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LM1 > London Market Reg (Chapt 7) > Flashcards

London Market Reg (Chapt 7) Flashcards

1
Q

Solvency II

A

The name given to the EU’s European wide solvency rules.

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2
Q

UK/EU/Un sanctions

A

Financial sanctions can come in forms including:
- prohibiting the transfer of funds to a sanctioned country
- Asset freezing of a company or individual- unit in HM treasury
- Freezing the assets of a whole government, as well as companies and residents

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3
Q

Cuba

A

No accounting, marketing, sales to Cuba

Helms burton act 1996

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4
Q

Data protection 1984

A

Protects loss of data and disclosure without consent

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5
Q

Data protection 1998

A

Replacement act

(Not just computer data)

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6
Q

8 principles of EU data protection directive

A

Fair and lawful
Specified purpose
Nit excessive
Accuracy
Processing
Data subjects rights
Protection
Transfer

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7
Q

Money laundering 3 stages

A

Placement
Layering
Integration

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8
Q

Criminal justice acts 1988 and 1993

A

First just drugs and terrorism

Now all crime proceeds

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9
Q

JMLSG

A

Joint money laundering steering group
Must have MLRO
Looks at breaches by FSA

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10
Q

Bribery act 2010

A

Bribing another, being bribed, bribing foreign official and failure to report

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11
Q

Data evidence - what are codes used for?

A

Location of broker
Location of risk
Premium tax
Direct or reinsurance

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12
Q

Solvency 2

A

Better regulation
Deeper integration of EU insurance market
Enhanced p/h protection
Improved competitiveness of EU insurers

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13
Q

System and controls - when can an UW write a risk

A

Risks can’t be written by an UW if in contravention of the rules

training and education
easily accessible info for staff to check
operating system controls
peer reviews
system reports
authority limits

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14
Q

Sanctions reasons

A

political pressure
enforce concept of respect for democracy
enforce concept of respect for human rights
maintain and restore peace

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15
Q

Who is responsible for implementing and administration of international financial sanctions in UK

A

The Office of Financial Sanctions Implementation (OFSI) in HM Treasury

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16
Q

Helms-Burton Act 1996

A

Restricts conduct of business by US entities with or in Cuba

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17
Q

Placement
Layering
Integration

A

Placement - putting cash into the system
Layering - creating a series of complex transactions
Integration - giving impression of legitimate arrangement

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18
Q

Who does GDPR apply to

A

Places legal obligations on controllers and processors, e.g firms are required to maintain records of personal data and processing activities and a firm has significant legal liability if it is responsible for a breach.

Controllers - says how and why data processed

Processors - act on controllers behalf

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19
Q

Categories of licence

A

Cat A requires a licence (gallows electric chairs guillotines)

Cat B and C only require licence if insurance obtained for journey to embargoed country

20
Q

Export Control Order 2008

A

Requires licence obtained if

movement of arms or military goods between two overseas countries
involvement of any Uk person

21
Q

Which of these different types of important about a risk would an overseas regulator not be interested in?

A

Amount of gross premium paid

22
Q

Identify something which is not an example of systems and controls within a business?

A

Salary limits

23
Q

What are two main types of sanction that affect insurers?

A

Financial and trade

24
Q

What is OFAC?

A

The part of the US Government that issues sanctions related guidance

25
Q

Why are Cuban risks of interest to London Market Insurers?

A

Insurers with US parents need to be aware of US sanctions

26
Q

Under the Money Laundering, Terrorist Financing and Transfer of Funds Reg 2017, what additional risk assessment needs to be done, alongside the risk of money laundering?

A

Terrorist financing

27
Q

What is the key requirement in order to hold personal date under GDRP?

A

Permission from the person concerned

28
Q

What behaviour during a claim might make you suspect money laundering?

A

Request to pay claims proceeds to someone not previously involved

29
Q

What are the offences under the Bribery Act 2010?

A

Taking a bribe, bribing others, bribing a public official overseas and failing to prevent bribery

30
Q

What information is not available through the coding applied to premium and claims data in the London Market

A

Account of premium being charged

31
Q

Against which combination of parties can sanctions be imposed?

A

Governments, individuals and companies

32
Q

Which statement about the UK GDPR is correct?

A

It operates alongside DPA 2018

33
Q

What are the three distinct phases of the traditional money laundering model?

A

Placement, layering and integration

34
Q

If you ignore your suspicions and pay the funds, of which offence might you be guilty under POCA?

A

Failing to report

35
Q

Who regulates the use of personal data within the UK?

A

The Information Commissioner.

36
Q

Which unit within HM Treasury is responsible for the implementation and administration of international financial sanctions in the UK?

A

The Office of Financial Sanctions Implementation.

37
Q

What is the name of the Lloyd’s system that stores information about sanctions in foreign countries?

A

Crystal

38
Q

An individual has been charged under UK law for paying someone an inducement to buy insurance. This is most likely to be under the:

A

Bribery Act 2010.

39
Q

The Bribery Act 2010 covers four major offences. What is NOT one of these?

A

Failure to report suspicions of bribery.

40
Q

How is solvency defined?

A

The balance between assets and liabilities.

41
Q

Under data protection regulations, what is the maximum penalty that the Information Commissioner’s Office can levy on a UK insurer?

A

£17.5m or 4% of global revenue.

42
Q

What is Solvency?

A

The balance between assets and liabilities is vital for an insurer to be able to continue trading.

43
Q

When they solvency rules where introduced the EU claimed:

A

Will be more risk sensitive and more sophisticated thus enabling better coverage for the real risks run by any insurer

44
Q

Now the UK has left the EU, Solvency II no longer applies directly….

A

Concept of equivalence - trading partners such as the EU and sun agreeing to mutually recognise each others standards are of equal quality

45
Q

Fundamentally sanctions are imposed:

A
  • political pressure
  • to enforce the concept of respect for democracy
  • to enforce the concept of respect for human rights
  • to maintain and restore peace in a country or region

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