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CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. 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) £300.000
B) £150.000
C) £200.000
D) £500.000
2. An investor is unable to obtain insurance to protect his potential losses while trading on the stock market because the category of risk is deemed to be
A) particular.
B) pure.
C) speculative.
D) financial.
3. When Susan applied for a new household contents insurance policy, she was obliged to disclose her extensive claims history. Such details are normally known as
A) warranties.
B) indemnity.
C) material circumstances.
D) contractual terms.
4. What is the current rate of Insurance Premium Tax for a motor insurance policy?
A) 10%
B) 12%
C) 9.5%
D) 20%
5. A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder
A) outside normal business hours,
B) only when collecting premiums.
C) on a direct basis,
D) via the intermediary.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: D |







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