Chapter 2

Question 1

What is typically the maximum number of weeks a personal accident insurance will pay for temporary total disablement?

Answer 1

104

Question 2

Under a theft policy, what is a common extension

Answer 2

Temporary removal.

Question 3

What type of peril will a standard comprehensive personal motor insurance policy usually provide cover for?

Answer 3

Accidental damage
Theft
Fire and explosion
Vandalism
Natural disasters (e.g., floods, storms, hail)
Third party liability (injury or property damage)
Glass/windscreen damage
Personal accident (injury or death of driver/passengers)
Medical expenses
Loss or damage to personal belongings in the vehicle
Temporary replacement vehicle
Emergency roadside assistance and recovery

Question 4

Under a business interruption policy, what is the name of the expenses that vary in direct proportion to the turnover?

Answer 4

Specified working expenses.

Question 5

What is NOT a class of pecuniary insurance?

Answer 5

Money

Question 6

Under the Road Traffic Act 1988 [as amended], what is the minimum cover required legally for third party property damage?

Answer 6

£1.2 mil

Question 7

What is usually the maximum period after an accident within which death must occur for insurers to pay the death benefit under a personal accident policy?

Answer 7

12 months

Question 8

A benefit policy is a contract to pay:

Answer 8

a sum of money should a defined event occur.

Question 9

With sickness insurance, what is a ‘franchise’?

Answer 9

It is a period of time or financial threshold below which a policy would not provide an indemnity.

Question 10

Commercial property insurance will often include cover against theft. What is the best definition of a ‘first loss’ basis of cover?

Answer 10

An amount that is less than the total value of the subject matter

Question 11

How is the limit of indemnity typically applied to a public liability policy?

Answer 11

A limit per occurrence and in the aggregate.

Question 12

Under the Employers’ Liability [Compulsory Insurance] Act 1969, what must be displayed as proof of the insurance at the insured’s premises or otherwise made available electronically to employees?

Answer 12

Certificate of insurance

Question 13

minimum sum insured for employers liability

Answer 13

£5 mil

Question 14

Sickness cover provides a weekly benefit for up to

Answer 14

104 weeks

Question 15

creditor insurance purpose

Answer 15

Covers inability to continue credit instalment payments due to redundancy or unemployment.

Question 16

creditor insurance coverage period

Answer 16

typically limited to 24 months

Question 17

creditor insurance exclusions

Answer 17

Generally excludes the first month of any period of unemployment.

Question 18

Under what circumstances might an annuity be paid as a result of a claim on a personal accident insurance policy?

Answer 18

Permanent total disability.