LO2 Flashcards
Recital/Preamble
sets scene by referring to the 2 parties
Operative
scope of cover, what is covered and any clauses
Policy Schedule
personal and specific to insured
name, premium, period, subject matter, SI, policy no.
What is a consumers duty?
to take reasonable care not to make a misrepresentation
What is a business/commercial duty?
duty to make a fair presentation of the risk
What doesn’t need to be disclosed?
spent convictions.
Under rehabilitation of offenders act - convictions of 4+ years are never spent
Proposal form
includes a declaration, general questions as well as questions specific to the LOB
convenient, speedy and cost effective
What are surveys used for?
large complex e.g property
Cancelling rights / cooling off
14 days
Grace Period
time for insured to pay the renewal premium
What is the purpose of a TOBA?
terms of business agreements can be with clients or brokers to identify the services that will be provided and may contain a service level agreement
FCA Contract Certainty
requirement to provide docs promptly after/30 days when all complete and final.
Policy docs for renewal should be provided 7 days after RNL
The policy is used as
evidence of the contract- helpful in disputes over terms
The cover note is used as
evidence that cover is in force e.g endts
includes date, t&cs, risk specific info and any special terms
What is dual pricing?
when new customers are offered lower premiums than existing customers
