LM1 - CII Exam Newest 2026 Complete
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Practice questions for this set
Learn 1 /7 Study with Learn
Protection and indemnity (P&I) club
Choose an answer
1 By sharing information about their risk, the insured satisfies which obligation?
What is the most likely impact, if any, on a commercial insurer if it fails to implement
2
an effective claims-handling process?
A mutual association formed by a group of individuals who collectively require the
3 same insurance and who make contributions to the pool based on their individual
risks
, An insurer arranges for a policyholder's car to be repaired following damage by a
4 negligent third party motorist. Under which insurance principle can the insurer
recover the paid claim?
Don't know?
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?
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?
What is the most likely impact, if The reputation of the insurer will be affected
any, on a commercial insurer if it
fails to implement an effective
claims-handling process?
Questions | With 100% Correct Answers graded
A+ Guaranteed Success!!
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Protection and indemnity (P&I) club
Choose an answer
1 By sharing information about their risk, the insured satisfies which obligation?
What is the most likely impact, if any, on a commercial insurer if it fails to implement
2
an effective claims-handling process?
A mutual association formed by a group of individuals who collectively require the
3 same insurance and who make contributions to the pool based on their individual
risks
, An insurer arranges for a policyholder's car to be repaired following damage by a
4 negligent third party motorist. Under which insurance principle can the insurer
recover the paid claim?
Don't know?
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?
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?
What is the most likely impact, if The reputation of the insurer will be affected
any, on a commercial insurer if it
fails to implement an effective
claims-handling process?
