Brainscape's Knowledge GenomeTM

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


See full index

key points IF1 > IF1 KEY POINTS > Flashcards

IF1 KEY POINTS Flashcards

KEY POINTS

1
Q

People tend to be either Risk Seeking or Risk Averse

A

Risk averse dislikes risk and will seek to transfer risk

Risk seeking will have a relaxed attitude towards risk transfer

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

Categories of risk

A

Financial and non-financial

Pure and speculative

Particular and fundamental

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

Level of risk Frequency and severity

A

Frequency- how often something is going to happen

Severity- how bad something is going to be

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

Level of risk Frequency and severity

A

High frequency and low severity example: Car crashes

Low frequency and high severity example: Oil rig exploding

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

Co-insurance?

A

Multiple insurers insuring the same risk each taking a portion of the risk and a portion of the premium

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

Dual insurance?

A

Two or more insurers covering the same risk for example a camera being covered by home insurance and travel insurance

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

Self-insurance?

A

A company carries the risk themselves by self-funding

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

Structure of the insurance market

A

Private individuals

Partnerships

Companies

Public bodies

Associations and clubs

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

A proprietary company is owned by

A

shareholders

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

A mutual company is owned by its?

A

Policy holders

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

A captive company is owned by

A

owned by a non-insurance company with sole aim of insuring themselves

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

Reinsurance is?

A

Insurance for insurance companies

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

The purpose of reinsurance is

A

To smooth peaks and troughs in the claims experience

  • To protect the portfolio (the balance sheet)
  • To provide improved customer service
  • To provide support for insurers entering new areas of business.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

ABI stands for?

A

Association of British Insurers

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

IUA

A

International Underwriting Association of London

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

BIBA

A

British Insurance Brokers Association

17
Q

A Loss Adjuster is appointed by the?

A

insurer

18
Q

A loss assessor is appointed by the ?

A

insured

19
Q

MIB stands for?

A

Motor insurers Bereau

20
Q

Agency by consent

A

most common type of agency both parties enter agency by agreement

21
Q

Agency by ratification

A

ratification is where the agent acts on the principals behalf without their prior consent but the principal agrees to the contract after the event

22
Q

Agency by necessity

A

this agency occurs when a person is trusted with someone else’s good and it becomes necessary to act in a certain way in order to preserve the property in an emergency

23
Q

For marine insurance insurable interst must be present at

A, Time of loss
B, Inception
C, Both

A

A Time of loss

24
Q

In life assurance insurable interest must be present at

A, Time of loss
B, Inception
C, Both

A

B, Inception

25
Q

In general insurance insurable interest must be present at?

A, Time of loss
B, Inception
C, Both

A

C, Both

26
Q

Indemnity is?

A

Financial compensation sufficient to place the insured in the same financial position after a loss as they enjoyed immediately before the loss occurred

27
Q

Methods of indemnity are?

A

Cash payment

  • Repair
  • Replacement
  • Reinstatement
28
Q

What is an Agreed value policy?

A

Value of subject matter of the insurance is agreed at the start of the contract.

29
Q

Contribution is

A

The right of an insurer to call upon others similarly, but not necessarily equally, liable to the same insured to share the cost of an indemnity payment.

30
Q

Subrogation is

A

The right of an insurer, following payment of a claim, to take over the insureds right to recover payment from a third party responsible for the loss. It is limited to the amount paid out under the policy.

Subrogation rights may arise in the three following ways:

  • Tort
  • Contract
  • Statute
31
Q

Compulsory insurances are?

A

Employers liability

  • Motor insurance
  • Public liability and riding establishment
  • Liability insurance – dangerous animals and dogs
  • Professional indemnity
32
Q

ICOBS 1 relates to?

A

Applications

33
Q

ICOBS 2 relates to?

A

General matters

34
Q

ICOBS 3 relates to?

A

Distance communications

35
Q

ICOBS stands for?

A

Insurance conduct of business source book (ICOBS)

36
Q

FSCS stands for?

A

Financial Services Compensation Scheme

37
Q

FOS stands for?

A

Financial Ombudsman Service

key points IF1 (1 decks)

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