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CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?
A) To suitably experienced individuals only.
B) The agent cannot delegate her responsibility.
C) To anyone able to fulfil the duties.
D) To suitably qualified individuals only.
2. Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the
A) Association of British Insurers.
B) Financial Services Compensation Scheme.
C) European Union.
D) Financial Ombudsman Service.
3. The main purpose of the fair treatment of customers initiative is to
A) make firms more competitive.
B) ensure all firms have a similar service standard.
C) apply fixed times for responding to claims and complaints.
D) build consumer confidence in the financial services industry.
4. What are the other key components of risk apart from uncertainty?
A) The level of risk, peril and hazard.
B) Low severity losses and low frequency losses.
C) Financial losses.
D) Financial losses and speculation.
5. When motor insurance is purchased directly with an insurer, what is usually the main disadvantage to the policyholder in the event of a claim compared to purchasing indirectly through a different marketing channel?
A) The risk of losing a no claims discount is greater.
B) There is no intermediary to provide assistance.
C) A courtesy car is not available.
D) The policy excess is higher.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: B |



