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IF1 test 1 questions with complete solutions graded A+
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IF1 test 1 questions with complete solutions graded A+
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IF1 test 1 questions with completesolutions graded A+
transferred - correct answer ✔✔By paying their premium, someone who has insured their motor car is
said to have _______ the risk
averse - correct answer ✔✔People who are most likely to take out insurance are termed risk -
identification - correct answer ✔✔Risk management is risk analysis, control &
preventative - correct answer ✔✔When a business has policies in place to avoid risks from occurring,
these are known as __________ controls
severity - correct answer ✔✔level of risk is usually based on the frequency and ---------- of an event
occurring.
low high - correct answer ✔✔The risk of an aircraft crashing would be regarded as a _____ frequency
_____ severity risk
peril - correct answer ✔✔Something that gives rise to a loss is a
financial - correct answer ✔✔to be insurable, the risk will usually need to be
pure - correct answer ✔✔the risk of a fire occurring is known as a _____ risk
fundamental - correct answer ✔✔Risks that could occur on such a vast scale that they could be
uninsurable are known as _____ risks
fortuitous - correct answer ✔✔an accidental or unexpected event is a ________ event
, closer - correct answer ✔✔in the law of large no.s, the greater the number of similar risks, the ______
the actual outcome will be to the expected losses
pool - correct answer ✔✔in a _____ of risks the losses of the few are met by the contributions of the
many
collective - correct answer ✔✔each insurer is separately liable to the insured for its proportion of any
claim that becomes payable in a ______
coinsurance - correct answer ✔✔A manufacturer has agreed to settle a substantial proportion of any
claim themselves, with the insurer picking up the remainder. This is known as:
peace of mind - correct answer ✔✔Insurance is most likely to be purchased because it provides
risk is transferred - correct answer ✔✔The main advantage for someone to insure their car is that
aggregators - correct answer ✔✔Within the insurance industry, price comparison websites are known as
policyholders - correct answer ✔✔A mutual insurer will share profits with its
manage underwriting - correct answer ✔✔Within the Lloyd's market, the role of a managing agent is to
_____ the ____________of syndicates
insured insurer - correct answer ✔✔contract certainty must exist between the _____ and _______ in the
london market
ancillary - correct answer ✔✔under the IDD, an ________ insurance intermediary distributes insurance
even though its principal activity is not insurance distribution
megan - correct answer ✔✔Jason has asked Megan, an insurance intermediary, to arrange a motor
insurance policy for him. This is arranged with Speedy Insurance. Who is acting as the agent?
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