Chapter 11 part 2 Flashcards
It also sets out factors a court should take into account when determining whether a term is fair, notably that it should consider the specific circumstances existing when the term was agreed, other terms in the contract and the nature of the subject matter of the contract.
What is this assessment known as?
‘fairness test’.
Explain the term is transparent?
A term is transparent if it is expressed in plain and intelligible language and (in the case of a written term) is legible.
Explain the term prominent?
A term is prominent if it is brought to the consumer’s attention in such a way that an average consumer would be aware of the term. The Act defines an ‘average consumer’ as a consumer who is reasonably well-informed, observant and circumspect.
What is the grey list?
terms that may be regarded as unfair (the so-called ‘grey list’).
What is a data controller?
The party who keeps personal data on their customers and determines how and why it is processed?
What is a data processor?
An organisation who processes data on a data controllers behalf
Identify eight principles of the EU General Data Protection Regulation.
Data must be:
Fairly and lawfully processed
Processed for limited purposes
Adequate, relevant and not excessive
Accurate
Not kept longer than necessary
Processed in accordance with individual’s rights
Secure
Not transferred to countries without adequate protection
Identify seven requirements regarding a data subject giving consent for their data to be processed under the GDPR.
Consent must be:
Freely given
Specific
Informed
Unambiguous
Positive opt in
Easy to withdraw
Separate from other terms and conditions
Identify eight rights of a data subject under the GDPR
The right to be informed.
The right of access.
The right to rectification.
The right to erasure.
The right to restrict processing.
The right to data portability.
The right to object.
Rights in relation to automated decision making and profiling
What Act implements the GDPR into English law?
Data Protection Act 2018
What are the five overlapping requirements of ethical behaviour?
Integrity
Fairness
Service
Client’s interest
Compliance
What are Ethical Standards?
concerned with the way in which a moral outcome can be achieved in given circumstances They are concerned with behaviour and conduct. In the context of a
profession, the hallmark of a professional is the ability to step back from issues of selfinterest and provide competent independent advice in the best interests of a client.
Trade bodies may have their own codes to which members subscribe on a voluntary basis. What would a breach cause?
A breach of the provisions of such a code would not necessarily result in disciplinary action, although there would be regard to the contents of a code in any disciplinary proceedings.
Do professional body’s take disciplinary action against members who are in breach of their codes of conduct?
Yes as such codes are designed to provide a framework of appropriate behavior. It follows that failure to follow the code may bring the individual or the profession into disrepute.
What is The Chartered Insurance Institute (CII)’s Code of Ethics?
a set of ethical principles for insurance and financial services professionals worldwide.
What is the purpose of a The CII Code of Ethics?
virtuous platform for improving the reputation of CII members as a whole and in distinguishing our membership in comparison with less qualified and regulated competitors.
What 5 areas doe the code of ethics include?
Integrity
Fairness
Service
Clients Interest
Compliance
What are the code of ethics minimum requirements?
Rather than setting a series of minimum requirements, the Code represents a positive statement of the core principles that must inform decision-making, business relationships and a member’s more general behaviour
How does the CII assist members in the way that the principles should be applied?
Providing ‘key questions to ask yourself’
the CII has also produced two companions to the Code - what do they cover?
digital ethics and financially inclusive customer outcomes
Can the CII take disciplinary action against members who do not comply with the code?
yes
What are the 5 central principles in the Code of Ethics?
• comply with the code and all relevant laws and regulations;
• act with the highest ethical standards and integrity;
• act in the best interests of each client;
• provide a high standard of service; and
• treat people fairly, regardless of: age, disability, gender reassignment, pregnancy and
maternity, marriage and civil partnership, race, religion and belief, sex, and sexual
orientation
What should you do if the Code of Ethics is breached?
Report it to the CII
You are aware that a particular client will be on holiday for a significant part of the period immediately prior to renewal and that there is likely to be a need to consider other insurers’ terms because of the poor claims experience during the current policy period.
The company procedure is to contact renewal client 1 month prior to the renewal - what should you do in this instance?
We are concerned here with the difference between the ‘spirit’ and the ‘letter’. You would arguably be acting compliantly if you were to commence the renewal process one month before renewal. However, to act ethically, you would need to start the process earlier to be able to give your client advice in good time to make an informed decision.
The FCA states that there are three key areas of training and competence that all
firms need to consider. These are what?
• assessing competence;
• maintaining competence; and
• record-keeping.
How many CPD hours does the The Insurance Distribution Directive (IDD) require anyone e involved in the distribution of insurance to complete annually?
15 hours
What does DISP stand for?
Dispute Resolution: Complaints (DISP) sourcebook
What are the benefits of thorough complaints procedures?
• limit the impact of customer dissatisfaction;
• avoid exposure to errors and omissions claims;
• enable an insurer to identify problems with its systems and rectify them; and
• enable an insurer to improve its standards.
FCA regulation is concerned with two categories of complainant - what are they?
‘eligible’ and ‘non-eligible’ (defined later)
An ‘eligible complainant’ is defined as a:
• consumer;
• micro-enterprise;
• charity with an annual income of less than £6.5m;
• trustee of a trust with a net asset value of less than £5m;
• consumer buy-to-let (CBTL) consumer;
• small business at the time the complainant refers the complaint to the respondent; or
• guarantor.
All complaints from eligible complainants are subject to what?
FCA complaints handling rules and complainants within these categories have a right of access to the Financial Ombudsman
Service (FOS).
For non-eligible complainants, what must firms have in place?
appropriate procedures for registering and responding to the expression of dissatisfaction.
How many years must complaint files be kept
at least three years from the date the complaint was received, and a record must be kept of measures taken for its resolution.
What must a firm provide within 8 weeks of recieveing a complaint?
Either a final response
or
a werotem res[pmse
If a final reponse is given and the complaint has been rejected, a firm must inform the complainant that if they remains dissatisfied with the respondent’s response, they may now refer their complaint to the FOS within what time period?
6 months
What additional complains handling code does Lloyds have?
Personal Lines Claims and Complaints Handling Code
If a policy is placed through Lloyds and the complainant is dissatisfied with the response, what is there next step?
Lloyds can handle the response before going to the FOS if still dissatisfied.
Does the FOS deal with disputes from eligible or noneligible complaints?
Eligible
The maximum award the FOS can require a firm to make to a complainant changed on 1
April 2019. It is now what?
• £355,000 for complaints about actions or omissions by firms that occurred on or after 1 April 2020.
• £350,000 for complaints about actions or omissions by firms on or after 1 April 2019, and which were referred to the FOS between 1 April 2019 and 31 March 2020.
• £160,000 for complaints about acts or omissions by firms before 1 April 2019, but which were referred to the FOS after that date.
The FOS may recommend a higher figure, if appropriate, but this will not be binding onthe firm.
What is the complainants next step if they are still dissatisfied and the FOS has rejected the claim?
Take it to court
How is the FSCS funded?
by a levy on all authorised firms who receive an income from eligible
claimants.
What is the FSCS primary function?
Compensation clients whos insurer for example has gone into liquidation and they need to claim.
What do The Data Protection Act 2018 (DPA 2018) and General Data Protection Regulation (GDPR) set out?
data protection law in the UK
