7 - Related services Flashcards

1
Q

What is a helpline?

A

An extra service provided by an insurer in which the insured can phone a freephone number 24/7 for emergency assistance and/or expert advice.

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2
Q

What are some of the main examples of when a helpline may be offered by an insurer?

A

Private motor insurance for breakdown services

Household insurance providing emergency assistance or legal advice

Travel insurance to assist in a medical emergency by arranging treatment or repatriation or providing advice

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3
Q

What is an authorised repairer?

A

Contracted repairers that are preferred/recommended by the insurer

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4
Q

What are the main benefits of authorised repairers?

A

Competence - The insurer can guarantee the quality of the repair as sub-standard repairers would not be recommended

Cost - The insurer can usually negotiate reduced rates which lowers costs. These can be passed on to the consumer in lowered premiums

Convenience - It is convenient for both insurer and insured as the repair can begin more quickly

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5
Q

What line of business are authorised repairers most commonly used in?

A

Motor insurance

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6
Q

What is risk management?

A

The identification, analysis, and control of risks which could threaten the earning potential or assets of a company.

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7
Q

What are the three steps of risk management?

A

Identification
Analysis
Control

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8
Q

What may assist with risk identification?

A

A survey

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9
Q

What is risk analysis?

A

Analysing past data in order to quantify and evaluate risk

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10
Q

What is risk control?

A

lnvolves putting into action plans to reduce and even eliminate the risk.

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11
Q

What are the two types of risk control measures?

A

Physical controls

Financial controls

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12
Q

What risk control measures may insurers take?

A

Physical controls such as requiring the insured to have certain controls in place (eg a certain standard of lock or burglar alarm or sprinkler system)

Financial controls such as reinsurance and imposing an excess/deductible

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13
Q

What is the role of a risk surveyor?

A

Identify risks in order to make recommendations and provide advice to underwriters and insureds about what risks are involved and control measures to implement.

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14
Q

What is an uninsured loss?

A

A loss which is not covered by an insurance policy

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15
Q

What is a no claims discount?

A

When an insured has not made a claim on their policy they may be given a discount to reflect this. Often the discount will increase with the number of claim free years.

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16
Q

A policyholder is involved in a motor collision with a third party and makes a claim under his policy. He pays his £500 excess and his insurer pays him £2000 for his claim, but as a result he loses his no claims discount. His insurer later successfully subrogates against the third party’s insurance and recovers £2500. What is owed to the policyholder?

A

The insurer would reimburse the policyholder for his £500 excess

They would also reinstate his no claims discount and reimburse him any increased premium paid for the initial loss of his no claims discount.

17
Q

Who may assist in recovering uninsured losses?

A

Solicitors or specialist loss recovery firms.
Sometimes insurance intermediaries may be involved.

18
Q

How would a legal expenses policy assist with uninsured losses?

A

They would indemnify the insured for any legal expenses incurred in trying to recover their uninsured losses.

19
Q

Who may an insured hire to help assist with presenting a claim?

A

A claims management company.

20
Q

What is a claims management company?

A

Specialist companies that help an insured pursue claims, acting as an intermediary on the insured’s behalf. Usually for personal injury.

21
Q

Who may an insurer appoint to help their insured with risk management?

A

A risk surveyor (also called loss control engineer).

22
Q

What must the insured’s risk control measures be?

A

Economic

23
Q

If an insurer agrees to take liability for a damage to a third party’s vehicle which has left it undriveable, what short term remedy will they usually take whilst the vehicle is being repaired?

A

Provide the third party with a suitable replacement at no cost.

24
Q

How are legal expenses policies normally sold?

A

In conjunction with another policy, normally motor

25
Q

What must be true for a legal expenses policy to cover a claim for pursuing an uninsured loss?

A

There is a reasonable prospect of recovery.

26
Q

In risk identification what is meant by the upside and downside of risk?

A

Upside is the failure to maximise opportunities

Downside is identifying currently existing threats and what threats may potentially exist in the future

27
Q

How are claims management companies reimbursed?

A

Usually on a no-win-no-fee basis.

If the case is won the fee will usually be either a percentage of the settlement, a flat lump sum, or sometimes both.