Cii Questions Flashcards
Why is the law of large number important with insurance
The greater the number of similar risks, the closers the actual outcome will be to the expected losses
What is the best description of the principle of pool risk
There losses of the few are met by the contributions of the many
Where an insurance policy is arrange on a collective basis the insured needs to be aware that
Each insurer is separately liable to the insured for thier proportion of any claim that become payable
Under the insurance distribution divertive an ancillary insurance intermediary
Distribution insurance even though its a principle activity is not insurance Distribution
What type of intermediary does not need to be authorised by the fca
An appointed representative
An independent insurance broker acts as the agent of the insurance company when
The broken has authority from the insurer to handle proposal forms and confirm cover
When arranging insurance what does the insurer need to do to comply with the principle of good faith
It can only introduce non standard terms if they are previously agreed
What action is an insurer most likely to take if an application form is completed recklessly and there is a subsequent related claim for a non consumer insurance
Terminate the insurance contract from inception, refuse the claim and retain all the premium paid
The principle of indemnity aims to
A maintain the insureds financial position
When a claim is made on an insurance policy, the insurer will seek establish all the possible cause of the loss before deciding whether the claim is valid. This is know as the principle of
Proximate cause
When do insurers use averaging for a claim
When a risk is under insured
Umder common law tort is the duty of everyone to
Act is a reasonable way toward others
Employees in great Britain must have Employees liability insurance with an indemnity limit of at least
£5 million
When the prudential regulation authority refers to judgement led regulation what is this referring to
Assessing the future risks of a firm
The fca strategic or overall objective is to
Make market work well
The supervision of small regulated firms by the fca will nor
Involve less direct contact then with a larger firms
If alvaro has been criminally prosecuted by the fca this is most likely to be because
He was advising on regulated insurance products without he’s business being authorised
For an insurers online marketing to comply with gdpr
People have to positively give their consent to opt in to marketing
For its members the cii code of ethics
Goes beyond legal and regulatory rules
Who in the first instance should a policyholder complain go if they believe that they were mis sold a regulated product
The authorised firm that provide the advice
What us the potential benefit of buying insurance via direct marketing from an insurance company
Premiums may be lower than would others ie be the case
Why is an insurance company most likely to use reinsurance
It allows them to manage the risk they are prepared to accept
Under fca rules the definition of an eligible complaint includes a
Consumer
A pure risk is where there is
A possibility of a loss or break even but not a gain
Insurance is based on the principle that the losses of the few are met by the contributions of the many. This depends on two main factors
Large numbers and equitable
An insured that buys reinsurance is known as the
Ceding office
The fca is able to prosecute an individual for
Misleading the regulator
Contribution will only apply if six criteria are met which is not one of these
Common policy conditions
The process of assessing risk and attempting to deal with risk it is called A risk measurement B risk Management C risk strategy D risk perception
B risk management
Why is risk management important
A. it is necessary in order to comply with armic risk management standards
B. It enables companies to protect themselves again the financial consequences of all risk
C.It reduces the potential for loss through identifying and managing hazard
D. It provides a process
C. It reduces the potential for loss through identifying and managing hazard
To protect themselves from an accumulated of risk in one area. Insurers can share the risk with A. A broker B. A reinsurer C. An intermediary D. An aggregator
B. Re insurer
To offer independent advice and engage in regulated activities an intermediary must have apply for direct authorition from the fca in which case they will then be known as A. An introducer representative B. An appointed representative C. An authorised person D. A designated professional
C. An authorised person
Which type of intermediary is tied to providing advice on the products provided by one or more particular insurer
A. An appointed representative
B. An independent intermediary
C. An introducer appointed representative
D. A lloyds browkr
A. An appointed representative
Re insurers is a method of transferring risk used by a A. Insurers B. Individual C. Corporate D. Public bodies
A. Insurers
Which of the following act did away with the requirements for a motor policyholder to return their certificate of motor insurance when cancelling their policy mid term A. Financial act 2015 B. Deregulation 2015 C. Insurance act 2015 D. Consumers right 2015
B. Deregulation act 2015
When a third party is unaware of the extent of am agent authority the law makes provision for A Express authority B. Actual authority C. Apparent authority D. Implied authority
C. Apparent authority
The duty to make fair presentation of the risk applies to A. General insurance B. All insurance contracts only C. Non consumer insurance contracts D. Consumer insurance contract
C. Non consumer insurance contract
Which type of property cannot be insured on a reinstatement basic A. A house B. A piece of machinery C. Retailers stock in trade D. A block of flats
C. Retailers stock in trade
How often do authorised companies need to report complaints to the fca A. Annually B. Monthly C. Twice a year D. Quarterly
C. Twice a year
Which of these is an example of a civil as opposed to a criminal or regulatory action for misconduct A. Withdrawal of approval B. Prosecution C. An injunction Dm cancellation of permissions
C. An injunction
