5 Legal And Regulatory Requirements Flashcards
Under employers liability compulsory insurance reg 1998 what happens if uw breaches warranty
Pays claim and then takes action against insured
Why are there compulsory insurances
Compensation
National concerns
Types of compulsory insurance
Motor third party
Employers liability
Public liability (for both commercial and private individuals if dangerous animals)
Professional indemnity
Long tail business meaning for liability insurance
Claims take time to develop
Who pays legal fees in compulsory insurance
Insurers
Whats a warranty
What happens breach of warranty
Promise
Suspension of policy
Employs liability reg 1998
Insurer cannot refuse to pay claim and then proceeds against insured
USA workers compensation
Cover for injured or ill at work
Employees relinquish right to sue for damages unless intentional
USA car insurance
Compulsory for commercial, not private
Consumer rights act 2015
Consumers only
terms in consumer contracts have to be fair
If unfair term, not binding on that consumer unless consumer wants it to
Unfair term = causes imbalance in rights and obligations under contract determiner of the consumer
Must be transparent legible, prominent, plain
Contracts right of third parties act 1999
Reformed privity rule - third party can enforce terms of contract
For liability claim
Injunction
Remedy that the court awards. Prevents party from doing something
Order specific performance
Opposite of injunction - orders party do something
Tax rates
Standard is 12%
Higher 20% (for travel eg)
Insurers pay hmrc quarterly basis
Most long term insurers excluded as risk is outside uk, may be subject to country of risk tax though
Senior managers and verification regime (sm&cr)
3 parts
Applies to insurers and intermediaries
Framework focusing on senior staff and states what they’re required to do
Regulators want regime to encourage personal responsibility, improve conduct etc
firms must collect evidence to check candidates are suited to the roles - criminal record checks/regulatory references, etc
Part 1 - senior managers regime
Regime applying to people performing senior management functions. Each individuals CVs must be appropriate. statement of responsibilities must be prepared for each senior manager.
Part 2. Certification regime
Roles that are not SMFS but could cause harm. Firms must assess these people.
Part 3. rules of conduct for SMF:
First tier - for individuals / certified persons. Similar to FCA guidelines.
Second tier - senior managers conduct rules