main concerns

Question 1

road traffic act only

Answer 1

minimum cover for bodily injury/death, damage to property and expenses to third party

Question 2

third party motor

Answer 2

property damage to third party
can be fire and theft too

Question 3

comprehensive

Answer 3

‘all risks’ incl malicious damage but not wear and tear

Question 4

main travel uw consideration

Answer 4

destination

Question 5

main glass uw consideration

Answer 5

geographical location

Question 6

main building uw consideration

Answer 6

use

Question 7

preamble/recital clause

Answer 7

sets scene, 2 parties, obligations

Question 8

operative clause

Answer 8

outlines cover

Question 9

policy schedule

Answer 9

summarises what is personal and specific e.g SI, limit of liability, subject matter

Question 10

cover note

Answer 10

temporary evidence of cover and has name n policy period

Question 11

calendar year

Answer 11

date of LOSS

Question 12

underwriting year

Answer 12

date of INCEPTION

Question 13

policy year

Answer 13

unique 12 months

Question 14

accounting year

Answer 14

whenever this may be e/g oct-sept

Question 15

cidra 2012

Answer 15

consumers - full and accurate and depends on qs asked by insurer

Question 16

insurance act 2015

Answer 16

non-consumers e.g RE and have a duty of fair presentation - info must be clear and accessible

Question 17

quota share

Answer 17

every risk insurer accepts they will cede a % of the risk and part of the premium to reinsurer

Question 18

surplus

Answer 18

multiples lines of reinsurance when the SI exceeds their retention/maximum line

Question 19

excess of loss

Answer 19

good for large/complex risks as it is per risk/event basis

Question 20

stop loss

Answer 20

protecting their loss ratio so is triggered when it exceeds a certain %

Question 21

pecuniary/BI/gross profit formula

Answer 21

gross profit = (turnover + closing stock) - (opening stock + uninsured working expenses)

Question 22

premium calcuation

Answer 22

SI x Rate divided by 100/1000

Question 23

claims loss ratio equation

Answer 23

claims incurred divided by premium received x 100

Question 24

average

Answer 24

value insured divided by value at risk x the loss