Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LM1 > LM1 > Flashcards

LM1 Flashcards

1
Q

To which organisation would a firm’s Money Laundering Reporting Officer submit a Suspicious Activity Report?

A

The National Crime Agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

If an insurer from the European Union (EU) authorised by its local regulator wishes to write business from any country within the EU whilst based solely in their home state, this is permitted under EU regulations…

A

on a freedom of services basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which trade market association for insurance and reinsurance companies exists to promote and enhance the business environment for its members operating in or through London?

A

International Underwriting Association of London

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the approx. min level of professional indemnity insurance intermediaries are required to have for a single claim, under FCA rules?

A

£1M

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Risk is normally assessed in terms of

A

Frequency & Severity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Syndicates are commonly referred to as

A

Annual ventures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What body is primarily responsible for the authorisation of a Lloyd’s syndicate?

A

the PRA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who regulates the use of personal data in the UK?

A

The Information Commissioner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

An appointed representative usually acts on behalf of the

A

Intermediary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

All authorised insurance companies must report complaints to the FCA in what frequency?

A

Bi-annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What enables an insurer to accept a small premium in relation to its exposure?

A

Pooling of risks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the 3 main benefits of compulsory insurance?

A
  • Provide funds for compensation
  • In response to national concerns
  • Reputation of the profession
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the max prison sentence for the main Money Laundering offences?

A

Max sentence of 14 years / unlimited fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the max sentence for failing to report suspected Money Laundering, or tipping off about an investigation?

A

Max 5 years / unlimited fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is Cargo insurance?

A

Physical damage insurance for items being moved around (doesn’t cover liabilities, or storage type risks)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is Goods In Transit Insurance?

A

Covers liability insurance for the person moving items in their CCC

17
Q

What is Loss of Earnings insurance?

A

When a ship cannot be used for intended method of income (typically requires physical damage) - policy limit = in days

18
Q

What is a First Loss policy?

A

When it is unlikely that total/substantial loss will be incurred - sum insured for some perils that is less than full value

19
Q

What is salvage?

A

Total loss may be offered if subject is not completely destroyed, but repair exceeds sum insured. Residual value = ‘salvage’

20
Q

What is consideration?

A

Each person’s side of the bargain:
Insured = payment of premium
Insurer = promise to pay claims

21
Q

What are the compulsory insurances?

A

EL, Motor (3rd party property & liability), Public liability (for riding establishments), liability for dangerous wild animals/dogs, professional indemnity (solicitors, accountants & FCA authorised intermediaries)

22
Q

What is the minimum required limit for an Employer’s Liability policy?

A

£5M (10M standard)

23
Q

What are the secondary functions of insurance?

A
  • Don’t have to put aside large sums of money for safety net
  • Can be confident to expand business
  • Jobs protected
24
Q

What are the primary functions of insurance?

A
  • Spreading risk
  • Degree of certainty
  • Transfer risk
25
Q

What are the features of insurable risk?

A

(must be pure, financial & particular):
- Fortuitous event
- Insurable interest
- Not against public policy
- Must generally not be a one-off

26
Q

What does Aviation Liabilities cover?

A
  • Passengers
  • 3rd Parties other than passengers (baggage handlers or ground staff)
  • Products-related liabilities (i.e. illness from food on the plane)
27
Q

What does the Road Traffic Act 1988 prohibit?

A

Insurers avoiding liability bc of certain breaches of good faith

28
Q

CAR policies are…

A

Construction All Risks - purchased by main contractor on behalf of other sub-contractors

29
Q

EAR policies are…

A

Erection All Risks - purchased by contractor responsible for putting up/installing machinery or steel structures

30
Q

Benefits of buying reinsurance

A
  • Increase capacity
  • Smooth peaks and troughs
31
Q

Benefits of writing reinsurance

A
  • Accessing other geographical areas
  • Accessing other classes of business
32
Q

What are ‘mutuals’?

A

Like-minded organisations grouping together to form an insurance pool among themselves

33
Q

Why insure in London Market?

A
  • Capacity
  • Entrepreneurial spirit
  • Good claims service
  • History/experience

LM1 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions