Protection Advice

Question 1

What must normally elapse between the insured event happening and the commencement of WoP?

Answer 1

A deferred period where nothing is paid

Question 2

The duty to give the customer appropriate information to make an informed choice about a policy is covered in which sort of ICOBS?

Answer 2

ICOBS 6

Question 3

Whole of life assurance is a pure protection product. True or false?

Answer 3

False

Whole of life policies contain an investment element

Pure protection contains no investment element

Question 4

When determining a persons budget for protection, the advisor should use as a maximum

A) a proportion of the persons current disposable income

B) a proportion of the persons future disposable income

C) all of the persons current disposable income

Answer 4

A) a proportion of the persons current disposable income

Question 5

Which whole of life plans meet a variety of protection needs within one plan?

A) joint life

B) mortgage related

C) universal

Answer 5

C) universal

Question 6

If a couple separates and the parties want to sever all financial ties, a joint life policy is still appropriate. True or false

Answer 6

False

Question 7

Under ICOBS 5 suitability requirements, a firm must inform a client if it finds that:

A) they have made a misrepresentation

B) documents have been provided in a durable medium

C) parts of the cover do not apply

Answer 7

C) parts of the cover do not apply

Question 8

Which remedy may be available to the insurer if a customer makes a careless misrepresentation?

A) refuse all claims but return the premiums

B) none, the insurer must pay the claim

C) treat the contract as if it never existed

Answer 8

A) refuse all claims but return the premiums

Question 9

Consumers main duty of disclosure when entering into, or renewing, an insurance contract is:

A) utmost good faith

B) fair representation

C) disclosure of all material facts

Answer 9

B) fair representation

Question 10

Which section of ICOBS states that firms must take reasonable steps to ensure the suitability of advice to any customer who is entitled to rely on their judgement?

Answer 10

ICOBS 5

Question 11

If some savings are reallocated to meets costs arising on death or illness, the client may wish to make additional protection provision. True or false?

Answer 11

True

Question 12

Which piece of documentation is normally issued when the recommendations are presented to the customer?

A) acceptance letter

B) KFD

C) Cancellation letter

Answer 12

B) KFD