Learning Outcome 1 Flashcards
What is NOT a benefit of setting up a captive insurer? A. Pay no premium tax B. Benefit from own risk control C. Avoid insurers' overheads D. Benefit from lower reinsurance costs
A. Pay no premium tax
Marine associations who insure liabilities for cargo, crew and passengers are known as:
A. pools
B. P&I clubs
C. captives.
D. syndicates.
B. P&I clubs
What is NOT a requirement for a successful international insurance market?
A. Political and economic stability
B. Highly qualified personnel
C. High levels of brokerage
D. Stable legal and regulatory environment
C. High levels of brokerage
“Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to corporate culture” is?
A. One of the FCA principles of business
B. One of the T&C outcomes
C. One of the TCF outcomes
D. One of the PRA’s principles of business
C. One of the TCF outcomes
If a non-insurance organisation markets insurance products to its customers as an additional service, the distribution channel is known as: A. White labelling B. Black labelling C. Delegated authority D. Intermediary channel
A. White labelling
What is NOT an advantage of using an aggregator A. Simplicity B, Speed C. Opportunity to safe money D. Coverage advice
D. Coverage advice
If an insurer purchased an insurance broker, this would be an example of:? A. Organic growth B. Outsourcing C. Horizontal integration D. Vertical integration
D. Vertical integration
The regulatory rules regarding outsourcing are found in what section of the Financial Conduct Authority's rule book? A. SYSC B. TCF C. T&C D. ICOBS
A. SYSC
What is the key benefit of outsourcing? A. Allows the company to focus on its core activities B. Eases budgeting C. Saves cost D. Meets regulatory requirements
A. Allows the company to focus on its core activities
