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Round 2 > Improvements > Flashcards

Improvements Flashcards

1
Q

What is included in the heading?

A

Insurer name and address

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2
Q

What is the preamble / recital clause?

A

Refers to 2 parties outlining the terms and obligations. Sets the scene.

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3
Q

What is the signature clause?

A

Pre printed signature of an office from the insurance company

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4
Q

What is an operative/insuring clause?

A

Most important - outlines cover

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5
Q

Exclusions

A

Can be general or specific

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6
Q

Conditions and the 2 types

A

What the insured has agreed to comply with.
Express- stated in policy
Implied- common law

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7
Q

What is the policy schedule

A

Summarises what is insured which is personal and specific to the insured E.g SI, premium, policy period

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8
Q

Conditions that are precedent to the contract…

A

Prior to contract forming

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9
Q

Conditions precedent to liability..

A

Must be complied with for a valid claim

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10
Q

Conditions subsequent to the contract..

A

Complied with when in force

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11
Q

Market Cycle

A

prices - profits - capacity

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12
Q

When does Premium Tax apply?

A

to most UK general insurances - not the channel islands or isle of man
e.g 20% applies to personal travel

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13
Q

why don’t we include large claims?

A

they play a disproportionate role in pricing and profitability

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14
Q

calendar year

A

date of LOSS

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15
Q

accounting year

A

date of LOSS but year runs from OCT 1st - SEPT 30th

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16
Q

underwriting year

A

grouped based on inception dates

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17
Q

policy year

A

individual policies with unique 12 month period

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18
Q

fraudulent claims / misrepresentation

A

If the insured was deliberate/reckless then the insured can act as if the policy doesn’t exist and avoid all claims. It depends on whether the insured specifically asked questions about the subject

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19
Q

main UW consideration for fire/building

A

use

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20
Q

Third Party Cover

A

covers damage/injury caused to third party including passengers, property and accidents
does not cover my car

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21
Q

Comprehensive cover

A

covers everything as the others but also pays out for my car if it needs to be repaired or replaced due to accident or malicious damage

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22
Q

Third Party, fire and theft cover

A

pay out to a third party as well as my car if damaged by fire or theft

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23
Q

what is the minimum cover for motor insurance?

A

third party cover

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24
Q

Road Traffic Act Limits

A
  • unlimited indemnity for bodily injury or death to third parties
  • £1.2m limit for loss/damage to third party property, costs, expenses etc
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25
Q

employers liability

A

£5m limit

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26
Q

do insurers have to send a renewal notice

A

not legally required to issue renewal notices.
They do not have to offer terms to renew but must let the client know that they no longer will be insuring them. Must give them a notice period.

27
Q

What Act is for non-consumers and what must they follow

A

The Insurance Act 2015 is for non-consumer e.g commercial customers - Renewable Energy and they have a duty of FAIR PRESENTATION and must disclose all MATERIAL CIRCUMSTANCES.

28
Q

What is the CIDRA 2012?

A

This is for consumers and all info given must be full and accurate with a duty not to make a misrepresentation (lie). However, all reliant on questions asked by the insurer

29
Q

general questions

A

name, address, occupation, period of insurance, past history

30
Q

specific questions

A

risk address, age, subject matter description, sum insured, limit of liability

31
Q

what would a risk survey be appropriate for

A

large/complex risks e.g commercial risks

32
Q

why is it important to disclose all material facts

A

Marine Act 1906- a circumstance or representation is material if it would influence the judgement if a prudent insurer

33
Q

what reinsurance would be useful for large one off losses

A

excess of loss as it is per risk/per event basis.
bought in layers with different insurers

34
Q

what is the requirement for theft insurance? There must be..

A

forcible and violent entry to or from the building

35
Q

quota share

A

every risk the insurer accepts, a % of risk ceded to reinsurer and pay an agreed % of premium to them

36
Q

Surplus Lines

A

in multiple equal line sizes when SI exceeds their retention

37
Q

what are the two different proportional reinsurances?

A

quota share and surplus lines

38
Q

Stop Loss

A

When insurer wants to protect its loss ratio from exceeding a certain % it can get reinsurance for claims in excess of this figure. triggered when exceeded

39
Q

Excess of Loss

A

excess of loss 100K in excess of 50K = insurer only pays 50K maximum, reinsurer 100K maximum

40
Q

Difference between proportional and non-proportional reinsurance

A

proportional reinsurance is accepted on an agreed share of the risk whereas non-proportional contributes after exceeded a specific figure

41
Q

Operational Level reporting

A

day to day basis of UW
- customer service levels, claims handling, documentation, credit control

42
Q

reporting to underwriting managers

A

monthly for different divisions of the business
- retention rates, loss ratios, claims, lapse flow (lost) analysis

43
Q

board level reporting

A

group performance/profitability
- growth, loss ratios, profit, exposure accumulations, return on capital

44
Q

MID - Motor Insurance Database

A

details of all registered vehicles in the UK

45
Q

MIAFTR - Motor Insurance Anti Fraud and Theft Register

A

all total loss and theft claims

46
Q

Claims and Underwriting Exchange CUE

A

personal insurance incidents reported to insurers to eliminate multiple claims on parallel policies

47
Q

GDPR

A

applies to controllers and processors in the UK and places legal obligations such as firms required to maintain records of personal data

48
Q

sensitive data/special categories of personal data include…

A

race, ethnicity,politics,religion,sex orientation,health

49
Q

The UK GDPR introduced 6 lawful bases such as

A

consent,contract,legal obligation,vital interests,public tasks and legitimate interests

50
Q

The GDPR introduced new rights such as the rights to be…

A

informed, access, rectification, erasure, restrict processing, data portability, to object and about automated decisions

51
Q

what is a hard market?

A

high prices/premiums, high profits and fewer capacity/insurers

52
Q

what information does not need to be disclosed?

A

public knowledge, laws, spent convictions, info that improves the risk

53
Q

what is an element of duty of fair presentation

A

the info must be clear and accessible

54
Q

the relationship between a peril and a hazard

A

a peril gives rise to a loss and a hazard influences the peril

55
Q

what is the purpose of a declaration in a proposal form?

A

insured must sign that all info is true and accurate

56
Q

what is a deposit premium

A

estimated if unknown at policy inception

57
Q

what is a cover note

A

evidence of the policy being in force

58
Q

what is a warranty

A

a promise to/not to do something

59
Q

what are the 3 different types of policy conditions

A

precedent to the contract, precedent to liability and subsequent to the contract

60
Q

what is purpose of financial services compensation scheme

A

pay the claims for insurers that are insolvent

61
Q

what is a moral hazard

A

carelessness, dishonesty and immoral social attitude

62
Q

main uw consideration for glass

A

the geographical area

63
Q

what does the premium base represent

A

the measure of exposure

Round 2 (2 decks)

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