Brainscape's Knowledge GenomeTM

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


See full index

IF2 ALL CHAPTERS IN ONE > IF2 ALL CHAPTERS > Flashcards

IF2 ALL CHAPTERS Flashcards

1
Q

What is the minimum cover required to comply with?

A

Road Traffic Act only (RTA only)

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

What does TPO cover stand for?

A

Third Party Only

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

What are the exclusions on a TPO policy?

A
  • Damage to insureds property

- Liability to covered by any other policy

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

What does a Road Traffic Act only policy cover?

A
  • Unlimited indemnity for bodily injury or death caused to third parties
  • Indemnity for loss or damage to property belonging to third parties which is limited to £1.2 million
  • Indemnity for claimants costs and the expenses of handling the claim
  • Cover for charged for any emergency medical treatment and hospital charges arising out of the use of the vehicle
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does a Third Party Only party cover you for?

A
  • Cover for vehicles not on a road or in a public place but remaining within territorial limits
  • A limit of £20 million for third party property damage for private car policies
  • Indemnity for accidents which occur while the insured is driving
  • Indemnity to anyone who is driving or using the vehicle on the insureds order
  • Indemnity to passengers, employers or business partners if they’re responsible for an accident
  • Legal costs incurred in the defence of a claim
  • Limited cover for legal representation costs following a prosecution for a motoring offence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does Third Part Fire and Theft cover you for?

A

In addition to TPO -

  • If the car was to be damaged by fire, lightning or explosion
  • Damaged either during attempted theft or while it is stolen
  • Stolen and not recovered
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

No claims discount

A

All insurers offer the incentive of a no claims discount as standard in their policy wordings. Insurers offer a discount, once an insured has gone say 2 years claim free.

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

What are the rates of No Claims Discount?

A

It would not be unusual to find discounts of 25% for one year free of claims, up yo 65 or 70% for four or five years free of claims.

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

A small monetary amount can be paid to ensure that the insureds no claims discount is not lost if
a modest amount of claims are made. What is this monetary amount known as?

A

A full no claims discount may be ‘protected’ at an extra premium.

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

What is an excess?

A

An excess is the first amount of each and every claim that the insured must pay.

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

A third party, fire and theft policy does not include cover for which of the following?
A) Indemnity for the insured property.
B) Damage either during attempted theft or whilst it is stolen.
C) Damage by fire, lightening or explosion.
D) Stolen and not recovered.

A

A) Indemnity for the insured property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q 
What is available to an insured if their policy provides cover for a journey into Spain?
A) A Spanish insurance bond.
B) A Spanish premium bond.
C) A Spanish permit.
D) A Spanish bail bond.
A

D) A Spanish bail bond

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

Under a third party only motorcycle policy, what is covered as standard?
A) Damage to clothing and personal effects
B) Emergency treatment fees
C) Medical expenses
D) Personal accident benefits

A

B) Emergency treatment fees

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

What is the limit of indemnity for third party property damage for private car policies (TPO)?

A

£20 million

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

What is the minimum level of cover required to comply with the Road Traffic Act 1988?

A

Road Traffic Act (RTA) only

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

Which extension to cover a comprehensive private motor car policy is usually available without additional charge?

A

The use of the insured vehicle in connection with local elections

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

For what type of risk would be the ‘indemnity to principal’ extension to a commercial vehicle policy?

A

Where the insured vehicle is being use in connection with some contract work

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

The general exclusions to a private motor policy include?
A) The use of the insured vehicle outside that permitted by the policy
B) Mechanical and electrical failure
C) Loss of use
D) Liability covered by any other insurance policy

A

A) The use of the insured vehicle outside that permitted by the policy

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

What cover is usually provided automatically for caravans under a comprehensive private car policy?

A

Third party cover whilst attached to the insured vehicle

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

Which is a feature of the cover under a standard private car policy which is not covered by a standard motorcycle policy?

A

Personal accident benefits

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

Under a third party only motorcycle policy what is covered as standard?
A) Damage to clothing and personal effects
B) Emergency treatment fees
C) Medical expenses
D) Personal accident benefits

A

B) Emergency treatment fees

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

What are the three main classes of motor insurance?

A
  • Third Part Only (TPO)
  • Third Party Fire and Theft (TPFT)
  • Comprehensive
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the minimum motor insurance cover required in order to comply with the Road Traffic Act 1988?

A

Road Traffic Act only (RTA Only)

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

What ae two specific exclusions in respects of third party liability?

A
  • Damage to property owned, held in trust by or in the custody of any person claiming indemnity under the cover
  • Liability covered by any other insurance policy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the main difference between TPFT and Comprehensive?

A

The main difference is that comprehensive cover grants cover for accidental, and even malicious damage to the insureds vehicle.

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

Name five options extensions on a motor policy?

A
  • Increased cover for personal belongings and clothing
  • Young additional drivers
  • Loss of use
  • Additional personal accident benefits
  • Elections
  • Racing, competitions, rallies and trials
  • Caravans and trailers
  • Breakdown cover
  • Joint policies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are the main groups of commercial vehicles?

A
  • Goods-carrying vehicles
  • Passenger-carrying vehicles
  • Agricultural and forestry vehicles
  • Vehicles of special construction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What are the optional extensions for standard motorcycle insurance?

A
  • Trailers
  • Riding other motorcycles
  • More than one cycle insured
  • ‘Invalid carriages’ (mobility vehicles)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the largest group of commercial vehicles?

A

Goods-carrying vehicles

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

What would be classed as a fleet?

A

Any group of 10 or more vehicles under single ownership

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

What is commercial motor insurance primarily concerned with?

A

The risks that attach to the vehicles themselves whilst they are being driven, left parked or being carried by sea or air, and not with the goods carried.

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

The third EU motor insurance directive made it compulsory for a private motor policy to include cover for…
A) Liability too employees when travelling as passengers in the course of employment
B) Loss of or damage to third party property up to £1,200,000
C) Emergency treatment fees
D) Indemnity to passengers held liable for an accident

A

A) Liability to employees when travelling as passengers in the course of employment

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

Which extension to cover, which is included in some private motor policies, is omitted from the cover under a commercial vehicle policy?
A) Indemnity to passengers
B) Lega costs incurred in defence of a claim
C) Cover for vehicles not on a road or in public place
D) Driving other vehicles

A

D) Driving other vehicles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q 
A green card is needed by a UK insured to drive a car in?
A) Liechtenstein 
B) Switzerland
C) Turkey 
D) Austria
A

C) Turkey

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

A third party only policy extends the cover under an RTA only policy to include?
A) Emergency medical treatment fees
B) Unlimited indemnity for third party bodily injury
C) The legally required cover for using the insured vehicle in another EU country
D) Legal costs incurred in defence of a claim

A

D) Legal costs incurred in defence of a claim

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

The specific exclusions to a TPFT policy include?

A

Loss of use

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

Which statement is true regarding the third party property damage limit under a standard commercial vehicle policy?
A) Its higher than for a private motor policy
B) It is usually limited to the amount laid down by compulsory insurance requirements
C) It is the same as for a private motor policy
D) It is less than for a private motor policy

A

D) It is less than for a private motor policy

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

For what type of risk would the ‘indemnity to principal’ extension to a commercial vehicle policy be needed?

A

Where the insured vehicle is being used in connection with some contract work

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

Under a comprehensive private motor policy, loss of or damage to accessories and spare parts is covered when?

A

I covered whilst they are on the insured vehicle or in the insureds garage

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

The general exclusions to a private motor policy include?
A) Use of the insured vehicle outside that permitted by the policy
B) Mechanical and electrical failure
C) Loss of use
D) Liability covered by any other insurance policy

A

A) Use of the insured vehicle outside that permitted by the policy

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

What cover is usually provided automatically for caravans under a comprehensive private car policy?

A

Third party cover whilst attached to the insured vehicle

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

What statement is true regarding the compulsory insurance requirements for motor cycles?
A) They are the same as for other motor vehicles
B) They are greater than for other motor vehicles
C) There are no compulsory insurance requirements for motor cycles
D) They are less than for other motor vehicles

A

A) They are the same as for other motor vehicles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q 
Which is a feature of the cover under a standard private car policy which is not covered by a standard motor cycle policy?
A) Emergency treatment fees 
B) Indemnity to permitted drivers 
C) Claimants costs and expenses 
D) Personal accident benefits
A

D) Personal accident benefits

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

Why are personal accident policies not policies of indemnity?

A

Personal accident contracts are benefit policies rather than contracts of indemnity because they seek to provide a sum which is fixed in advanced for certain specified events

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

When must death occur if the death benefit is to become payable under a personal accident policy?

A

Death must occur within 12 months of the accident

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

What is the usual geographical scope for personal accident and sickness?

A

Personal accident - Worldwide

Sickness - UK, Europe, USA, Canada, Australia and New Zealand

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

Personal accident insurance is often an add on to?

A

Household policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q 
The sickness section of a standard  personal accident and sickness policy provides a weekly benefit if the insured is temporarily and totally disabled from engaging in:
A) Any manual occupation
B) Their usual occupation 
C) Any occupation 
D) Specified occupation
A

B) Their usual occupation

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

A benefit policy is…

A

A contract to pay a stated sum of money in the event of a certain contingency

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

A personal accident policy includes cover for an insured whilst engaging in aviation in what circumstances?

A

When travelling as a passenger in a fully licensed passenger carrying aircraft

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

What is a Personal accident and sickness policy?

A

As the name suggests, the sum insured is paid if the insured suffers an accident or is off work due to sickness.

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

What is the main rating factor for the personal accident element?

A

The occupation of the proposer

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

Is a personal accident and sickness policy a policy of indemnity? if not what is it?

A

No, it is a benefit policy

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

What are the main features of Medical Expenses Insurance?

A
  • It provides cover for medical treatment outside the NHS
  • Provides the client with greater choice over treatment
  • Individual policies/employee benefit
  • Premiums increase with age
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

What does a Medical Expense policy cover?

A

In patient and day care treatment for:

  • Hospital charges
  • Theatre fees, surgical dressing, consultations
  • Specialist fees
  • Surgeons and anaesthetists fees
  • Additional costs
  • Ambulance and nursing fees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What are the exclusions of a medical expense policy?

A
  • Medical conditions which the individual has received treatment within 5 years before taking the policy out
  • Long term residential care
  • Sickness occurring within 21 days of the policy starting
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

In a personal accident and sickness insurance policy what does the personal accident section cover?

A

Personal accident policies provide agreed benefits where the insured is injured or dies as a result of an accident

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

In a personal accident and sickness insurance policy what does the sickness section cover?

A

Sickness policies provide agreed benefits where the insured is unable to work due to an illness

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

What is the maximum number of weeks for weekly benefits to be paid?

A

104 weeks

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

What is a capital sum?

A

One off lump sum payment

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

How long does the insured have to be sick for, for them to claim on the sickness section of the policy?

A

Beyond 7 days, any less than that and the insured will not be paid.

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

Personal accident and sickness policies cover…

A
  • Death
  • Total loss of sight (one or both eyes)
  • Total loss of one or both limbs
  • Permanent total disablement
  • Permanent partial disablement
  • Temporary total disablement
  • Temporary partial disablement
  • Medical expenses
  • Payment of benefits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

What is permanent partial disablement?

A

Loss of specified parts of limbs, for example toes or fingers

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

What is temporary partial disablement?

A

Meaning that temporary disablement that prevents the insured from attending to a substantial part of their normal business due to an accident (does not apply to sickness)

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

What is temporary total disablement?

A

Temporary total disablement is what stops the insured from engaging in their usual occupation due to accident or sickness.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

What is the typical capital sum/lump sum for permanent total disablement?

A

There is a typical lump sum of £20,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

What is the typical capital sum/lump sum for permanent partial disablement?

A

Lump sum payment is on ‘sliding scale’ depending on the part of the body that has been affected

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

What is the standard cover for sickness insurance?

A
  • Cover is the same as for personal accident policies but only weekly benefits are paid
  • Cover is subject to a 7 day franchise meaning that there is no cover if the illness lasts for less than the 7 days
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

What is an optional extension for a personal accident and sickness policy?

A

Some insures provide legal expenses cover as an additional benefit to pursue actions against negligent third parties following bodily injury

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

What is legal expenses cover?

A

Legal expenses covers up to an amount of £15,000 to pursue an action against a negligent third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

What are the age limits on age for a personal accident and sickness policy?

A

Accident - 16-70 years

Sickness - 16-60 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

What are the exclusions for a personal accident and sickness policy?

A
  • Self inflicted injury or disease
  • Injury or disease related to alcohol or drugs
  • Pre-existing conditions
  • Sickness occurring within 21 days of cover commencing
  • Dangerous pursuits
  • Child birth, pregnancy, venereal disease or AIDS
  • War risks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q 
The cover provided by a medical expenses policy includes?
A) Long term residential care 
B) Ambulance fees
C) Specialist consultations 
D) Theatre fees
A

A) Long term residential care

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

For a claim under a personal accident policy to be valid, the death or bodily injury must be due to an accident. This means that there must be…

A

An identifiable cause

75
Q

Which statement is true regarding the premiums charged for medical expenses insurance?
A) They tend to fluctuate depending on the age of the insured
B) They tend to reduce as age increases
C) They tend to increase as age increases
D) They tend to remain static regardless to the age of the insured

A

C) They tend to increase as age increases

76
Q 
Which type of insurance policy provides cover for individuals who seek treatment outside the NHS when they are ill?
A) Personal accident
B) Sickness
C) Medical expenses 
D) Household
A

C) Medical expenses

77
Q

When underwriting a personal accident policy, how do insurers try to ensure that any weekly benefits for disablement represent no more than usual earnings?

A

By asking a specific question on the proposal form about any other policies that are in force

78
Q

A standard personal accident policy can be extended to include cover for?

A

Legal expenses

79
Q

How do insurers calculate the payments for permanent partial disablement under a personal accident policy?

A

As a percentage of that paid for the loss of an entire limb on a sliding scale

80
Q

What is the purpose of medical expenses insurance?

A

Provides cover for individuals who seek private medical treatment outside of the NHS.

81
Q

What does buildings insurance cover?

A 
F - fleet 
L - lightning 
E - explosion
E - earthquake 
T - theft

F - fees
I - impact
R - rent

S - subsidence 
T - trees 
A - aerials 
R - riot/malicious damage
S - storm

D - dogs
O - oil/water
G - glass

82
Q 
Which of the following would not normally be covered under a buildings insurance policy?
A) Frost damage during storms 
B) Fire
C) Explosion
D) Earthquake
A

A) Frost damage during storms

83
Q

For the loss of a credit card to be covered by a household contents policy how long, from the discovery of the loss does the insured have to report it to the police and card issuer?

A

Within 24 hours for both

84
Q 
Which of the following would not be covered under 'money' under a contents policy?
A) Travel tickets
B) Credit cards 
C) Cash 
D) Luncheon vouchers
A

B) Credit cards

85
Q 
Which of the following would not normally be covered under a buildings policy?
A) Frost damage during storms 
B) Fire 
C) Explosion 
D) Earthquake
A

A) Frost damage during a storm

86
Q

Whose interests does a household contents policy protect?

A

The owner (irrespective of who lives there)

87
Q

Which act do insurers use to define the term ‘theft’ under a household policy?

A

Theft Act 1968

88
Q

Which of the following is not a typical exclusion under a household policy?
A) Medals and coins (unless specifically insured)
B) Motor vehicles
C) Television aerials
D) Bills of exchange, deeds and bonds

A

C) Television aerials

89
Q 
Under buildings insurance which of the following would not be considered as part of the main structure of a private dwelling?
A) Fitted walls 
B) Walls 
C) Freestanding wardrobes 
D) Greenhouses
A

D) Freestanding wardrobes

90
Q

What does household insurance cover include?

A

Building and contents insurance

91
Q

How can claims be settled for a household policy?

A

Claims can be settled on an indemnity or new for old basis, depending on the terms of the policy.

92
Q

How can buildings be defined on a household policy?

A

Buildings may be defined as the main structure of the private dwelling, including garages, sheds, greenhouses, swimming pools and tennis courts, walls, gates, fences and paths

93
Q

How are contents defined on a household policy?

A

Contents may be defined as household goods and personal effects belonging to the insured or their family members living in the property

94
Q

What does the legal section of a buildings policy cover?

A

The legal section of the buildings policy covers the insured for liability incurred as owner the property; under the contents policy it covers liability incurred as occupier of the property and as a private individual for personal liability.

95
Q

The cover provided by the money and credit cards extension to a household policy excludes?

A

Shortages due to error or omission

96
Q

The valuables limit under a household contents policy is USUALLY…

A

One third of the total sum insured

97
Q

The cover which is automatically provided under a standard household buildings and contents policy does NOT include what?

A

Legal expenses

98
Q

The limit of liability applicable to the Loss of Rent cover under a household buildings policy is usually?

A

10-15% of the buildings sum insured

99
Q

What does the travel interruption section of a standard travel policy cover?

A

The failure of public transport to deliver the insured to the departure point in time to take the trip booked.

100
Q

The cyber liability section of the cyber risks cover provided by a commercial package policy, includes cover for?

A

Loss of reputation

101
Q

A household contents policy includes cover for the personal possessions of…
A) A lodger
B) A workman who has came to carry out repairs
C) A friend who is staying the night
D) A resident housekeeper

A

D) A resident housekeeper

102
Q

Which reason for cancelling a holiday is NOT covered by the loss of deposits section of a travel policy?
A) Illness of a close business associate
B) Financial difficulties
C) Being called for jury service
D) Unforeseen accumulation of work

A

B) Financial difficulties

103
Q 
Under a commercial package policy the sum insured is MOST likely to be restricted for which type of goods?
A) Spirits 
B) Perishable goods 
C) Tenants fixtures and fittings 
D) Confectionary
A

A) Spirits

104
Q

Which country would attract the highest travel insurance premium?

A

Barbados

105
Q

The delayed baggage section of a travel policy USUALLY covers the cost of essential items of clothing and toiletries where baggage is delayed for at least?

A

12 hours

106
Q

The identity fraud extension to a household policy does NOT cover:
A) Claims that in total are worth less than £12,000
he cost of notarising any necessary documentation
B) Administration fees for re-applying for a loan as a result of incorrect data being provided by the insured
C) Loss of earnings due to attending meetings with the police
D) The cost of notarising any necessary documentation

A

B) Administration fees for re-applying for a loan as a result of incorrect data being provided by the insured

107
Q

The death benefit under the personal accident section of a travel policy is USUALLY reduced for who?

A

Children who are under 16 years of age

108
Q

The premium for a shopkeepers’ policy is USUALLY based on what?

A

The contents sum insured

109
Q

The single article limit under the baggage section of a travel policy is TYPICALLY?

A

£250

110
Q 
Which section of cover is available as an optional extension to a commercial package policy?
A) Glass
B) Refrigerated stock
C) Goods in transit 
D) Product liability
A

B) Refrigerated stock

111
Q

Under which section of a travel policy does the risk commence before the journey starts?

A

Loss of deposits

112
Q

The maximum indemnity period under the Business Interruption section of a package policy is TYPICALLY?

A

12 months

113
Q

What does travel insurance cover?

A

It provides cover for personal accident, medical expenses, lost deposits, lost, damaged or delayed baggage, personal liability and delayed or interrupted travel.

114
Q

The specific exclusions to a third party, fire and theft policy include?

A

Loss of use

115
Q

Given that many people are now travelling well into their 80s, many insurers have increased the age limits applicable to the personal accident section of their travel policies. A lower age limit is still usually applied to which extension to cover?

A

Winter sports cover

116
Q

Which of the benefits under a personal accident policy is sometimes paid as an annuity?

A

Permanent total disablement

117
Q

The cover provided by a medical expenses policy excludes?

A

Long term residential care

118
Q

The cover which is automatically provided under a standard household buildings and contents policy does NOT include:
A) Liabilities under the Defective Premises Act
B) Loss of rent
C) Legal expenses
D) Accidental breakage of mirrors and fixed glass in furniture

A

C) Legal expenses

119
Q 
The optional extensions to a commercial vehicle policy do NOT include?
A) Indemnity to principal 
B) Use as a carnival float
C) Indemnity to hirers 
D) Use for speed testing
A

D) Use for speed testing

120
Q

For a valid death claim to be made under a personal accident policy, death must usually occur within what period of time of the event giving rise to the claim?

A

12 months

121
Q

When underwriting a personal accident policy, how do insurers try to ensure that any weekly benefits for disablement represent no more than normal earnings?

A

By asking a specific question on the proposal form about any other policies that are in force

122
Q

Which statement is TRUE regarding the third party property damage limit under a standard commercial vehicle policy?
A) It is usually limited to the amount laid down by compulsory insurance requirements
B) It is higher than for a private motor policy
C) It is the same as for a private motor policy
D) It is less than for a private motor policy

A

D) It is less than for a private motor policy

123
Q

What are the key exclusions from the cover provided for subsidence, ground heave and landslip under a household buildings policy?

A
  • Normal shrinkage or settlement
  • Faulty workmanship or design
  • Demolition or alteration
  • Coastal or riverbank erosion
  • Movement of floor slabs unless the foundations are also damaged
  • Outside items such as tanks and pools unless the building is damaged at the same time by the same case
124
Q

An insurance document which brings together fire, special perils, theft, business interruption, money and other types of insurance for a small business in a single contract is known as?

A

An ‘All Risks’ policy

125
Q

What does property insurance cover?

A
  • Fire
  • Theft
  • Money
  • Glass
126
Q

What does a standard fire policy cover?

A

The standard fire policy covers damage to property caused by fire, lightning and, to a limited extent, explosion

127
Q

The special peril of explosion includes cover for?

A

Explosion of flammable vapours

128
Q

The cover under a money policy includes?

A

Loss due to the dishonesty by employee discovered 5 days after the event

129
Q

Which of the situations covered by a money policy is MOST likely to carry the highest limit?
A) On the insured’s premises, not in a safe, out of business hours
B) In a locked safe or strong room out of business hours
C) In the private residence of any principal or employee
D) In transit

A

D) In transit

130
Q

Which type of loss is a standard market exclusion which applies to a fire and special perils policy?

A

Damage to property more specifically insured.

131
Q

Which method is USUALLY used to settle glass claims?

A

Replacement

132
Q

A standard money policy does NOT cover?

A

Credit cards

133
Q

If a £250 excess applies to a policy how much would the insurer pay for a claim of £235?

A

The insurer would not pay anything as the claim is below the level of excess

134
Q

If a £250 excess applies to a policy how much would the insurer pay for a claim of £375?

A

The insurer would pay £125 (£375-£250)

135
Q

Why does escape of water specifically exclude damage that occurs while the premises are empty?

A

The exclusion reflects the greater risk of freezing in an unheated building in the winter and the aggravation of loss that may occur following delayed discovery in unoccupied premises.

136
Q 
For theft of shop stock to be covered under a standard theft policy, there would only usually need to be?
A) Forcible and violent entry or exit 
B) Forcible and violent entry and exit 
C) Forcible or violent entry or exit 
D) Forcible or violent entry and exit
A

A) Forcible and violent entry or exit

137
Q 
What does the definition of money under a standard money policy not include?
A) Bank and currency notes
B) Lottery tickets 
C) Luncheon vouchers 
D) Postage stamps
A

B) Lottery tickets

138
Q

The premium for a money policy is adjustable based on an end of year declaration of?

A

The annual carryings

139
Q

Under a commercial all risks policy, which peril is MOST likely to be insured on a first loss basis?

A

Storm

140
Q 
What type of policyholder is most likely to need cover for 'spontaneous fermentation or heating'?
A) Oil refineries 
B) Plastic manufacturers 
C) Sports halls 
D) Farmers
A

D) Farmers

141
Q

For some risks the standard cover under a theft insurance policy can be extended to include loss following?
A) Theft as defined in the Theft Act
B) Forcible entry to or exit from the premises
C) Forcible entry to the premises
D) Forcible exit from the premises

A

A) Theft as defined in the Theft Act

142
Q

The cover provided by a glass insurance policy usually excludes?

A

Damage by scratching or chipping.

143
Q

The absolute exclusions to a material damage ‘all risks’ policy exclude loss or damage due to?

A

Faulty workmanship

144
Q

Which type of loss is an example of an exclusion to a material damage ‘all risks’ policy for which cover can be written back into the policy?

A

Damage to computers

145
Q

The standard market exclusions to a fire and special perils policy do NOT exclude what?

A

Damage caused by lightning

146
Q

What does FLEET stand for in standard buildings policy?

A 
F - FIRE 
L - LIGHTNING
E - EXPLOSION
E - EARTHQUAKE 
T - THEFT
147
Q

What is homogeneity of risks?

A

Homogeneity of risks refers to the situation where many risks share similar characteristics and follow similar trends

148
Q

What is defined as the main structure in a building policy?

A

The main structure includes garages, sheds, greenhouses and other outbuildings, swimming pools and tennis courts are includes as are walls, gates, fences and paths

149
Q

What does escape of water cover?

A

Covers the bursting or overflowing of water tanks, apparatus or pipes and includes any fixed domestic or heating installations, washing machines and other domestic equipment

150
Q

Theft Act 1968

A

The act states that a person is guilty if theft if they dishonestly appropriate property belonging to another with the intention of permanently depriving the owner of it

151
Q

What is impact/collision cover?

A

Impact or collision with aircraft or other aerial devices or with articles dropped therefrom road vehicles or animals.

152
Q

What is subsidence?

A

Subsidence is the gradual caving in or sinking of an area of land

153
Q

What is a ground heave?

A

Ground heave is the upward movement of the ground usually associated with the expansion of clay soils which swell when wet

154
Q

What is normally excluded under the subsidence, ground heave and landslip section of a buildings policy?

A

It excludes loss or damage caused by -

  • Normal shrinkage or settlement
  • Faulty workmanship
  • During demolition, structural alteration or repair
  • Coastal or riverbank erosion
  • From movement of floor slabs
155
Q

What are the optional extensions under a contents policy?

A
  • Accidental damage to entertainment equipment

- Accidental damage while in the course of removal

156
Q

What are the exclusions under a contents policy?

A
  • Property more specifically insured under another policy
  • Deeds, bonds, bills of exchange, promissory notes, cheques, securities, documents and manuscripts
  • Medals and coins
  • Motor vehicles
  • Livestock (other than horses)
157
Q

Legal liability - Buildings/contents

A

Cover is for legal liability for accidental injury or accidental damage to material property. Indemnity is to the insured and all family members permanently residing in the property.

Cover applies anywhere in the UK and there is usually a limit of £2 million in any one claim.

158
Q

All Risks cover - household/contents

A

All Risks cover is available for personal possessions regularly taken outside the property. Such cover is suitable for personal jewellery, watches, cameras, laptops, tablets etc.

159
Q

Unspecified items - ‘All Risks’

A

The definition of unspecified items may be very wide (e.g. clothing, personal effects and valuables)

160
Q

Specified items - ‘All risks’

A

Specified items are those which ether exceed the unspecified single article limit or to which special terms apply e.g. jewellery, furs and photographic equipment. The sum insured should represent the replacement value

161
Q

What does the ‘Money’ section of a policy typically cover?

A

Covers cash, cheques, postal orders, bankers drafts, postage stamps/certificates, premium bonds, luncheon vouchers, gift tokens and travel tickets. Must be reported within 24 hours

Credit cards not included

162
Q

What is the cover for credit cards?

A

Cover is provided or financial loss following the loss or theft of a credit card and its subsequent misuse.

163
Q

What is covered under credit cards?

A

Credit cards usually include cheque cards, cash cards and change cards as well as credit cards

164
Q

How long does the insured have to report loss of credit card to the card issuer and the police?

A

24 hours to report to the card issuer and police

165
Q

Which statement is TRUE regarding the compulsory insurance requirements for motor cycles?
A) They are the same as for other motor vehicles
B) They are greater than for other motor vehicles
C) There are no compulsory insurance requirements for motor cycles
D) They are less than for other motor vehicles

A

A) They are the same as for other motor vehicles

166
Q

Uninsured drivers promise

A

No claims discount would be protected

167
Q

A third party only policy extends the cover under an RTA only policy to include?

A

Legal costs incurred in defence of a claim

168
Q

Is the third party property damage limit under a standard commercial vehicle policy less, more or the same as a private motor policy?

A

It is less than for a private motor policy

169
Q

Which is a feature of the cover under a standard private car policy which is NOT covered by a standard motor cycle policy?

A

Personal accident benefits

170
Q

Indemnity to principal

A

An indemnity to principal clause in an insurance policy extends liability coverage to a principal if he is sued as a result of another person’s actions

171
Q

How, if at all, does the cover for spare parts and accessories under a commercial vehicle policy differ to that under a private car policy?

A

Under a commercial vehicle policy there is no cover for spare parts and accessories whilst they are detached from the vehicle.

172
Q

For what type of risk would the ‘indemnity to principal’ extension to a commercial vehicle policy be needed?

A

Where the insured vehicle is being used in connection with some contract work.

173
Q

Nina is part of the sharing economy. She uses the internet to rent out her car when it is not in use. Which statement is TRUE with regard to the cover provided for peer-to-peer car sharing by her private motor policy?
A) It is automatically covered
B) Cover can be added subject to an additional premium
C) Cover is included but a higher excess applies
D) It is usually excluded

A

D) It is usually excluded

174
Q

The Third EU Motor Insurance Directive made it compulsory for a private motor policy to include cover for what?

A

Liability to employees when travelling as passengers in the course of employment.

175
Q

What cover is provided for ‘family’ in an accident policy?

A

Cover can be included for children up to 23 years whilst in full time education.

176
Q

For a claim under a personal accident policy to be valid, the death or bodily injury must be due to an accident. This means that there must be a?

A

Identifiable cause

177
Q

Which country is usually covered by a personal accident policy but not by a sickness policy?

A

India

178
Q

Why is the permanent total disablement benefit under a personal accident policy not usually paid out until 12 or 24 months after the accident?

A

It may take this long to decide if the disablement is permanent and total.

179
Q

Which type of loss is an example of an exclusion to a material damage ‘all risks’ policy for which cover can be written back into the policy?

A

Damage to computers.

180
Q

Which special peril is not subject to a standard policy excess?

A

Sprinkler leakage

181
Q

The premium for a money policy is adjustable based on an end of year declaration of the?

A

Annual carryings

182
Q

A standard fire policy includes ‘limited’ explosion cover. This is restricted to:

A

Explosion of boilers or gas used for domestic purposes only.

183
Q

What type of policyholder is most likely to need cover for ‘spontaneous fermentation or heating’?

A

Farming

IF2 ALL CHAPTERS IN ONE (1 decks)

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