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IF 1 Insurance , Legal And Regulatory > Ch 3 : Contract And Agency > Flashcards

Ch 3 : Contract And Agency Flashcards

1
Q

The party who brings an action in court against the defendant

A

CLAIMANT

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2
Q

One of the key documents prompted by the previous regulator , the financial Services Authority ( FSA)

A

Terms of business agreement (TOBA)

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3
Q

What is an contract

A

A contract is an agreement enforceable by law between two or more person to do,or abstain from doing, soke act or acts their intention being to create legal relations and not merely to exchange mutual promises.

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4
Q

A contract comes into existence when one party makes an offer which the other accepts???

A

Unconditionally

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5
Q

What operates as a REJECTION of the original offer.

A

COUNTER OFFER

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6
Q

When it is said to be acceptance complete if its used via post as the method of communication

A

Letter of acceptance is posted 📫

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7
Q

A firm must take ensure that a customer is given appropriate information about the policy in good time and in a comprehensible form so that the customer can make what kind of decision

A

Informed Decision

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8
Q

Policy renewal should be offered how many days in advance.

A

Good time

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9
Q

In which situation insurer may be able to avoid the contract entirely setting it aside ab initio

A

Non disclosure or misrepresentation of information by the policyholder

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10
Q

What is agency by agreement ?

A

Relationship between principal and agent is by consent also known as agency by agreement.

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11
Q

A valid contract must include

A

Offer & acceptance + consideration

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12
Q

If an independent intermediary completes a property survey for an insurer they would be considered to be an

A

Agent for the insurer

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13
Q

Nuz and Diana have been told that their insurance policy doesn not have a right to cancel.What type of policy is it?

A

Travel insurance with a term less than a month

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14
Q

AXA insurance Co has asked one of its agents to carry out a property survey 50 miles away .The agent carries out the survey and charge the mileage costs back to the insurer.The cost will be met because

A

The agent has implied authority

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15
Q

How can a contract be effective

A

Acceptance must be the final and unqualified agreement to the offer

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16
Q

Under the insurance act 2015 an insurer may elect to terminate a contract in response to

A

Fraudulent act

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17
Q

Authority can be

A

Express or implied

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18
Q

One of the duties of an agent to their principal is a duty of good faith.this means that they must

A

Not allow their own interest to conflict with their duties towards their principal

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19
Q

Under FCA rules in which situation does the consumer have the right to cancel their insurance policy within 14 days without penalty

A

Purchase done via telephone or call centre

20
Q

What should be included in the premium and credit section of an insurer s terms of business agreement (TOBA)

A

The brokers obligation to release all statutory documentation

21
Q

An example of a short period contract

A

Travel insurance

22
Q

Legally when does a valid contract first come into existence

A

When an offer is accepted unconditionally

23
Q

An agent has a terms of business agreement (TOBA) with a principal.What type of authority does this create ?

A

Express

24
Q

What is the consideration given by the insurers when an insurance contract is formed

A

An agreement to pay claims in accordance with the terms of the policy

25
Q

Under the law of agency what is an undisclosed principal

A

Someone for whom an agent acts ,while seeming to act on their own behalf

26
Q

When a policyholder cancels their motor policy mid term ,they ate no longer required to make a statutory declaration or any statement acknowledging the policy has ceased to have effect.Which acts bought about this change in the law.

A

The Deregulation Act 2015

27
Q

If a principal has a jointly agreed and legally enforceable written agreement with an agent what type of agency agreement has been established

A

Agency by consent

28
Q

an agency agreement between a broker and a policyholder would NOT be terminated by

A

An insurance claim

29
Q

What isbthe document called that sets out the basis of the relationship between the intermediate and the insurer

A

Terms of business agreement (TOBA)

30
Q

Having insured their car with the same insurer for the last 4 years an insured s next renewal documentation will include

A

An additional prescribed information encouraging to shop around

31
Q

What are you least likely to find in terms of business agreement

A

Reason for the advice provided

32
Q

Under the distance marketing directive within what period does a customer purchasing home insurance via the Internet have to cancel without penalty

A

14 days

33
Q

If suja arranges her bldg insurance via a broker ,the principal in law is

A

Suja

34
Q

When contract law is applied ,consideration will normally be

A

Premium payment

35
Q

Clients TOBA may well contain

A

SLA (service level of agreement ) indicating precisely what service are being provided and to what standard.

36
Q

What is assignment

A

Assignment is the transfer of rights under the terms of a contract

37
Q

All TOBAs should be

A

-be clear and succinct
-reflect the business relationship
-define and allocate responsibilities and rights
-ensure compliance with regulatory or statutory rules

38
Q

Which authority may b express or implied

A

Actual authority

39
Q

Duties of principal

A

-remuneration
-indemnity

40
Q

Duties of an agent

A

-obedience
-personal performance
-due care and skull
-Good faith
-accountability

41
Q

The legal aspects of insurance are considered in relation to

A

English law

42
Q

The English law of contract is essentially a law of

A

Bargains

43
Q

An Independent insurance broker acts as the agent of the insurance Co when

A

The broker has authority from the insurer to handle proposal forms and confirm cover

44
Q

An agency agreement between a broker and a policyholder would not be terminated by

A

An insurance claim

45
Q

Under distance marketing directive within wjat period of time does a customer purchasing home insurance via the Internet have to cancel the policy without penalty

A

14 days

IF 1 Insurance , Legal And Regulatory (13 decks)

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