Chapter 1 Flashcards
What ways will insurers attempt to differentiate their products from competitors
A) premium and cover provided
B) premium
C) cover provided and T&C
D)premium, cover provided and T&C
D)premium, cover provided and T&C
Which of the following are small businesses:
A) sole traders and partnerships
B) partnerships and Ltd companies
C) sole traders and LTD companies
A) sole traders and partnerships
Is the below a sole trader or partnership?
Business owned and run by 2 or more people who may employ staff
Partnership
What percentage have sole traders risen since the start of 2000
A) 90%
B) 77%
C) 35%
D) 80%
B) 77%
What can some small businesses that are limited companies be formed under
A) companies act
B) Partnership
C) sole traders
A) companies act
What has become a major consideration in providing a competitive edge?
A) cost
B) cover
C) value
C) value- the combination of cover and price
How have IT based systems streamlined the admin process
- Computerised underwriting and quotation systems
- Development of standard policy documentation which is personalised to the insurers through computer generated schedules
- Automated systems for generating renewal notices
- Provision of instantaneous cover via payment of debit or credit card
What does the internet offer the facility to do
A) get a cheaper price
B) get cheap cover
C) research what is available and at what price
C) research what is available and at what price
Which of the following are within the Bank of England and responsible for macro- prudential regulation and watching for emerging risks to the UK’s financial system
A) the financial policy committee (FPC)
B) the prudential regulation authority (PRA)
C) The financial Conduct Authority (FCA)
A) the financial policy committee (FPC)
Which of these are part of the Bank of England, which is responsible for the micro- prudential regulation of systematically important firms (principally banks and insurers) will seek to prevent firm failures but will try to ensure that firms can fail without bringing down the whole system
A) the financial policy committee (FPC)
B) the prudential regulation authority (PRA)
C) The financial Conduct Authority (FCA)
B) the prudential regulation authority (PRA
Which of these are responsible for conduct of business regulation across the financial services industry and the prudential regulation of small firms
A) the financial policy committee (FPC)
B) the prudential regulation authority (PRA)
C) The financial Conduct Authority (FCA)
C) The financial Conduct Authority (FCA)
Which of these form part of the FCA handbook
A) ICOBS
B) PRA
C) FPC
A) ICOBS
What is central to the FCA’s work?
A) cover and price
B) fair treatment of customers
C) ICOBS
B) fair treatment of customers
What do the FCA expect firms to embed the fair treatment of customers in
A) every day life
B) corporate strategy
C) culture
D) corporate strategy, day to day and culture
D) corporate strategy, day to day and culture
What is the 4 lifecycle of a product?
1- product design
2- marketing and promotion
3- sales and advice
4- after sales care
What is a requirement for both product providers and intermediaries?
A) treat customers fairly
B) to provide cover within a certain timeframe
A) treat customers fairly
What are the three main approaches for the FCA to treat customers fairly
Pillar 1- proactive supervision of the biggest firms
Pillar 2- event driven, reactive supervision of actual and emerging risks
Pillar 3- thematic work that focuses on risks and issues affecting multiple firms or a sector as a whole
What are the two categories authorised firms are allocated to:
A) fixed and flexible
B) fixed only
C) flexible only
A) fixed and flexible
Is this a fixed portfolio firm or flexible portfolio firm:
are smaller in number of firms and based on factors such as size, market presence and customer footprint are considered the require the highest level of supervision
Fixed portfolio
Are the following benefit to the insured or insurer
A common renewal date for all covers
Insured
Is this a fixed portfolio firm or flexible portfolio firm:
Firms with a large number of retail customers are likely to receive the highest level of supervision
Fixed portfolio term
Is this a fixed portfolio firm or flexible portfolio firm:
These comprise the balance and the majority of firms regulated by the FCA
Flexible portfolio firms
Is the below a sole trader or partnership?
An individual who runs and owned their own business and may employ staff
Sole trader
Is this a fixed portfolio firm or flexible portfolio firm:
These are on a reactionary basis where the FCA receives a report or has concerns about the firms activities
Flexible portfolio firms
Which of the following are under the ICOBS right cover areas:
1. Application General matters Distance communications Information about the firm, it’s services and remuneration Identifying client needs and advising Product info Cancellation Claims handling
1. Application General matters Distance communications Information about the firm, it’s services and remuneration Identifying client needs and advising Product info Cancellation Claims handling
What is the below?
A policyholder or potential policyholder acting outside their trade, business or profession
Consumer
What is this
A policyholder or potential policyholder who is not a consumer
Commercial customer
What 6 things are normally required for almost all businesses
Starting with property damage
A) property damage B) BI C) Theft D) Money E) glass F) Liability
Are the following benefit to the insured or insurer
One proposal to complete
Insured
Is the below a combined or package policy
Insured is able to select which sections of cover to buy and what suns insured will apply. But will be a minimum of 3 sections
Combined
Are the following benefit to the insured or insurer
One policy document to retain and refer to particularly in the event of a claim
Insured
Are the following benefit to the insured or insurer
One premium payable
Insured
Are the following benefit to the insured or insurer
Lower premium levels
Are the following benefit to the insured or insurer
Is this a fixed portfolio firm or flexible portfolio firm:
There is proactive supervision through market based thematic work and programs of activity aligned with the key risks identified for the sector in which the firm operates
Flexible portfolio firms
Are the following benefit to the insured or insurer
Lower handling costs, particular as fewer staff are need to underwrite policies
Insurer
Are the following benefit to the insured or insurer
Ease for review
Insurer
Are the following benefit to the insured or insurer
Use of computer tech can be maximised
Insurer policy
Are medium or large firms more likely to have a combined policy or a package policy
Combined
Is the below a combined or package policy
Savings are passed on in the form of reduced premium levels
Package
Is the below a combined or package policy
A multi section discount is usually offered which can reduce the premium by up to 10%
Combined
Is the below a combined or package policy
Usually for small business where it’s a single contract offering a full package of cover under one policy
Package
Is the below a combined or package policy
Will always include-
Damage to business contents (inc theft money and glass)
BI
EL, PL and product
Package
Is the below a combined or package policy
Motor insurance is not usually included
Package
Is the below a combined or package policy
It’s not individually underwritten and rated, it is constructed to meet the needs of small business of the type identified
Package policy
Is the below a combined or package policy
They cater for small business risks which display suffice to homogeneity to enable streamlined underwriting practices and policy wording to be developed
Package
Who are schemes normally available through
A) insurer
B) clubs
C) trade associations
C) trade associations
Is the below a combined or package policy
A large number of risks with inherently similar characterising characterises and future claim costs and cover requirement become more predictable enabling a standardised approach
Package
What has happened due to developing separate departments, with multi- disciplined, trained staff capable of underwriting and administering all the classes of insurance
Cost saving
What is a scheme?
Where the insurer will offer preferential insurance cover and terms for specific trades
Is this a fixed portfolio firm or flexible portfolio firm:
These firms are allocated to a named individual supervisor and are proactively supervised using a continuous assessment approach rather than on a reactionary basis
Fixed portfolio term
Is the below a combined or package policy
A shell into which a variety of different classes of insurance may be grouped.
Combined
What are the three non insurance services included:
- Risk control advise
- Helplines and advice
3. Authorised repairers and suppliers
