Mock Questions Flashcards
What is the normal provision for personal effects cover under a commercial vehicle policy?
It is provided on the basis that they are stolen at the same time as the vehicle.
What is the usual limitation of the terrorism exclusion in a motor insurance policy?
Liability arising out of terrorism is restricted to those necessary to meet the requirements of the Road Traffic Acts.
What is the function of a motor legal expenses policy?
It relieves the intermediary of the need to provide assistance with uninsured loss recovery claims.
Of what is the Council of Bureaux comprised?
A bureau for each of the countries within the Green Card system.
What form is a motor insurance certificate required to take?
The form prescribed by the Motor Vehicle Regulations.
If a commercial vehicle policyholder acquires three points on his licence, when must he report it to his insurers?
Immediately under the change of risk provisions of his policy.
What is ‘lifestyle underwriting’ in the context of motor insurance?
A system of rating on each facet of the proposers risk.
What type of underwriting process is required for fleet policies?
Pure.
How may a commercial vehicle insurer create an accurate ongoing risk profile?
By undertaking a risk survey and audit.
As many claims will still be open, what do many commercial vehicle insurers rely heavily on when considering a policy renewal?
Outstanding reserves.
Having established the validity of a claim, what is the next step for a motor insurance claim handler?
To accurately quantify the claim.
What must a motor insurer prove before they can apply the reasonable care policy term in order to repudiate a claim?
A high level of reckless disregard by the policyholder for the safety of their property.
What is a not-for-profit membership association dedicated to the prevention of financial crime?
CIFAS
Credit Industry Fraud Avoidance System
According to ICOBS 8, how must an insurer handle a claim?
Promptly and fairly.
