Free CII IF1 Exam Dumps Questions & Answers

How does insurable interest arise, if at all. when an insurer arranges reinsurance?

• A.  Insurable interest does not arise.
• B.  Insurable interest is created by statute.
• C.  The insurer is considered to have insurable interest by virtue of its liability to pay claims.
• D.  The policyholder is considered to have assigned the insurable interest to the insurer.

If a proposer has failed to fully answer a question on a proposal form, the insurer is deemed to have waived its rights to this information because it

• A.  did not request further information.
• B.  has statistics on similar risks.
• C.  should be able to underwrite the risk based on the information already provided.
• D.  does not have the right to ask the proposer for more information.

When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?

• A.  Within 7 days of a complaint being made.
• B.  Within 30 days of cover being incepted.
• C.  At the lime of a claim.
• D.  At the time of the sale or immediately afterwards.

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.  Consent.
• C.  Apparent authority.
• D.  Necessity.

The main function of an insurance broker is to

• A.  negotiate claims.
• B.  introduce business lo a particular insurer.
• C.  act as the agent of the insurer.
• D.  provide independent advice to clients.