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IF3 > Chapter 5 > Flashcards

Chapter 5 Flashcards

1
Q

What did the road traffic act of 1988 make illegal?

A

To drive without insurance - it made vehicle insurance compulsory by law on any pubic access road.

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2
Q

What are the 4 levels of motor cover?

A
  1. Road traffic act only
  2. Third party only
  3. Third party, fire and theft
  4. Comprehensive
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3
Q

What is the lowest level of motor cover legally required?

A

Road traffic act only

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4
Q

How much indemnity does road traffic only cover give to third parties for bodily injury and death?

A

Unlimited cover.

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5
Q

How much indemnity does road traffic only cover give for loss of third party property?

A

£1.2 million

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6
Q

What are the terms of the European Union Third Directive?

A

Cars used in the EU must provide the minimum cover required in the country the vehicle is registered or the minimum cover required for the country in which it is being used.

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7
Q

What level of indemnity does third party only motor cover provide for third party property damage?

A

£20 million

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8
Q

What extra covers does third party, fire and theft have over third party only cover?

A

It includes the cost to cover the vehicle if it is stolen, damaged during an attempted theft or damaged by fire/explosives.

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9
Q

What is the highest level of motor cover?

A

Comprehensive

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10
Q

What are some typical exclusions under comprehensive motor cover? (Name 2)

A

Wear and tear, depreciation in value, loss of use, mechanical failure and tyre damage.

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11
Q

What are some typical extensions included in comprehensive cover (without additional charge) that makes it different from TPFT cover. (Name 2)

A

Personal accident, medical expenses, personal effects and ‘drive other vehicles extension.’

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12
Q

What are some optional extensions available in motor for an AP? (Name 2)

A

Breakage of glass, courtesy car, forgien use beyond standard EU cover given as standard, breakdown cover, caravans/trailers and legal expenses.

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13
Q

What are some general exclusions you might find in motor? (Name 2)

A

Not driving if you’ve been disqualified from driving, not driving if you don’t have a license, riot, war and sonic bangs.

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14
Q

Does motor cycle insurance give you the same level of cover as car insurance?

A

Yes

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15
Q

What is a common difference between motor cycle and car insurance?

A

Often in motor cycle cover, theft of accessories is excluded and medical expenses / personal effects cover is excluded.

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16
Q

What are the 4 main types of commercial vehicles?

A
  1. Goods carrying
  2. Agricultural and forestry
  3. Passenger carrying
  4. Special construction vehicles (special types)
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17
Q

What is an example of a special types vehicle? (Name 1)

A

Ambulances, cranes, forklift trucks, earth movers.

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18
Q

What are the main covers excluded in commercial motor?

A

Driving other cars, personal effects and personal accident.

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19
Q

In commercial motor, what is the TPPD limit of indemnity?

A

Between £1.2- £5 million

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20
Q

In commercial motor, what is the limit of indemnity for death?

A

Unlimited

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21
Q

In commercial motor can anymore drive the car and does it have to be owned by the company?

A

Normally with the insureds permission (age depending) and not necessarily as hire cars are common.

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22
Q

Do commercial vehicles only have to be used at work?

A

Not usually - they often will allow use for social, domestic and pleasure.

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23
Q

Why might employers add cover for windscreens and personal belongings for haulage drivers?

A

Because commercial windscreens can be expensive and haulage drivers often spend many days on the road so are more likely to carry valuables/personal effects.

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24
Q

What is a sheets extension for?

A

It can cover tarpaulins or ropes often used on large open sided lorries. - these can be valuable if they have marketing printed on them.

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25
Q

What is fleet insurance?

A

A group of commercial vehicles under a single insurance policy.

26
Q

How many vehicles are needed to be considered a fleet?

A

10 or more.

27
Q

What is a mini fleet?

A

A policies which covers around 5 vehicles.

28
Q

What is one advantage of a fleet insurance policy?

A

It reduces administration for the policy holder and insurers.

29
Q

What are the main 3 types of health insurance?

A

Personal accident, sickness cover and medical expenses.

30
Q

What is a benefit policy?

A

An agreement to pay a sum of money in the event of a defined loss occurring - often not a financial loss.

31
Q

Can a PA policy be taken out for a group and why might an employers need financial loss cover included in a benefit policy?

A

Yes.

Sometimes, employers have to pay the deceased family a sum, they have to do more training and recruitment for new members and may have lost vital skills in their team.

32
Q

What age range do benefit policies typically operate?

A

16-65

33
Q

What are the 6 mains benefits paid out by a health insurance policy?

A
  1. Death
  2. Loss of limbs
  3. Permanent total disablement
  4. Permanent partial disablement
  5. Temporary total disablement
  6. Temporary partial disablement
34
Q

Name 2 add ons for sickness cover.

A

Disappearance, recuperating and hospital benefits (expenses for hospital travel for family members)

35
Q

Name 2 standard exclusions for sickness cover.

A

Being affected by alcohol, pregnancy, suicide, STIs, HIV, pre-existing conditions, accidents whilst racing / doing winter sports.

36
Q

In the UK, what is medical expenses cover for?

A

Those who seek private treatment, outside the NHS.

37
Q

What 3 things does medical expenses usually cover?

A
  1. Hospital charges
  2. Specialist fees
  3. Additional costs like ambulance fees
38
Q

What does buildings insurance mean/cover?

A

Anything you would normally leave behind when you move house.

39
Q

Name 3 perils that are usually covered under buildings insurance?

A

Flood, escape of water, theft, impact, subsidence, riot, fire etc…

40
Q

What does contents insurance cover?

A

Household goods and personal effects.

41
Q

What is typically excluded in contents cover?

A

Theft and accidental damage

42
Q

Can valuable items be noted in contents insurance?

A

Yes but they usually have different limits and excesses.

43
Q

Name 2 unusual items that may be excluded in contents insurance.

A

Stamps, livestock, coins, medals.

44
Q

In contents insurance, would an ´all risks’ policy cover personal possessions outside a property.

A

Yes.

45
Q

What is the difference between specified and non specified items?

A

Specified items are those which exceed single article limits (are high value) and to which special terms apply e.g. jewellery, furs. Unspecified is everything else not specifically named.

46
Q

What does the money and credit card extension in contents insurance cover? And why is it good extension to have.

A

Cash, cheques, stamps, premium bonds, vouchers, travel tickets, cash cards, theft and fraudulent use of credit cards.

It covers a gap as money and stamps is usually excluded.

47
Q

Cover for bicycles is often an optional extension in contents cover. What does this cover typically exclude? (Name 1)

A
  • loss of accessories
  • theft whilst unattended and not secured
  • use of racing
48
Q

What unusual white goods item can be insured?

A

Freezer contents.

49
Q

What is a small craft?

A

A vessel not exceeding 23 ft and design speeds not over 17 knots.

50
Q

What optional extension might you buy if you wanted to insure your skis?

A

Sports equipment cover.

51
Q

Can horses, cats and dogs be covered under contents insurance?

A

Weirdly, yes, they can.

52
Q

What is the typical limit of liability for legal expenses under buildings/contents insurance?

A

£50,000

53
Q

What led the insurance industry to set up the ABI?

A

In the UK 1 in 6 homes was considered to be at significant risk of flooding.

54
Q

What is Flood RE?

A

A reinsurance company, funded by levy’s to help fund flood cover. It was set up by insurers and the government to ensure affordable flood cover was accessible to all.

55
Q

What is the total annual levy for Flood RE?

A

£135 million

56
Q

What do insurers use to judge how much to charge a high risk property, to make sure flood cover is affordable for everyone?

A

Council tax bands.

57
Q

What 2 types of properties will Flood RE not cover?

A
  1. Businesses
  2. Properties built after 1 January 2009
58
Q

When does the Flood RE scheme expire?

A

2039.

59
Q

Name 3 things a travel insurance policy might cover and when is it effective.

A

Medical expenses, personal accident, baggage, delayed baggage, travel delay, personal liability, loss of passport, legal expenses, travel interruption.

Specific times - usually whilst travelling or commuting.

60
Q

What is an extended warranty?

A

A guarantee or promise that provides free repairs or replacement if an item breaks within a certain period of time.

IF3 (11 decks)

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