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CII IF1 real answers - Insurance Legal and Regulatory (IF1) Exam

IF1
  • Exam Code: IF1
  • Exam Name: Insurance Legal and Regulatory (IF1) Exam
  • Updated: Oct 13, 2024
  • Q & A: 100 Questions and Answers
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CII Insurance Legal and Regulatory (IF1) Sample Questions:

1. An agent, acting outside the terms of her agency agreement, binds her principal to a contract with a third party who has reason to believe that the agent can act in that capacity. On what basis, if al all, is the principal bound by the agent's actions?

A) Not at all.
B) Apparent authority.
C) Consent.
D) Necessity.


2. Sara searches on a comparison website for car insurance. She selects the cheapest quotation and pays by credit card for immediate cover. This is known as

A) conditional acceptance.
B) unconditional acceptance.
C) an offer.
D) a Terms of Business Agreement.


3. The principle of indemnity is the

A) placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
B) obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
C) obligation of the insurer to provide a maximum sum insured or limit of liability.
D) placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.


4. Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?

A) The International Underwriting Association of London.
B) The Lloyd's Market Association.
C) The Institute and Faculty of Actuaries.
D) The Chartered Institute of Loss Adjusters.


5. 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?

A) Subrogation.
B) Contribution.
C) Salvage.
D) Assignment.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: B
Question # 3
Answer: D
Question # 4
Answer: C
Question # 5
Answer: A

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