Page 10 - CFPA-CII-Module W01-Examen blanc N°2-Qestions avec réponses

42. Typically, the agency agreement reached between an insurer and an intermediary will be
recorded in a:

a) Letter of authority
b) Email with PDF attachment
c) Bespoke Agency Agreement
d) Scheme agreement

43. An independent intermediary is the agent of the Insured when:

a) Giving the insured advice on a claim
b) Obtaining the premium from the insured
c) Passing on a rejection of a claim
d) Receiving and handling the proposal form

44. Jo is asked to act as an agent for Peter when buying a painting. Jo needs to travel to see the
painting and stay overnight. The principal, Peter, should normally:

a) Pay the reasonable travel expenses incurred
b) Refuse to pay anything
c) Expect Jo to pay the hotel costs but should pay for travel
d) Argue that Jo is not an agent as there is nothing in writing

45. Only one of the following may usually form a binding contract at all times

a) A minor
b) A drunkard
c) Undischarged bankrupts
d) Those aged over 21

46. An intermediary issues a travel policy to a proposer who is on insurers’ decline list. Insurers
agree to provide the cover and the whole contract continues. This is described as:

a) Rectification
b) Necessity
c) Authority
d) Ratification

47. When arranging insurance the intermediary, as agent of the insurer, must:

a) Pass to insurers all relevant information about the risk
b) Tell insurers only the barest facts about the risk
c) Conceal past claims made by the prospective policyholder
d) Tell insurers to see their records as they have held cover in the past

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