CII IF5 MOTOR
INSURANCE PRODUCTS
PRACTICE EXAM 75Q
Question 1: Which distribution method involves a motor insurer selling a policy to the customer without an insurance intermediary?
Choices:
1) Wholesale broking 2) White-label distribution 3) Direct insurance 4) Reinsurance placement
Correct Answer: Direct insurance
Explanation: Direct insurance is sold by the insurer straight to the customer, rather than through an intermediary.Page 1
Question 2: In a white-label motor insurance arrangement, what is the usual role of the brand shown to the customer?
Choices:
1) It markets the product under its own brand while another provider supplies or underwrites it 2) It is necessarily the risk-carrying insurer 3) It acts only as the Government regulator 4) It guarantees every claim made under the policy Correct Answer: It markets the product under its own brand while another provider supplies or underwrites it Explanation: A white-label arrangement lets a distributor present insurance under its own brand while the underlying insurance is provided by another insurer or provider.
Question 3: What is the main function of an online motor insurance price-
comparison aggregator?
Choices:
1) To pay uninsured-driver claims 2) To set compulsory motor premium rates 3) To issue driving licences 4) To compare quotations from multiple providers using customer-entered information Correct Answer: To compare quotations from multiple providers using customer-entered information Explanation: An aggregator gathers customer data and presents quotations from participating insurers or intermediaries so the customer can compare o�erings.Page 2
Question 4: What is the principal purpose of the Motor Insurers' Bureau in relation to road-tra�c victims?
Choices:
1) To insure every newly registered vehicle 2) To determine the market value of damaged vehicles 3) To provide compensation arrangements where an at-fault driver is uninsured or cannot be traced 4) To license insurance intermediaries Correct Answer: To provide compensation arrangements where an at-fault driver is uninsured or cannot be traced Explanation: The MIB operates compensation arrangements that act as a safety net for victims of uninsured and untraced drivers.Question 5: What is the main insurance-status function of Motor Insurance Policy Data held in MIB's Navigate service?
Choices:
1) It records all vehicle MOT failures 2) It determines court compensation awards 3) It replaces the driving-licence register 4) It is the central record used to help verify whether vehicles are insured Correct Answer: It is the central record used to help verify whether vehicles are insured Explanation: Motor Insurance Policy Data in Navigate is a central record of insured vehicles and supports insurance-status checks and enforcement activity.Page 3