Hard Qs Flashcards
The necessity for a Lloyd’s syndicate NOT to unreasonably reject a claim is a requirement of the…
FCA
An average adjuster is involved during which stage of the insurance business process?
Claims handling
When is an UWR is usually considered on risk?
At the inception date of the policy
If a non-consumer insured deliberately breached their duty of fair presentation, how much premium is the insurer legally required to return?
None
For Lloyd’s open years management, on which date does each new accounting year usually begin?
1st Jan
What type of intermediary must be included in the intermediary chain when a US insurance is being placed with a non-admitted Lloyd’s syndicate?
Surplus Lines Broker
How, if at all, can an insurer legally minimise its liability under the provisions of The Contracts (Rights of Third Parties) Act 1999?
An insurer can opt out of the Act
What is the operative clause in an insurance contract?
It specifies the perils insured against
To whom do the FCA’s Client Asset rules apply?
All clients
Which part of the policy contains details which are personal and specific to the policyholder?
The schedule
If the policyholder wants to cancel the policy outside of slip terms, who usually has to sign the document cancelling the policy?
All underwriters
What is the document that the leader has signed to confirm the cancellation of the policy?
Endorsement
Under the Senior Managers and Certification Regime, which document sets out the areas for which each senior manafer is personally accountable?
Statement of responsibilities
What is the main purpose of a broker’s security committee?
To approve underwriters that business can be placed with
What is the main benefit for capital providers of an insurer having a good portfolio management system?
Ensuring that long term financial objectives of the capital providers are met
For what main source is the financial backing for Lloyd’s syndicates obtained?
Corporate members
What can a broker do when client monies are held in a non-statutory trust account?
Pay premiums on the client’s behalf without first having received payment
If an insurer fails to handle policyholders’ claims promptly and fairly, this is a failure to comply with the…
FCA’s Insurance: Conduct of Business (ICOBS)
How does underinsurance usually affect claim payments under a property insurance policy?
The claim payment will be reduced in proportion to the amount of underinsurance
Which London Market insurer’s financial backing is provided by names and corporate members?
Lloyd’s syndicates
What are the 3 parts of a GUA?
1 - leader only
2 - leader + agreement parties
3 - all underwriters
