Random Flashcards
What is meant by the term proximate cause
The dominant cause of a loss
What does the analysis of historical patterns and trends of risks allow an insurer to do
Forecast expected future losses
What is the main purpose of compulsory insurance
To provide funds for compensation
Which element of an insurance contract is generally included in non-marine but not in marine insurance
Reinstatement
Fidelity guarantee insurance covers
Losses suffered due to fraudulent acts of employees
Which liability would possibly be covered under a standard aviation policy for an airline
Injury to a baggage handler
Reinsurance is most likely to involve an insurer and
An insurer
A major UK insurance company it’s subject to enhance scrutiny because it’s solvency margins are low. This would be monitored by
The Prudential regulation authority
An authorised insurer based solely in the UK although they write insurance business elsewhere in the EU.
This is known as operating on a…
Service basis
What is the governing body of the Lloyds market called
The Council of Lloyds
The amount by which and insurance assets exceeds its liabilities is known as it’s
Solvency margin
In the event of a claim the broker is least likely to provide which service
Appointment of professionals such as a loss adjuster
Under the concept pooling of risk The premium charge by an insurer should
Reflect the risk being presented
What is the approximate minimum level of professional indemnity insurance indemnities are required to have under FCA rules
£1million
Commercial vessel insurance is most likely to cover a
Container ship 
To be insurable, a risk must be
A fortuitous event
What is the term used with marine insurance to describe physical damage to the insureds property
Particular average
What is an example of pecuniary insurance
Money insurance
Which company is in charge of maintaining the Lloyds claims database
XChanging claims service
What is pure risk
Are those where there is a possibility of a loss but not a gain and where the best that we can achieve is a breakeven situation
What is a fortuitous event
It must be accidental or unexpected and not inevitable
What is insurable interest
It’s a legally recognised financial relationship between the insured and the object or liability that has been insured
What is homo generous exposures
It’s similar risks, historical patterns and trends
What is Peril
What gives rise to a loss
