Pre Exam Flashcards
Consumer contracts should be
Full and accurate
Only obliged to answer questions on the proposal form
Non consumer contracts should be
A fair presentation of risk
A reasonable search for info has been done
If a circumstance or representation would influence an insurers decision to take a risk, it is…
Material
Contracting out is
Both parties can agree to revert to previous law ( marine 1906) but insurers must explain fully or it is void
Fair representation starts
When negotiations begin and lasts throughout a policy life
Duty if disclosure lasts
From start of negotiations to start of policy
Adjustable premium is relevant when
An estimate is provided
A flat premium is
Revealed in a proposal form and rating tools
A policy is evidence of
The contract not the contract itself
Rate per cent =
Price in ponds for each £100 of expenses
Rate per mile =
Price for each £1,000
A deposit premium is
Estimated and charged on an estimated figure, can be adjusted up and down
Cover note is…
Evidence the policy is in force
Fundamental risk
Too serious to be insured by a company I.e war
Warranties are
A promise made by the insured to control risk aspects
Comprehensive motor exclusions
Wear and tear Tyre damage Mechanical/electrical failure Depreciation Loss of use
Extended warranty limit is
2.5k
Travel policy extensions avail are
Failure of the tour organiser
Lack of services or amenities
Loss of passport
Legal expenses
Four groups of exclusions apply to all risks policy
- absolute exclusions
- Gradually operating exclusions
- aspects of the cover can be written in
- property or risks more suitable to another type of policy
Money policy may be extended to include
Personal accident/assault
Credit cards
Cyber losses may be 1sr or
3rd person, dependant on cover chosen
Helpline travel insurance is there for
Emergency medical services
Two main components of risk control are:
Physical
Financial
Maine rating factor for health insurance is
Occupation
Main rating factor for buildings insurance is
Location and occupation.
Main purpose of insurance fraud bureau
Coordinate industry wide action in fighting crime and fraud
Sensitive personal data is classed as
Race , genetics, biometrics, sex life, orientation
Personal injury discount rate
March 2017 0.75%
August 2029 0.25%
Claims loss ratio
Claims / premium x 100
Gross profit calculation
(Turnover + closing stock) - (opening stock + uninsured working expenses)
Absolute exclusions are…
War,pollution,contamination consequential loss
Gradually operating exclusions are
Corrosion/rust, wind and rain damage to property in the open
Aspects of cover which can be written into a policy are
Money, glass and subsidence
Property or risks more appropriate to another class of business …
Motor vehicles, aircraft
Alteration is
Extends the duty of disclosure to a continuing duty
Contribution. Is
Deals with the idea of two policies being in place for one loss and how the insured share the costs
Average calculation
Value insured under the policy / value at risk x the loss
I.e
200,000 ( bdv) / 250,000 (actual value) x 50,000 (loss) = 40,000
Deductible
Essentially a large excess
Franchises are
A fixed amount or period that acts to determine whether claims are payable. Once the amount of period is exceeded a claim is payable in full, if it is not exceeded nothing is payable
Conditions precedent to the contract
Must be fulfilled before formation of the contract
Conditions subsequent to the contract
Must be complied with once the contract is in place
Conditions precedent to liability is
Must be complied with for there to be as valid claim
Icons rule 6.5 r is
A firm must take reasonable steps to ensure a customer is given appropriate info about a policy in good time so they can make an informed decision about arrangements proposed
Road traffic only cover is
1.2m limit
Bodily injury or death of third parties
Claimants costs and expenses
Emergency medical treatment arising out of vehicle use
Third party only motor cover is
20 mil limit 3rd party damage
Indemnity to insureds employer of policy covers business use
Indemnity Liability of passengers
Legal costs to defend a claim
Third party fire and theft motor cover is
In addition to third party cover it includes:
Compensation if vehicle is stolen or damaged during theft
Damaged by FLEA
Main types of commercial vehicle are
Goods carrying vehicles
Agricultural vehicles
Passenger carrying vehicles
Special construction vehicles
Third party liability indemnity for commercial vehicles is
between 1.2 -5 mil
Two main purposes of fleet insurance
Enable rating to be carried out taking in to account the individual experience of the particular policy holder and requires a minimum number of vehicles (10)
Reduce admin for the policyholder
Employers liability certificates must be kept for
40 years
Three steps In with Managing a risk are
Identification
Analysis
Control
Risk identification is
Analysis of the up and downside of a risk - survey
Risk analysis is
Examining past data to evaluate the risk
Risk control is
Putting in to action plans to reduce and even eliminate a risk
MIAFTR is
Contains details of all loss and theft claims - check if claim has been submitted more than once
MID ( motor insurance database) is
Details of all registered vehicles in the uk
DSAR means
Data subject access request - individuals right to access personal database
How long do organisations have to respond to a DSAR
1 month
Equality act 2010
Unlawful to discriminate against disabled people in insurance unless based upon relevant info
