Chapter 2 Flashcards
What have pre determined levels of cover, suns insured etc
A) package
B) combined
A) package
What is the typical cover for wines, spirits, cigarettes and tobacco
A) £1500
B) £5000
C) no cover
D) £1,000
D) £1,000
What is the cover for trade contents basis
A) reinstatement (replacement as new) basis
B) new for old cover
C) cash
D) no cover
A) reinstatement (replacement as new) basis
What are the two ways sums insured are done in trade contents
A) index linking and day one reinstatement (15%)
B) index linking and day one reinstatement (10%)
C) index linking and day one reinstatement (25%)
A) index linking and day one reinstatement (15%)
Which of these aren’t typically included in a package policy
A) property damage inc theft, money and glass
B) BI
C) EL public and products
D) motor insurance
D) motor insurance
What happens if the insured is the owner of the building under property
A) buildings will be required either as a separate policy or as an extension
B) can be added on as an AP
C) can be added as an endorsement
A) buildings will be required either as a separate policy or as an extension
What is the maximum sum insured in relation to contents insurers will normally impose?
A) 150k - 200 k
B) 200- 500 k
C) 50 - 100 k
B) 200-500k
Which of these clauses are the following for buildings and contents:
Clause states that the sum insured will not be reduced by the amount of a claim unless the insured or insurer wish to do so. Insurers generally make it clear that they retain the right to charge an AP for reinstating the sum insured to the level prior to the claim
A) automatic reinstatement of sum insured B) professional fees C) debris removal D) EU and public authorities E) capital additions
A) automatic reinstatement of sum insured
What basis is money on
A) all risks basis
B) reinstatement
C) replacement
A) all risks basis
What are target stock?
A) relatively small in volume and high in value, not easily traceable and with a second hand market available
B) large pricey items that can be sold on eBay
C) high value items
relatively small in volume and high in value, not easily traceable and with a second hand market available
Which of these clauses are the following for buildings and contents:
This clause makes it clear that professional fees such as architects, surveyors and consultants fees, incurred in the reinstatement if the property are covered. The insured must allow for these when calculating the sum insured
A) automatic reinstatement of sum insured B) professional fees C) debris removal D) EU and public authorities E) capital additions
B) professional fees
Which of these clauses are the following for buildings and contents:
Additional costs may be incurred in shoring up or demolishing partly- damaged buildings or removing debris from the site of any damage. This clause makes it clear that these costs are covered. Including professional fees
A) automatic reinstatement of sum insured B) professional fees C) debris removal D) EU and public authorities E) capital additions
C) debris removal
Which of these clauses are the following for buildings and contents:
This clause provides automatic cover for any additions or alterations to the buildings tenants improvements or general contents. A limit of 10% or the relevant sum insured subject to a max amount of £500k usually applies. The insured is required to provide insurers with details of these items ASAP and at least within 6 months
A) automatic reinstatement of sum insured B) professional fees C) debris removal D) EU and public authorities E) capital additions
E) capital additions
Are fixtures and fittings, internal decorations for which the insured is responsible as a tenant included on property
Yes but not if the insured is the owner of the building
What is usually the sum insured for glass and excess
£500. Xs £100
£1000 Xs £100
£500 Xs £250
£500. Xs £100
How are the risks covered?
A) Usually for any loss of or damage provided it’s accidental and that it isn’t excluded by the policy wording
B) on premium and cover
A) Usually for any loss of or damage provided it’s accidental and that it isn’t excluded by the policy wording
What is the excess for perils of storm, flood, escape of water, malicious damage and AD
A) £300-£500
B) £250- £500
C) £100-£500
B) £250 to £500
What do you have to achieve to be covered on theft
A) forcible and violent entry or exit
B) forcible or violent entry or exit
A) forcible and violent entry or exit
What is the limit for non- negotiable money (crossed cheques, credit card counterfoils etc)
A) £100k
B) £500k
C) £150k
D) £250k
D) £250k
What is the limit for money during business hours, in a bank night safe or in transit
A) £2.5k to £10k
B) 5k to 7.5k
C) 2.5k to 5k
A) £2.5k to £10k
What is the limit for money out of business hours in a locked safe
A) £2k to £5k
B) 1k to 2k
C) 5k to 7k
D) 5k to 10k
B) 1k to 2k
What is the money limit for out of business hours not in a locked safe
A) £500
B) £1k
C) 5k
A) £500
What is the money limit at the residence of the principal or that of an authorised employee
A) 1k
B) £500
C) £750
B) £500
What is the money limit from a vending machine
A) £500
B) £1000
C) £300
C) £300
What are these covered under
A) damage to safes
B) loss or damage for clothing and personal effects belonging to the insured or their directors, partners or employees
A) money
B) theft
C) property
A) money
What is the limits for theft Way from the premises and robbery or attempted robbery
A) £300-£500
B) £250- £300
C) £250- £500
C) £250- £500
What does the below refer to
Cover provided monetary compensation to the principal if they are assaulted by thieves.
A) money
B) PA and assault
A) money
What is the lump sum in the event of death, loss of limbs or permanent total disablement
A) £15k
B) 10k
C) 20k
B) 10k
What is the weekly benefit for temporary disablement
A) £200
B) £100
C) £500
B) £100
What is the limit for damage to clothing and personal effects of employees attacked in the course of a robbery
A) £1000
B) 750
C) 500
D) 250
C) £500
What basis is glass covered on:
A) all risks
B) reinstatement
C) replacement
A) all risks
What is possible to buy back cover providing it usually relates to acts of persons acting on behalf of any organisation which carries out activities directed towards the overthrowing or influencing government
A) terrorism
B) computer hacking
C) theft
A) terrorism
Which of these is not a specific exclusion of property damage
A) terrorism
B) loss, destruction or damage to any computer equipment or data processing equipment due to programming or computer error
C) wear and tear
D) mechanical or electoral breakdown
E) unexplained losses, fraud or dishonesty
F) theft involving the principal, partners, directors
G) loss of glass
H) escape of water, malicious damage
I) damage to moveable property in the open
J) changes in the water table and frost damage
K) money loses due to clerical or accountancy error
L) temporary damage
Loss of glass and temporary damage
What is the following under-
The insured doesn’t have to specify wages or turnover details
Standard limit of indemnity is usually between £2-5 million
Cover is included for loss or damage to premises rented or hired by the insured
An excess of between £100- £300 applies to third party property damage
A) EL
B) PL
C) Products
B) PL
What are the two things cover under the BI section
1- actual loss of the earning of the business adjusted to business trends
Plus
2- increased costs of working which are necessary and reasonable for business recovery
What is this referring to;
Suitable for a business, such as a shop, whose operations include the sale and purchase of goods and opening and closing stock.
A) a gross profit basis
B) a gross fee or income basis
A) a gross profit basis
What is this referring to
Normally calculated by deducting any ‘uninsured working expenses’ from the turnover, or income, of the business. Uninsured working expenses are those expenses of the business which will reduce, or even cease, in the event of the loss, therefore they don’t need to be insured
A) a gross profit basis
B) a gross fee or income basis
A) a gross profit basis
What is the usual excess for theft
A) £250- £300
B) £250- £500
A) £250- £300
What is the main variable expenses for shops?
A) money
B) staff
C) stock
C) stock
What are these standard exclusions for
Cost of recalling, replacing or repairing products supplied
Penalties or fines
Exported to USA and Canada
A) PL and product
B) EL
A) PL and product
What is referred to as ‘net sales’ basis
A) stock
B) profit
C) staff
A) stock- provides cover for the difference between sales and purchase rather than a full gross profit basis
What is this referring to
This is suitable where the business provides a service rather than a product and charges a fee for that service eg architects and sols. Cover is provided for the reduction in income to the business
A) gross profit basis
B) gross fees or income basis
B) gross fees or income basis
What is the standard sum insured for BI
A) three times content sums insured or £250k
B) 10 times content sums insured or £250k
C) 2 times content sums insured or 250k
A) three times content sums insured or £250k
What are these standard exclusions for
Liability arising from the ownership, possession or use of a motor vehicle, aircraft or watercraft
A) PL and product
B) EL
A) PL and product
What is 5 things BI cover extended to include loss of business income as ar result of:
Starting with damage at suppliers premises
2) damage at public utilities suppliers premises
3) denial of access to the premises following damage to other premises in the vicinity
4) murder, suicide or noticeable disease at the premises
5) damage to document in transit
What is the BI suppliers limit extension
A) 5% or 25k
B) 10% or 25k
A) 5% or 25k
Which of these clauses are the following for buildings and contents:
This clause provides for the additional costs resulting from the need to rebuild elsewhere or in a different way as required by EU legislation, act of parliament or bye- laws of any public authority. It is primarily the elegant to the cover for buildings
A) automatic reinstatement of sum insured B) professional fees C) debris removal D) EU and public authorities E) capital additions
C) EU and public authorities
What is the following under-
Claimants costs and expenses associate with the claim
Any legal costs incurred by the insured in defending the claim with insured consent including representation at any hearing for breach of statutory duty
A) EL
B) PL
C) Products
A) EL
What is this for
Cover is included for legal costs and expenses in defending prosecutions under relevant health and safety legislation, consumer protection act 1987 and food safety act 1990
A) EL
B) PL
C) Products
B) PL
What is this under
This covers liability arising from goods sold or supplied which cause injury or damage to customers or their property
A) PL
B) EL
C) Products
C) Products
What are these standard exclusions for
Loss or damage to property in the custody or control of the insured
A) PL and product
B) EL
A) PL and product
Which is this under
The legal costs of both the claimant and the insured are included
A) EL
B) PL
C) Products
C) Products
What is this under
The standard limit of indemnity is usually between £2-5 million for any one occurrence and during any one period of insurance
A) EL
B) Products
C) PL
B) Products
ADDITIONAL OFFICE COVER
what is the limit of damage to property at exhibitions
A) 5k
B) 10k
C) 2k
C) 2k
What are these standard exclusions for
Cost of rectifying defective work
Employee injury
Professional negligence
A) PL and product
B) EL
A) PL and product
What are these standard exclusions
Asbestos
Pollution and contamination
Contractual liability
A) PL and product
B) EL
A) PL and product
OFFICE STANDARD COVER What is the limit for book debts
A) 25- 50k
B) 10- 25 k
C) 1 - 5k
A) 25- 50k
Cover excludes mislaying and misfiring and deliberate falsicsation
OFFICE STANDARD COVER What is the limits and sums insured for Goods in transit
A) between £2-5k. Loaded vehicles must be locked when unattended
B) Between £5-7k Loaded vehicles must be locked when unattended
A) between £2-5k. Loaded vehicles must be locked when unattended
OFFICE STANDARD COVER What is the limit for temporary removal of contents
A) £50k
B) £20k
C) 25k
C) 25k
OFFICE OPTIONAL COVER
What does the below refer to:
Cover typically excludes losses covered by a maintanaince, guarantee, hire or lease agreement, wear and tear, and computers over 10 years old
A) buildings B) fidelity insurance C)portabkle equipment D) terrorism E) computer breakdown
E) computer breakdown
OFFICE STANDARD COVER What is the limit for damage to external blinds and signs
A) 3-5k
B) 10-15k
C) 500- 1k
C) 500-1k
NEON SIGNS ARE EXCLUDED
What is the following under-
Cover legal liability in respect of claims by third parties for injuries suffered or property damaged arising out of the business
A) EL
B) PL
C) Products
B) PL
OFFICE STANDARD COVER What is the limit for replacement locks and keys following theft
A) 500-1k
B) 1000-2k
C) 500- 750
A) 500- 1k
OFFICE STANDARD COVER What is the limit for freezer contents
A) 1k
B) 500
C) 2k
C) 2k
Why would offices insured ‘increased cost of working only’
A) the income wouldn’t reduce regardless of physical loss or damage
B) they wouldn’t have any property damage
A) the income wouldn’t reduce regardless of physical loss or damage
OFFICE ADDITIONAL COVER
what is the limit for employees and visitors property
A) 10k
B) 5k
C) 7k
B) 5k
What is the rent liability limited additional cover
A) provided for 50% of the contents sum insured for 2 years . Applies from the date of damage until the time when the premises are capable of being occupied
B) provided for 25% of the contents sum insured for 2 years . Applies from the date of damage until the time when the premises are capable of being occupied
B) provided for 25% of the contents sum insured for 2 years . Applies from the date of damage until the time when the premises are capable of being occupied
OFFICE STANDARD COVER What is the limit for temporary removal of contents
A) £1-10k
B) 50k
C) 5k-10k
A) 1-10k
OFFICE ADDITIONAL COVER
What is the limit for loss of oil and metered water
A) 5-10k
B) 7.5- 10k
A) 5-10k
OFFICE OPTIONAL COVER
What does the below refer to:
Cover can be extended to cover the cost of rebuilding the premises, when there are owned rather than rented. Debris removal costs and professional feees are included
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
A) buildings
OFFICE OPTIONAL COVER
What does the below refer to:
Over is an on an all risks basis with the option to include subsidence
SI upto a maximum of £500k
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
A) buildings
OFFICE OPTIONAL COVER
What does the below refer to:
Known as theft by employee or employee dishonest insurance. Cover is provided against the risk of losing money or stuck due to the fraud or dishonest of an employee
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
B) fidelity insurance
OFFICE OPTIONAL COVER
OFFICE OPTIONAL COVER
What does the below refer to:
An excess of £250 applies
Cover typically excluded losses caused by employees who are known to have been previously dishonest, consequential losses, penalties and fines and losses discovered within 7 days
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
B) fidelity insurance
OFFICE OPTIONAL COVER
What does the below refer to:
Cover excludes costs and expenses incurred before written acceptance of the claim by insurers and any claim not reported within 180 days
A) legal expenses
B) business travel
C) personal accident
A) legal expenses
SHOP INSURANCE ADDITIONAL COVER
What is the limit for rent liability
A) cover is provided for 25% of the contents sum insured for up to 2 years
B) cover is provided for 50% of the contents sum insured for up to 2 years
) cover is provided for 25% of the contents sum insured for up to 2 years
What is this exclusion for
Offshore work
A) EL
B) PL
C) Products
A) EL
OFFICE OPTIONAL COVER
What does the below refer to:
That will be used away from the premises is covered on all risks basis anywhere in the UK. Some insurers provide unlimited worldwide cover
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
C) portable equipment
OFFICE OPTIONAL COVER
What does the below refer to:
Cover is subject to a sum insured of up to £25k and an excess of 100- 500
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
C) portable equipment
OFFICE OPTIONAL COVER
What does the below refer to:
Cover is included for reinstatement of data of between 5- 10k and increased cost of working between 10k to 25k
A) buildings B) fidelity insurance C)portabkle equipment D) terrorism E) breakdown
E) computer breakdown
OFFICE OPTIONAL COVER
What does the below refer to:
Subject to a sum insured of between £5k and £25k any one event. Some insurers impose an aggregate limit for any one period of insurance
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
B) Fidelity insurance
OFFICE OPTIONAL COVER
What does the below refer to:
Covers business legal costs in defending an action brought by a customer, employee or neighbour as well as the costs of an action initiated by the business faced with the loss of possible loss as the result of someone else’s action
A) legal expenses
B) business travel
C) personal accident
A) legal expenses
OFFICE OPTIONAL COVER
What does the below refer to:
For losses initiated by the business, there is no cover for costs incurred in pursuing claims against the judgement of insurers
A) legal expenses
B) business travel
C) personal accident
A) legal expenses
OFFICE OPTIONAL COVER
What does the below refer to:
Cover is subject to a limit of between £50- £100k any one claim and a standard excess of £250 applies.
A) legal expenses
B) business travel
C) personal accident
A) legal expenses
OFFICE OPTIONAL COVER
What does the below refer to:
Typical policy limits are: Medical expenses £1m Personal liability £1m Cancellation costs £2k Personal baggage £2k Money £1k
A) legal expenses
B) business travel
C) personal accident
B) business travel
OFFICE OPTIONAL COVER
What does the below refer to:
Cover typically excluded people over 75 years, anyone travelling against medical advice, hazardous activities and losses not reported to the local police
A) legal expenses
B) business travel
C) personal accident
B) business travel
OFFICE OPTIONAL COVER
What does the below refer to:
Included limited form of PA cover where they have been assaulted by thieves. Extensions. Covers the opportunity to have full PA cover on a 24 he basis.
A) legal expenses
B) business travel
C) personal accident
C) personal accident
OFFICE OPTIONAL COVER
What does the below refer to:
The principal and employees are covered for any accidental bodily injury resulting in death, permanent or temporary disablement
A) legal expenses
B) business travel
C) personal accident
C) personal accident
OFFICE OPTIONAL COVER
What does the below refer to:
Cover can be purchased in units of cover with each unit giving lump sum benefits of £10k and weekly benefits of up to £50 a week
legal expenses
B) business travel
C) personal accident
C) personal accident
OFFICE OPTIONAL COVER
What does the below refer to:
Cover typically excludes suicide or deliberate exposure to danger, the effects of alcohol and drugs, pregnancy or childbirth and hazardous activities
legal expenses
B) business travel
C) personal accident
C) personal accident
STANDARD SHOP COVER
what is the limit for External blinds and signs
£1-2k
B) £5-8k
C) 500- 1k
C) £500- 1k
Optional shop cover
What is the limit for loss or licence
A) between £100k to £250k
B) between £150k to £250k
A) between £100k to £250
STANDARD SHOP COVER
What is the limit for book debts
A) standard of £250k some allow up to £100k
A) standard of £1k some allow up to £10k
A) standard of £250k some allow up to £100k
STANDARD SHOP COVER
What is the limit for freezer contents
A) £5k
B) 2k
C) 10k
A) 5k
STANDARD SHOP COVER
What is the limit for replacement locks and keys following theft
£1000- 2k
B) 500- 1k
C) 250- 500
B) 500- 1k
Which of these are not an optional cover for shop insurance
Buildings Fidelity insurance Portable equipment Terrorism Storm cover Computer breakdown Legal expenses Personal accident Political cover
Storm cover
Political cover
OFFICE OPTIONAL COVER
What does the below refer to:
Covers the business against the effects of acts of terrorism
A) buildings B) fidelity insurance C) portable equipment D) terrorism E) computer breakdown
E) terrorism
STANDARD SHOP COVER
what is the limit for Goods in transit
A) £2- £2.5k
B) 5- 7k
C) 2- 5k
A) £2- 2.5k
