CII IF1 Chapter 2 Flashcards
Within the Lloyd’s market, what is the role of a managing agent?
It manages the underwriting of one or more syndicates.
Under the Insurance Distribution Directive, an ancillary insurance intermediary does what?
distributes insurance even though its principal activity is not insurance distribution.
What 5 components is the insurance market made up of?
CIRIB!
Comparison Websites
Intermediaries
Re-Insurers
Insurers
Buyers
What are the 5 types of buyers of insurance? (A C ollective 3 P’s)
Associations and clubs
Companies
Private Individuals
Partnerships
Public Bodies
What is the PRA
Prudential Regulation Authority
A reinsurer will typically accept business from a[n] what?
insurance company.
What is an insurer that buys reinsurance known as?
ceding office.
Saki has a complex claim on her insurance policy that will require expert negotiation. Who is she most likely to use to assist her?
A loss assessor.
Within the insurance industry, price comparison websites are known as what?
aggregators
Legal expenses and business interruption are both examples of what type of insurance?
Pecuniary
In legal terms, what is the name of someone who is authorised by one party to arrange a contractual relationship with another.
An Agent (Think travel agent)
What is an aggregator?
A group of independent agencies that band together to combine premiums, giving its members the scale and advantages that are usually only available to the largest agencies.
What is an example of a packaged insurance policy?
Shopkeepers’ insurance.
Between which two parties must ‘contract certainty’ exist in the London Market?
The insured and insurer
What best describes the main type of insurance risks dealt with in the London Market?
Complex or large worldwide risks.
What does a loss adjustor do?
process more complex claims from start to finish on behalf of the insurer.
Which regulator ensures that UK insurance companies have adequate solvency levels?
PRA
Which organisation represents worldwide insurance and reinsurance companies that operate through London?
International Underwriting Association of London.
Retroceding is the process of:
reinsurers transferring some of their risks to other reinsurers.
Which role has responsibility for ensuring that an insurance company abides by the rules and regulations set down by the regulator?
Compliance oversight function.
An intermediary that provides advice but does NOT need to be directly authorised by the UK regulator is a[n]:
appointed representative
Who historically provided the financial backing for the Lloyd’s market?
Lloyd’s Names.
Within a claim which person negotiates and works for the policyholder and solely for their benefit?
Loss Assessor
How does an insured who buys insurance via direct marketing from an insurance company potentially benefit?
They may get lower premiums
What is Bancassurance
an arrangement between a bank and an insurance company whereby insurance products are sold to the banks customers
What are the 3 main types of reinsurer?
Specialist Insurance Companies that do not transact direct insurance business
Lloyds Syndicates
Insurance companies that also act as reinsurers
Who are actuaries?
Professionally qualified persons who apply probability and statistical theory to problems of insurance, investment, financial and risk management.
What do internal auditors do?
They monitor and evaluate how well risks are being managed, how well the business is being governed and internal process working.
What is the LMA and what do they do?
Lloyds Market Association. They provide representation, information and technical services to underwriting businesses. Their main purpose is to identify and resolve issues.
What is the LMRC
London Market Regional Committee
What is the IUA (Of London) and what do they do
International Underwriting authority of London. They look to drive modernisation with digitisation and automation, deliver knowledge and expertise for innovating underwriting and claims handling.
Which authorised body is dedicated to actuaries and provides manuals for actuarial practice along with issuing guidance?
Institute and Faculty of Actuaries
Give examples of Commercial property insurance…
Perils and “all risks” policies
Engineering / breakdown
Glass
Livestock
Money
What does Pecuniary mean?
Relating to money. (legal expenses, credit, business interruption, Fidelity Guarantee)
What are the 3 main things marine insurance covers?
Hull, Cargo and Freight.
Within the Lloyd’s market, risks are placed by means of a what?
A Market Reform Contract
A surgery requires insurance to protect against professional negligence claims. Who are they most likely to arrange this with?
A specialist insurer
An independent Intermediary is placing business for their clients, her services are unlikely to include what?
Actions on behalf of the insurer
