1|Page
LM1 - CII Exam ||Verified Exam!!|| Most Recent Exam
Actual Complete Real Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ |
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An insured requests that the sum insured on his office
block is increased to an amount that is greater than his
insurer's normal acceptance limit. The insurer will normally
be able to continue to underwrite the office block for its full
sum insured by:
A. applying average.
B. arranging coinsurance.
C. increasing the deductible.
D. purchasing reinsurance. - Answer-D. purchasing
reinsurance.
The London Market is often utilised for the placing of
insurance because it offers a good claims service provided
by experienced and knowledgeable claims handlers, has
experienced and entrepreneurial underwriters that can
consider new emerging risks and provide bespoke
insurance
,2|Page
coverage and:
A. has a higher security rating for financial stability when
compared with other international
insurance markets.
B. has lower premiums than all of its overseas
competitors.
C. has the lowest rates of tax when compared with other
international insurance markets.
D. provides sufficient capacity to place large and complex
risks. - Answer-D. provides sufficient capacity to place
large and complex risks.
Protection and indemnity clubs provide insurance for
A. airlines.
B. insurance brokers.
C. shipowners.
D. solicitors. - Answer-C. shipowners.
The broker for a utilities company is most likely to place a
power station risk within the London Market because the:
,3|Page
A. ability of London Market insurers to pay claims is
guaranteed by the central fund.
B. London Market is more strictly regulated than all other
insurance markets.
C. subscription market provides sufficient capacity to
underwrite the risk.
D. UK has lower taxes for insurance transactions than
anywhere else. - Answer-C. subscription market provides
sufficient capacity to underwrite the risk.
How much of a non‐compulsory insurance claim will the
Financial Services Compensation Scheme pay if an
insurer becomes insolvent prior to the claim being settled?
A. A maximum of £50,000.
B. A maximum of £85,000.
C. 90% of the claim.
D. 100% of the claim. - Answer-C. 90% of the claim.
, 4|Page
The two main objectives of the International Association of
Insurance Supervisors is to contribute to global financial
stability and to:
A. promote and enhance the business environment of its
member insurance and reinsurance
companies.
B. promote effective and globally‐consistent supervision of
the insurance industry.
C. regulate global insurance companies.
D. regulate global insurance intermediaries. - Answer-B.
promote effective and globally‐consistent supervision of
the insurance industry.
The main purpose of the Financial Conduct Authority's firm
systematic framework is to
A. calculate a firm's tax liabilities due to HM Revenue &
Customs.
B. ensure that the interests of the customer are at the
heart of the way the business is run.
C. provide a framework for assessing a firm's financial
security rating for the ratings agencies.
LM1 - CII Exam ||Verified Exam!!|| Most Recent Exam
Actual Complete Real Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ |
Guaranteed Success!! | Newest Exam!!!
An insured requests that the sum insured on his office
block is increased to an amount that is greater than his
insurer's normal acceptance limit. The insurer will normally
be able to continue to underwrite the office block for its full
sum insured by:
A. applying average.
B. arranging coinsurance.
C. increasing the deductible.
D. purchasing reinsurance. - Answer-D. purchasing
reinsurance.
The London Market is often utilised for the placing of
insurance because it offers a good claims service provided
by experienced and knowledgeable claims handlers, has
experienced and entrepreneurial underwriters that can
consider new emerging risks and provide bespoke
insurance
,2|Page
coverage and:
A. has a higher security rating for financial stability when
compared with other international
insurance markets.
B. has lower premiums than all of its overseas
competitors.
C. has the lowest rates of tax when compared with other
international insurance markets.
D. provides sufficient capacity to place large and complex
risks. - Answer-D. provides sufficient capacity to place
large and complex risks.
Protection and indemnity clubs provide insurance for
A. airlines.
B. insurance brokers.
C. shipowners.
D. solicitors. - Answer-C. shipowners.
The broker for a utilities company is most likely to place a
power station risk within the London Market because the:
,3|Page
A. ability of London Market insurers to pay claims is
guaranteed by the central fund.
B. London Market is more strictly regulated than all other
insurance markets.
C. subscription market provides sufficient capacity to
underwrite the risk.
D. UK has lower taxes for insurance transactions than
anywhere else. - Answer-C. subscription market provides
sufficient capacity to underwrite the risk.
How much of a non‐compulsory insurance claim will the
Financial Services Compensation Scheme pay if an
insurer becomes insolvent prior to the claim being settled?
A. A maximum of £50,000.
B. A maximum of £85,000.
C. 90% of the claim.
D. 100% of the claim. - Answer-C. 90% of the claim.
, 4|Page
The two main objectives of the International Association of
Insurance Supervisors is to contribute to global financial
stability and to:
A. promote and enhance the business environment of its
member insurance and reinsurance
companies.
B. promote effective and globally‐consistent supervision of
the insurance industry.
C. regulate global insurance companies.
D. regulate global insurance intermediaries. - Answer-B.
promote effective and globally‐consistent supervision of
the insurance industry.
The main purpose of the Financial Conduct Authority's firm
systematic framework is to
A. calculate a firm's tax liabilities due to HM Revenue &
Customs.
B. ensure that the interests of the customer are at the
heart of the way the business is run.
C. provide a framework for assessing a firm's financial
security rating for the ratings agencies.
