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IF7 > 5 > Flashcards

5 Flashcards

1
Q

NCDs abbreviation

A

No claims discounts

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2
Q

PECE

A

Pre-existing conditions exclusion

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3
Q

Two main distribution channels

A

Direct business and independent intermediaries

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4
Q

% Intermediated PMI sales

A

69% (83% co-paid, 45% individual)

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5
Q

Types of direct business

A
  1. Advertising
  2. Telesales
  3. Internet
  4. Worksite marketing
  5. Social media
  6. Direct sales force
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6
Q

DSF abbreviation

A

Direct Sales Force

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7
Q

Advertising

A

Full or abbreviated form in a newspaper or online ad

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8
Q

Advantages of advertising

A

– Business volumes managed

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9
Q

Disadvantages of advertising

A

– Consumers may have additional questions
– Consumers may be put off by complexity

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10
Q

Telesales

A

The use of salespeople to sell PMI over the phone

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11
Q

Worksite marketing types

A
  1. Contacting employees directly
  2. One-to-one meetings
  3. Group meetings
  4. Workshops and clinics
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12
Q

Advantages of worksite marketing

A

– Minimum disruption for employer
– Insurer can see a large number of people quickly
– Minimal travel costs

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13
Q

How do insurer DSFs differ from intermediated sales?

A

DSFs are proactive marketeers and cannot rely on referrals

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14
Q

Why do more IFAs focus on PMI?

A

Commission can be paid and exam requirements more achievable

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15
Q

Four main types of independent intermediary

A
  1. Brokers
  2. Other intermediaries
  3. IFAs
  4. EBCs
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16
Q

Intermediary commission from insurers

A

Percentage of first year’s premium and each year’s annualised renewal premium

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17
Q

Broker

A

Any intermediary firm registered with the FCA

18
Q

Other intermediaries

A

Firms that specialise in selling PMI

19
Q

Examples of EBC services

A

– Claims monitoring
– Product design
– Insurer negotiations
– Legal advice
– TPA

20
Q

Advantages for insurers of using intermediaries

A
  1. Impartial
  2. Less price and sales-driven
  3. Analytical advice
  4. Additional benefits
  5. Lower admin costs -> lower premiums
21
Q

AMII abbreviation

A

Association of Medical Insurers and Intermediaries

22
Q

AMII purpose

A

Enables insurers to meet with and market to large intermediaries in a cost-effective way.

23
Q

2020 AMII announcement

A

Electronic transfer of underwriting between insurers

24
Q

Why is commission likely to be higher on group schemes?

A

Even if percentage is lower, premiums are typically greater

25
Q

Broker networks

A

Where a number of small brokers become loosely affialited under an umbrella organisation

26
Q

Purpose of a fact-find

A
  1. Gather the necessary info
  2. Determine demands and needs of the customer
  3. Determine best underwriting method
27
Q

Information required to quote on individual customers

A
  1. Personal details
  2. Existing insurance
  3. Personal healthcare requirements
  4. Pre-existing conditions
28
Q

Information required to quote on group schemes

A
  1. Company profile
  2. Current scheme profile
  3. Claims profile
  4. Benefit requirements
  5. Proposed membership
29
Q

What was made mandatory in August 2016 by AMII?

A

Customer Authorisation Form – to authorise insurers to deal with a new broker.

30
Q

Dual contractual nature of PMI

A
  1. Insurer contracts with employer
  2. Claimant contracts with provider
31
Q

Responsibility of PMI provider

A
  1. Cover and terms are clear
  2. Provision standards meet customer expectations
  3. Premium costs are controlled
32
Q

Consumer Rights Act 2015

A

All written terms must be fully transparent

33
Q

8 Individual risk assessment factors

A
  1. Age
  2. PEC
  3. Current health & wellbeing
  4. Occupation
  5. Location
  6. Marital status
  7. Congenital risks
  8. Lifestyle
34
Q

SME risk assessment factors

A
  1. Number of employees insured
  2. Dep cover
  3. Age profile
  4. Occupational profile
  5. Selection profile and funding
  6. Underwriting
  7. Cover requirements
  8. Excess
  9. Hospitals
  10. Overseas
35
Q

Large scheme risk assessment factors

A
  1. FI or risk sharing
  2. Max liabi
36
Q

What must PMI providers ensure they provide once accepting the risk

A

Written terms and conditions – governed by English Law

37
Q

PMI provider administration responsibilities

A
  1. Claims administration
  2. Data/membership mgmt
  3. Premium/invoicing admin
  4. Policy documentation
38
Q

IDD abbreviation

A

Insurance Distribution Directive (2016/97)

39
Q

IDD definition

A

Sets out consumer protection provisions and scope of regulation for insurance

40
Q

Key provisions of the IDD

A
  1. Professionalism – staff must complete at least 15 hours of professional training/year
  2. Commission disclosure
  3. New product governance requirements
  4. IPIDs
41
Q

Ancillary insurance intermediaries

A

Providers that sell insurance, but it isn’t their main business

IF7 (11 decks)

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