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Question 1

When is supply and demand are in Balance this is known as

Answer 1

Equilibrium

Question 2

The management structure and rules under which Lloyds operates are defined by?

Answer 2

Acts of Parliament

Question 3

What was the name of the dedicated reinsurance vehicle created during the reconstruction and renewal of Lloyds in the 1990s?

Answer 3

Equitas

Question 4

The vast majority of risks accepted in the mutual insurance sector are spread amongst how many insurers?

Answer 4

1

Question 5

What is the overarching strategic objective of the FCA?

Answer 5

To ensure that the relevant markets function well

Question 6

What are the companies called which are specifically established to manage the underwriting of One or more syndicates?

Answer 6

The managing agent 

Question 7

What insurance covers fraudulent activity committed during the policy period?

Answer 7

Fidelity guarantee insurance

Question 8

Brokers are professional intermediaries and act as the agent of the?

Answer 8

insured in both placeing the risk and dealing with claims

Question 9

Which markets may Lloyds broker use when placing UK based risks

Answer 9

The London market and overseas market

Question 10

What should be a brokers primary concern when selecting insurers with which a risk being placed?

Answer 10

Financial stability

Question 11

In the London market piracy is usually covered as a main peril in?

Answer 11

hull wordings

Question 12

The principal supply and demand is the relationship between?

Answer 12

The price of the commodity and the quality traded

Question 13

Which type of insurance company solely writes business for sister companies within the same group?

Answer 13

Captive insurer

Question 14

Which organisation has issued high-level principles concerning the Placement of business with subscription markets?

Answer 14

BIPAR

Question 15

What general impact if any would a major catastrophe have on the insurance cycle?

Answer 15

Shorten it

Question 16

What is the maximum prison sentence for any of the principal money laundering offences under the proceeds of crime act 2002?

Answer 16

14 years

Question 17

In the claims process the brokers responsibilities are finished when?

Answer 17

The client receives the full and final settlement

Question 18

What is covered under midstream insurance

Answer 18

Pipelines

Question 19

The Lloyds market has surplus line status for direct business in the USA.
This means insurance can only be written if…

Answer 19

If the local or admitted market is not able to accept the risk

Question 20

How many high-level principles concerning the placement of business with subscription markets have been issued?

Answer 20

5

Question 21

If travel insurance was made compulsory what would be the most likely effect on the rates and the number of insurers in the market over a long term?

Answer 21

More insurers would enter the market and the rates would decrease

Question 22

The main provision of the Helms-Burton act 1996 introduced?

Answer 22

Restrictions related to the conduct of Business by US entities with or in Cuba

Question 23

What type of insurance covers the risks of a predetermined class of business

Answer 23

Treaty

Question 24

Which organisation is responsible for promoting the interests of the London market and making The market more attractive to do business in?

Answer 24

The International Underwriting Association of London

Question 25

During the placing process, details of each risk are recorded by a broker against a unique code. This is called a?

Answer 25

Unique market reference

Question 26

When describing the London market It can be best described as a place where..

Answer 26

Many sizable or complex insurance risks from all over the world are placed

Question 27

Which body is responsible for The implementation and administration of the International financial sanctions in effect in the UK?

Answer 27

HM treasury

Question 28

A new Lloyds insurance broker wishing to offer independent advice must apply for direct authorisation by

Answer 28

The FCA

Question 29

How many nominated members of the Council of Lloyds normally have

Answer 29

9

Question 30

The insured has an insurance policy with a waiting period. This type of insurance is most likely to be?

Answer 30

Marine insurance

Question 31

What proportion of the business written in the London market it’s from UK-based insureds

Answer 31

25%

Question 32

Which bodies are responsible for identifying emerging risks within the UK financial services industry as a whole?

Answer 32

The financial policy committee

Question 33

An insured has gone to his independent Insurance broker for advice on his insurance. In this case The insurance agent is

Answer 33

The broker

Question 34

The main purpose behind the solvency two requirements is to

Answer 34

Making insurers more capable of withstanding financial shocks

Question 35

Xchanging claims services maintains the central claims database for

Answer 35

Lloyds only

Question 36

Which body is responsible for governing the lloyds market

Answer 36

The council of lloyds

Question 37

An example of contingency insurance would include

Answer 37

Death and disgrace

Question 38

In marine insurance the term used for physical damage to the insured is property is

Answer 38

Particular average

Question 39

The type of agency which involves The principles agreement after The event is known as agency by

Answer 39

Ratification

Question 40

What is the maximum financial award that the financial ombudsman service can make that is binding on the insurer for recent action excluding costs and interest

Answer 40

£355k

Question 41

What legislation states that employers cannot discriminate against staff that whistle blow

Answer 41

The public interest disclosure act 1998