7 - Non - insurance services

Question 1

What do private motor helplines do

Answer 1

Provide 24 hr helpline.

When help arrives, insured has to pay for labour and parts.

Question 2

What do household helplines do?

Answer 2

Legal advice/ legal costs services

Emergencies like roof damage, etc.

Glazing services - breakage of glass, etc.

Question 3

What do travel helplines do

Answer 3

Medical emergency services (24hrs)

Repatriate the insured if it takes place abroad

Question 4

What do pet helplines do

Answer 4

Help finding a Vet

Legal advice

Bereavement counselling and replace the pet when appropriate

Question 5

What do apps do in respect of helplines

Answer 5

Helps policyholder gets repairs carried out quickly

The insurer can control the standard of work

Insurer can control costs involved in the repair

Question 6

What are authorised repairers?

Answer 6

Usually applied to the motor; where they should be competent, fairly priced and that a long distance tow should be avoided

Question 7

What are the benefits of approved repairer schemes for the motor policyholder include

Answer 7

Collection and delivery of the vehicle

No requirement to obtain repair estimates

Provision of a loan car whilst repairs are carried out

Question 8

What are Authorised suppliers

Answer 8

They are used by insurers when they wish to exercise their right to replace property, particularly household goods under the contents policy.

Question 9

What are the benefits of authorised suppliers

Answer 9

Insured obtains the benefits of the guarantees provided

Insurers benefit from the preferential rates

No need for negotiation over price

Question 10

Why are insurers and intermediaries willing to become involved in providing advice in areas of risk control?

Answer 10

Reduces the number and cost of claims

Question 11

What is the insured concerned about in regards to risk control?

Answer 11

Things that affect the balance sheet such as competition, labor relations, etc.

Question 12

What’s the insurers’ role in material damage for risk control

Answer 12

The management and housekeeping standards

The adequacy of the sum insured

The estimated max loss from an insured peril

Risk requirements

Risk recommendations

Question 13

What’s the insurers’ role in BI for risk control in risk management

Answer 13

The surveyor will consider aspects that are unique to BI Cover such as bottlenecks in the production process

Question 14

What’s the insurers’ role in theft for risk control

Answer 14

Improving physical security

Improving detection or methods of deterring thieves

EML assessment

Question 15

What’s the insurers’ role in money for risk control

Answer 15

Physical hazards - guarding of dangerous machinery

Moral hazards - T&C’s of employment 
Adequacy of training 
Cleanliness
Control of smoking 
Health and safety requirements 
Staff relations 
Storage arrangements for dangerous substances

Question 16

What’s the insurers’ role in PL for risk control

Answer 16

Work away from the premises

Question 17

What’s the insurers’ role in product liability for risk control

Answer 17

Recommendations or requirements on:

Storage arrangements that are consistent with shelf-life products 
Labeling for clarity 
Packaging 
Warning notices 
Quality control

Question 18

What’s the insurers’ role in the motor fleet for risk control

Answer 18

Analysis of claims by type, time, use, age or any common factor to recommend changes

Reviewing the management of the fleet

Recommending advanced driving or defensive driving courses

Question 19

What’s the insurers role in engineering for risk control

Answer 19

Most specialist surveyors

Carry out inspections advise on requirements and recommendations relating to the physical condition of the particular plant or machinery

Question 20

What work Association of British insurers do with risk management

Answer 20

They provide literature to advise people on safety

Question 21

How does the fire protection association work with risk management

Answer 21

Provides advice in specialist areas, it makes a charge for its publications, provides a fire risk assessment guide

Question 22

What are the requirements in relation to risk management?

Answer 22

Insurers insist on these to bring the risk up to a reasonable standard

Question 23

What legal right do Policyholders have to recover the loss from another person in regards to excess?

Answer 23

In the event of damage caused by someone else the insurers will wish to recover that excess from the person responsible

Question 24

What legal right do Policyholders have to recover the loss from another person in regards to hiring car

Answer 24

If they have to hire a car when the accident wasn’t their fault they may want to recover the cost from the responsible party

Question 25

What legal right do Policyholders have to recover the loss from another person in regards to personal Injuries?

Answer 25

If negligence can be proved then you can claim for injuries

Question 26

What is an accident management company?

Answer 26

Pursue claims for uninsured loss recovery where they feel that their client is completely blameless

Question 27

With which of the following types of loss would the uninsured loss recovery service under a comprehensive motor policy not be needed by the insured:

A) loss of use of this vehicle whilst it’s being repaired
B) personal injury
C) policy excess
D) repairs to the insured vehicle

Answer 27

D) repairs to the insured vehicle

Question 28

When we talk about

(a) the number of claims and
(b) their individual cost, this is another way of describing terms gang we defined very early on in course IF1 l. What are these two terms?

Answer 28

Frequency is the rage at which claims occur (number of claims); severity refers to their cost

Question 29

With which of the following types of loss would the uninsured loss recovery service under a comprehensive motor policy?
A) loss of use of the vehicle whilst it is being repaired
B) personal injury
C) policy excess
D) repairs to the insured vehicle

Answer 29

D
The repairs to the insured vehicle will be covered under the motor liability policy itself; an uninsured loss recovery service is only concerned with uninsured losses rather than with any loss which is insured elsewhere

Question 30

What are the most common non-insurance services available?

Answer 30

Helplines and advice
Authorized repairers and suppliers
Risk control/advice
Uninsured loss recovery services

Question 31

What are the key elements of property surveyors’ reports?

Answer 31

• the surveyors view on management and housekeeping standards
• their view as to the adequacy of the sum insured
• the estimated maximum loss from an insured peril
• risk requirements
• risk recommendations

Question 32

For business interruption insurance, identify one area where an insurer may provide advice or recommendations?

Answer 32

Bottlenecks in the production processes

Question 33

What are the areas in which an insurer will provide advice for money insurance?

Answer 33

• the type of safe
• methods of transit
• numbers of cars/people involved
• varying routes
• use of specialist firms for transit