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CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of
A) subrogation.
B) contribution.
C) indemnity.
D) good faith.
2. A survey of a car repairers reveals a spray booth exists by an unguarded paraffin space beater. Also, a day's supply of paint is kept within the building and waste is removed daily from a metal bin. What will the underwriter perceive as the main physical hazard?
A) The unguarded paraffin space heater.
B) The paint.
C) The waste bin.
D) The spray booth.
3. An owner of a building reduces its sum insured from £1,000.000 lo £500.000 to save premiums. A Tire causes
£300,000 damage to the building. If the building has a reinstatement value of £750,000 and average is applied, how much will the insured receive in settlement?
A) £500.000
B) £150.000
C) £200.000
D) £300.000
4. A claim has arisen which is fully covered under insurer A's policy and insurer B's policy. Insurer A's policy has a sum insured of £30,000 and insurer B's policy has a sum insured of £50,000. What proportion of the claim is insurer B liable for if the principle of contribution applies on a rateable proportion by sum insured basis?
A) Two fifths.
B) Three eighths.
C) Five eighths.
D) Three fifths.
5. Who is represented by a loss assessor?
A) An underwriter.
B) A policyholder.
C) A claims handler.
D) A broker.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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