IF5 Test 1 Flashcards
Which of these parties is entitled to be issued with a private motor insurance policy?
a. An individual who owns a mini bus
b. A company
c. An individual for business use
d. A charitable organisation
C
An individual for business use
What is the function of price comparison websites in the purchase and supply of private motor insurance?
a. To offer a personalised service to potential customers
b. To provide a distribution mechanism known as a software house
c. To allow potential customers to view prices of an array of financial products
d. To provide additional assistance e.g. logging information onto the Motor Insurance Database
C
To allow potential customers to view prices of an array of financial products
Why would a motor insurance customer opt to buy via the traditional insurance company / intermediary arrangement if it is cheaper to buy direct?
a. They have a requirement for a specific benefit or type of cover offered
b. They need instant access to policy documents
c. They wish to purchase cover from a legitimate source
d. They are committed to do so by the terms of a ‘No Claim Discount’ clause
A
They have a requirement for a specific benefit or type of cover offered
What is the primary role of the Motor Insurers’ Bureau?
a. To act as a lobbying and representative body for its members
b. To subsidise the claims of insurers who have paid out to victims of negligent motorists
c. To be the “payer of last resort” where road traffic victims are left without compensation
d. To determine road traffic legislation and to report to the government on road traffic data
C
To be the “payer of last resort” where road traffic victims are left without compensation
What options are available to a motor insurer that wants to evidence the licensing of a vehicle which a customer wishes to insure?
a. The Claims and Underwriting Exchange (CUE)
b. The vehicle MOT certificate
c. The physical driving license or vehicle registration document
d. The Motor Insurers’ Bureau
C
The physical driving license or vehicle registration document
For his new 4X4 vehicle, Jez purchases a private motor insurance policy online. He plans to use his car for social, domestic and pleasure purposes. What kind of customer is Jez, according to ICOBS?
a. A retail customer
b. A commercial customer
c. A private customer
d. A consumer
D
A consumer
In which of these circumstances is it unlikely for an insurer to provide Road Traffic Act cover?
a. The policyholder has a poor conviction record
b. The policyholder is a new, male driver aged 18 or under
c. The policyholder has a poor accident record
d. A policyholder’s vehicle has been badly damaged in an accident and is awaiting repair
B
The policyholder is a new, male driver aged 18 or under
Which of these is not a usual reason for a motor insurance customer to request third party only cover?
a. The insured has a criminal record
b. The insured uses their vehicle only sporadically
c. TPO cover is usually a cheaper option than TPFT cover
d. The insured’s vehicle has a low value
A
The insured has a criminal record
Following an accident to a motor vehicle, what is the preferred course of action by insurers in terms of indemnifying the insured?
a. An insurer will generally look to pay the insured in cash for the value of the repairs required as this is often the speediest option
b. An insurer will typically choose to replace the vehicle wherever possible as this reduces the amount of subsequent claims for defects
c. An insurer will usually elect to repair the vehicle as this is typically the most economical option
d. An insurer will most often allow the insured to elect their preferred method for claiming indemnity under their policy
C
An insurer will usually elect to repair the vehicle as this is typically the most economical option
What is the usual restriction on personal effects cover for commercial motor insurance policies?
a. It is not made available at all as it is regarded as too high a risk by motor insurers
b. It is not usually available for goods-carrying type policies
c. It is provided on the basis that the personal effects are stolen at the same time as the commercial vehicle
d. It is provided for theft only under most commercial motor policies although not for damage
B
It is not usually available for goods-carrying type policies
What is the usual limitation of the terrorism exclusion in a motor insurance policy?
a. Liability for terrorism is excluded other than where injury or death is caused
b. Liability arising out of terrorism is restricted to those necessary to meet the third party property limit of the Road Traffic Act
c. Liability for terrorism is excluded other than where claims arise in connection with war or government activities
d. Liability arising out of terrorist activities of organisations listed with the UK security authorities is excluded
B
Liability arising out of terrorism is restricted to those necessary to meet the third party property limit of the Road Traffic Act
Following a serious motor accident caused by another driver, a policyholder suffers a loss of sight in one of her eyes. Having issued a settlement under the personal accident section of the motor insurance policy, what recovery action, if any, is open to her insurer?
a. Her motor insurer may seek to recover a contribution from the insurers of any other relevant policy held by the policyholder (for example, medical, travel or similar cover)
b. Her motor insurer may subrogate against the insurers of the driver at fault
c. Her motor insurer may seek to recover a contribution from the insurers of the driver at fault
d. As personal accident cover is provided as a benefit, her motor insurer has no right of subrogation against the insurers of the driver at fault
D
As personal accident cover is provided as a benefit, her motor insurer has no right of subrogation against the insurers of the driver at fault
Which of these describes the function of a legal expenses policy?
a. It relieves intermediaries of the need to provide assistance with uninsured loss recovery claims
b. It guarantees the insured access to a lawyer of their choice in the pursuit of an uninsured loss
c. It provides policyholders with peace of mind in the event of the need to recover an insured loss
d. It allows motor insurers the flexibility to waive excesses where an uninsured loss can be recovered
A
It relieves intermediaries of the need to provide assistance with uninsured loss recovery claims
Of what are seat belts and safety helmets examples, as introduced by Part 1 of the Road Traffic Act of 1988?
a. Categories of offences, where not used
b. Preventative measures in relation to road safety
c. Minimum requirements in relation to children under the age of 16 years
d. Recommendations for use when driving and / or cycling
B
Preventative measures in relation to road safety
Please complete the following statement in relation to Part VII of the Road Traffic Act of 1988. ”Where a driver has not provided the required minimum information at the time of an accident, they must…
a. report the matter to their insurers immediately”
b. contact the third party’s motor insurers within 48 hours”
c. undertake a medical examination with a registered general practitioner within 5 days”
d. report the matter to the police as soon as reasonably practical, and in any case, within 24 hours”
D
report the matter to the police as soon as reasonably practical, and in any case, within 24 hours”
What does the case of Monk v Warbey (1935) illustrate?
a. The offence of driving whilst uninsured
b. Vicarious liability
c. The offence of causing death by dangerous driving
d. The offence of permitting driving with no insurance
D
The offence of permitting driving with no insurance
In accordance with Section 146 of Part VI of the Road Traffic Act of 1988 who issues securities in respect of third party risks as an alternative to insurance?
a. The Government
b. The Securities and Investments Institute
c. Authorised insurers
d. The Financial Conduct Authority
C
Authorised insurers
In what circumstances, if any, is a passenger in a motor vehicle able to travel by agreement with the driver at their own risk?
a. Where the passenger has paid a fare
b. They may not do so at all as Section 149 of Part VI of the Road Traffic Act of 1988 prevents this
c. Where there is an explicit agreement between the passenger and the driver to this effect
d. Where the driver is reassured that the passenger has sufficient personal insurance to cover the risk
B
They may not do so at all as Section 149 of Part VI of the Road Traffic Act of 1988 prevents this
What provision does Section 153 of Part VI of the Road Traffic Act of 1988 make in relation to bankruptcy of a policyholder, where a third party has a claim against them?
a. The third party does not lose their rights under the RTA and may pursue a judgement against the policyholder’s insurers
b. The third party does not lose their rights under the RTA and may pursue a judgement against the Motor Insurers’ Bureau
c. The third party loses their rights under the RTA and has no further option to pursue a judgement against the policyholder
d. The third party loses their rights under the RTA but may still become a creditor of the policyholder
A
The third party does not lose their rights under the RTA and may pursue a judgement against the policyholder’s insurers
What is the main purpose of Part VI of the Road Traffic Act 1988?
a. To set out the rights of motorists and victims of road traffic accidents
b. To determine how victims of road traffic accidents will be recorded
c. To ensure innocent victims of road traffic accidents do not go uncompensated
d. To ensure users of motor vehicles are responsible in their actions
C
To ensure innocent victims of road traffic accidents do not go uncompensated
