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Cert CII- IF4 > Chapter 2 - Insurance products > Flashcards

Chapter 2 - Insurance products Flashcards

1
Q

List the 4 different types of Motor insurance.

A
  1. Road Traffic Act only
    2.Third Party Only
  2. Third Party fire and theft
  3. Comprehensive
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2
Q

What does the Road Traffic Act (RTA) only provide cover for?

A

1.Unlimited indeminty to bodily injury or death to 3rd parties

2 A £1.2m limit for loss or damage to 3rd party property

  1. claimants costs and expenses
  2. emergency medical treament and hostipal charges arising out of vechile use.
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3
Q

what does Third Party only provide cover for?

A

All RTA cover + the following:

  1. Increased £20mil limit for loss or damage to 3rd party property
  2. Passenger indemnity

3.Cover for legal costs defending a claim

  1. cover for vechle use abroad
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4
Q

List 3 non-EU countries that are apart of the free circulation zone

A

1.UK
2.Norway
3.Switzerland

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5
Q

List the 2 exlcusions for Third Party only cover.

A
  1. Damage to the vehicle itslef
  2. Liability covered by another policy.
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6
Q

what does Third Party, fire and theft provide cover for?

A

All third party only cover + the following:

1.Cost of repair if insured’s vehicle is damaged or stolen during theft or attempted theft

2.Damage by fire, Lightning or explosion.

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7
Q

What is the exclusions of Third Party, fire and theft?

A

All third party only cover + the following:

  1. Specifically ‘loss of use’ meaning no hire car is provided in a result of loss
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8
Q

what does comprehensive cover for?

A

It has widest cover and includes all other covers + accidental or malicous damage to insured vehicle. The cover is ‘all risks’ (damage is covered no matter how it happened)

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9
Q

List the 6 exclusions for Comprehensive cover.

A
  1. Wear and Tear
  2. Depreciation
  3. Loss or damage to spare parts and accessories. (unless in a garage or on the car)
    4.Loss of use
  4. Mechanical and electrical failure
    6.Tyre damage from punctures or blow outs.
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10
Q

List the common Extensions on a Motor Policy. (There is 12)

A
  1. Breakage of glass (On non-comprehensive , as normally covered on comprehensive)

2.Personal belongings and clothing

3.Young additional drivers (For occasional users)

4.Loss of use at a fix amount per day or provision of hire car

5.Additional personal accident

6.Foreign use

7.Racing, Competitions, rallies and trials

8.caravan and trailers

  1. Breakdown cover

10.loss of keys

  1. legal assistance
  2. join policies

List is Not exhaustive

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11
Q

List the General exclusions on a motor policy.(There is 6)

A
  1. Contractual Liability
  2. War risks
    3.Use other than as specified
    4.Riot and civil commotion
    5.Terroism
    6.Sonic bangs
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12
Q

What same cover does Motorcycle(Any mechanically propelled cycle) insurance have?

A

same as motor Policy cover.

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13
Q

Does Motorcycle insurance have Personal accident, medical expenses and personal effects cover?

A

no

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14
Q

What is the Limits for third party liabilty and third party property under a commercial vechile policy?

A
  1. Unlimited for Death or bodily inury to third parties
    2.£5m to third party properties.
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15
Q

What is fleet insurance?

A

Fleet insurance is used to cover a number of vechiles under one policy.

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16
Q

what is normally covered under a fleet insurance policy?

A

Mostly same as private motor insurance + the following:

1.Contigent third party insurance
2.Joint insured clause or cross liabilties clause
3.occasional business use
4.Roadside assistance
5.helplines.

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17
Q

what does ‘buildings insurance’ include?

A
  1. Main strucute of buildings
  2. Houses
  3. Garages
  4. Sheds.
  5. Greenhouses
  6. Outbuildings
  7. Swimming pools
  8. Tennis cours etc/
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18
Q

List the main covers available for buildings insurance. (There is 8)

A

1.Fire,lightining, explosion and earthquake
2. Storm or flood
3. Falling trees or branches
4. Escape of water (Includes unoccupied exclusion+excess)
5. Escape of oil (Includes unoccupied exclusion+excess)
6. Theft or attemped theft (Includes unoccupied exclusion+excess)
7. Impact
8.legal fees.

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18
Q

List the main covers available for buildings insurance.

A

1.Fire,lightining, explosion and earthquake
2. Storm or flood
3. Falling trees or branches
4. Escape of water (Includes unoccupied exclusion+excess)
5. Escape of oil (Includes unoccupied exclusion+excess)
6. Theft or attemped theft (Includes unoccupied exclusion+excess)
7. Impact
legal fees.

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19
Q

what does contents insurance include cover for?

A

The term ‘contents’ mean household goods and personal effects of every description that belong to the insured or to a member of the family living in the property.

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20
Q

what is the usual limit on single articles of value?

A

usually 5% or 10% of the total sum insured

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21
Q

what are the 3 normal extentions in a Household insurance policy?

A
  1. Temporary removal to another premises
  2. Accidental breakage of mirrors and glass
    3.Loss of rent
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22
Q

What are the 4 normal exclusions in a Household insurance policy?

A
  1. Medals and coins
  2. Drones or aircfaft
  3. Motor vechiles
    4.Livestock(other then horses)
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23
Q

what is the limit to third party accidental injury or damage to material property under a household policy?

A

£1m or £2m per claim.

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24
Q

what Cover can be arranged for a Gadget Insurance policy?

A

A month by month basis, with different gadgets swapped in and out of cover.

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25
Q

what is normally covered by a gadget insurance policy?

A
  1. Smart phones, tablets,laptops or e-readers
    2.Bicycle
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26
Q

List the main restrictions for gadget insurance.

A

1.Mobile phones that cant be repaired are usually replaced rather then receiving cash incentive
2.Mobile phones normally need to be new or refurbished in UK
3.Second hand phones are normally excluded
4.Cover is often provided for unauthorised transactions made whilst the device is stolen

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27
Q

What is two ways of paying for drone insurance?

A

Annual Policy or Pay-As-You-fly (PAFL)

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28
Q

What does the PAFL method charge for?

A

Specific use or alternatively a period, such as a week at a time.

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29
Q

What is the usual cash payment for Personal accident benefits under a travel insurance policy?

A

Usually between £10k-£20k for death, loss of eyes or limbs or permanent total disalement.

Hazardous activities are generally excluded but can be underwritten for an additional premium.

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30
Q

What is the usual cash payment for Medical and associated expenses under a travel insurance policy?

A

usually up to £1m

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31
Q

List 9 things travel insurance normally covers?

A
  1. Personal accident benefits
  2. Medical and associated expenses
    3.Loss of deposits
    4.Loss of or damage to baggage, money and personal effects
    5.Perosnal liability to third parties and their property
    6.Delayed baggage
    7.Hostipal cash benefits
    9.Travel interruption
  3. Travel delay
32
Q

List the 3 ways a travel insurance policy can be sold.

A
  1. Single trip basis
  2. Multiple trip basis
  3. Annual basis
33
Q

What is pet insurance available to cover?

A
  1. Dogs
    2.Cats
    3.Rabbits
    4.Horses
    5.Birds
  2. Exotic pets

NOTE: most only cover cats and dogs

34
Q

what are the four main type of pet insurance policies?

A
  1. Accident only policies
  2. Time limited Polcies
  3. maximum Benefit polcies
    4.Lifetime polcies
35
Q

List the 4 main factors for setting premiums for pet insurance.

A
  1. Age of pet
  2. Pre-existing medical conditions
    3.Cost of the pet
    4.Type of pet (How cheap they are to look after and feed)
36
Q

What is Extended warranties insurance and what does it cover?

A

For example, you get a 12month guarantee (warranty) on a new washing machine you brought. You can extend that period to 2,3 or 5years etc with this insurance.

It covers the cost following electrical or mechanical defects.

37
Q

who offers Extended warranties insurance?

A

Insures and some large authorised retailers

38
Q

what are the usual exclusions for extended warranties insurance? (There is 5)

A
  1. negligent handling
  2. Risks normally covered by household contents policy
    3.war
    4.cost of repairs to bulbs, aerials, external wires, knobs, handles, driving belts etc
  3. deliberate damage by the insured
39
Q

what is ‘extra perils’ known as?

A

special perils

40
Q

what does commerical property fire and special perils insurance include?(there is 9)

A

1.Explosion
2.Crashing of an aircraft or other aerial device
3. Riot and civil commotion
4.Malicous damage
5.earthquake
6.subterranean fire
7.storm
8.sprinkler leakage
9.escape of water

41
Q

what is an ‘All risks’ insurance?

A

it adds the special perils to a fire policy then adds the ‘all risk’ element which means all loss of destruction or damage to the property insured is recoverable.

42
Q

what are the 4 exclusions in an All risks policy?

A
  1. Abbsolute exlcusion (War,pollution,contamination)
    2.Gradually operating exclusions (corrosion or rust, wind or rain damage)
    3.Aspects of cover which can be written into for additonal premium (money, glass etc)
    4.Property or risks more appropriate to another class of business(Motor vehicles or aircraft)
43
Q

Under the Theft Act 1968 when is a person guilty of theft?

A

if they dishonestly take property belonging to another with the intention of permanently depriving the other of it.

44
Q

What one phrase did insurers include for theft insurance to apply?

A

That it must include force and violence either breaking in or out of the insured premises.

45
Q

what are the 4 exclusions of theft insurance?

A
  1. Collusion (plotting between a thief and employee)
    2.Fire and explosion
    3.Cash, bank notes etc
    4.Livestock
46
Q

For Theft insurance what is cover often sought on? (based on)

A

First Loss basis, i.e for an amount less than total value of subject matter of policy. (this is because a thief normally decided what they steal)

47
Q

what type of glass does glass insurance cover? (this cover is ‘all risks’)

A
  1. Fixed glass (windows,doors,fanlights, showcases,mirroed glass and glazed partitions)
48
Q

what are the normal exclusions for glass insurance?

A

1.scratching and chipped glass
2.Fire
3.Lightning
4.Explosion

49
Q

what type of Money does Money insurance cover?(this cover is ‘all risks’)

A

1.Cash
2.Coins
3.Bank and currency notes
4.Cheques
5.Postal and money notes
6.Current Postage stamps

It covers damages to these items + safes and strongrooms caused by theft or attempted theft

50
Q

what are the exclusions of a money policy?

A

1.E&O’s in accounting and book-keeping
2.Dishonesty of employeee that is not discovered in 7 days
3.Damage arising out of the Uk
3.A safe or strongroom being opened by a key left on the premises whilst closed for business

51
Q

what is the typical limit for a standard Legal expenses insurance policy?

A

Between £25k-£100k

52
Q

what are the 5 main sections of cover under a Legal expenses policy?

A
  1. Employment cover
  2. Criminal Prosecution defense cover
  3. Property disputes cover
  4. Motor cover
    5.Patents
53
Q

What are 2 main exlcusions of Legal expenses insurance?

A
  1. Fees
  2. Claims made between husband and wife
54
Q

what is Business Interruption insurance?

A

Cover a business for the actual or potential loss of earnings

55
Q

What does Business Interruption cover?

A
  1. Gross Profit
  2. Wages
  3. Accountant (or auditor’s) fees
56
Q

what are the consequences of physical damage to an insured’s business premises?

A
  1. Earnings may reduce or stop alltogether following property damage
    2.Certain overheads will still need to be paid
    3.There may be increases in certain costs just to keep the business operating.

All of these are covered by business interrupion insurance as well costs of paying accountants employed to present claim.

57
Q

what value is business interruption’s policy based on?

A

Gross profit less the expenses that vary in direct proportion to any reduction in turnover (Specifed working expenses) e.g is raw materials.

58
Q

List the 3 most common business interruption additional polcies.

A

1.Fire and special perils
2.All risks
3.Engineering

59
Q

what is Creditor Insurance?

A

Cover’s an insured inability to continue credit installments payments in the event of redundancy or unemployment.

60
Q

what is the usual period for Creditor Insurance?

A

24 months, cover normally excludes 1st month

61
Q

what act states that almost very UK employer should have Employer’s laibilty insurance?

A

Employer’s Liability (Complsory Insurance) Act 1969

62
Q

what must an employer display (either physicallu or electronically) in respect to Employee insurance?

A

Certificate of Insurance

63
Q

Can an insurer refuse an Employee’s liability claim?

A

NO, it merely can obtain a right of recovery

64
Q

Other than Liability to third party bodily injuries, ilness and damage to property, what does Public Liability also cover?

A

1.Negligence
2.Nuisance
3.Trespass
4.Liabilty under statue

65
Q

what does Product Liability cover?

A

Bodily injury or property damage to third party damage which arises out of goods:

  • Manafactured,Constructed,altered,repaired,services,treated,sold, supplied or distrubuted by the insured.
66
Q

what is financial loss that does not accompany bodily injury or damage to third party property called?

A

pure financial loss

67
Q

what does Professional indemnity cover?

A

covers liability for injury, damage or financial loss to their client or the public that comes from the result of a breach of professionlism or from negiglent acts and E&O’S

68
Q

What is a claims-made basis?

A

Policy applies to claims made rather then when the claims occured.

69
Q

List the 3 types of health insurance?

A

Personal accident, Sickness and Medical expenses

70
Q

what insurance’s is personal accident and sickness cover normally added onto?

A

Travel, motor or household insurance

71
Q

Up to how many weeks does Personal accident and Sickness insurance pay?

A

upto 104 weeks on a weekly basis

72
Q

what is paid out in respect to permanent total disablement for Personal accident insurance?

A

An annuity (fixed amount paid each year)

73
Q

What is a franchise in a policy?

A

A period of time or an amount of money under which a policy would not come into force.

74
Q

How many days does a sickenss policy exclude cover and also what is the usual franchise period for this policy?

A

First 21 days at the start of the policy. 7 days for the franchise

75
Q

What are the usual exlcusions for personal accident and sickness polcies?

A
  1. insured being under the influence of alcohol or non-prescripted drugs
    2.Pre-exsisting infirminty or disease
    3.Self-inflicted injury or disease including suicide
  2. Childbirth,pregnancy, veneral disease(STD) and/or AIDS.
76
Q

what does Medical Expenses cover?

A

covers individuals for most of the expenses of undergoing treatment in private hostipals.

77
Q

what are the usual exclusions in a basic medical expenses policy?

A
  1. Treatment of pre-exsisting conditions
    2.lower ‘per treatment’ limits

Cert CII- IF4 (7 decks)

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