Past paper questions

Question 1

With liability insurance, when can you admit liability to a third party?

Answer 1

When the insurer has given written consent

Question 2

For a valid employers liability claim, when must cover be in force?

Answer 2

When the event giving rise to the claim occurs.

Question 3

What is covered for travel insurance medical expenses & repatriation

Answer 3

hospital expenses
additional travel costs
travel costs & accom for a person who is assisting the injured.

Question 4

What type of insurance can provide an extension to assist policyholders in the recovery of uninsured losses?

Answer 4

Comprehensive Motor

Question 5

What cover applies to trailers if involved in crash

Answer 5

Third party only cover

Question 6

If there is a claim involving a third party, who is normally liable for the excess?

Answer 6

The insured

Question 7

Which department is responsible for reporting the full details of all the losses that have been paid or resevred?

Answer 7

Claims

Question 8

Consumer outcome 6 of the financial conduct authority’s guidance on the fair treatment of customers

Answer 8

Do not put up unreasonable post-sale barriers when a customer submits a claim.

Question 9

Under the personal injury pre action protocol, within what maximum timescale must an insurer give a decision on liability following acknowledgement of a letter regarding a claim?

Answer 9

3 months

Question 10

What is the maximum timescale normally noted in a shop policy for notification to an insurer of damage as a result of a riot?

Answer 10

7 days

Question 11

Which service is most likely to assist a policyholder in pursuing a third party for damages?

Answer 11

A legal costs service

Question 12

Why would an insurer appoint a disaster recovery company following a major event where the insurer provides property and business interruption insurance?

Answer 12

To minimise the business interruption claim

Question 13

When reporting outstanding claim liabilities on their end of year accounts, an insurer of commercial property business will include

Answer 13

• incurred but not reported (IBNR) figures
• estimated value of each individual claim

Question 14

In calculating claims reserves, a motor insurer will make the most allowance for incurred but not reported (IBNR) claims under the heading of

Answer 14

Third party personal injury

Question 15

What is the main reason a motor insurer will often ask an insured for details of past accidents when dealing with a new claim for a recent and unrelated event?

Answer 15

To identify if the claim needs to be referred to the fraud department

Question 16

What is the maximum payment period for temporary disablement under a personal accident policy

Answer 16

104 weeks

Question 17

Which is the purpose of a specified suppliers extension of a commercial property insurance policy?

Answer 17

indemnify the policyholder in respect of a loss of profit as a consequence of insured damage at the named suppliers premises

Question 18

In a household policy, If an old roof suddenly starts leaking what is covered

Answer 18

An damage to contents from the sudden event but not the failure of the Old roof.

Question 19

What level of cover does the insured have when using the ‘driving other cars’ extension of the policy?

Answer 19

Third party only

Question 20

What does a freezer extension cover in the event of escaping fumes?

Answer 20

The spoiled food but not the new freezer

Question 21

Factor reserving mean that the claims handler should…

Answer 21

reserve the same amount for each claim based on an actuarially derived average amount.

Question 22

Why may a claim not be processed on the MOJ Portal?

Answer 22

If the claim is over 25k

Question 23

Main objective of a computerised claims system is to…

Answer 23

Accurately record claims details

Question 24

What is the most likely relationship between the insurer and the legal advice helpline?

Answer 24

Outsourcing/ Contracting

Question 25

Purpose of technical reserves

Answer 25

provide funds to cover all outstanding underwriting liabilities

Question 26

Why do insurers set internal budgets and regularly monitor financial progress against set targets

Answer 26

forecast results