5 Legal And Regulatory Requirements Flashcards

1
Q

Under employers liability compulsory insurance reg 1998 what happens if uw breaches warranty

A

Pays claim and then takes action against insured

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2
Q

Why are there compulsory insurances

A

Compensation
National concerns

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3
Q

Types of compulsory insurance

A

Motor third party
Employers liability
Public liability (for both commercial and private individuals if dangerous animals)
Professional indemnity

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4
Q

Long tail business meaning for liability insurance

A

Claims take time to develop

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5
Q

Who pays legal fees in compulsory insurance

A

Insurers

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6
Q

Whats a warranty

What happens breach of warranty

A

Promise

Suspension of policy

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7
Q

Employs liability reg 1998

A

Insurer cannot refuse to pay claim and then proceeds against insured

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8
Q

USA workers compensation

A

Cover for injured or ill at work

Employees relinquish right to sue for damages unless intentional

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9
Q

USA car insurance

A

Compulsory for commercial, not private

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10
Q

Consumer rights act 2015

A

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

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11
Q

Contracts right of third parties act 1999

A

Reformed privity rule - third party can enforce terms of contract

For liability claim

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12
Q

Injunction

A

Remedy that the court awards. Prevents party from doing something

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13
Q

Order specific performance

A

Opposite of injunction - orders party do something

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14
Q

Tax rates

A

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

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15
Q

Senior managers and verification regime (sm&cr)

3 parts

A

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

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16
Q

Who are compliance and mlr regulated by

A

FCA and PRA

17
Q

Compulsory insurance for individuals vs professionals/businesses

A

individuals - third party motor, public liability for dangerous animals

companies - motor/employers liability

18
Q

Employers liability - minimum indemnity

requirements?

where can you search for it?

A

GBP 5m but insurance market is GBP 10m standard

must display certificate

Employers Liability Tracing Office to identify insurers that provide cover to their employers

19
Q

privity of contract

A

only persons party to a contract can enforce its terms

20
Q

cargo insurance - assignability

A

freely assignable as long as the person claiming has a clear insurable interest (unless there’s an additional exclusion put into the policy)

21
Q

Compliance Offer

A

Has to be director/Senior manager

reports to board of directors

ensure firm abides to UK law

22
Q

Key functions have to be a

A

director