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IF3 practice paper 1 > Pre Exam > Flashcards

Pre Exam Flashcards

1
Q

Consumer contracts should be

A

Full and accurate

Only obliged to answer questions on the proposal form

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2
Q

Non consumer contracts should be

A

A fair presentation of risk

A reasonable search for info has been done

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3
Q

If a circumstance or representation would influence an insurers decision to take a risk, it is…

A

Material

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4
Q

Contracting out is

A

Both parties can agree to revert to previous law ( marine 1906) but insurers must explain fully or it is void

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5
Q

Fair representation starts

A

When negotiations begin and lasts throughout a policy life

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6
Q

Duty if disclosure lasts

A

From start of negotiations to start of policy

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7
Q

Adjustable premium is relevant when

A

An estimate is provided

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8
Q

A flat premium is

A

Revealed in a proposal form and rating tools

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9
Q

A policy is evidence of

A

The contract not the contract itself

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10
Q

Rate per cent =

A

Price in ponds for each £100 of expenses

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11
Q

Rate per mile =

A

Price for each £1,000

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12
Q

A deposit premium is

A

Estimated and charged on an estimated figure, can be adjusted up and down

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13
Q

Cover note is…

A

Evidence the policy is in force

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14
Q

Fundamental risk

A

Too serious to be insured by a company I.e war

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15
Q

Warranties are

A

A promise made by the insured to control risk aspects

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16
Q

Comprehensive motor exclusions

A 
Wear and tear
Tyre damage
Mechanical/electrical failure
Depreciation 
Loss of use
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17
Q

Extended warranty limit is

A

2.5k

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18
Q

Travel policy extensions avail are

A

Failure of the tour organiser
Lack of services or amenities
Loss of passport
Legal expenses

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19
Q

Four groups of exclusions apply to all risks policy

A
  • absolute exclusions
  • Gradually operating exclusions
  • aspects of the cover can be written in
  • property or risks more suitable to another type of policy
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20
Q

Money policy may be extended to include

A

Personal accident/assault

Credit cards

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21
Q

Cyber losses may be 1sr or

A

3rd person, dependant on cover chosen

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22
Q

Helpline travel insurance is there for

A

Emergency medical services

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23
Q

Two main components of risk control are:

A

Physical

Financial

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24
Q

Maine rating factor for health insurance is

A

Occupation

25
Q

Main rating factor for buildings insurance is

A

Location and occupation.

26
Q

Main purpose of insurance fraud bureau

A

Coordinate industry wide action in fighting crime and fraud

27
Q

Sensitive personal data is classed as

A

Race , genetics, biometrics, sex life, orientation

28
Q

Personal injury discount rate

A

March 2017 0.75%

August 2029 0.25%

29
Q

Claims loss ratio

A

Claims / premium x 100

30
Q

Gross profit calculation

A

(Turnover + closing stock) - (opening stock + uninsured working expenses)

31
Q

Absolute exclusions are…

A

War,pollution,contamination consequential loss

32
Q

Gradually operating exclusions are

A

Corrosion/rust, wind and rain damage to property in the open

33
Q

Aspects of cover which can be written into a policy are

A

Money, glass and subsidence

34
Q

Property or risks more appropriate to another class of business …

A

Motor vehicles, aircraft

35
Q

Alteration is

A

Extends the duty of disclosure to a continuing duty

36
Q

Contribution. Is

A

Deals with the idea of two policies being in place for one loss and how the insured share the costs

37
Q

Average calculation

A

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

38
Q

Deductible

A

Essentially a large excess

39
Q

Franchises are

A

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

40
Q

Conditions precedent to the contract

A

Must be fulfilled before formation of the contract

41
Q

Conditions subsequent to the contract

A

Must be complied with once the contract is in place

42
Q

Conditions precedent to liability is

A

Must be complied with for there to be as valid claim

43
Q

Icons rule 6.5 r is

A

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

44
Q

Road traffic only cover is

A

1.2m limit
Bodily injury or death of third parties
Claimants costs and expenses
Emergency medical treatment arising out of vehicle use

45
Q

Third party only motor cover is

A

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

46
Q

Third party fire and theft motor cover is

A

In addition to third party cover it includes:
Compensation if vehicle is stolen or damaged during theft
Damaged by FLEA

47
Q

Main types of commercial vehicle are

A

Goods carrying vehicles
Agricultural vehicles
Passenger carrying vehicles
Special construction vehicles

48
Q

Third party liability indemnity for commercial vehicles is

A

between 1.2 -5 mil

49
Q

Two main purposes of fleet insurance

A

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

50
Q

Employers liability certificates must be kept for

A

40 years

51
Q

Three steps In with Managing a risk are

A

Identification
Analysis
Control

52
Q

Risk identification is

A

Analysis of the up and downside of a risk - survey

53
Q

Risk analysis is

A

Examining past data to evaluate the risk

54
Q

Risk control is

A

Putting in to action plans to reduce and even eliminate a risk

55
Q

MIAFTR is

A

Contains details of all loss and theft claims - check if claim has been submitted more than once

56
Q

MID ( motor insurance database) is

A

Details of all registered vehicles in the uk

57
Q

DSAR means

A

Data subject access request - individuals right to access personal database

58
Q

How long do organisations have to respond to a DSAR

A

1 month

59
Q

Equality act 2010

A

Unlawful to discriminate against disabled people in insurance unless based upon relevant info

IF3 practice paper 1 (3 decks)

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