LM1 - CII Exam || Most Recent Exam 2026 -2027 Actual
Complete Real Exam Questions And Correct Answers
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A toy manufacturer discovers that one of its toys has a safety
issue. The toy is removed from sale immediately and any
retailer or consumer that has purchased the product is
refunded. What class of insurance would provide cover against
the financial consequences of this event? - ANSWER -Product
recall insurance
What class of business written in the London Market will
provide indemnity to a
shipowner for damage to the hull of a vessel? -
ANSWER -Marine
Particular average is a feature of which type of insurance? -
ANSWER -Marine
What immediately follows higher capacity in a typical
insurance cycle? -
ANSWER -Lower
prices
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 - ANSWER -Purchasing reinsurance
The two main benefits of purchasing reinsurance are to
increase capacity and
to - ANSWER -Provide greater stability in trading
results for insurers
Reinsurance of individual risks, where the reinsurer retains
the authority to
accept or reject each risk offered, is known as what type of
reinsurance? -
ANSWER -
Facultative
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 coverage
and - ANSWER -Provides sufficient capacity to place large and
complex risks
Business is transacted largely on a subscription basis within the
London Market,
which means that - ANSWER -Business is placed with
more than one
underwriter
, Protection and indemnity clubs provide insurance for -
ANSWER -Shipowners
What is the main purpose of the International Underwriting
Association of
London? - ANSWER -To secure an optimal trading environment
for its members
The broker for a utilities company is most likely to place a
power station risk
within the London Market because the - ANSWER -
Subscription market
provides sufficient capacity to
underwrite the risk
Under a contract of insurance, an insurer - ANSWER -Agreed to
pay an amount
to the insured upon the occurrence of an insured
event, in return for
consideration by the
insured
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? - ANSWER -
90% of the claim
What is the role of the Financial Ombudsman Service? -
ANSWER -To help
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! | Newest Exam | Just Released!!
A toy manufacturer discovers that one of its toys has a safety
issue. The toy is removed from sale immediately and any
retailer or consumer that has purchased the product is
refunded. What class of insurance would provide cover against
the financial consequences of this event? - ANSWER -Product
recall insurance
What class of business written in the London Market will
provide indemnity to a
shipowner for damage to the hull of a vessel? -
ANSWER -Marine
Particular average is a feature of which type of insurance? -
ANSWER -Marine
What immediately follows higher capacity in a typical
insurance cycle? -
ANSWER -Lower
prices
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 - ANSWER -Purchasing reinsurance
The two main benefits of purchasing reinsurance are to
increase capacity and
to - ANSWER -Provide greater stability in trading
results for insurers
Reinsurance of individual risks, where the reinsurer retains
the authority to
accept or reject each risk offered, is known as what type of
reinsurance? -
ANSWER -
Facultative
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 coverage
and - ANSWER -Provides sufficient capacity to place large and
complex risks
Business is transacted largely on a subscription basis within the
London Market,
which means that - ANSWER -Business is placed with
more than one
underwriter
, Protection and indemnity clubs provide insurance for -
ANSWER -Shipowners
What is the main purpose of the International Underwriting
Association of
London? - ANSWER -To secure an optimal trading environment
for its members
The broker for a utilities company is most likely to place a
power station risk
within the London Market because the - ANSWER -
Subscription market
provides sufficient capacity to
underwrite the risk
Under a contract of insurance, an insurer - ANSWER -Agreed to
pay an amount
to the insured upon the occurrence of an insured
event, in return for
consideration by the
insured
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? - ANSWER -
90% of the claim
What is the role of the Financial Ombudsman Service? -
ANSWER -To help
