Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

IF 2 > CH 10 > Flashcards

CH 10 Flashcards

1
Q

To whom is policy issued to

A

To the insured and insurer so as they are clear to the terms and conditions of the contract, they have entered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

In which form are policies issue

A

In a scheduled form, in that the policy wording is pre-printed in a booklet and a schedule is incorporated at the end of the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does the policy schedule contain

A

It contains all the variable information concerning the insured and the risk insured and signifies which sections of the policy are operative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What determined policy schedule style

A

The company or corporate approached to documentation, some produce A4 format, others produce smaller A5 booklet form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What determines the policy schedule length

A

It is determined more by the actual class of business than by corporate attitude

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the basic structure of all general insurance policies?

A
  • heading
  • recital clause
  • signature
  • operative clause
  • exceptions
  • conditions
  • policy schedule
  • information and facilities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Each policy has a heading, what must it include

A

The name of the insurer and address and company Logo

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does the recital clause entail?

A

It sets the scene for what follows in the policy by referring to the two parties (insured and insurer),coming together to form the contract by which insurer in return for premium, undertakes to indemnify the policyholder according to the cover details

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The recital clause will often set out the constituent elements that together make up the contract that is

A
  • policy conditions
  • schedule applicable to the insured
  • proposal confirmation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The recital clause reminds and emphasizes the insured to check the accuracy of the proposal confirmation content failure to do that will result to what action

A
  • the policy being invalidated
  • claim being rejected
  • claim not being paid in full
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Where can you find the signature of an official from the insurer

A

Under the recital clause or close to it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Signatures are no longer a common practice, however where can they be found

A

They can be found in Certificates of Insurance usually with a pre-printed signature

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does operative clause entail?

A

It describes the scope of cover in detail, they are the heart of the policy describing what the policy covers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How many operative clauses may there be?

A

It depends on the class of business, there may be one clause outlining cover or a number of clauses (motor and household policies) all dealing with the different aspects of insurance , also containing exceptions that are specific to each individual operative clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Each Operative clause within policy begins with which word

A

-“The Company Will” for insurance companies and “We underwriting Members” in respect of Lloyd’s underwriter, and then stating what the insurer/underwriter promises to do

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

As insurers are increasingly committed to make policy wordings simpler how have they re-styled their language

A

Using the word “we’ instead of the insurer and “you” instead of the insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How long do policy conditions apply?

A

They apply throughout the policy period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the two types of policy

A

Implied Condition and Express Condition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are express conditions

A

These are the ones stated in the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are Implied Conditions

A

These conditions exist whether they appear in the policy or not

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The implied conditions include

A
  • The insured must act as if uninsured and not use insurance as an alternative to be act prudently
  • insured may be required to advise appropriate authorities, depending on the circumstances
  • insured must take reasonable care but not if it endangers them
  • insured should not hinder the insurer in their claim investigation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the policy schedule?

A

This is where the policy is made personal and specific to the insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the variable details of the policy, within a policy schedule?

A
  • insured’s name
  • insured’s address
  • policy period
  • premium
  • details of the subject matter
  • sum insured/limit of liability
  • policy number
  • territorial limits if any
  • reference to special exclusions, conditions or aspects of cover
  • operative sections of the policy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are specific exclusions?

A

Also known as a exception, these apply to particular parts of the policy, they are specific to that type of insurance and will not necessarily apply to other forms of insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are General Exclusions

A

These are exclusions which apply to the entire contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

How do General Exclusions enable the insurer?

A

It enables the insurer to repudiate all liability under the policy, irrespective of the section of the policy concerned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is another term for General Exclusion?

A

It is also termed as Market Exclusions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Which Market exclusion is standard in Most general Insurance policies?

A

War and related perils, Radioactive contamination and explosive nuclear assemblies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What type of risk is damaged caused by war civil war perils?

A

-They are fundamental risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

For War and related peril who is responsible

A

-It is generally regarded to be the responsibility of the state, the government is to provide compensation for injury and damage occurring in the UK, as a result of any kind of hostilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Which policies may extend to include war risks?

A

Marine and Aviation policies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Which Market exclusion is standard in most general insurance property and Motor policies?

A

Riot and Civil Commotion, unless cover is specified in the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which Market exclusion is not in liability policies

A

Riot and Civil Commotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Why have riot and civil commotion always been excluded from property and motor covers

A

-This Is because of the variable risks of riot at different times and different places

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Where can property cover include Riot and Civil commotion s as a risk

A

-In Great Britain, insurers will provide cover but at a varying rate depending on the area involved, however in Norther Ireland the risk cannot be extended

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

How is cover provide for Radioactive contamination and explosive nuclear assemblies

A
  • It is provided by a system of market pools, in which insurer and re insurers accept a share of risk suited to their underwriting capacity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Terrorism is an exclusion for which insurance contract mainly

A

Property Insurance policies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Which initiative bought about arrangements for insuring against acts of terrorism in England,Wale sand Scotland

A
  • Following joint Government/Insurance Industry initative
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Who backs up full/partial cover for the material damage risk of terrorism

A

Specialist re insurers(Pool Re) and the Government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What is Pool Re

A

This is a mutual reinsurance company,that provide cover for all risks perils linked to terrorism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Originally what type of covers did Pool Re provide

A

It provided limited cover for property damage and business interruption resulting from fire or explosions caused by terrorists actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Insurers that participate in the scheme offer terrorism cover as

A

They offer it as part of their commercial property policies when requested to do so by their policyholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

If a Terrorism loss occurs what shall the insurer do

A

Each insurer must pay the losses it sustains up to a threshold,determined individually for the insurer. And if losses are above the threshold insurer is able to claim upon reserves accumulated by Pool Re

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

If terrorism claim exceed insurer’s reserves accumulated by Pool Re, what’s the next step

A

Pool Re is able to draw funds from the government to enable it to meet its obligations in full regardless of the scale of losses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Which exclusion is standard for property and liability policies

A

Pollution /Contamination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

However property insurance can provide what type of pollution/contamination cover

A

The cover provided for pollution that causes an insured peril or which itself is caused by an insured peril

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Under public liability policies, what insurers specifically exclude

A

Insurers make it clear in their exclusions that they intend to cover pollution risks ONLY if they arise from sudden identifiable event, not a gradually operating cause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Which policies exclude marine policies

A

Property insurance policies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

The effect of property policy wording exclusion states

A

To exclude material damage cover for property that is also covered by marine policy and if the sum available under marine policy is not enough to cover this losses then the property policy will respond but only cover the excess amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Which exclusion applies to motor and liability policies

A

Contractual Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

The exclusion of contractual liability in motor and liability policies states that

A

Insurer will not cover claims that are payable as a result of an agreement that has been entered into by the insured and extends their responsibilities beyond the position that would arise under the common law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

List the most common policy conditions

A

1.Duties of the policyholder/insured
2.Alteration
3Action by the insured in the event of a claim
4.Fraud
5.Reasonable precautions
6.Contribution
7.Average
8. Subrogation
9.Arbitration
10.Cancellation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

What does the alteration policy condition state

A

Found in most property insurance policies,it extends the duty of fair presentation on a continuing one, requiring insured to notify the insurer of any changes that increase the risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

What is the fraud policy condition

A

In the event of any fraudulent/false/exaggerated claim, then

  • the policy may be cancelled
  • claim may be rejected along with subsequent claim
  • insurer may retain any premium paid by the insured
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

The fraud policy condition applies to

A

It applies only with claims

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What does the reasonable precaution condition emphasize on

A

The insured should act as if uninsured, and not be regarded as an excuse for carelessness or inactivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

The arbitration policy condition deals with

A

It deals with any disputes that arise to the amount to be paid in settlement of a claim under a policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

What are other methods that insurers rely on to resolve claim settlement disputes

A

The financial ombudsman Service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

How many days is the insurer required to give for cancellation notice to the insured

A

It gives them a 14 or 7 days notice, it is universal practice to refund pro rata amount to reflect the unexpired time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

If the insured cancels the policy before its due to start then

A

The insurer will return any premium paid in full

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

If the insured cancels the policy within 14 days of policy starting or the insured receiving the policy documents then

A

the insurer will return any premium paid less an administration fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

If the insured cancels the policy after 14 days have passed

A

then the insurer will return any premium paid less administration cost and an amount for the period the policy has been in force

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

What are the advantages to insurer now that it is not necessary for insurers to be sure that the certificate for cancelled policies are surrendered, if they are to avoid contractual liability

A
  • insurer have greater control and clarity over the period of contractual liability and can more easily reduce the period of statutory
  • insurers potential statutory liability can be minimized by immediately updating Motor Insurance Database
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

What did the FOS rule on administration and cancellation fees, due to much complaint

A

The FOS advised that the fees have to reflect the cost of the firm and not the nominal amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Market exclusions relate to which situations

A

They relate to situations were the insurer doesn’t wish to become involved in catastrophic nature of any potential damage

66
Q

Specific exclusions relate to

A

Relates to situation where the insurer expects some other kind of insurance is in place

67
Q

What is an Excess

A

The first amount of each and every claim for which the insured is responsible,and its not covered by the policy and the insured is the insurer of its own excess amount

68
Q

An excess may be

A

Compulsory or Voluntary

69
Q

A Compulsory excess means

A

This means excess is imposed on the insured by insurer

70
Q

A Voluntary excess means

A

This means excess is accepted by the insured in return for a premium discount

71
Q

What is franchise

A

This is a fixed amount/period that acts as a threshold to determine whether the claims are payable

72
Q

What are deductibles

A

These are very large excess

73
Q

How is a franchise different from an excess

A

There is no deduction like an excess, insured once a period/amount has been exceeded the claim is payable in full

74
Q

Franchise are common in which policies

A

Engineering business interruption

Sickness cover and personal accident and sickness cover

75
Q

What is a warranty

A

This is a promise made by the insured relating to facts/performance concerning the risk.It must be strictly and literally complied with

76
Q

Warranties are always expressed in the

A

In the policy document ,

77
Q

In which class of insurance is there implied warranty, not written into the policy

A

In marine insurance regarding the seaworthiness of a vessel

78
Q

Warranty is an undertaking by the insured that

A
  • something will or will not be done

- a certain facts exist or does not exist

79
Q

Warranty mar relate to what types of facts

A

The present or the past facts

80
Q

What is a continuing warranty

A

This is a warranty in which the insured promises that a state of affairs will continue to exist or the insured will continue to do something

81
Q

What act made changes in the way warranties in insurance policies operate

A

Insurance Act 2015

82
Q

What did the Insurance Act 2015 provide warranties should become

A

Warranties should become suspensive conditions

83
Q

What does suspensive conditions in warranties mean

A

The insurer will not be liable for losses concurring while the insured is in breach of the warranty, however its liability will be restored once the breach is remedied

84
Q

How will a breach be considered as remedied

A

Where the risk to which the warranty relates becomes essentially the same as that contemplated by the parties

85
Q

What happened to the basis of contract

A

They are now prohibited and thus any warranty in the policy must be expressly agreed between insurer and insured

86
Q

Under the IA 2015 representations can’t be converted to

A

Warranties by an provision of non-consumer contract

87
Q

What are express warranties

A

These are warranties specified in the policy. All warranties are always express warranties in general(non-marine) insurances

88
Q

When can an insured not comply with express warranty

A

Only if they notify the insurer, and they are excused with or without an additional premium

89
Q

What is implied warranties

A

This is a warranty that does not appear in the policy but is understood by both parties to be automatically applicable to the contract of insurance

90
Q

Which class of insurance is implied warranty found

A

It’s only found in Marine Insurance

91
Q

What is the implied warranty for marine insurance

A

Warranty is that the vessel insured is seaworthy

92
Q

Conditions in insurance contracts can be

A

Express/Implied

93
Q

What are the two distinct categories

A
  1. Conditions precedent to the contract(implied conditions)

2. Conditions precedent to the liability

94
Q

What are conditions precedent to the contract

A

These are conditions that must be fulfilled prior to formation of the contract itself or may be ongoing

95
Q

If conditions precedent to the contract are not complied with then

A

There is doubt to the validity of the entire contract

96
Q

What are the particular matters will render the policy as void

A

-insurable interest
-fundamental mistake
-an illegal contract
policy will be treated as no effect

97
Q

What are the particular matters that will render the policy as voidable at the option the insurer

A

deliberate or reckless mis statement

98
Q

Continuing conditions precedent is common in which contracts of insurance

A

Motor insurance relating to the road worthiness of the vehicle

99
Q

For continuing conditions precedent an insurer may avoid the contract from the date of the breach when

A

They may set aside the whole contract if there is a breach, and it must have a casual connection between a particular claim and failure to abide by the policy condition.
Or insurer may waive its rights and leave the whole contract in force

100
Q

What are conditions precedent to the liability

A

These are conditions that must be complied with if there is to be a valid claim

101
Q

how conditions precedent to the liability listed in a policy

A

They are listed as claims conditions

102
Q

if conditions precedent to the liability is not observed, what is the insurers response

A

Insurer may avoid liability for that particular loss but they may not repudiate the contract as a whole

103
Q

Which section of the Insurance Act are conditions precedent affected

A

Section 11

104
Q

In summary what does section 11 of condition precedent of the IA 2015 state about validity of a breach during claim payment

A

Where an insurance contract includes a term( warranty or condition) that will have the effect of reducing the risk of loss
-of a particular type
-in a particular location
-at a particular time
then breach of the term does not allow the insurer to avoid liability if the breach hasn’t increased the risk of the loss that actually occurred.
But an exception for terms that define the risk as a whole, then insurer can still deny liability

105
Q

FCA rules on Condition state that

A

insurer shouldn’t repudiate liability of indemnifying a policyholder when there is a breach of condition, where condition is not related to circumstances of the loss, unless its fraudulent. Warranties and conditions are treated in an identical manner in this respect

106
Q

What are exclusions

A

Policy exclusions are used to define the extent of the policy cover

107
Q

What are representations

A

During negotiations, these are statements made by proposers that may persuade an insurer to enter into a contract or enter into it with particular terms

108
Q

Where can representations be found

A

Not in the policy, but during the negotiation process/period

109
Q

When a proposer provides wrong information this is known as

A

Misrepresentation

110
Q

Where misrepresentation is not deliberate or careless(innocent misrepresentation)

A

Insurers can’t turn down claims from the private individuals. they could apply a redress reduce claim payment or charge an additional premium in order to receive the claim payment

111
Q

Representation must relate to

A

Material circumstances

112
Q

Why are insurers keen to encourage renewal of policies

A
  • the costs associated with renewals are much less than in acquiring new business
  • the more stable the database of existing clients, the more reliable the statistical information about the whole portfolio
113
Q

What is a renewal notice

A

This notice is sent to the insured well before the current contract expires

114
Q

What does the renewal notice show

A
  • Any proposed changes in terms
  • the premium to renew the policy
  • the previous year’s premium paid by the insured
115
Q

The FCA rules state that for commercial and group policies, insurer/intermediary should provide renewal information when

A

They must take reasonable steps to ensure the customer is given the appropriate information in good time

116
Q

The level of information to be provided during renewal will depend on

A
  • the knowledge and experience of the customer

- the nature of the policy; its complexity,terms and benefits

117
Q

What are the FCA rules for general insurance polices for consumer customers

A

for renewals between 1-3 years of the inception of the original policy, the rules require the firm to provide customers with

  • the renewal premium
  • the premium of the previous year as set out at the start of the policy
  • calculation of the annual premium following most recent mid term adjustment excluding fees or charges
  • statement that the customer should check the level of cover offered is appropriate for their needs and tell them that they are able to compare the prices and level of covers offered by others providers
118
Q

For renewals of 4 or more years, apart from the general FCA rules, which more specific rules are firms required to follow

A

Firms are required to state “you’ve been with us for a number of years, you maybe able to get the insurance cover you want at better price if you shop around

119
Q

What is Dual pricing

A

This is a practice where by brokers/insurers, charge new customers the best price and loyal customers pay more

120
Q

How does the FCA ensure removing dual pricing

A

The FCA has taken keen interest to ensure insurers and brokers comply fully with the renewal regulation stated above, by drawing consumer attention to the premium changes

121
Q

The guidelines agreed by BIBA and ABI on halting dual pricing is specific to

A

It’s specific to personal lines insurance such as home/motor/travel products but not pet/health insurance

122
Q

What is considered to be in good time depend on

A

It will depend on how important the information is to the customer’s decision making process and the point at which the information may be most useful

123
Q

If the insured pays the premium to the insurer, how long shall the insurer respond with certifications and policy

A

This must be doe promptly

124
Q

How is the Motor Insurance procedure different

A

It’s different in the view of its compulsory nature and the need to issue Insurance certificate

125
Q

For Motor Insurance what do insurers/intermediaries provide as a matter of practical convenience

A

The renewal notice,receipt and certificate are prepared in advance

126
Q

Why are no days of grace permitted

A

This is because if payment is received after renewal, then the annual certificate sent to the insured will be a backdated cover and would contravene the Road Traffic Acts

127
Q

Premium payments may be in two forms

A

Single Payment

Installment

128
Q

Installments can be half-yearly,quarterly,monthly and are usually paid by

A
  • standing order

- direct debit

129
Q

What is a standing order

A

This is an instruction by the insured to the insured’s bank/building society to pay the amount of the premium to the insurer when due. The amount can only be altered by express instructions from the insured

130
Q

What is a direct debit

A

This is an instruction by the insured to the insured’s bank or building society to allow the insurer to debit whatever premium is due from the insured’s account

131
Q

Recital clause is also known as

A

Preamble

132
Q

What effect does the recital clause have on the proposal form

A

It has the effect of making the proposal form part of the contract even though it’s not reproduced and printed within the policy

133
Q

Apart from the policy schedule Where else can the choice of law applicable to the policy be found

A

Recital Clause

134
Q

What are the common Market Exclusions

A
  • War and related Perils
  • Riot and Civil Commotion
  • Radioactive Contamination and explosive nuclear assemblies
  • Terrorism
  • Pollution/Contamination
  • Marine Policies
  • Contractual Liability
  • Sonic Bangs
135
Q

Pool Re coverage was extended by the

A

Counter-Terrorism and Border Security ACT 2019

136
Q

The counter Terrorism and Border security Act 2019 gave pool re what coverage extension

A

It became the first terrorism reinsurance pool in the world to extend its cover to non-damage business interruption losses

137
Q

When it says pool re covers non-damage business interruption what does it mean

A
  • Pool Re can now cover loss of trade due to the inability to access insured premises due to police actions when responding to terrorist activity.
  • losses resulting from downturn in the amount of customers entering the store(footfall) at the b’ness within a mile of terrorist incident
138
Q

When pollution/contamination is covered in property insurance, the policy does not extend to

A

It doesn’t extend to include liability of the property owner,meaning pollution and contamination of any surrounding property is not covered by the policy

139
Q

For actions taken by the insured in the event of the claim, which is one common requiring factor

A

Include reference to the time within which the claim is to be notified

140
Q

With subrogation when can an insurer pursue their rights

A

Insurer can pursue their rights of subrogation before claim payment is made to the insured by the insurer. But the actual recovery of monies takes place must afterwards

141
Q

Why do the insurers see the need of expressing, their implied conditions

A

This is done to make the position clear for the insured

142
Q

Conditions that apply specifically to claims situations are used for

A

They are used by insurers to determine the outcome of a particular claim, and will not affect the continuing cover under the policy

143
Q

Why do insurers include conditions

A

They are induced to emphasize on the fact that loss/damage must be fortuitous so far as the insured is concerned

144
Q

Information and facilities section of the policy will include

A
  • Definitions
  • Customer Service Standards Statement
  • Complaint procedures
  • Claims information
  • Privacy notice
145
Q

Te Customer service standard statement entails

A

It entails in details what the insured may expect in respect to the service provided, in terms of courtesy and response times

146
Q

In the information and facilities section of the policy what will the complaint procedure entail

A

It will include reference to internal procedure by encouraging policyholder to contact a nominated person within the insurer’s organisation in the first instance

147
Q

What does the complaint procedure tell the policyholder if matter is still unresolved to their satisfaction

A

If the policyholder is a consumer or small b’ness the they will refer to the financial ombudsman services, and if still not satisfied take it up to the court system

148
Q

Claim information in the information and facilities section of the policy will usually include

A

IT will usually include a claim helpline number

149
Q

Most companies include a privacy statement which states

A

It will entail how the insurer will handle the information gathered in connection to the insured and the subject matter of the insurance, especially when sensitive personal information is involved

150
Q

Compulsory insurance is common in which class of insurance

A

In many motor insurance policies

151
Q

How is the compliance of warranties

A

Compliance is strict and literal

152
Q

Why are warranties imposed

A

To ensure that some aspect of good house keeping or good management is observed or to ensure certain features of higher hazard are not introduced without the insurer’s knowledge

153
Q

When can the insurer not rely on the breach of warranty by insured to discharge its liability

A

Where the warranty relates to a loss of particular kind/location/time if the insured can show that the breach could not have increased the risk of the loss that actually occurred in the circumstance that it occurred

154
Q

What is the difference between a void and voidable contract

A

Void contracts are ones that are considered illegal, thus contract is automatically cancelled and are treated as of no effect. Voidable is when a contract can be avoided at the option of the insurer/insured

155
Q

Continuous conditions precedent to the contract are also known as

A

Conditions subsequent to the contract, as there is an ongoing requirement through out the policy period to comply

156
Q

According to the law commission terms of the following type may be considered to define the risk as a whole

A
  • define a geographical area in which a loss must occur for liability to attach
  • define age/identity/qualification/experience of the operator of vehicle,aircraft,vessel,chattel
  • exclude loss that occurs while a vehicle, aircraft,vessel or chattel is being used for commercial purpose
157
Q

Terms of warranty or condition can be in two forms

A
  • terms that have the effect of reducing the risk of loss

- terms that define the risk as a whole

158
Q

What do insurers use exclusions for

A

They can’t avoid the policy as a whole, but exclusions are aspects of policy wording that are checked by insurers each time a loss occurs so as to establish whether there is liability under the policy

159
Q

The FCA has specific rules for general insurance policies for consumer customers, also applies to individual retail customers which include personal lines cover for both personal and business use. This FCA rules apply to

A
  • policies with duration of ten months or more
  • renewals with the same intermediary/insurer,still apply to renewals arranged by an intermediary if there is a change in insurer but the same polices features and benefits apply
160
Q

After insured has paid premium, insurer in turn delivers the required documentation(certificates and confirmation of renewals)

A

Promptly

161
Q

The market requires the delivery of correct documentation must be provided no later than

A

seven working days for consumers

30 calendar says for other categorizes beyond renewal

IF 2 (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions