Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

If4 claims handling process 2021 (ALL of my study notes that helped me pass) READ THE SINGLE CARDS DECK IN PROGRESSIVE MIX > Private and Commercial Motor Insurance > Flashcards

Private and Commercial Motor Insurance Flashcards

1
Q

Private motor insurance is the most significant compulsory insurance in the UK.

A

True

Private motor insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

It is illegal to drive or be in charge of a vehicle on a public road unless an insurance policy is in force.

A

True

Private motor insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The policy must cover: the driver’s legal liability for injury to others and damage to their property.

A

True

Private motor insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

There are four different levels of cover available, with the lowest level being the most restrictive and extra areas of cover added for each level.

A

True

Private motor insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The following figure shows these in ascending order of the level of the cover provided.
Figure 2.1:

A
  1. Road Traffic Act only.
  2. Third Party only
  3. Third Party, fire and theft
  4. Comprehensive.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Increasing cover
It is worth noting that there are other levels of cover, such as ‘fire and theft’ and ‘off-road’. Whilst uncommon, these provide a different level of cover for specific circumstances.

A

True

Private motor insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Road Traffic Act only is the minimum cover required to comply with the Road Traffic Act 1988 (as amended)

A

True

Road Traffic Act 1988

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Road Traffic Act in Private motor insurance covers::::

A

unlimited indemnity in respect of bodily injury or death to third parties;

a £1,200,000 limit for loss of or damage TO THIRD PARTY PROPERTY (this complies with the FIFTH EU MOTOR INSURANCE DIRECTIVE 2005);

claimants’ costs and expenses; and

emergency medical treatment and hospital charges arising out of the vehicle use.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In accordance with the Third EU Motor Insurance Directive 1992, motor insurance policies issued in the EU must provide cover for the vehicle to be used in any other EU country.

A

True
(RTA in Private Motor Insurance ,
complying with the Third EU Motor Insurance Directive 1992,)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

This cover must be the minimum cover required by either the country visited or the country in which the vehicle is kept, whichever is the greater.

A

True
(RTA in Private Motor Insurance ,
complying with the Third EU Motor Insurance Directive 1992,)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Also cover for injuries to employees of the insured when travelling as passengers in the course of employment.

A

True

RTA in Private Motor Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Very few of this type of policy are issued as it is similar to the next type of coverage and most consumers will require more extensive cover than is provided here.

A

True…..

Road Traffic Act insurance in Private Motor Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Indemnity to user?

A

the insured may allow others to use the vehicle for social, domestic or pleasure purposes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Third party cover for the vehicle whilst being used in any country that is a member of the European Union.
When the UK leaves the EU (with or without a deal) policyholders will require proof of cover known as :

A

a ‘Green Card’, from their UK insurer in order to drive in any European Economic Area (EEA) country.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

There are two specific exclusions:

A

damage to the vehicle itself (regardless of whom was driving it); and

liability covered by another policy (e.g. when driving someone else’s car, cover may be provided under that car owner’s insurance).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Third party, fire and theft includes, in addition to the above:

A

the cost of repair or compensation to the insured if the vehicle is stolen or damaged during theft or attempted theft;

damage by fire, lightning or explosion.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

the cost of repair or compensation to the insured if the vehicle is stolen or damaged during theft or attempted theft; is which type of motor insurance policy?

A

Third party, fire and theft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Damage by fire, lightning or explosion, is which type of motor insurance policy?

A

Third party, fire and theft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The same exclusions apply here as to third party only. In addition, to :

A

‘loss of use’

Third party, fire and theft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The extra expense to the insured of having to use alternative transport whilst their car is out of action is specifically excluded.

A

True..

(Third party, fire and theft)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Some policies may include a benefit to include cover for a hire car if the subject vehicle is stolen or damaged by theft.

A

True..

(Third party, fire and theft)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Comprehensive cover is the widest possible protection and includes any accidental or malicious damage to the insured vehicle.

A

True

Comprehensive cover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

The cover is ‘all risks’, in (Comprehensive cover) i.e. all loss or damage is covered , with the following exclusions:

A

wear and tear;

depreciation;

loss or damage to spare parts and accessories unless on the vehicle or in the insured’s garage;

loss of use (though this can sometimes be purchased as add-on cover, usually in the form of a hire car);

mechanical and electrical failure; and

tyre damage from punctures or blow-outs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

• joint insured clause or cross liabilities clause

A

(i.e. two or more named insureds are treated as separate policyholders if one has a claim against the other);

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

A comprehensive policy may also extend cover for the policyholder to drive a vehicle not belonging to them, so long as it is not hired to them under a hire-purchase agreement.

A

True..

Comprehensive cover extension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

This cover only extends to third party liability and does not include damage caused to the vehicle being driven.

A

True..

Comprehensive cover extension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The policy may also extend to include personal accident, medical expenses and personal effects.

A

True..

Comprehensive cover extension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Comprehensive cover only extends to :

A

Third party liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

This extension (driving other vehicles in (Comprehensive cover extension) does NOT cover damages caused to the vehicle.

A

True..

Comprehensive cover extension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Extensions to a motor policy are widely available, and may be included as part of the core product or offered as additional add-ons for a slightly increased premium (or a combination of both).

A

True..

Private Motor Insurance cover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

A number of extensions in cover that are included without additional cost.

A

True..

Private Motor Insurance cover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

personal accident; medical expenses; personal effects; and USUALLY a ‘drive other vehicles’ extension by the insured only, which is restricted to third party only cover or even Road Traffic Act only cover.

A

True..

Private Motor Insurance cover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

The cover under personal accident, medical expenses and personal effects is very limited and should not be likened to stand alone policies of the same nature.

A

True..

Private Motor Insurance cover

34
Q

Cover will automatically include the driving-other-cars extension but this is subject to other policy restrictions (e.g. age of driver)

A

True..

Private Motor Insurance cover

35
Q

Usually only provide cover for the minimum that insurer offers (e.g. third party only)

A

True..

Private Motor Insurance cover

36
Q

*Many motor policies contain benefits for personal accident as standard, but legal expenses cover is often offered as an added extra, in return for an increased premium.

A

True..

Private Motor Insurance cover

37
Q

Examples of the optional extensions available include:(Private Motor Insurance cover)

A

additional personal accident benefits;

  • breakage of glass (on a non-comprehensive policy – it is usually covered by a comprehensive policy);
  • breakdown cover (for instance the provision of helplines or a certain amount of cover for the costs of roadside assistance)
  • caravans and trailers (usually third party cover whilst attached to the insured vehicle);
  • foreign use, that is the provision of cover over and above the minimum required by the EU Directives;
  • joint policies.
  • legal assistance;
  • loss of use at a fixed amount per day or the provision of a courtesy/hire car;
  • personal belongings and clothing (in addition to the limited standard cover provided by a comprehensive policy);
  • young additional drivers (these may be added as occasional users, but if they are one of the main drivers then the additional premium charged would be based on their age and experience);
  • racing, competitions, rallies and trials;
38
Q

There will be general and market exclusions in addition to the specific exclusions. exclusions such as:

A

contractual liability,

riot and civil commotion;

sonic bangs (i.e. damage caused by pressure waves from sonic/supersonic aircraft or other aerial device).

terrorism

use other than as specified in the certificate of
insurance

war risks;

39
Q

Motorcycle insurance includes any mechanically propelled cycle, and is also subject to the Road Traffic Act provisions.

A

True

Motorcycle insurance

40
Q

The policy format is the same as that for private motor insurance, with the following differences

A

True

Motorcycle insurance

41
Q

Usually no automatic cover for theft of accessories or spare parts unless the motorcycle is also stolen

A

True

Motorcycle insurance

42
Q

The liability section generally indemnifies the insured or their personal representatives in the event of their death) and others who were permitted to drive the motorcycle or who used it for social, domestic and pleasure purposes

A

True

Motorcycle insurance

43
Q

No personal accident, medical expenses (beyond emergency treatment fees) or personal effects cover.

A

True

Motorcycle insurance

44
Q

The policy exclusions are essentially the same as for private motor insurance.

A

True

Motorcycle insurance

45
Q

Accessories or spare parts is an extension covered for an additional premium

A

True

Motorcycle insurance

46
Q

Trailers is an extension covered for an additional premium

A

True

Motorcycle insurance

47
Q

Driving other cycles is an extension covered for additional premium

A

True

Motorcycle insurance

48
Q

More than one cycle is an extension covered for an additional premium
True

A

True

Motorcycle insurance

49
Q

Invalid carriages is an extension covered for an additional premium

A

True

Motorcycle insurance

50
Q

Commercial vehicles is a form of commercial insurance:

A

True

Commercial motor insurance

51
Q

The main types are:

goods-carrying vehicles;

agricultural and forestry vehicles; and

passenger-carrying vehicles;

special construction vehicles, e.g. ambulances, cranes, fork-lift trucks.

A

True

Commercial motor insurance

52
Q

The insurance is PRIMARILY concerned with the risks that attach to the vehicles themselves whilst being driven, parked or carried by sea or air within the UK.

A

True

Commercial motor insurance

53
Q

There is UUALLY a standard policy wording, which is then modified depending on the type of vehicle insured.

A

True

Commercial motor insurance

54
Q

The range of cover is largely the same as for private motor insurance.

A

True

Commercial motor insurance

55
Q

The cover (Commercial motor insurance) varies from it (private motor insurance) in that certain benefits are excluded,

A

e.g. driving other cars,

personal accident and personal effects cover.

56
Q

The third party liability section provides unlimited indemnity for death or bodily injury to third parties. There would be a limit of, for example,

A

£5m for third party property damage.

Commercial motor insurance

57
Q

What does this enable the underwriter to do?

A

limit the level of its liability on a case-by-case basis, depending on the nature of vehicle insured and goods carried.

58
Q

Loading or unloading cover?

A

for third party liability can also be applied to accidents whilst loading and unloading.

59
Q

Indemnity to driver?

A

USUALLY anyone may drive on the insured’s order or with their permission.

60
Q

There is a fairly extensive portfolio of optional extensions available at an additional premium.
(Commercial motor insurance)

A

e.g. medical expenses, windscreen cover, loss of use etc.

61
Q

Often included or are available as extensions of cover.

A

True

Commercial motor insurance extension

62
Q

the cost of commercial vehicle windscreens can be very high indeed and there may be a limit on the policy. Think about the size of a windscreen on a large articulated lorry;

A

True

Commercial motor insurance extension

63
Q

loss of use (cover for costs of alternative arrangements while the vehicle is being repaired);

A

True

Commercial motor insurance extension

64
Q

Increased third party property damage limit; this is especially relevant for :

A

large special type vehicles, such as earth movers and cranes which could potentially do a lot of damage as a result of their size and the nature of the work undertaken;

65
Q

personal belongings is relevant in ((Commercial motor insurance extension))

A

for long-distance lorry drivers who spend several nights on the road and may carry reasonable values of personal effects which could be lost in the event of serious accident, fire or theft;

66
Q

Indemnity to hirers;

A

where some companies often hire out commercial vehicles either on a regular or infrequent basis.

67
Q

Limitations are typically the same as for private motor insurance….

A

True

Commercial motor insurance extension and Private motor insurance

68
Q

All of a business’ company cars or a fleet of trucks and vans, is an example of?

A

Fleet insurance

69
Q

A minimum number of vehicles is required before insurers will consider rating vehicles as a fleet.

A

True

Fleet insurance

70
Q

The majority of insurers require ten or more vehicles to be covered before fleet rating is applied, though some will offer ‘mini-fleet’ policies for over five vehicles if the premium is high.

A

True

Fleet insurance

71
Q

Generally, the cover (Commercial motor insurance extensions) available is similar to that offered under private motor policies; however, other covers are often included, for example:

A 
• contingent third party insurance
• joint insured clause or cross liabilities clause
• occasional business use
• roadside assistance; and
• helplines.
(Commercial motor insurance extensions)
72
Q

• occasional business use

A

(As per the contingent extension but for comprehensive cover);

73
Q

contingent third party insurance; for example,

A

Providing indemnity to a policyholder (which is an employer), where an employee is using their own vehicle on the employer’s business and their own insurance (which is intended to indemnify to the employer) proves to be inoperative

74
Q

joint insured clause

A

(i.e. two or more named insureds are treated as separate policyholders if one has a claim against the other).

75
Q

occasional business use;

A

This is providing indemnity to an employee of a policyholder employer, where the employee is using their own vehicle on the employer’s business but it is known that their own policy does not cover business use.
*This is distinct from the contingent indemnity to the employer described above.

76
Q

roadside assistance; helplines, message handling and administration. are:

A

Commercial motor insurance extensions

77
Q

On larger fleets the statistical basis becomes more genuinely reflective of account performance.

A

True

Fleet Insurance

78
Q

These can cover hundreds or thousands of vehicles.

A

True

Fleet Insurance

79
Q

To reduce administration for the policyholder and insurer by having a single multi-vehicle policy, what reason is this?

A

One of the purposes for Fleet Insurance.

80
Q

The premium for which can be adjusted at agreed periods, instead of doing so at times of individual changes.

A

One of the purposes for Fleet Insurance.

If4 claims handling process 2021 (ALL of my study notes that helped me pass) READ THE SINGLE CARDS DECK IN PROGRESSIVE MIX (24 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions