Chapter 8 Flashcards
How long are packaged policies normally issued for
A) 18 months
B) 12 months
C) 48 months
B) 12 months
What does the ICOBS in the FCA handbook specify that customers should be given appropriate info in
A) 30 days
B) good time
C) 21 days
B) good time and in a comprehensible form
When is the renewal notice sent
A) well before the current contract expires
B) promptly
A) well before the current contract expires
Regarding renewal when is the pre contractual duty of disclosure under the IA 15 revived
A) when payment is made
B) when renewal of the policy involved faking out a new contract for a further 12 months
B) when renewal of the policy involved faking out a new contract for a further 12 months
Is the below insurers cancellation rights or insureds cancellation rights
The confusion will normally state that the insurer has to send a letter to the last known address of the insured giving 30 days notice of the cancellation
Insurers
What is the below in
The renewal date of the policy
The renewal premium payable
Any amendments focused insured caused by index linking
Any changes to the policy cover or excesses
A reminder to the insured of their duty to disclose any material information
Guidance on how to renew the policy
A) renewal notice
B) policy schedule
A) renewal notice
What 2 reasons are for insurers be keen to encourage renewal of policies starting with the costs associated with renewing a policy are less than acquiring new business
2- the more stable the database of existing clients, the more reliable the statistical info for whole portfolio
What three things would an insured need to notify insurers about starting with a change of address
2- change in business activities
3- an increase in the value of stock
Is the below insurers cancellation rights or insureds cancellation rights
The period of notice of cancellation runs from the date of the issue by the letter of the insurers
Insurers
What 4 things must a customer be told if there is a right to cancel starting with
The duration of the cancellation period (14 days)
The conditions for exercising the right to cancel
- The consequences of not exercising the right to cancel
- How the right to cancel may be exercised
Under the FCA rules what information must be disclosed when a firm sends a renewal notice is concerned with consumer or commercial customers
Consumers
The level of info required will vary according to better such as:
The knowledge, experience and ability of a typical customer of a policy
The policy terms
The overall complexity
Whether the policy is bought in connection with other goods and services
Whether the same info has been provided to the customer previously
Is the below insurers cancellation rights or insureds cancellation rights
The period of notice is not standard, the cancellation condition may require 7, 10 or 14 days notice instead.
Letters are normally sent by recorded delivery
Insurers
Is the below insurers cancellation rights or insureds cancellation rights
They may invoke the cancellation condition if info comes to light which makes insurers question the moral hazard
Insurers
What will be issued for each MTA
A) cover note
B) revised schedule or numbered endorsement
B) revised schedule or numbered endorsement
