Free CII IF1 Exam Dumps Questions & Answers

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.pure.
• B.financial.
• C.particular.
• D.speculative.

The principle of indemnity is the

• A.obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
• B.placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
• 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.

What is the legal standing of the Charioted Insurance Institute's Code of Ethics?

• A.It has full stand-alone legal recognition.
• B.It is to be applied in conjunction with existing Acts.
• C.It has full force of Jaw except where overridden by pre-existing Acts.
• D.It does not have the force of law.

Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?

• A.Frequency.
• B.Statutory requirements.
• C.Uncertainty.
• D.Certainty.

What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?

• A.Insurable interest.
• B.Risk indemnity.
• C.Vicarious liability.
• D.Delegated authority.