3/6/26, 7:27 AM LM1 - CII EXAM Questions & Answers, Well Elaborated | Already Verified Test |100% Verified solutions |2026 Latest!! Flashcards | Q…
LM1 - CII EXAM Questions & Answers, Well
Elaborated | Already Verified Test |100% Verified
solutions |2026 Latest!!
Save
Terms in this set (100)
By sharing information about their Good faith
risk, the insured satisfies which
obligation?
The proximate cause of a loss will Dominant cause
always be the
Which insurance principle gives an Contribution
insurer the right to call upon other
insurers to share in the settling of a
claim?
A building valued at £250,000 is Karen's insurer is liable for £22,000 and Terry's for
jointly owned by Karen and Terry, £33,000.
who each individually arrange
insurance on it. Karen insures the
building for £100,000, whilst Terry
insures it for £150,000. If a valid claim
of £55,000 occurs how much is each
insurer liable to pay?
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,3/6/26, 7:27 AM LM1 - CII EXAM Questions & Answers, Well Elaborated | Already Verified Test |100% Verified solutions |2026 Latest!! Flashcards | Q…
An insurer arranges for a Subrogation
policyholder's car to be repaired
following damage by a negligent
third party motorist. Under which
insurance principle can the insurer
recover the paid claim?
Which insurance principle ensures Indemnity
that in the event of a loss the insured
is placed in the same financial
position as he was immediately prior
to the loss?
The protection of jobs is classed as A secondary function of insurance only
which type of function of insurance?
Which type of risk arises from a Fundamental risk
cause outside the control of any one
individual and affects a large number
of people?
For an individual, which class of risk Speculative risk
is always uninsurable?
The subjective judgment that Risk perception
individuals or organisations make
about the characteristics and
severity of a risk is known as
In relation to insurance, a peril is An event that may give rise to a loss
The calculation of what involves the Equitable premiums
use of the law of large numbers?
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, 3/6/26, 7:27 AM LM1 - CII EXAM Questions & Answers, Well Elaborated | Already Verified Test |100% Verified solutions |2026 Latest!! Flashcards | Q…
What is the most likely impact, if any, The reputation of the insurer will be affected
on a commercial insurer if it fails to
implement an effective claims-
handling process?
A proposer for an insurance policy Poor moral hazard
who has previously made fraudulent
insurance claims would be classed
by an underwriter as a
Where the premiums of the many Pooling of risks
pay the losses of the few, this is
known as
What is the basic purpose of To transfer risks
insurance?
What class of insurance protects the Political risks
policyholder from the nationalisation
of their overseas assets by a foreign
government?
Cargo carried by an airline will Marine
usually be covered under what class
of business?
What class of insurance would Professional indemnity
respond to claims made against a
lawyer in respect of advice given to
fee paying clients?
What class of insurance can provide Business interruption
cover for loss of attraction or denial
of access to the insured's premises?
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LM1 - CII EXAM Questions & Answers, Well
Elaborated | Already Verified Test |100% Verified
solutions |2026 Latest!!
Save
Terms in this set (100)
By sharing information about their Good faith
risk, the insured satisfies which
obligation?
The proximate cause of a loss will Dominant cause
always be the
Which insurance principle gives an Contribution
insurer the right to call upon other
insurers to share in the settling of a
claim?
A building valued at £250,000 is Karen's insurer is liable for £22,000 and Terry's for
jointly owned by Karen and Terry, £33,000.
who each individually arrange
insurance on it. Karen insures the
building for £100,000, whilst Terry
insures it for £150,000. If a valid claim
of £55,000 occurs how much is each
insurer liable to pay?
https://quizlet.com/1152540941/lm1-cii-exam-questions-answers-well-elaborated-already-verified-test-100-verified-solutions-2026-latest-flash-cards/?… 1/16
,3/6/26, 7:27 AM LM1 - CII EXAM Questions & Answers, Well Elaborated | Already Verified Test |100% Verified solutions |2026 Latest!! Flashcards | Q…
An insurer arranges for a Subrogation
policyholder's car to be repaired
following damage by a negligent
third party motorist. Under which
insurance principle can the insurer
recover the paid claim?
Which insurance principle ensures Indemnity
that in the event of a loss the insured
is placed in the same financial
position as he was immediately prior
to the loss?
The protection of jobs is classed as A secondary function of insurance only
which type of function of insurance?
Which type of risk arises from a Fundamental risk
cause outside the control of any one
individual and affects a large number
of people?
For an individual, which class of risk Speculative risk
is always uninsurable?
The subjective judgment that Risk perception
individuals or organisations make
about the characteristics and
severity of a risk is known as
In relation to insurance, a peril is An event that may give rise to a loss
The calculation of what involves the Equitable premiums
use of the law of large numbers?
https://quizlet.com/1152540941/lm1-cii-exam-questions-answers-well-elaborated-already-verified-test-100-verified-solutions-2026-latest-flash-cards/?… 2/16
, 3/6/26, 7:27 AM LM1 - CII EXAM Questions & Answers, Well Elaborated | Already Verified Test |100% Verified solutions |2026 Latest!! Flashcards | Q…
What is the most likely impact, if any, The reputation of the insurer will be affected
on a commercial insurer if it fails to
implement an effective claims-
handling process?
A proposer for an insurance policy Poor moral hazard
who has previously made fraudulent
insurance claims would be classed
by an underwriter as a
Where the premiums of the many Pooling of risks
pay the losses of the few, this is
known as
What is the basic purpose of To transfer risks
insurance?
What class of insurance protects the Political risks
policyholder from the nationalisation
of their overseas assets by a foreign
government?
Cargo carried by an airline will Marine
usually be covered under what class
of business?
What class of insurance would Professional indemnity
respond to claims made against a
lawyer in respect of advice given to
fee paying clients?
What class of insurance can provide Business interruption
cover for loss of attraction or denial
of access to the insured's premises?
https://quizlet.com/1152540941/lm1-cii-exam-questions-answers-well-elaborated-already-verified-test-100-verified-solutions-2026-latest-flash-cards/?… 3/16
