Chapter 1 Flashcards
How many employees constitutes a small buisness?
Up to 49
What % of buisness’s in the uk are small?
99%
What are the three main types of small buisness?
Limited Companies, Partnerships, Sole Traders
Who owns a limited company?
The shareholders
What separates out competing insurers?
Price and Value
Who is responsible for the conduct of business regulation across the UK’s financial services industry and the prudential regulation of small firms, e.g. brokers and IFAs?
The FCA
Who is responsible for macro-prudential regulation and watching for emerging risks to the UK’s financial system?
FPC
Who is responsible for the micro-prudential regulation of systemically important firms, e.g. bank and insurers?
PRA
What does ICOBS stand for?
Insurance: Conducts of Business Source Book
Does the ICOBS rules apply to alterations, renewals or new buisness?
All of them
What is the difference between a consumer and a commercial customer?
consumers - a policyholder or potential policyholder acting outside their trade, business or profession; and
commercial customers – a policyholder or potential policyholder who is not a consumer.
What does IDD stand for and when was it introduced?
Insurance Distribution Directive in 2018
What does the IDD aim for?
To make it easier for firms to trade across borders and to strengthen policyholder protection by creating a level playing field.
What requirements does the IDD set out for insurance professionals?
To complete at least 15 hours of professional training or development a year.
What does the FCA define a venerable customer as?
‘someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care’
