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Round 2 > Improvements > Flashcards

Improvements Flashcards

(63 cards)

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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
employers liability
£5m limit
26
do insurers have to send a renewal notice
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
What Act is for non-consumers and what must they follow
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
What is the CIDRA 2012?
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
general questions
name, address, occupation, period of insurance, past history
30
specific questions
risk address, age, subject matter description, sum insured, limit of liability
31
what would a risk survey be appropriate for
large/complex risks e.g commercial risks
32
why is it important to disclose all material facts
Marine Act 1906- a circumstance or representation is material if it would influence the judgement if a prudent insurer
33
what reinsurance would be useful for large one off losses
excess of loss as it is per risk/per event basis. bought in layers with different insurers
34
what is the requirement for theft insurance? There must be..
forcible and violent entry to or from the building
35
quota share
every risk the insurer accepts, a % of risk ceded to reinsurer and pay an agreed % of premium to them
36
Surplus Lines
in multiple equal line sizes when SI exceeds their retention
37
what are the two different proportional reinsurances?
quota share and surplus lines
38
Stop Loss
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
Excess of Loss
excess of loss 100K in excess of 50K = insurer only pays 50K maximum, reinsurer 100K maximum
40
Difference between proportional and non-proportional reinsurance
proportional reinsurance is accepted on an agreed share of the risk whereas non-proportional contributes after exceeded a specific figure
41
Operational Level reporting
day to day basis of UW - customer service levels, claims handling, documentation, credit control
42
reporting to underwriting managers
monthly for different divisions of the business - retention rates, loss ratios, claims, lapse flow (lost) analysis
43
board level reporting
group performance/profitability - growth, loss ratios, profit, exposure accumulations, return on capital
44
MID - Motor Insurance Database
details of all registered vehicles in the UK
45
MIAFTR - Motor Insurance Anti Fraud and Theft Register
all total loss and theft claims
46
Claims and Underwriting Exchange CUE
personal insurance incidents reported to insurers to eliminate multiple claims on parallel policies
47
GDPR
applies to controllers and processors in the UK and places legal obligations such as firms required to maintain records of personal data
48
sensitive data/special categories of personal data include...
race, ethnicity,politics,religion,sex orientation,health
49
The UK GDPR introduced 6 lawful bases such as
consent,contract,legal obligation,vital interests,public tasks and legitimate interests
50
The GDPR introduced new rights such as the rights to be...
informed, access, rectification, erasure, restrict processing, data portability, to object and about automated decisions
51
what is a hard market?
high prices/premiums, high profits and fewer capacity/insurers
52
what information does not need to be disclosed?
public knowledge, laws, spent convictions, info that improves the risk
53
what is an element of duty of fair presentation
the info must be clear and accessible
54
the relationship between a peril and a hazard
a peril gives rise to a loss and a hazard influences the peril
55
what is the purpose of a declaration in a proposal form?
insured must sign that all info is true and accurate
56
what is a deposit premium
estimated if unknown at policy inception
57
what is a cover note
evidence of the policy being in force
58
what is a warranty
a promise to/not to do something
59
what are the 3 different types of policy conditions
precedent to the contract, precedent to liability and subsequent to the contract
60
what is purpose of financial services compensation scheme
pay the claims for insurers that are insolvent
61
what is a moral hazard
carelessness, dishonesty and immoral social attitude
62
main uw consideration for glass
the geographical area
63
what does the premium base represent
the measure of exposure

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