Chapter 3 Flashcards
What are the esentials of a valid contract?
Offer and acceptance
Consideration
What is usually the consideration in insurance?
The premium being paid
Does a conditional acceptance form a valid contract?
No this is classed as a counter offer and not acceptance of the original offer
If I post an acceptance to a policy, when is it deemed that I have accepted the offer?
When acceptance is posted
How soon must insurers warn insureds about there renewal under ICOBS?
In good time
What were the three new renewal rules introduced by the FCA in April 2017?
The previous years premium has to be disclosed.
Text to encourage consumers to shop around
Additional prescribed notice for insurers who have renewed four consecutive times
What is the usual cooling off period for consumer contracts?
14 days
What is the usual cooling off period for PPI contacts?
30 days
What is a cooling off period?
Period in which consumers can cancel a policy
Do cooling off periods apply to all consumer insurance contracts?
No, they do not apply to STP’s
Identify three other ways an insurance policy can be terminated.
Fulfilment
Voidable
Fraudulent Acts
Following the IA 2015 what is insurers’ remedy if the policyholder breaches a waranty?
Coverage is suspended whilst it is being breached.
If a policyholder submits a fraudulent claim what are the insurers’ remedies?
Insurer not liable to pay the claim.
They can recover the amounts already paid on the claim.
Can choose to terminate the contract from the date of the fraudulent act.
If an insurer decides to terminate coverage following a fraudulent claim, what can they do?
Can refuse liability for all matters after the fraudulent act and do not have to return the premiums
In a group contract, if an individual insured submits a fraudulent claim, can the insurer terminate cover for the other individuals?
no
