Package Policies

Question 1

What are the key exclusions from the cover provided for subsidence, ground heave and landslip under a household buildings policy?

Answer 1

Normal shrinkage or settlement. Faulty workmanship or design. Demolition or alteration. Coastal or riverbank erosion. Movement of floor slabs unless the foundations are also damaged. Outside items such as tanks and pools unless the building is damaged at the same time by the same course.

Question 2

In a standard policy identify an excluded activity which can be put back into the policy by payment of an additional premium?

Answer 2

Winter sports. Water skiing. Potholing and mountaineering.

Question 3

Tony’s travel insurance policy provides cover under all available sections of cover for him and his family which of the following can he claim?

Answer 3

Bringing home his son is dead body. Delay in departure of a holiday fly. Loss of his daughter is Limb while on holiday. Medical expenses for him while on holiday.

Question 4

An insurance document which brings together fire, special perils, theft, business interruption, money and other types of insurance for a business, in a single contract is known as what

Answer 4

Package policy, this includes within one policy document all the covers required by a ph

Question 5

For travel delay to be considered a claim how long must the flight be delayed for?

Answer 5

12 hours of original departure time due to strike industrial action adverse weather conditions mechanical breakdown or structural defect affecting the aircraft.

Question 6

What is the limit of indemnity in travel delay for the first 12 hours?

Answer 6

£20 for the first 12 hours and then £10 for each for 12 hours after up to a limit of £200

Question 7

Household policies cover

Answer 7

Buildings and/or contents against a wide range of perils, cover for valuables and personal effects and also public liability cover.

Question 8

How are household insurance claims settled?

Answer 8

Indemnity/new 4 old depending on the terms of the policy

Question 9

How are buildings defined?

Answer 9

The main structure of the private dwelling, including garages, sheds, greenhouses, swimming pools and tennis courts, walls, gates, fences and paths.

Question 10

In a household insurance policy what exclusions might there be a storm or flood?

Answer 10

Gates, fences and hedges as well as an occupied or unfurnished property. 

Question 11

What are contents defined as?

Answer 11

Household goods and personal effects belonging to the insured or their family members living in the property.

Question 12

What Will apply for contents?

Answer 12

Single article limit under all valuables limit.

Question 13

What does the legal section of the buildings policy cover?

Answer 13

The insured for liability incurred as owner of the property. Under the contents policy it covers liability incurred as occupier of the property and as a private individual for personal liability.
Indemnity limit of £2m

Question 14

What are the optional extensions for household insurance?

Answer 14

Personal possessions cover for specified items or unspecified items.

Money and credit card.
Bicycles. Freezer contents. Caravans. Small craft. Sports equipment. Personal accident hospital cash benefit and creditor insurance. Domestic animals. Legal expenses for recovery costs civil defence costs prosecution defence costs employment dispute costs. Identity fraud

Question 15

What is the purpose of travel insurance?

Answer 15

It covers the risks faced by individuals when travelling in the UK or abroad.

Question 16

What is the cover for travel insurance?

Answer 16

Cover for personal accident, medical expenses, lost deposits, lost damaged or delayed baggage, personal liability and delayed or interrupted travel.

Question 17

The optional extensions in travel insurance includes?

Answer 17

Failure of tour organiser, lack of services or manatees, loss of passport, legal expenses. Pet passports for when travelling with pets. An extension that covers extra kennel face if the start of the original journey is delayed ranging from £20-£50 per day maximum of £500

Question 18

Why do policy exclusions exist?

Answer 18

They are designed to protect the insurer from extraordinary situations however some exclusions may be deleted by paying an additional premium.

Question 19

In commercial insurance what is the purpose of a package policy?

Answer 19

Covers the main insurance needs of a small business including fire and special perils, business interruption and employers, public and product liability.

Question 20

What are the optional extensions to a commercial package policy?

Answer 20

Refrigerated stock, business all risks, legal expenses defending an action vote by a customer employee or neighbour. Data privacy and cyber risks.

Question 21

What are the risks that are excluded if the building is unfurnished or an occupied for more than 30 days?

Answer 21

Theft, Riots, civil commotion, burst pipes, escape of oil and breakage of glass and sanitary fittings.

Question 22

What are automatic extra covers provided by the content section of a household policy?

Answer 22

Temporary removal. Clothing and personal effects of the insured domestic servants. Accidental breakage of mirrors and glass on or fix to furniture and loss of rent.

Question 23

What is the scope of liability cover in a household policy?

Answer 23

The building section covers the liability of the insured as owner, while the content section covers liability as occupier of the premises.

Question 24

What is the extent of cover available for freezer contents?

Answer 24

Cover in respect of the creation of the freezer contents as a result of changes in temperature or contamination.

Question 25

What colour is available to impatience and a medical expenses insurance?

Answer 25

Hospital charges, specialist face and additional cost.

Question 26

What is the scope of cover for horses and ponies under the domestic animals extension?

Answer 26

Cover in respect of death from accident, sickness or disease, economic slaughter, and lost by theft or straying.

Question 27

What is the scope of cover for cats and dogs under the domestic animals extension?

Answer 27

Cover for vet fees, accidental death, death from Illness , lost by theft, kennel fees while the owner is hospitalised, advertising and reward, third-party liability and holiday cancellation following emergency surgery to the pet

Question 28

What are the basic sections of cover provided by travel insurance?

Answer 28

Personal accident benefits, Medical and associates expenses, loss of deposits and other charges incurred as a result of cancellation or curtailment of the holiday, baggage personal effects and money, personal liability, delight baggage, hospital cash benefits, travel interruption and travel delay

Question 29

What is travel interruption,?

Answer 29

Failure of public transport to deliver the insured to the departure point on either the outward or return journey in time to take the trip booked.

Question 30

What is included in a travel interruption policy?

Answer 30

The cost of additional accommodation and travel which is covered up to around £300 per person.

Question 31

What risks are covered in a typical commercial package policy?

Answer 31

Fire and additional perils, business interruption, theft, money, glass, assault, goods in transit, employers liability, public liability and products liability.

Question 32

The cancellation section of a travel insurance policy normally excludes claims in relation to

Answer 32

Pregnancy

Question 33

An insurance policy for a small business includes cover for fire, special perils, theft, business interruption, money and other types of insurance under a single contract.

Answer 33

Packaged policy

Question 34

Under a travel insurance policy, cover for baggage will NOT generally include damage to

Answer 34

Fragile objects

Question 35

Which peril is always excluded under a commercial fire and special perils insurance policy as a market exclusion?

Answer 35

War