5. Legal and regulatory requirements

Question 1

Main reason for compulsory insurances

Answer 1

Provide funds for compensation
In response to national concerns

Question 2

Types of compulsory insurance

Answer 2

Motor 3rd party
Employers liability
Public liability
Liability for dangerous wild animals and dogs
Professional negligence

Question 3

Consumer rights act 2015

Answer 3

Terms and notices in the contract must be fair

Question 4

Contracts (Rights of Third Parties) Act 1999

Answer 4

Circumstance in which a 3rd party to those in the contract will have a right to enforce a term of the contract

Question 5

Insurance Premium Tax

Answer 5

Standard rate, 12%
Higher rate, 20%
Insurer collects the tax and pays it to the government

Question 6

Senior Managers and Certification Regime

Answer 6

Regulatory framework for individual accountability. Firms are required to:
Ensure each senior manager has a statement of responsibilities
Produce a firm responsibilities map
Ensure all senior managers are pre-approved by the regulator

Question 7

Compliance Officer

Answer 7

Ensure abiding of UK law

Question 8

Money Laundering Reporting Officer

Answer 8

Ensure money laundering checks and procedures are in place

Question 9

Privity of contract

Answer 9

Only the persons who are a party to the contract can enforce the terms of the contract.