Random Q's I have Got Wrong

Question 1

In the UK insurance market what is the role of rating agencies?

Answer 1

To assess insurance companies on their long-term financial stability and ability to pay debts.

Brokers use rating agencies - but the role of rating agencies is NOT solely for the broker.

Question 2

As part of Contract Certainty, when must contract documentation be provided for commercial business/consumers?

Answer 2

Commercial business: 30 calendar days.

Consumers: 7 working days.

Question 3

What is a ‘Reservation of Rights’ (ROL)?

Answer 3

This is issued when an insurer wishes to investigate a claim to determine whether coverage applies.

An insurer issuing a “ROR” warns the insured that there is further investigation being done into the claim.

Question 4

What is a ‘Declaration’?

Answer 4

This is the individual risk being presented for agreement by the broker, so it can be attached to the lineslip.

Question 5

What is a ‘Schedule’?

Answer 5

It’s the part of an insurance contract that sets out the details that are personal & specific to the policyholder.