Chapter 6

Question 1

Is it possible to ensure against the consequences of been found guilty of a criminal wrong?

Answer 1

No. This could result in a fine for example. If it were possible to insure against being fined this will take away any element of punishment and remove the deterrent effect

Question 2

Civil law is concerned with the relationship between individuals. Where there is a breach of civil law, legal proceedings are taken by the effective party to what?

Answer 2

Obtain compensation for injury or damage caused them or their property
Seek an injunction to prevent or stop the breach of civil law
Recover property

Question 3

Can you give an example where civil and criminal law overlap

Answer 3

If the owner of a dangerous dog takes the dog into a public space without a muzzle (a criminal wrong under the dangers dogs act 1991) and that dog injured somebody they could also be sued under a civil wrong due to being negligent

Question 4

What are the two main sources of law?

Answer 4

Legislation (statute law)
Case law (judicial precedent)

Question 5

What is legislation?

Answer 5

Legislation is a law that has been created in a formal way by Parliament and Set down in writing

Question 6

What is case law?

Answer 6

This has been and remains the major source of English civil law. It is based on the system of binding precedent. Where the facts are the same the decision of the past Courts must be followed by present Courts

Question 7

What is the highest court on all points of law for all civil cases in the UK and all criminal cases in England Wales and Northern Ireland?

Answer 7

The Supreme Court

Question 8

The County Court are bound by the decisions of which Courts?

Answer 8

Supreme Court, Court of Appeal, High Court

Question 9

What is the definition of a contract?

Answer 9

An agreement enforceable by law between two or more persons to do, or abstain from doing, some act or acts, their intention being to create legal relations and not exchange mutual promises.

Question 10

Why does a household policy exclude liability arising from an agreement?

Answer 10

Liability that arises under the terms of agreement is an unknown exposure to insurers, without seeing the contract wording. Insurers may be prepared to extend cover in relation to a specific contract will want to see the contract first

Question 11

The law of torts, What is this?

Answer 11

A tort is a breach of a fixed duty that the law imposes on everybody. A tort is a civil wrong and a person who commits a tort is known as a tortfeasor

Question 12

The law of tort is made up of a number of subdivisions. What are these?

Answer 12

Nuisance
Strict liability
Statutory duty
Negligence
Tresspass
Defamation

Question 13

What is defamation?

Answer 13

This is a false statement made about a person which cause injury to that person’s reputation

Question 14

Which subdivision often gives the most rise to insurance claims?

Answer 14

Negligence

Question 15

What is negligence?

Answer 15

Negligence is a failure to take reasonable care in circumstances where the law demands that care should be taken and gives rise to a claim for damages by the person who suffers harm as a result

Question 16

For legal action in negligence to succeed the claimant must prove what?

Answer 16

A duty of care was owed by the defendant to the claimant
There was a breach of that duty by the defendant
The claimant suffered damage as a result

Question 17

What is the occupiers liability act 1957?

Answer 17

This act is concerned with liability to lawful visitors so those who have been expressly invited onto the premises

Question 18

What is the occupiers liability act 1984? And when does it apply?

Answer 18

This act is concerned with liability to other visitors i.e. tress passes and other uninvited entrants.
It only applies if the occupier is aware of the danger
If the occupy knows or has reasonable grounds to believe that the entrant is in the vicinity or may come into the vicinity of danger
The risk is one against which the occupier may reasonably be expected to offer the nonvisitors some protection

Question 19

What are the limitation time periods for the law of tort?

Answer 19

One year for Libel and slander
Three years for personal injuries
Six years for most other tort actions including property damage claims

Question 20

What are the limitation time period for law of contract?

Answer 20

Six years in an action on a simple contract
Three is where the claim is for personal injuries
12 years in an action bought on a specialty contract (deed)

Question 21

What is the FCA responsible for?

Answer 21

The FCA is responsible for setting conduct of business rules for all authorised firms including those that transact household insurance. They detail how firms must conduct their business on a day-to-day basis

Question 22

FCA treating customers fairly outcome 1 is what?

Answer 22

Consumers can be confident they are dealing with firms where the fair treatment of customers is central to corporate culture

Question 23

FCA treating customers fairly outcome 2 is what?

Answer 23

Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and a targeted accordingly

Question 24

FCA treating customers fairly outcome 3 is what?

Answer 24

Consumers are provided with clear information and a cat appropriately informed before during and after the point of sale

Question 25

FCA treating customers fairly outcome 4 is what?

Answer 25

Where consumers receive advice, the advice is suitable and takes account of their circumstances

Question 26

FCA treating customers fairly outcome 5 is what?

Answer 26

Consumers are provided with products that perform as firms have let them to expect and the associated service is of an acceptable standard as they have been led to expect

Question 27

FCA treating customers fairly outcome 6 is what?

Answer 27

Consumers do not face unreasonable post sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint

Question 28

What does ICOBS stand for?

Answer 28

Insurance conduct of business sourcebook

Question 29

What is ICOBS one

Answer 29

Application

This sets out the scope including whom the rules apply to what activities apply and where the rules apply

Question 30

What is ICOBs 2

Answer 30

General matters
Client categorisation whether they are a consumer or a commercial customer
This also deals with communication to clients financial promotions inducements recordkeeping and acting honestly fairly and professionally