Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

IF1 Study > IF1 Full > Flashcards

IF1 Full Flashcards

1
Q

Insurance is a mechanism for:
A. Risk Management

B. Risk Measurement

C. Risk Transfer

D. Risk Control

A

Risk Transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Risk Management is a legal requirement for:
A. Companies on the stock market

B. Private customers

C. High net work individuals

D. Mortgagees

A

Companies on the stock market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A building survey by insurers is a method of:
A. Risk Identification

B. Risk Analysis

C. Risk Control

D. Risk Management

A

Risk Identification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The most effective method of risk control is:
A. Financial control measures

B. Elimination

C. Reduction

D. Physical control measures

A

Elimination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Insurance is classified as:
A. A physical control measure

B. A risk removal method

C. Financial control measures

D. Risk prevention method

A

A financial control measure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Betting on the Grand national is:
A. A pure risk

B. A speculative risk

C. A fundamental risk

D. A particular risk

A

A speculative risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which of these risks is insurable:
A. A fundamental risk

B. A speculative risk

C. A pure risk

D. A non-financial risk

A

A pure risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

For a risk to be insurable it must be:
A. Fortuitous

B. Non- fortuitous

C. Inevitably

D. Deliberate

A

Fortuitous

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

An excess is a form of:
A. Self insurance

B. Dual insurance

C. Co-insurance

D. Re-insurance

A

Co-insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which of the following may be exempt from buying compulsory insurance:
A. Private individuals

B. Public bodies

C. Partnerships

D. Companies

A

Public bodies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A company wishing to transact insurance business must be authorised to do so by?

A

The PRA (Prudential Regulation Authority)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What type of insurance provider is owned by shareholders:
A. A proprietary company

B. Lloyd’s

C. A mutual company

D. A captive company

A

A proprietary company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

ABC Insurance offer motor, fire and marine insurance cover, how would it be defined:
A. A reinsurance company

B. A mutual company

C. A composite company

D. A specialist company

A

A composite company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which of these accepts risk on behalf of a syndicate in the Lloyd’s market:
A. A broker

B. An underwriter

C. An insurer

D. A managing agent

A

An underwriter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How can a non-Lloyd’s broker transact business in the Lloyd’s market:
A. Via an umbrella agreement

B. Via a sub-broker

C. After complying with Lloyd’s code of conduct

D. Either directly or via a Lloyd’s broker

A

Either directly or via Lloyd’s broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Andy’s motor garage hands out leaflets for super motor car insurance but they don’t offer advice on the products. Therefore they are:
A. A principal

B. An introducer appointed representative

C. An authorised person

D. An appointed representative

A

An introducer appointed representative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the main activity of a consolidator?

A

To acquire brokerage firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

An internet site that collects a set of quotations from a number of different provider is called?

A

An aggregator

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Arranging insurance on a single known risk is called?

A

Facultative re-insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

When a reinsurer transfers a risk to another insurer it is called?

A

Retroceding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The practice of following a principle set down in a previous case is called?

A

Judicial precedent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the legal term for when a contract has the essential elements missing and is declared invalid from the beginning?

A

Void ab Initio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What case law established the principle that a valid contract is formed at the point of postage?

A. Household fire insurance company V Grant (1879)

B. Currie V Misa (1875)

C. Hyde V Wrench (1840)

D. Castellain V Preston (1833)

A

Household fire insurance company V Grant (1879)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How many days is the insured allowed to cancel payment protection insurance without a penalty?

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Callum’s car is destroyed by a fire, his insurance policy is terminated as the subject matter no longer exists, this is called?

A

Fulfilment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

When a person entrusts another with their goods and they need to protect it, this is agency by?
A. Necessity

B. Consent

C. Ratification

D. Authority

A

Necessity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The most usual way of creating agency by a legally enforceable contract is called?

A

Agency by consent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Which of these is the duty of a principal to an agent:
A. Obedience

B. Remuneration

C. Accountability

D. Due care and skill

A

Remuneration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

When an agent has a TOBA with a principal, this is called:
A. Express authority

B. Apparent authority

C. Implied authority

D. Agency authority

A

Express authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Paul has insurance on his car, the car is:
A. The subject matter of the insurance

B. The subject matter of the contract

C. His financial interest

D. The insurers insurable interest

A

The subject matter of the insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What principle of insurance includes the features of subject matter, legal relationship and financial value?

A

Insurable interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

In general insurance. What case illustrates the principle that an expectation of acquiring insurable interest at some time in the future may not create an insurable interest:
A. Currie V Misa (1875)

B. Hyde V Wrench (1840)

C. Lucena V Craufurd (1806)

D. Castellian V Preston (1883)

A

Lucena V Craufurd (1806)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

When buying a an insurance policy for a car when must the insurable interest exist?

A

At inception of the policy.

At the start

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What case established the principle of utmost good faith?

A

Rozanes V Bowen (1928)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What body issues the Statement of General Insurance Practice for those acting in a private capacity in cases of non-deliberate mistakes of disclosure?

A

The ABI (Association of British Insurers)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

In the Carter V Boehm (1766) case, how did the judge argue an underwriter would act if an insured did not disclose a material fact?

A

Estimate the risk as it does not exist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

When do insurers apply the doctrine of proximate cause?

A

If there is a chain of events leading to a loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

The proximate cause of a loss is always:

A. An insured peril

B. The dominant cause

C. The first cause

D. A named hazard

A

The dominant cause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

The policy condition where the insurer makes an automatic allowance for uplift is to the sum insured declared at the policy inception and the policyholder pays a premium based on a modest increase is called?
A. Reinstatement memorandum

B. Day one reinstatement

A

Day One reinstatement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Manufacturers’ stock in trade insurance includes indemnity for raw materials and specifically?

A

Labour costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What principle did the King and Queen Granaries case establish?

A

That both policies most cover a common interest in the subject matter.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What case defined the relationship between subrogation and indemnity?
A. Lister V Romford Ice and Cold Storage Ltd (1957)

B. Yorkshire Insurance Co. V Nisbet Shipping (1961)

C. Castellian V Preston (1883)

D. North British Mercantile V Liverpool and London and Globe (1877)

A

Castellian V Preston (1883)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Under common law, if a neighbour damages your property you can pursue compensation under:
A. Tort

B. Statute

C. Contract

D. Subrogation

A

Tort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Under the terms of the Riot (Damages) (Amendment) Regulations 2011, insurers may have rights of recovery against the police for riot damage within how many days of the riot?

A

42 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What is the standard market limit of indemnity for Employers liability insurance?

A

£10 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What amount does the FCA state must be held by insurance intermediaries for professional indemnity insurance?

A

£1 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What is the minimum amount required for employers liability insurance?

A

£5 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

What act is the grey list associated with?

A

Consumer Rights act 2015

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What does the term privity of a contact mean?

A

Only a person that is party to the contract can enforce it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Which body is responsible for the stability and resolvability of systematically important financial instructions?

A

The PRA (Prudential Regulation Authority)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

As well as the the prudential regulation of small firms, what other regulatory role does the FCA have?
A. Regulation of conduct

B. Regulation of performance

C. Regulation of ethics

D. Regulation of profit

A

Regulation of conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Who may carry out a controlled function in a regulated firm?

A. Approved person

B. Controlled person

C. Authorised person

D. Delegated person

A

An approved person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

To gain authorisation from the PRA to transact business in the EU, a company must be operated by:
A. Fit and proper persons

B. Diligent persons

C. Competent persons

D. Controlled persons

A

Fit and proper persons

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Which two bodies must include their annual reports an account of how they have coordinated during the year?

A

The FCA and PRA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Under ICOBS, how long is the cooling-off period for a retail customer for most general insurance contracts?

A

14 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Which body is primarily concerned with serious crime prevention and the recovery of the proceeds of crime?

A

The NCA (National Crime Agency)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

What are the 3 stages of money laundering?

A

Placement
Layering
Intergration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

The process of creating a series of transactions to conceal the origin of money is called:
A. Concealment

B. Legitimising

C. Layering

D. Integration

A

Layering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Which act made it a specific criminal offence to fail to disclose that someone else is engaged in money laundering?

A

The proceeds of crime act 2002

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Which act makes it a criminal offence to tip off a person suspected of money laundering?

A

The criminal justice act 1993

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

For how long must client verification records be kept?

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

For firms advising on insurance, how long does the FCA require that records of training and competence are kept for?

A

3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Which one of the CII’s five central principles in its code of ethics focuses specifically on equality and diversity?

A

Treating people fairly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

What percentage of level of claim or unused premium is protected by the FSCS for non-compulsory insurance compensation?

A

90%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

What is the time limit within which the FCA expects that a complaint will be resolved?

A

8 weeks

66
Q

What is the cooling off period for short term contracts (less than 1 month)?

A

There isn’t one

67
Q

What are the main components of risk?

A

Uncertainty
Level of risk
Peril and Hazard

68
Q

What type of risk has the possibility of loss, gain and breaking even?

A

A speculative risk

69
Q

In terms of frequency and severity, an explosion on an oil rig is classed as?

A

Low frequency, high severity

70
Q

A hazard is defined as?

A

Something that can adversely affect the risk to be insured.

71
Q

In relation to insurance, what is a peril?

A

An event that may give rise to a loss.

72
Q

When does dual insurance exist?

A

When more than 1 policy covers the same risk.

73
Q

What type of insurance policy provides cover in the event of the misappropriation of goods by an employee?

A

A Fidelity Guarantee insurance policy

74
Q

What are public limited companies who underwrite business within the Lloyd’s market otherwise known as?

A

Corporate members

75
Q

What does the Institute and Faculty of Actuaries do?

A

Provides financial and statistical theories to management, including suggesting premium rating and the calculation of a company’s financial status.

76
Q

Who receives the surplus of funds in a mutual insurer?

A

The policyholders.

77
Q

Who will employ a loss assessor?

A

A policyholder or insured

78
Q

Who would employ a loss adjuster?

A

The insurer.

79
Q

Out of the below list, which insurer does not provide insurance to the general public?
A. A captive insurer

B. A mutual insurer

C. A proprietary insurer

D. A composite insurer

A

A captive insurer

80
Q

P & I Clubs (protection and indemnity) within the London market underwrite which class of insurance?

A

Marine insurance.

81
Q

If a principle agrees to be bound by the actions of an agent who acted outside the terms of agreement, what type of agency has been created?
A. Agency by consent

B. Agency by necessity

C. Agency by ratification

D. Agency by apparent authority

A

Agency by ratification

82
Q

What are the 3 essential components of a valid contract of insurance?

A

Offer, acceptance and consideration

83
Q

The ICOBS (Insurance Conduct of Business sourcebook) is issued and regulated by who?

A

The FCA

84
Q

What financial indicator does the PRA monitor to determine the continued viability of an insurer?

A

The solvency margin.

85
Q

The PRA’s principles for Businesses states that a firm must maintain financial resources that are…?
A. Good

B. Adequate

C. Surplus

D. Accurate

A

Adequate

86
Q

What is current rate for IPT (insurance premium tax) for travel insurance?

A

20%

87
Q

When money laundering has been validated by the firm’s MLRO (money laundering reporting officer), who does the MLRO report it to?

A

The NCA (National Crime Agency)

88
Q

What act is this principle from? “To empower authorities to confiscate funds where it is believed that such funds have been obtained unlawfully”

A

The Proceeds of Crime act 2002

89
Q

How long do private individuals/policyholders have to refer their complaint to the FOS (financial ombudsman service)?

A

Six months.

90
Q

What are the main elements covered in the Chartered Insurance Institute’s Code of Ethics relating to provision of a high standard of service?

A. Accuracy, Transparency, sustainability

B. Accuracy, Transparency, suitability

C. Accuracy, Transparency, Cost effective

D. Accuracy, Transparency, competence

A

Accuracy
Transparency
Suitability

91
Q

Is a fundamental risk insurable or non-insurable?

A

Non-insurable

92
Q

What type of risk would a local flood be classified as?

A

A particular risk

93
Q

Pecuniary insurance relates too:
A. Money

B. Liability

C. Theft

D. Property

A

Money

94
Q

What type of liability do policyholders in mutual companies usually have?

A

Liability that is limited by guarantee.

95
Q

In the Lloyd’s market, a broker will approach each underwriter and ask them to sign to accept an agreed percentage of the risk. What is this called?

A. Writing a line

B. Scratching a slip

C. Xchanging

D. Brokerage

A

Scratching a slip.

96
Q

What organisation represents the international wholesale and re-insurance companies in the London Market?
A. LMBC

B. LUC

C. IUA

D. Lloyd’s

A

IUA

97
Q

What is the agreement between an insurer and intermediary that deals with the contractual relationship called?

A

TOBA (Terms of Business Agreement)

98
Q

What type of agency is it when a principal accepts the contract formed by an agent, where they have not been given authority?

A. Agency by necessity

B. Agency by consent

C. Agency by ratification

D. Agency by authority

A

Agency by ratification.

99
Q

What type of authority does the law make provisions for when a third party is unaware of the extent of an agents authority?

A

Apparent authority.

100
Q

What did the Carter V Boehm case (1766) explain?

A

The duty of disclosure in insurance contracts.

101
Q

What is the legal term for the requirement of an insurer to state that they have invoked their right to cancel a policy?

A

Estoppel

102
Q

The doctrine of proximate cause can be modified by:
A. Underwriters

B. The policyholder

C. Claims history

D. Policy wordings

A

Policy wordings

103
Q

What is the policy condition called where the sum insured must be at least 85% of the full value of the item at reinstatement and the insured pays a premium based on this?

A. Reinstatement memorandum

B. Day one reinstatement

A

The reinstatement memorandum

104
Q

What is it called when the sum insured is less than the full value of the property as it is unlikely that it will all be lost in one incident?

A

First loss

105
Q

What two things must insurance policies have in common for contribution to exist?

A

Common peril and subject matter

106
Q

What is the main advantage to the insured of market agreements between insurers?
A. Reduction in claim assessment time

B. Less administration

C. Avoidance of litigation

D. Reduction in premiums

A

Reduction in premiums

107
Q

In the Yorkshire Insurance Company V Nisbet Shipping company, who was entitled to the extra money that was recovered?

A

The insured.

108
Q

In contract, how can an insured waive their rights and their insurer’s rights to pursue a third party for damages?
A. Market agreement

B. Hold harmless clause

C. Contribution waiver

D. Subrogation waiver

A

Hold harmless clause

109
Q

What is the agreement called between insurers and local authorities regarding damages to buildings by impact of a motor vehicle?

A

An immobile property agreement

110
Q

For how long does an employer need to retain employer’s liability certificates for?

A

40 years

111
Q

Who does the FSA answer to for the way it carries out its responsibilities?

A

The treasury

112
Q

Which of these is NOT a type of financial crime the FSA focuses on?
A. Tax evasion

B. Money laundering

C. Fraud/dishonesty

D. Criminal market misconduct

A

Tax evasion

113
Q

Under the SYSC principle in the FSA handbook, what kind of officer does the FSA have to appoint?

A

A MLRO (Money Laundering Reporting Officer)

114
Q

What act made it a criminal offence is to launder gains from other crimes?

A

The Criminal Justice act 1993

115
Q

How long must complaint files be retained from the date of complaint?

A

3 years

116
Q

What act removed the requirement for a motor policyholder to return their certificate of motor insurance when cancelling their policy mid-term?

A

Deregulation act 2015

117
Q

What insurance principle was summarised in the Roazanes V Bowen (1928) case?

A

Utmost good faith

118
Q

What do the Insurance Conduct of Business Rules relate to?
A. Life assurance

B. Pensions

C. Investments

D. General insurance

A

General insurance

119
Q

Which body is the lead regulator for Lloyd’s?

A

The PRA (Prudential Regulation Authority)

120
Q

As well as consumer protection and competition, which of these is a strategic objective of the FCA?
A. Challenge

B. Profitability

C. Integrity

D. Mitigation of risk

A

Integrity

121
Q

What type of customers may the FCA use its product intervention powers on?

A

Retail customers

122
Q

Which body is the FCA accountable to?

A

The UK Government

123
Q

What is the maximum financial award the FOS can make?

A

£150,000

124
Q

A person who wishes to minimise risk is termed:
A. Risk seeking

B. Predictable

C. Unpredictable

D. Risk averse

A

Risk averse

125
Q

Which type of insurance company is increasingly owned by large and international companies?

A

A captive insurance company.

126
Q

The practise of assigning shares in a risk to different Lloyd’s syndicates is called:
A. Brokerage

B. Xchanging

C. Scratching a slip

D. Writing a line

A

Writing a line

127
Q

In the Lloyd’s market, what kind of liability does a corporate member have?

A

Limited liability

128
Q

In the Lloyd’s market, what kind of liability does a ‘name’ have?

A

They are liable for their share of the loss up to the full extent of their personal fortune.

129
Q

Insurers can give intermediaries delegated authority to act on their behalf. Delegates authority schemes are also known as what?

A

Binders

130
Q

What is cedant?

A

An insurer who buys re-insurance cover.

131
Q

Insurers arrange facilities to enable them to place risks within agreed criteria. These arrangements are called what?

A

Treaties

132
Q

What is the major trade association many insurance intermediaries belong to?

A

BIBA

133
Q

What type of conviction does NOT need to be disclosed to an insurer?

A

A spent conviction

134
Q

What principle did Lister V Romford Ice and Cold Storage Ltd (1957) establish?

A

That insurers cannot pursue employees of their insured for recovery of damages paid to other insurers employees that have been negligently injured.

135
Q

What do the eleven principles (PRIN) in the FCA handbook relate to?

A. Ethics

B. Good business practice

C. Competition

A

Good business practise

136
Q

What type of resources do the threshold conditions specifically relate to?

A

Financial and non-financial resources

137
Q

What is the amount by which assets must be exceed liabilities called?

A

The solvency margin

138
Q

Describe what the RMAR is?

A

It provides a framework for the collection of information required by the FCA as a basis for its supervisor activities.

139
Q

What is the purpose of a Firm Systematic Framework (FSF)?

A

To assess a firm’s conduct risk.

140
Q

What body is able to review and react to super complaints submitted by consumer groups?

A

The FCA

141
Q

In what section of the FCA handbook would you find regulatory rules and guidance relating to prevention and detection of money laundering?
A. SIMR

B. PRIN

C. COND

D. SYSC

A

SYSC

142
Q

What was the effect on SOCA and NCA when the Crime and Courts Act 2013 came in?

A

SOCA’s and NCA’s operations were merged.

143
Q

What is the maximum penalty that can be imposed under the Money Laundering Regulations act 2007?

A

A fine plus imprisonment of up to 2 years.

144
Q

Into which of the FCA’s risk categories do smaller firms, including most intermediaries, fall?
A. C1

B. C4

C. C2

D. C3

A

C4

145
Q

What is a homogeneous exposure?

A

A sufficient large number of similar risks which enable the insurer to forecast future losses, correct premiums etc…

146
Q

What is a specialist insurer?

A

An insurer that only offers one type of insurance.

147
Q

What is Xchanging?

A

When a Lloyd’s slip is fully placed (100% of the risk signed off), the policy will be then prepared and signed. The organisation that carries out the functions is called Xchanging.

148
Q

When must insurable interest exist for general insurance policies?

A

At both inception and the time of claim.

149
Q

When must insurable interest exist for marine insurance policies?

A

At the time of claim but not necessarily at the time of inception.

150
Q

When must insurable interest exist for life assurance polices?

A

At inception but not at the time of claim.

151
Q

What was established in the Hyde v Wrench (1840) case law?

A

Relates to conditional acceptance and that if a counter offer is given it is seen as a rejection to the original offer.

152
Q

What does the Kettlewell V Refuge Assurance Company (1909) establish?

A

The insurer’s duty of disclosure. Ensuring that they don’t mislead about the cover, notify the insured of premium discount and only taking risks and they are registered to take.

153
Q

What did the Leyland Shipping V Norwich Union Fire Insurance Society (1918) case state?

A

Related to proximate cause.

“Causation is not a chain but a net.”

154
Q

In this case, plates were insured in a shop, the next shop sets on fire, people gather, then riot and smash the plates, it was found the riot was the cause.
What case is this?

A

Marsden V City & County Insurance company (1865)

155
Q

What did the Oei V Foster (1982) case set out?

A

That the policy wording can be modified to include or exclude a claim.

156
Q

What is the standard rate for IPT (Insurance Premium Tax)?

A

12%

157
Q

What are the 3 elements of Risk Assessment Framework?

A

Impact
Risk
Mitigating factors

157
Q

What are the FCA’s 3 operational objectives?

A

Consumer protection

Integrity

Competition

158
Q

What is AIRMIC related to?

A. Risk Control

B. Risk Management

C. Risk Elimination

D. Risk transfer

A

Risk Management

159
Q

Is a pure risk insurable or un-insurable?

A

Insurable

IF1 Study (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions