chapter 4 Flashcards
If motor insurance is renewed online, within what time period must an electronic insurance certificate be issued?
24 hours.
Li Li works for Ace Brokers, an insurance intermediary that is an agent of an insurer, BIG. Li Li wrongly explains the cover provided under an insurance contract to a client. Who would ultimately be liable for her actions, if anyone?
BIG
When an insurer sends a certificate of insurance by post, when is it regarded as being received by the insured?
The date it is posted.
An existing annual motor insurance policy has been in force for ten months when it is cancelled by the insured. With a typical policy how much of the premium, if any, would the insured get back?
None.
Under the Consumer Insurance [Disclosure and Representations] Act 2012, an agent is typically regarded as representing the insured EXCEPT where the agent:
has delegated authority from the insurer.
At renewal, the insured is LEAST likely to be asked to confirm:
A.
their annual mileage.
b.
changes affecting ownership of the vehicle.
c.
non-motor related convictions.
d.
motoring convictions.
Feedback
A.
their annual mileage.
What is the role of the Financial Conduct Authority (FCA) in motor insurance?
The FCA regulates motor insurers to ensure they treat customers fairly, promote competition, and uphold market integrity.
What is the Prudential Regulation Authority (PRA) responsible for in motor insurance?
The PRA oversees insurers’ financial stability and ensures they have sufficient capital to meet policyholder claims.
What is the role of the Information Commissioner’s Office (ICO) in motor insurance?
The ICO ensures insurers comply with data protection laws when handling customer information.
What does the Road Traffic Act 1988 require for motor insurance?
It mandates that drivers hold at least third-party insurance to cover liabilities for injuries or property damage to others.
What is the role of the Continuous Insurance Enforcement (CIE) scheme?
It ensures vehicles are insured continuously unless declared off-road via a Statutory Off-Road Notification (SORN).
What is the purpose of the Green Card system?
It provides proof of insurance for driving in participating countries and ensures claims are handled under local laws.
What is the significance of Brexit on motor insurance?
Post-Brexit, UK drivers may require a Green Card for EU travel and must comply with local regulations.
What are the time limits for making a claim to the MIB?
Claims must usually be submitted within three years of the accident for personal injury or within nine months for property damage caused by untraced drivers.
What is a Frontier Insurance Policy?
A short-term policy available at border points to cover vehicles entering a country without valid insurance.
