Brainscape's Knowledge GenomeTM

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


See full index

CII > IF1.9 Legal and Regulatory > Flashcards

IF1.9 Legal and Regulatory Flashcards

1
Q

Compulsory Insurance for Private Individuals

A

-Third Party motor insurance
- public liability in respect to the ownership of dangerous wild animals and/or dangerous dogs

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

Compulsory Insurance for Professions and businesses

A
  • Motor Insurance
  • Employers Liability
  • Public Liability (specific trades and professions)
  • Professional Indemnity Insurance (for specific professions)
  • Marine pollution liability & liability for operators of nuclear reactors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why are some insurances compulsory

A
  • To provide funds for compensation
  • In response to national concerns
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Road Traffic Act 1988

A

It is illegal to use a vehicle on a public road unless an insurance policy is in force, covering third-party property damage and third-party bodily injury or death.

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

Dangerous Dogs Act1991
Dangerous Wild Animals Act 1976

A

Makes it compulsory to have liability insurance if you own one of the listed animals (nature and scope is not detailed)

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

How does a dangerous dog owner know the scope of the insurance they must purchase?

A

The local authority which issues the appropriate license will state the adequacy of the insurance.

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

Employers Liability Act 1969

A

Compulsory for the employers in great Britain to have employers liability insurance. With minimum limit of indemnity £5m.

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

What does employers liability insurance cover?

A

compensation for employees who sustain bodily injury or disease, arising out of and in the course of their employment.

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

Riding Establishments act 1970

A

Made is compulsory for such establishments to have public liability insurance. (covers anyone riding the horse or any member of the public effected by the horse)

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

Professional Indemnity (PI) Insurance

A

Insurance that provides indemnity for financial loss suffered by a third party due to professional negligence.

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

Solicitors Act 1974

A

States that solicitors must hold PI insurance which will indemnify the solicitor against claims for financial loss suffered by clients as a result of the solicitors professional negligence.

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

Do insurance intermediaries need PI?

A

Yes. Any Insurance intermediary authorised by the FCA must have PI to cover financial loss suffered by a third party caused by their professional negligence. Must have a minimum level.

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

Minimum level of PI cover for insurance intermediaries

A

1.3 million euros according to the Insurance Distribution Directive (IDD)

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

Do (introducer) appointed representatives need PI covers?

A

No

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

Reasons for needed Professional Indemnity Insurance in the UK

A
  • the rising cost of legal services
  • retrospective legislation may cause people to claim against you
  • decisions maybe made against you
  • it’s the law
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

privity of contract

A

a person can only enforce a contract if they are a party to it

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

Contracts Rights of Third Parties Act 1999

A

focusses on the privity of contract concept and sets out the circumstances in which a third party will have a right to enforce a term of the contract.
doesn’t apply to insurance contracts.

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

Third Parties Rights against insurers act 2010

A

protects insurance proceeds from the effects on insolvency.

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

Insolvent

A

When a company is unable to pay their debts

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

Prudential Regulation Authority (PRA)

A

An authority in the bank of england that regulates systemically important firms.
Supervises and where necessary intervenes to prevent firms failures effecting the entire financial system.

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

Financial Conduct Authority (FCA)

A

A separate independent regulator responsible for
- conduct of business and market issues for all firms
- prudential regulation of small firms, like insurance brokerages and financial advisory firms.

Proactively reviews and analyses potential problems and products.

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

Financial Policy Commitee (FPC)

A

A committee within the bank of england responsible for monitoring emerging risks to the financial system as a whole and providing strategic direction for the entire regulatory regime.

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

Bank of England and financial Services Act 2016

A

Puts the bank of england at the heart of the UK financial stability by strengthening the Banks governance.

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

Who does the FCA monitor

A

All financial services companies

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

Who doe the PRA monitor

A

Financial service companies which are so large they w2ill effect the whole of the UK if they fail

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

systemically important firm

A

firms that pose a risk to the financial system if they fail.

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

Objectives of the Prudential Regulation Authority (PRA)

A
  1. to promote the safety and soundness of the firms it regulates
  2. ensure policyholders are appropriately protected
    (3. facilitate effective competition)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Threshold conditions

A

minimum requirements that firms have to meet in order to be permitted to carry on regulated actitivies

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

High level Threshold Conditions of the PRA

A
  • firms head office must be in the UK
  • firm must have appropriate financial and non-financial resources (conduct business in a prudent manner)
  • firm has to be fit and properly staffed
  • capable of being properly supervised.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is the PRAs approach to supervision focussed on?

A

judgement based
forward looking
key risks

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

PRAs framework approach to risk assessments

A

Impact
- consider the potential impact on policyholders
- how does the firm affect the wider financial system if it fails.
Mitigation
- risk mitigation by the firm
- financial strength (reserves, capital and liquidity)
- resolvability of the firm

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

What are the numbers for the PRAs risk assessment categories

A

1 - greatest risk
5 - least risk

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

How does the PRA monitor firms

A

the intensity if dependent on the risk assessment category.
Also smaller firms will require less monitoring.
All firms face a base line monitoring

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

Basline of monitoring for the PRA

A
  • ensuring compliance with standard
  • liquidity, asset valuation, provisioning and reserving
  • annual (at least) review of risks posed by the firm
  • examining individual firms when a risk appears
  • assess the firms planned recovery actions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Proactive Intervention Framework (PIF)

A

Judgements about the firms proximity to failure comes from the impact assessments. The PIF has 5 stages which reflect this proximity to failure.
If a firm moves up a stage supervisors will review their actions accordingly.

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

Objectives of the FCA

A
  • Protect consumers from bad conduct
  • protect and enhance the integrity of the UK financial system
  • promote effective competition in the interest of consumers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Overarching strategic objective of the FCA

A

make sure the relevant markets function well

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

definiton of Integrity

A

Doing the right thing

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

How does the FCA differ from the PRA in its actions?

A

It is more proactive and intervenes at an earlier stage to pre-empt and prevent widespread harm to consumers.

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

Super-Complaint

A

Detailed submissions by groups of consumers

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

What is the FCAs competition objective?

A

promote effective competition in the interests of consumers i.e. allow consumers to get fair priced products which reflects their needs

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

What is the FCAs approach to regulation?

A
  • Proactive product governance
  • Reviewing super complaints
  • Promoting Competition
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

FCA supervisor teams

A

large organisations will have supervisor teams
small organisations will be supervised as part of a portfolio

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

8 core principles which guide the FCAs supervisory work

A
  1. forward-looking
  2. focus on firm strategy & business models
  3. focus on culture and governance
  4. focus on individual & firm accountability
  5. proportionate and risk-based
  6. T-way communication
  7. Coordinated
  8. putting right systemic harm that has occurred and stop it happening again
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Three types of work in the FCAs supervision model

A
  1. Proactive
  2. Reactive
  3. Thematic
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

proactive supervision

A

pre-emptive identification of harm through review and assessment of firms and portfolios

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

Reactive supervision

A

dealing with issues that are emerging or have happened, to prevent harm from growing

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

Thematic supervision

A

wider diagnostic or remedy work where there is actual or potential harm across a number of firms

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

Powers of the FCA

A
  • they can stop misleading promotions
  • ban retail products
  • vary the permissions granted to firms
  • disclose that enforcement against a firm has commenced
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

What is publication of enforcement action FCA intervention

A

The FCA can pursue cases against individuals (inc senior management) and can publish the fact that a warning notice has been issued

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

When can the FCA withdraw authorisation?

A

If they are not complying with guidelines

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

How often does the FCA report to Government and Parliment?

A

Annually

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

Principles for Business (PRIN) Integrity

A

A firm must conduct its business wholly and honestly

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

Principles for Business (PRIN) Skill, care and diligence

A

A firm must make sure its employees are training and careful in their actions

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

Principles for Business (PRIN) Management and Control

A

A firm must take reasonable care to organise and control its actions responsibly and effectively and with adequate risk management.

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

Principles for Business (PRIN) Financial Prudence

A

A firm must maintain financial resources (make sure the pool is big enough)

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

Principles for Business (PRIN) Market conduct

A

Observe proper standards of market conduct (price products fairly)

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

Principles for Business (PRIN) Customers Interest

A

can’t hide anything and must be accessible to all customers

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

Principles for Business (PRIN) Conflicts of interest

A

Mange conflicts of interest fairly

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

example of a conflict of interest in insurance

A

when insurance companies insure both parties

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

Principles for Business (PRIN) relationships of trust

A

give suitable advice

62
Q

Principles for Business (PRIN) clients assets

A

protect clients assets

63
Q

Principles for Business (PRIN) relations with regulators

A

be open and cooperative and disclose anything appropriately

64
Q

Fair treatment of customers principle in the FCA

A

The FCA expects all firms to embed the fair treatment of customers principle in their corporate strategy and build it into their firms culture and day to day operations.

65
Q

What is in the fair treatment of customers lifecyle

A

product design and governance -> identifying target markets -> marketing and promoting -> sales and advice processes -> after-sales information -> complaints handling ->

66
Q

What are the 6 positive consumer outcomes that the FCA expects companies to obtain

A
  1. consumers can be confident they are dealing with firms where their fair treatment is important
  2. products and services are designed to meet the needs of individual groups
  3. consumers are provided with clear information before, during and after sales
  4. advice to consumers is suitable
  5. products provided perform as they should
  6. consumers do not face post sales barriers
67
Q

define vulnerable customers

A

someone who is susceptible to detriment e.g. someone who’s had a family member die, or someone who has a disability.

68
Q

Why is ethical behaviour important for customer service

A

Customers should have confidence that they are dealing with people who are putting their interests first, not because they have to but because they believe its the right thing to do.

69
Q

It is important not to discriminate agaisnt:

A

age, disability, gender reassignment, marriage, pregnancy, race, religion, sex & sexual orientation.

70
Q

Overarching Cross-cutting rules of consumer duty

A

firms should:
- avoid causing foreseeable harm
- enable customers to pursue their financial objectives
- act in good faith towards customers

71
Q

Four outcomes for the key elements of the firm-consumer relationship in the Consumer principle

A
  1. communications
  2. products and services
  3. Customer Service
  4. Price and Value
72
Q

What is the Senior Management arrangements, systems and controls (SYSC)?

A

its a section in the FCA handbook

73
Q

What do the threshold conditions that must be met to become and maintain being authorised by the FCA relate to?

A
  • legal status
  • location of offices
  • close links of the company
  • adequacy of resources
  • suitability to be authorised.
74
Q

What is the Senior Mangers and Certification Regime (SM&CR)

A

A new regime as a result of solvency II that gives a new framework for individual accountability
- Statement of responsibilities
- senior managers must be approved by the regulators

75
Q

Senior Manger Regime (SMR)

A

Roles which are senior have specific rules made by the PRA and FCA, anybody applying for a senior role must have approval.

76
Q

head of key business area

A

Appointing separate senior managers for large sections of firms

77
Q

If an individual is not a senior manager but is in a role that could cause significant damage to the firm then…

A

A certification regime must be carried out on them.

78
Q

The fit and porper test (FIT) for employees and senior managers

A

employees must be tested with regard
- honesty, integrity and reputation
- competence and capability
- financial soundness

79
Q

Public Interest Disclosure Act 1998 (PIDA)

A

protects whistle-blowers from their employers (provide it was in good faith)

80
Q

Whistle Blowing (making a qualifies disclosure)

A

the public allegation of a firms concealed misconduct usually by someone within the organisation

81
Q

key themes the FCA promotes for ESG

A
  • promotion of global standards for sustainability reporting
  • improved transparency of performance on diversity and inclusion matters
82
Q

capital adequacy

A

The adequate amount of capital a firm needs to hold

83
Q

Public censure (Disciplinary action)

A

if a firm has failed to meet a requirement imposed on it under the financial services act 2012, it may issue a public statement of misconduct on the approved person

84
Q

Financial Penalities (Disciplinary action)

A

A fine will be issued depending on the seriousness of the offence and the extent that the misconduct was deliberate.

(e.g. profit/loss, resource level of person, disciplinary record, conduct of the firm following the event, compliance history)

85
Q

Which misconducts may result in prosecution for criminal offences

A
  • carrying out regulated activity without authorisation
  • failing to comply, deliberately giving false information or misleading to investigators/auditors/authorised persons
86
Q

what civil and less formal remedies are there (Disciplinary action)

A
  • withdrawal of approval and authorisation
  • cancellation of permission
  • restricting certain individuals
  • restitution
87
Q

Injunction meaning

A

restraining a person from beginning or continuing a task

88
Q

Restitution meaning

A

restoring something

89
Q

What does capital provide?

A

A buffer to absorb unexpected loss

90
Q

Define solvency Margin

A

The amount by which assets must exceed liabilities

91
Q

Solvency II

A

requires capital adequacy and risk management for insurers with the aim of increasing protection for policy holders.
1. financial requirements (make sure there enough funds)
2. governance and supervision
3. reporting and disclosure

92
Q

Pillar 1 of Solvency II

A

Financial requirements
Solvency Capital requirement/Minimal capital requirement: assets will cover liabilities for the next year

93
Q

Pillar 2 of Solvency II

A

Governance and supervision
own Risk and Solvency Assessment - a set of processes and procedures that are used to identify, assess, monitor, manage and report the short and long term risks a insurance company may face.

94
Q

Pillar 3 of Solvency II

A

Reporting and Disclosure
Solvency and Financial Condition Report (SFCR) PUBLIC
Regulator Supervisory Report (RSR) PRIVATE

95
Q

Quantative Reports for solvency II

A

Balance Sheets
Premium, claims & expenses
Own fund
Variation Analysis
SCR and MCR
assets
technical provisions
reinsurance
group recording

96
Q

Qualitative Reports for solvency II

A

Business and performance
system of governance
risk profile
valuation for solvency purposes
capital management

97
Q

When can the FCA and PRA intervene?

A

if companies are failing to comply with requirements OR a company has drifting significantly from their business plan

98
Q

Powers of the PRA

A
  • restrict income
  • more frequent account submitting
  • require more information
  • no new business
  • restore its capital position
  • wind up the company
99
Q

Retail Mediation Activities return (RMAR)

A

FCA monitoring of firms online
(inc detail on, accounting info, capital, PI insurance, Threshold conditions met?, training and competence, conduct of business data, product sales data, income to calculate fees for the FCA)

100
Q

Which complaints do the FCA collect information on?

A

all ocmplaints

101
Q

Conduct of Business Sourcebook (ICOBS)

A

rulebook for sales and admin processes.
- promotions must be clear fair and not misleading
- records must be kept to demonstrate compliance with the rules

102
Q

What type of customer provides more detailed protection?

A

Consumers

103
Q

Distance Marketing Directive

A

consumers who have entered through a distance sale e.g. over the internet are protected information is clear.

103
Q

What information should be clearly disclosed to customers about an insurance contract.

A
  • price
  • law applicable
  • complaints handling procedures
  • head office address of insurer
  • cancellation provisions
104
Q

Guaranteed Asset Protection (GAP) Insurance

A

covers the difference in price of new to old if you’ve just bought a ew item (the value will drop considerably)

105
Q

when do cancellation polices not apply?

A

for insurance less than a month or if the contract has fufilled

106
Q

Enterprise act 2016

A

Insurers must pay insureds claims within reasonable time

107
Q

Insurance Distribution Directive

A

Consumer protection provisions
- distributors must act with integrity
- distributors must communicate clearly
- Remuneration must not conflict with the duty to act in the customers best interests

108
Q

Define Money Laundering

A

The process by which criminals and terrorists convert money that has been obtained illegally into legitimate fund

109
Q

What are the 3 stands to the legal rules that apply to money landering

A
  • specific laws
  • Money laundering regulations
  • regulatory rules
110
Q

define placement

A

The process of putting cash into the financial system and coverting it into other financial assets

111
Q

define Layering

A

concealing the origins of money by creating a series of complex transactions.

112
Q

define integration

A

When the criminal finally gets access to the money.

113
Q

criminal Justice Act 1993

A

Makes it a criminal offence to launder gains from other crimes. Also its a criminal offence to conceal, collude, not report and tip off money launderers.

114
Q

Proceeds of crime act 2002 (POCA)

A

it is an offence to
-conceal money laundering
- possess illegal money
- fail to disclose someone else money laundering.
It also set up an Assets recovery Agency to recover the proceeds of criminal acitivity.

115
Q

Serious crime Act

A

Builds on POCA to strengthen asset recovery.

116
Q

Money Laundering Regulations 1993

A

requires firms to create and maintain systems to prevent and control money laundering and for there to be effective training in place.

117
Q

Money Laundering Regulations 2017

A

Covers the following areas:
Customer due diligence - verifying the customer
Polices and procedures - monitoring & risk assessing
registration with the FCA
Enforcement - gives the FCA the right to enter and inspect premises and take copies of relevant documents.

118
Q

Financial crime

A

Fraud, dishonesty, misconduct or misuse of information relating to a financial market or handling the proceeds of crime.

119
Q

Money Laundering Reporting Officer (MLRO)

A

A director or sernior manager to establish and maintain effective anti-money laundering systems and controls.

120
Q

What is the Money Laundering Reporting Officer (MLRO) expected?

A
  • to be based in the UK
  • have level of authority within the firm
  • sufficient resources and information to complete responsibilities
  • decide whether a suspicious transaction should be reported to the NCA
121
Q

Who does the Money Laundering Reporting Officer (MLRO) report to is Money laundering is suspected?

A

The national crime authority NCA

122
Q

If someone reports money laundering…

A

the name is concealed and they will not be called upon to provide evidence (but the NCA knows who they are)

123
Q

Client verification

A

firms must check the identity of new clients and check their addresses are genuine. They need a valid passport or driving license.

alternatively home visits, verification from a bank are sufficient.

124
Q

How are commercial clients verified?

A

name, registered number, registered office & business address.

125
Q

Bribery Act 2010

A

4 criminal offences:
- giving promising or offering a bribe
- requesting, agreeing to or receiving a bribe
- bribing a public official
- failure of firm to prevent bribery being committed on its behalf

126
Q

high level standards applying to ICOBS

A

advertising accuracy, data protection & regulatory compliance

127
Q

How often do insurance companies submit IPT

A

quarterly

128
Q

Contracts (Rights of Third Parties) Act 1999

A

Allows for a third party, who is a named beneficiary under an insurance policy, to enforce the policy against the insurer

129
Q

what area of the business is addressed by ICOBS?

A

Sales and administration process

130
Q

If an approved person in Lloyds fails to comply with the relevant regulatory guidelines, who can enforcement action be taken against?

A

The broker & the approved person

131
Q

What is a Lloyds coverholder?

A

company authorised by a managing agent to issue contracts of insurance

132
Q

Within Lloyds which body is responsible for setting guidelines for all syndicates to safeguard standards of underwriting and risk management?

A

lloyds franchise board

133
Q

Authorised insurance intermediaries conduct business within terms set by the

A

Insurance: Conduct of Business Sourcebook (ICOBS)

134
Q

What acts allows an insurer, having indemnified a policyholder for loss or damage by riot to seek recovery of its costs from the police

A

Contracts (Rights of Third Parties) Act 1999

135
Q

Within Lloyds which body is specifically responsible for setting guidelines for all syndicates to safeguard standards of underwriting and risk management?

A

Lloyds franchise board

136
Q

What is a coverholder at Lloyds

A

company authorised by a managing agent to issue contracts of insurance

137
Q

What organisation provides information and techincal services to underwriting businesses in the Lloyds market?

A

Lloyds market association

138
Q

What is it called when a person seemingly acts on his own behalf and make a binding contract. But later on its discovered he is acting on behalf of another.

A

undisclosed principal

139
Q

What activities of ARs for firms in the UK does ICOBs apply to

A
  • insurance distrubution
  • effecting & carrying out contracts
  • lloyds (managing underwriting capacity)
  • advertising
140
Q

Insurance Distribution Directive

A

Consumer protection, distrubuters must:
- act honestly, fairly & professionally
- communicate clearly & not mislead
- remuneration must not conflict with customers best interests

141
Q

General rules in ICOBS

A
  • advertising must be clear, fair and not misleading
  • must keep records of sales
  • contracting out DOES NOT remove your accountability
142
Q

When does a cooling off period not apply (from ICOBS)

A

short-term policies e.g. less than a month

143
Q

ICOBS rules on claims handling

A
  • insurer is responsible
  • insurer must keep client up to date
  • must be fair and prompt (can’t reject without valid reason)
  • can’t refuse a claim where a breach of warranty did not effect result
144
Q

Guaranteed asset protection Insurance (GAP) from ICOBS

A

FCA put rules based on concerns about competition for the add-on insurance:
- firms must provide info to encourage customers to shop around
- introduce a deferral period (so cannot be introduced and sold on the same day)

(basically want to empower customers to make their own decisions)

145
Q

What is the purpose of the GABRIEL system when a firm uses it to submit a completed retail regulated medium return to the FCA?

A

It is a framework which provides the FCA with supervision of an insurers activities

146
Q

Under which act does the regulator have powers to supervise insurers?

A

Financial Services Act 2012

147
Q

Third Parties (rights agaisnt insurers) Act 2010

A

Third party can bring a claim directly against the insurer if the company or individual becomes insolvent.

148
Q

Examples of senior management functions set by the PRA

A
  • Chiefs, heads, group entity senior managers
  • chairs & senior independent directors
149
Q

Examples of senior management functions set by the FCA

A

Executive director, MLRO, compliance, directors & significantly responsible senior managers.

150
Q

qualifying disclosure

A
  • criminal offence, failure to comply with legislation, miscarriage of justice, breaching health and safety, damage to environment & deliberate concealing of any of the above.

CII (28 decks)

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