Past paper questions Flashcards
With liability insurance, when can you admit liability to a third party?
When the insurer has given written consent
For a valid employers liability claim, when must cover be in force?
When the event giving rise to the claim occurs.
What is covered for travel insurance medical expenses & repatriation
hospital expenses
additional travel costs
travel costs & accom for a person who is assisting the injured.
What type of insurance can provide an extension to assist policyholders in the recovery of uninsured losses?
Comprehensive Motor
What cover applies to trailers if involved in crash
Third party only cover
If there is a claim involving a third party, who is normally liable for the excess?
The insured
Which department is responsible for reporting the full details of all the losses that have been paid or resevred?
Claims
Consumer outcome 6 of the financial conduct authority’s guidance on the fair treatment of customers
Do not put up unreasonable post-sale barriers when a customer submits a claim.
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?
3 months
What is the maximum timescale normally noted in a shop policy for notification to an insurer of damage as a result of a riot?
7 days
Which service is most likely to assist a policyholder in pursuing a third party for damages?
A legal costs service
Why would an insurer appoint a disaster recovery company following a major event where the insurer provides property and business interruption insurance?
To minimise the business interruption claim
When reporting outstanding claim liabilities on their end of year accounts, an insurer of commercial property business will include
- incurred but not reported (IBNR) figures
- estimated value of each individual claim
In calculating claims reserves, a motor insurer will make the most allowance for incurred but not reported (IBNR) claims under the heading of
Third party personal injury
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?
To identify if the claim needs to be referred to the fraud department
What is the maximum payment period for temporary disablement under a personal accident policy
104 weeks
Which is the purpose of a specified suppliers extension of a commercial property insurance policy?
indemnify the policyholder in respect of a loss of profit as a consequence of insured damage at the named suppliers premises
In a household policy, If an old roof suddenly starts leaking what is covered
An damage to contents from the sudden event but not the failure of the Old roof.
What level of cover does the insured have when using the ‘driving other cars’ extension of the policy?
Third party only
What does a freezer extension cover in the event of escaping fumes?
The spoiled food but not the new freezer
Factor reserving mean that the claims handler should…
reserve the same amount for each claim based on an actuarially derived average amount.
Why may a claim not be processed on the MOJ Portal?
If the claim is over 25k
Main objective of a computerised claims system is to…
Accurately record claims details
What is the most likely relationship between the insurer and the legal advice helpline?
Outsourcing/ Contracting
Purpose of technical reserves
provide funds to cover all outstanding underwriting liabilities
Why do insurers set internal budgets and regularly monitor financial progress against set targets
forecast results
