Chapter 7

Question 1

Why have premium rate phone numbers been prohibited?

Answer 1

Following the implementation of the Consumer Rights Act 2015
FCA has confirmed it is adopting a similar approach for insurers and other financial services

Question 2

When are authorised repairers most commonly used?

Answer 2

Motor insurance

Question 3

What can risk management be defined as?

Answer 3

The identification, analysis and economic control of those risks which can threaten the assets or earning capacity of an enterprise

Question 4

What is the upside of a risk?

Answer 4

Relates to the failure to maximise opportunities

Question 5

What is the downside of a risk?

Answer 5

Discovering what threats already exist and what potential threats exist in the future

Question 6

Are increased insurance premiums due to loss of NCD recoverable as an uninsured loss?

Answer 6

No - where the insurer, having met the own damage claim, reduces the insureds NCD but subsequently makes a full recovery of its outlay, the insured will be reimbursed the increased premium due to the initial loss of NCD

Question 7

What is a legal expenses policy?

Answer 7

Usually purchased in conjunction with a motor policy. They provide indemnity for legal expenses in pursuing an uninsured loss claim where reasonable prospects of success exist

Question 8

What rules are put in place by the Consumer Rights Act 215 regarding add-ons?

Answer 8

Any ancillary products and services offered at point of sale must be affirmed positively by the customer, rather than sold assumptively or without it being clear that a choice exists not to take the cover
These policies must be cancelled in the event that the main policy is cancelled

Question 9

What do claims management companies do?

Answer 9

They pursue claims for personal injury, acting as intermediaries between claimants and the companies being claimed against