk
d. Colin receives confirmation from the insurer - correct answer ✔✔b. A letter of acceptance is posted
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $22.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now