C3

Question 1

What is the purpose of a preamble/recital clause?

Answer 1

It sets the scene by referring to both parties and each of their obligations/terms

Question 2

What is a signature clause?

Answer 2

A pre printed signature of an official from the insurance company

Question 3

What is an operative clause?

Answer 3

It is the most important part as it outlines the cover

Question 4

What is the most personal part of the policy?

Answer 4

The schedule is very specific and personal to the insured and their cover

Question 5

What is the parole evidence rule?

Answer 5

It is the concept of relying on the contract itself and not any prior negotiations

Question 6

What is a buy back?

Answer 6

When someone pays more to have something that is usually excluded, put into their policy

Question 7

What are some examples of exclusions?

Answer 7

-War
-Terrorism
-Pollution
-Cyber
-Contractual Liability

Question 8

What is the difference between an excess and a deductible?

Answer 8

They are both the 1st amounts of each and every claim the insured is responsible for but deductibles are much larger.

Question 9

Define a franchise

Answer 9

A franchise is a fixed amount or time period that acts as a threshold to determine whether a claim should be paid out

Question 10

What is a warranty?

Answer 10

A warranty is a promise made by the insured relating to the risk such as promising to do/not do something.

Question 11

What is the Consumer Insurance Disclosure and Representations Act 2012 think about breach of warranties?

Answer 11

They amended the law and removed the ability for insurers to rely on the breach of warranty.

Question 12

How does the Insurance Act 2015 perceive breach of warranties?

Answer 12

They suspend cover from the date of breach until the insured begins to apply again.

Question 13

What is the difference between a condition precedent to the contract and subsequent to the contract?

Answer 13

Precedent to the contract refers to something that must be complied with prior to the contract forming whereas subsequent refers to what needs to be complied with whilst the contract is in force.

Question 14

What is a condition precedent to liability?

Answer 14

This is something that needs to be complied with in order to have a valid claim.

Question 15

What is the equation for the average condition?

Answer 15

the value insured divided by the value at risk X the loss

Question 16

What is the alteration condition?

Answer 16

this outlines how the insured must notify the insurer of any changes.

Question 17

What is the arbitration condition?

Answer 17

this surrounds how to deal with disputes about amount of claims.

Question 18

What is contribution?

Answer 18

Contribution is when there is more than one policy covering the same 1 loss

Question 19

What is subrogation?

Answer 19

This is when the insurer takes over the insureds rights in order to receive the money from the third party responsible.