Chapter 1 Flashcards
Roughly, what percentage of vehicles registered on UK roads are Private Cars?
80%
What is the normal number of vehicles required for an insurer to consider a fleet risk?
5
On a fleet risk, will vehicles be rated individually or collectively?
Collectively
What is the definition of a ‘home fleet’?
Where the number of vehicles outweighs the number of drivers
Following a ruling in December 2012, what are insurers no longer permitted to use as a rating factor?
Gender
The ICOBS (Insurance: Conduct of Business Sourcebook) are contained in whose handbook?
The FCA
What outlines the standards for intermediaries and their conduct in relation to the sale and provision of motor insurance products?
The ICOBS (Insurance: Conduct of Business Sourcebook)
What three main areas did the Insurance Law Reform focus on?
- Customers’ duty of disclosure
- Misrepresentation
- Breach of warranty
The provisions of the Insurance Law Reform have been incorporated into what act?
Consumer Insurance (Disclosure and Representations) Act 2012
What is the role of the MIB?
To be the ‘insurer of last resort’. To be called upon to pay if there is no insurer for the responsible driver, or if the responsible driver/vehicle cannot be traced
How is the MIB funded?
A levy based on their members premium income. It is compulsory for all insurance transacting motor insurance business in the UK to be a member of the MIB
How was the Untraced Drivers’ Agreement altered in 2017?
Property claims where the driver remained untraced were introduced
What is the excess for a property damage claim where the driver cannot be traced under the Untraced Drivers’ Agreement?
£400
For a property damage claim to be considered under the Untraced Drivers’ Agreement, how soon must the police be notified?
Within five days of the incident occurring
What is the limit for third party personal injury claims under the Uninsured Drivers’ Agreement?
Unlimited
What is the claim limit for third party property damage under the Uninsured Drivers’ Agreement?
£1.2 million
Following the implementation of the Fifth EU Motor Directive in 2007, what is the excess for property damage under the Uninsured Drivers’ Agreement?
NIL
What changes to the Uninsured Drivers’ Agreement and the Untraced Drivers’ Agreement were made in March 2017?
The terrorism exclusion was removed and claimants who were uninsured themselves were able to make a vehicle damage claim
Who is responsible for maintaining a register of vehicles normally based in the UK?
The UKIC (UK Information Centre)
How is the UKIC funded?
A supplement from the MIB levy
What register is used by the UKIC to identify insured vehicles in the UK by their registration plate?
The MID (Motor Insurance Database)
Who holds the responsibility of updating the MID with registrations of vehicles insured on a Commercial Vehicle policy?
The policyholder
Who may a police officer contact to verify whether a vehicle they believe to be uninsured has sufficient insurance cover?
The MIB Police Helpline
What are the two main functions of the DVLA (Driver and Vehicle Licensing Agency)?
- To regulate the issuing of licences to drivers
- To regulate the issuing of licences of vehicles and registration of vehicles
Why might an insurer request the driving licence number of a prospective policyholder?
To verify the licence type and convictions from the DVLA
Who informs the DVLA when a vehicle has been dealt with as an ‘insurance write-off’?
The insurer by way of a V23 form
What are the four codes of an insurance write-off?
A, B, S & N
A & B are the most extensively damaged and should not be returned to road use
S & N are deemed capable of adequate repair but are deemed uneconomical in relation to the overall vehicle value
What new offence was introduced in section 22 of the Road Safety Act 2006
To use, on a road or other public place, a vehicle for which there is no valid motor insurance
Section 144 of the Road Traffic Act 1988 makes it an offence to what in relation to keeping a vehicle?
Be the registered keeper of a vehicle with no insurance
How does the Continuous Insurance Enforcement Scheme identify potentially uninsured vehicles?
By comparing the DVLA vehicles register with the MID
What are the three operational objectives of the FCA?
- Consumer protection
- Integrity
- Competition
What is the definition of a consumer?
Any natural person who is acting for purposes which are outside his trade or profession
What is the definition of a commercial customer?
A customer who is not a consumer
