Chapter 7 Flashcards by Jodie Collins

Is a policy contract of insurance in itself

No it is evidence of the contract

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What 5 things do policy contain starting with the details of cover

The period of cover
The premium
Policy exceptions and conditions
Any special terms which apply

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What is the standard policy wording contained in

A) the policy wording
B) in a pre printed booklet, and a schedule is incorporated at the end of the policy

B) in a pre printed booklet, and a schedule is incorporated at the end of the policy

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When does the contract of insurance comes into effect

A) one the insurer has accepted the insurance proposal, terms have been agreed and the policyholder has agreed to pay the premium
B) once the premium has been paid

A) one the insurer has accepted the insurance proposal, terms have been agreed and the policyholder has agreed to pay the premium

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Who has issued a code of good practice which includes device standards for issuing insurance documents within good time

A) FCA
B) ABI

B) ABI

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What do the ABI define promptly as

A) within 30 working days
B) within 30 calendar days

B) within 30 calendar days

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What does narrative type mean:

A) when there was a policyholder who was the narrative

B) each individual policy was prepared by hand and was specific to the insured concerned

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Under FCA rules for commercial customers when must policy document be issued

A) 21 days
B) promptly

B) promptly

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What are most policies issued in

A) scheduled forms
B) narrative type

A) scheduled form

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What does the policy schedule contain

A) warranties and exclusions
B) variable info and usually signifies which sections of the policy are operative

B) variable info and usually signifies which sections of the policy are operative

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What is the below:

Includes the name and address of the insurer, the type of policy and in some cases the company logo

Heading,
Recital clause,
Signature
Operative clauses

Heading

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Is the below a condition or a warranty

Subrogation
Gives the insurer the right of subrogation before payment of any claim is made

Condition

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What is the below:

Coming together to form the contract in which the insured has paid or agreed to pay the premium and the insurer undertakes to indemnify the insured in accordance with the cover detailed in the policy

Heading,
Recital clause,
Signature
Operative clauses

Recital clause

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What is the below:

Under the recital clause is pre printed on the document

Heading,
Recital clause,
Signature
Operative clauses

Signature

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What is the below:

Insurers are increasingly committed to simplifying policy wording and many have restyled their language

Heading,
Recital clause,
Signature
Operative clauses

Operative clauses

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What is the below:

In addition to those exclusions specifically stated in the operative clauses which apply to specific sections of cover they also contain exclusions which apply to the entire contract

A) exceptions
B) conditions
C) policy schedule
D) info and facilities

A) exceptions

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What is the below:

First are implied and the second express

A) exceptions
B) conditions
C) policy schedule
D) info and facilities

B) conditions

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Is the below an implied or express conditions

Insured must act as it uninsured
Insured may be required to advise the appropriate authorities
Insured must take reasonable action
Insured must not hinder the insurers in the investigation of a claim

Implied

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Of which of these are included on booklet policies m

Insured define a single word or phrase to embrace the wider wording

A) definitions
B) customer service standards statement
C) complaints procedures

A) definitions

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Of which of these are included on booklet policies

The details what the insured may expect in respect of the Service provided. And will include details of any helplines and contact telephone numbers

A) definitions
B) customer service standards statement
C) complaints procedures

B) customer service standards statement

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Of which of these are included on booklet policies

This will detail the procedures to be followed and the circumstances to be referred to the Financial Ombudsman.

A) definitions
B) customer service standards statement
C) complaints procedures

C) complaints procedures

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What makes the policy personal and specific to the insured

A) schedule
B) preamble

A) schedule

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What is the below:

Or preamble sets the scene for what follows In the policy. It refers to the two parties coming together to form the contract

Heading,
Recital clause,
Signature
Operative clauses

Recital clause

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What 10 things are included on a schedule starting with

Insureds name

Insured address

Policy period

Premium

Details of the subject matter

Sums insured

Territorial limits

Policy number

Reference to special exclusions

Operative sections of the policy

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What do most general insurance policies contain which apply to sections of the policy A) specific exclusions B) general exclusions

A) specific exclusions

Is the below a condition or a warranty Contribution The insured is obliged to claim proportionately from each insurer

Condition

Policies contain exclusions which apply to the entire contract known as A) specific exclusions B) general exclusions

B) general exclusions

What is known when an exclusion is known to all general insurance policies A) general exclusions B) market exclusions

B) market exclusions

Is the below an exclusion Radioactive contamination and explosive nuclear assemblies

Yes but cover can be provided by a system or market pools which insurers and reinsured accept a share of the risk

Is the below an exclusion Electronic risk

Yes but newly excluded

Loss of data and loss, destruction of damage unauthorised access to or use of computer equipment are excluded under what A) sonic bangs B) electronic risk

B) electronic risk

Is the below a condition or a warranty Action by the insured in the event of a claim Sets out procedures including timescales

Conditions

Is the below an exclusion Pollution and or contamination

Yes but can be included on property damage but not liability

Is the below an exclusion Sonic bangs

Yes

What must or just not be done for cover to be valid A) warranties B) conditions

B) conditions

Is the below a condition or a warranty Duties of the policyholder The insurer must observe and fulfil all the terms of the policy for cover to be valid

Conditions

Is the below an implied or express conditions Those stated in the policy. In practice they include many of the otherwise implied conditions which are stated in order to clarify matters for the insured

Express conditions

Is the below a condition or a warranty Fair presentation of the risk Highlights insureds responsibility under the IA 2915 to make a fair presentation of the risk

Condition

Is the below an exclusion War and related perils

Yes as it’s regarded to be the responsibility of the state

Is the below a condition or a warranty Fraud This is concerned only with claims. Entitled the insurer to avoid the policy as a whole

Condition

If the type of loss is irrelevant to the claim due to something other than a breach of warranty can insurers decline the claim

Under the fraud condition if the insurer finds that a claim is fraudulent what happens A) they can reject the claim and any payments made in relation to the fraudulent claim are recoverable from the insured B) they can’t reject the claim and any payments made in relation to the fraudulent claim are recoverable from the insured

A) they can reject the claim and any payments made in relation to the fraudulent claim are recoverable from the insured

Under the fraud condition if the insurer finds that a claim is fraudulent what happens A) the insurer has the option to terminate the contract but only from the date at which it became fraudulent. The option of avoidance has been removed. B) if the insurer chose to terminate the contract they can refuse liability for all matters occurring after the date and don’t have to return any premiums paid

Both

Under the fraud condition if the insurer finds that a claim is fraudulent what happens to legitimate losses prior to the fraudulent act A

They are protected

Is the below a condition or a warranty Reasonable precautions Formalised the implied condition

Condition

Is the below an implied or express conditions Exist whether or not they appear in the policy

Implied

What is the below: Describe the scope of the cover in detail. It is the heart of the policy. Often contain exceptions that are specific to each individual clause Heading, Recital clause, Signature Operative clauses

Operative clauses

Is the below a condition or a warranty Average

Condition

Is the below a condition or a warranty A promise made by the insured relating to facts or performance concerning the risk

Warranty

What is a certificate of insurance A) evidence that a context of insurance exists B) proof of documentation

A) evidence that a context of insurance exists

Is the below a condition or a warranty Arbitration

Condition

Is the below a condition or a warranty Cancellation

Condition

Is the below a condition or a warranty Continuing conditions precedent

Conditions

Is the below a condition or a warranty Alteration Insured must notify the insurer of any changes that increase the risk

Condition

Is the below a condition or a warranty Something will or will not be done and A certain fact exists or does not exist

Warranty

What is a continuing warranty

warranty that may relate to past or present facts in which the insured promises that a state of affairs will continue or exist or the insured will continue to do something.

What constitutes a breach of warranty A) non payment of premium B) non compliance

B) non compliance

What does it mean by warranties being suspensive conditions A)payments aren’t made for claims until conditions are met B) a breach of warranty merely suspends the insured liability under the policy. Insurer won’t be liable for losses occurring while the insured is in the breach of warranty

B) a breach of warranty merely suspends the insured liability under the policy. Insurer won’t be liable for losses occurring while the insured is in the breach of warranty

What is the below These are conditions that must be fulfilled prior to the formation of the context itself. Implied conditions such as insurable and interest are these A) conditions precedent to the contract B) continuing conditions precedent C) conditions prevent to liability

A) conditions precedent to the contract

Which three matters will render a policy void immediately starting with an illegal contract

2 no insurable interest | 3 a fundamental mistake

What is the below A deliberate misstatement the insurer can choose to avoid the policy A) conditions precedent to the contract B) continuing conditions precedent C) conditions prevent to liability

A) conditions precedent to the contract

What is the below Conditions that are ongoing and require complaisance through the policy period A) conditions precedent to the contract B) continuing conditions precedent C) conditions prevent to liability

B) continuing conditions precedent

Is the below a condition or a warranty Must be strictly and literally complied with for cover to be valid

Warranty

Which is the below Would include the alteration condition and the conditions which insurers incorporate into the policy wordings A) conditions precedent to the contract B) continuing conditions precedent C) conditions prevent to liability

Continuing conditions precedent

What 5 things must be on an EL cert starting with name of policyholder

2- date of commencement of cover 3- expiry date 4- a statement that cover complied with UK statutory requirements 5- statement that the minimum amount of cover provided by the policy is no less than £5m

What is the below: A breach of such a condition entitled the insurer to avoid the whole contract from the date of the breach A) conditions precedent to the contract B) continuing conditions precedent C) conditions prevent to liability

Continuing conditions precedent

What is the below: Conditions that just be complied with it there is to be a valid claim. They include conditions which are often listed as the claims conditions A) conditions precedent to the contract B) continuing conditions precedent C) conditions precedent to liability

Conditions precedent to liability

Under FCA rules unless fraud is involved insurer should not repudiate liability to indemnify on the grounds of a breach of a condition A) conditions precedent to the contract B) continuing conditions precedent C) conditions precedent to liability

C) conditions precedent to liability

What is the below: Must be strictly and literally complied with Suspend cover if breached and relevant to a loss incurred are written into the policy A) warranties B) conditions C) exclusions D) representations

Warranits

What is the below: If this is not observed, insurers may avoid liability for a particular loss but they may not repudiate the contract as a whole A) conditions precedent to the contract B) continuing conditions precedent C) conditions precedent to liability

C) conditions precedent tocliability

What is the below Some implied conditions are so fundamental they affect the whole validity of the policy and render it void if breached Other conditions prevents to the contract such as mid statement entirely the insurer to avoid the policy st its option A) warranties B) conditions C) exclusions D) representations

B) conditions

what is the below A breach of a continuing precedent entities the insurer to avoid the whole contract from the date of the breach Breach of a condition precedent to liability entitled the insurer to avoid the particular claim A) warranties B) conditions C) exclusions D) representations

B) conditions

What is the below Used to defund the boundaries of policy cover Allow repudiation if claims circumstance indicate that the exclusion applies Require the insurer to prove that the exclusion applies Will always appear in the policy A) warranties B) conditions C) exclusions D) representations

Exclusions

What is the below Not part of the policy Must relate to a martial circumstance If incorrect allow the insurer to repudiate ab initito Doesn’t appear in the policy itself A) warranties B) conditions C) exclusions D) representations

D) representations