Chapter 5

Question 1

Claims profile

Answer 1

Advises should try to obtain details of a scheme’s loss ratio over each of the last three years

Question 2

Corporate purchasers

Answer 2

Company purchasing insurance for its employees

Question 3

Direct sales force

Answer 3

Specialist sales team selling only their products

Question 4

Distribution channels

Answer 4

Where private medical insurance is sold to give a balance of benefits and costs

Question 5

Funding requirements

Answer 5

Future inflationary and cost containment influences

Question 6

Independent financial advisers

Answer 6

Specialise in giving financial advice

Question 7

Intermediated sales

Answer 7

Sales from intermediaries

Question 8

Medical history

Answer 8

Assessed upfront to identify whether they have any recent history of a medical condition that could require treatment in the future

Question 9

Retail Distribution Review

Answer 9

Aims to ensure financial products and services delivered to clients are clear, transparent and meet their needs

Question 10

Risk

Answer 10

Chance of something bad happening

Question 11

Terms and conditions

Answer 11

Providers have a role and responsibility to ensure they provide written terms and conditions for their policies once they have accepted the risk

Question 12

Underwriting

Answer 12

Process by which an insurer assesses the risk posed by a proposer