If5 Flashcards
Following the introduction of the Fifth EU Motor Insurance Directive (now codified in the EU Motor Insurance Directive 2009), under what circumstances, if any, will someone who has suffered property damage caused by an unidentified vehicle be able to claim compensation?
If the victim has also sustained ‘significant personal injury’.
Motor insurance cover notes normally provide cover for a maximum period of up to:
30 days
In fleet rating, what is meant by the term ‘vehicle year’?
The exposure of one vehicle for a full policy year.
What is max award binding on insurer-Financial Ombudsman Service (FOS)?
The maximum award that the FOS can make which is binding on an insurer is £415,000.
What additional cover is provided by a third party only motor policy that would not be provided under a Road Traffic Act (RTA) only policy?
The correct answer is: Liability for third party property damage above the statutory minimum.
David has an accident, for which he is to blame, while driving a friend’s car. He is covered under the ‘driving other cars’ extension of his own motor policy and also under the comprehensive ‘any driver’ policy which insures the vehicle itself. What is the correct position with regard to any claims that arise?
The correct answer is: The insurer of the vehicle will deal with both the ‘own damage’ and third party claims.
Ayesha’s car is damaged in an accident and she suffers a minor whiplash injury. Her car is only insured for third party risks and because liability is disputed she decides to sue the other motorist for compensation for her injuries and the cost of repairing her car. Within what time limit will she have to commence her court action?
The correct answer is: 3 years from the date of the accident.
an emergency treatment fee paid for by insurers, does this affect NCD?
Payment of the fee by an insurer has no effect on their insured’s no claim discount allowance.
Stan, whose comprehensive motor policy is issued on an ‘any licensed driver’ basis allows his 15 year old son to drive while Stan is seated in the front passenger seat. His son loses control of the car and collides with a pedestrian. What is the correct position with regard to the subsequent claims for injury to the pedestrian and damage to Stan’s car?
correct answer is: Stan’s insurer will have to deal with the third party injury claim because of their RTA obligations, but will be entitled to repudiate Stan’s claim for damage to his own vehicle.
What is the main purpose of the ‘schedule’ in a private car policy?
The correct answer is: To customise the generic policy to the individual risk.
What new offence did Section 22 of the Road Safety Act 2006 introduce?
Using a hand-held mobile phone while driving.
The main reason for introducing the Police Helpline project was to address the problem of:
uninsured driving
7
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The Motor Insurers’ Bureau is a company ‘limited by guarantee’. What does this mean?
Its members have agreed to pay any liabilities as and when the need arises.
What is a ‘hard market’?
One where rates are set to produce an underwriting profit.
Motorcycle insurance is offered by:
a.
all insurers.
b.
commercial motor insurers only.
c.
a relatively small number of insurers.
d.
the majority of insurers.
relatively small number of insurers.
For a claim for property damage to be considered under the Untraced Drivers’ Agreement, it must be reported to the police within how many days of the incident?
Five
Who runs the Police Helpline?
The Motor Insurers’ Bureau.
Where a £500 leather jacket has been stolen from a locked car that has comprehensive insurance, why is the policyholder unlikely to receive the full value?
The maximum limit of indemnity is normally much lower than this
What is usually the limit of liability under a legal expenses policy?
50,000 any one incident.
Under a breakdown policy, cover is sometimes provided for the cost of public transport for the driver and up to four persons to complete the journey. What limit of indemnity usually applies?
150
Which section of a private car policy will state that the insurer contributes to the Financial Services Compensation Scheme?
Preamble
What is the maximum cover provided for third party property damage caused by terrorism under a commercial vehicle policy?
£1.2m
When is the theft of accessories or spare parts covered under a motorcycle policy?
When the motorcycle is stolen at the same time.
If her employer allows Nadia to use her own vehicle on company business, what would a contingent liability policy cover?
The employer’s legal liability.
Marlon drove his car into the back of another car, driven by Jeremy. Marlon then rings his broker firm ABC Consultants and asks it to report his claim to his insurer, XYZ Ltd. Who is the second party in this scenario?
XYZ Ltd.
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Under the Equality Act 2010, the list of protected characteristics does NOT include:
Question 2 Answer
a.
political beliefs.
b.
religion.
c.
age.
Incorrect, chapter reference 3E4A
d.
race
The correct answer is: political beliefs.
Which part of the Road Traffic Act 1988 applies to accidents not only on a road but also in other places where the public has access?
Question 5 Answer
a.
S.148 – Avoidance of certain exceptions to policies or securities.
b.
S.154 – Duty to give information as to insurance or security where claim made.
Incorrect, chapter reference 3A7O
c.
S.157 – Payment for hospital treatment of traffic casualties.
d.
S.158 – Payment for emergency treatment of traffic casualties
S.157 – Payment for hospital treatment of traffic casualties.
Under the Third Parties [Rights Against Insurers] Act 2010, if an individual becomes insolvent having incurred a liability to a third party, the rights of the insured under a motor policy are transferred to the:
Question 6 Answer
a.
third party.
b.
Financial Services Compensation Scheme.
Incorrect, chapter reference 3A7K
c.
liquidator.
d.
Motor Insurers’ Bureau.
third party
The Road Traffic Act 1988 makes the exclusion of ‘hire or reward’ ineffective where the driver of a private car accepts a contribution towards the running costs of the vehicle under a car-sharing agreement. What is a condition that must be complied with?
The contribution must not exceed the running costs for that journey.
Under the Road Traffic [New Drivers] Act 1995, any person accumulating six points on their licence within what period of time of passing the driving test will automatically have their licence revoked?
Two years.
What is the name of the single Directive which brought together the original five EU Motor Directives in September 2009?
Codifying Directive.
Under the Road Traffic Act 1988, what fee must the person using a vehicle at the time of an accident pay to any doctor who carries out an emergency treatment or an examination?
fee for each person examined or treated plus a mileage charge.
How did the Road Traffic Act 1991 amend the previous existing Act?
Death by reckless driving was replaced by two other offences.
Alan, aged 47, commits a motoring offence and is sentenced to three years in prison. How long is the rehabilitation period for this offence?
Ten years.
Whilst driving, Peter misjudges how fast traffic is moving and pulls out of a side road, hitting an approaching car and killing the driver. What offence is Peter most likely to be charged with?
Causing death by careless or inconsiderate driving.
Which EU Motor Directive abolished the need for Green Cards?
First
Up to how many years after the date of an accident can an injured party obtain information from the UK Information Centre?
Seven
Tony and Philip are both employees of ABC Insurance Brokers. Tony is driving them in a company car to a client meeting, when the brakes fail and the car hits a wall. The brakes failed as the car had not been properly maintained. If both Tony and Philip sustain injuries and decide to seek compensation, under which of ABC Insurance Brokers policies will their claims be handled?
Tony’s claim will be dealt with under the employers’ liability policy and Philip’s under the motor policy.
What did the Second EU Motor Insurance Directive introduce
The correct answer is: It specified that a compensation fund should be set up by all member countries to compensate victims where there is no insurance in force at all.
If a policy is cancelled before an accident, the insurer is not liable for any claims provided that notification of the cancellation has been given to the
Motor Insurance Database.
Under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, the rehabilitation period commences from the date of:
conviction
Under the Insurance Act 2015, what information is a company required to disclose?
Anything known by the insured’s senior management.
How long are insurers required to retain records of certificates and cover notes?
Twelve months.
How long are insurers required to retain records of certificates and cover notes?
Twelve months.
The layout and content of a certificate of motor insurance is prescribed by which act or regulation?
Motor Vehicles [Third Party Risks] Regulations 1972
What additional information that is not shown on a motor insurance certificate is included on a motor insurance cover note?
The policyholder’s address.
With private motor insurance, what is the name for the underwriting of risks based on the collection of very detailed information?
Lifestyle underwriting.
As a result of the Fourth EU Motor Insurance Directive, any vehicles added to a fleet or motor trade policy must be notified to the Motor Insurance Database within
14 days
In which part of the policy document would an insured check to see whether any special endorsements apply to the cover provided?
Policy schedule.
What does lifestyle underwriting require
Investment in software.
Hamid is a stationery salesman who travels the country making visits to newsagents. What class of use is most appropriate to his needs
Class 3.
What is the greatest benefit of employing risk management techniques in relation to fleet risks?
s: A decrease in the number of people dying or suffering personal injuries.
What is the minimum carrying capacity for any vehicle to require an operator’s licence?
Two tonnes.
Under the Insurance Act 2015 where a claim is fraudulent, from when does the insurer have the option to terminate the insurance contract?
The date at which the claim became fraudulent.
Based on occupation only, who presents the greatest risk when applying for private motor insurance?
Markka, a professional opera singer.
What is an example of a variable underwriting cost?
Agent commission.
Marie is a self-employed training consultant who travels throughout the country delivering sales courses. What class of use is most appropriate to her needs?
Class 1.
Under the Insurance Act 2015, which proposers have a duty to make a fair presentation of a risk to an insurer?
Commercial customers.
What problem were the Minibus [Conditions of Fitness, Equipment and Use] Regulations 1978 introduced to address?
Inadequate servicing.
Which body has devised a standardised vehicle grouping structure for light commercial vehicles?
The Association of British Insurers
The premiums charged for private car risks will be based on the postcode of the:
overnight address.
The rating of private car insurance is becoming
increasingly complex.
Mia has renewed her motor policy but the payment was delayed until after the renewal date. She would be:
uninsured for the period from the renewal date to when the payment is received.
Occasional business use is a
primary cover.
When is an insurer most likely to investigate a theft claim further?
Question 1 Answer
a.
When the precise location of the vehicle keys at the time of the loss were not known.
b.
When cover is on a third party, fire and theft basis only.
c.
When the theft loss occurs shortly before renewal.
d.
When the MOT Certificate has been renewed shortly before claim
When the precise location of the vehicle keys at the time of the loss were not known.
The benefits of an insurer operating a panel of recommended repairers do NOT include:
fixed repair costs for different types of damage
Which fraud prevention body runs Cheatline
The Insurance Fraud Bureau
The policyholder will most likely be considered at fault if:
Question 5 Answer
a.
he runs into the back of the car in front.
b.
he collides with another vehicle when overtaking.
Incorrect, chapter reference 6A10
c.
the accident occurs in a car park.
d.
the accident occurs on a roundabout.
he runs into the back of the car in fron
Which piece of legislation now means that saying ‘sorry’ after an accident cannot be construed as an admission of liability
The Compensation Act 2006
With accidental damage claims, an engineer is unlikely to be appointed unless the estimated repair cost is at least
500
The current Motor Insurance Anti-Fraud and Theft Register [MIAFTR2] does NOT have links to which database or register?
The FCA.
What additional information that is not shown on a motor insurance certificate is included on a motor insurance cover note?
The insured’s address
As a result of the Fourth EU Motor Insurance Directive, any vehicles added to a fleet or motor trade policy must be notified to the Motor Insurance Database within:
14 days
How long are insurers required to retain records of certificates and cover notes?
12 months
The layout and content of a certificate of motor insurance is prescribed by the:
The correct answer is: Motor Vehicles [Third Party Risks] Regulations 1972.
