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
