CII IF6 Chapter 7 Flashcards
The general information gathered by insurers when assessing a household risk includes:
a. the ownership of the property.
b. the age of the property.
c. the risk address.
d. previous convictions.
previous convictions.
The specific information gathered by insurers when assessing a household risk includes:
a. the insurance history.
b. the insured’s name.
c. previous claims.
d. the ownership of the property.
the ownership of the property.
How is the premium for a caravan policy usually calculated?
a. By applying a rate to the sleeping capacity of the caravan.
b. By applying a rate to the value of the contents of the caravan, excluding clothing and personal effects.
c. By applying a rate to the length of the caravan.
d. By applying a rate to the total value of the caravan and its contents.
By applying a rate to the total value of the caravan and its contents.
What is the typical discount for purchasing household insurance over the internet?
a. 5%.
b. 15%.
c. 20%.
d. 10%.
20%
Who prepares the House Rebuilding Cost Index that is used to index-link the buildings sum insured under a household policy?
a. The Office for National Statistics.
b. The Financial Ombudsman Service.
c. The Association of British Insurers.
d. The Royal Institution of Chartered Surveyors.
The Royal Institution of Chartered Surveyors.
Before buying household insurance over the internet, Stefan is asked to confirm that he is able to comply with a list of assumptions about the risk to be insured. This list is known as a[n]:
a. terms of business agreement.
b. eligibility statement.
c. Statement of fact.
d. statement of demands and needs.
eligibility statement
If a house is unoccupied for three months, insurers are most likely to restrict the cover on a household policy to the perils of:
a. fire, lightning, explosion and escape of water only.
b. fire, lightning, explosion and flood only.
c. fire, lightning, explosion and earthquake only.
d. fire, lightning, earthquake and storm only.
fire, lightning, explosion and earthquake only.
When settling a claim on a household policy that is arranged on a new for old basis, a deduction will be made for wear and tear with:
a. clothing and household linen.
b. home entertainment equipment.
c. business equipment.
d. consumer electrical goods.
clothing and household linen.
The insurance definition of ‘standard construction’ includes:
a. concrete walls.
b. timber walls.
c. thatched roofs.
d. clay walls.
concrete walls.
Under the Consumer Insurance [Disclosure and Representations] Act 2012, the factors used to determine whether a misrepresentation by a consumer was honest and reasonable include:
a. whether the policy was bought online.
b. the method of premium payment.
c. the size of claim.
d. the type of insurance policy.
the type of insurance policy.
What long standing insurance principle was abolished by the Consumer Insurance [Disclosure and Representations] Act 2012?
a. The need for insurers to disclose relevant information to a consumer before the contract is entered into.
b. The need for consumers to volunteer information that a reasonable underwriter would consider relevant.
c. The principle of proximate cause.
d. The principle of indemnity.
The need for consumers to volunteer information that a reasonable underwriter would consider relevant.
A burst pipe damages a sofa that was purchased for £1,000 two years ago; a new replacement is £1,200 and a second hand one would cost £500. A leather jacket was also damaged that originally cost £150; a new replacement is £175 and an equivalent second hand one would cost £75. If the insurers agree they will need replacing under a new for old household contents policy, how much are insurers liable to pay, ignoring any excess?
a. £1,375.
b. £1,275.
c. £1,150.
d. £575.
£1,275.
How do insurers typically verify the accuracy of the claims history provided by a proposer for household insurance?
a. Checking the Claims and Underwriting Exchange database.
b. Using data matching software.
c. Looking on the Association of British Insurers website.
d. Asking previous insurers.
Checking the Claims and Underwriting Exchange database.
What document is sent to the insured to finalise the renewal of a household policy after payment has been made by credit card?
a. A direct debit mandate.
b. A renewal schedule.
c. A renewal notice.
d. A certificate of insurance.
A renewal schedule.
When arranging pet insurance, if the insured discloses that the animal has a history of illness, what additional documentation will be requested by insurers?
a. A confirmed claims experience from the previous insurer.
b. A waiver of liability statement.
c. An inoculation record.
d. A veterinary certificate.
A veterinary certificate
