Regulation of Claims Handling and Fair Treatment of customers

Question 1

Two organisations that regulate financial institutions :

Answer 1

Prudential Regulation Authority

Financial Conduct Authority

Question 2

an organisation which is Part of Bank of England and Responsible for the Prudential supervision of systematic important firms operating in the industry such as banks and insurers, they are known as :

Answer 2

Prudential Regulation Authority

PRA

Question 3

An organisation Responsible for the Prudential Regulation of smaller firms such as brokers and also the business conduct of all firms, known as :

Answer 3

Financial Conduct Authority

FCA

Question 4

Which organisations are Focusing on the generic, industry wide issues, rather than firm specific issues?

Answer 4

Financial Conduct Authority

FCA

Question 5

The two bodies have different objectives and operate separately but work together in sharing information and data :

Answer 5

Prudential Regulation Authority (PRA) and

Financial Conduct Authority (FCA)

Question 6

The standards that relate to the handling of claims are set out in ICOBS, but falls under responsibility of:

Answer 6

Financial Conduct Authority (FCA)

Question 7

ICOBS rules in claims handling relate to :

Answer 7

Both consumers and commercial customers.

Question 8

An insurer is RESPONIBLE for claims handling, but after outsourcing, the insurer STILL remains responsible.

Answer 8

True …

Question 9

In the current climate, insurers are delegating more parts of the business to:

Answer 9

Claims authority, outsourcing and underwriting.

Question 10

What’s the main purpose of handling claims rules by ICOBS which fall under the responsibility of the Financial Conduct Authority? :

Answer 10

That customers are treated fairly

Question 11

Claims should be handled fairly and settled promptly, what’s the main purpose of this?
The main purposes are to ensure that::

Answer 11

customers are provided with the appropriate information on the claims handing process and to ensure conflicts of interest are disclosed and managed without any detrimental effect on the policyholder…..

Question 12

IF conflicts of interest are disclosed and managed : it has a detrimental effect on the policyholder?

Answer 12

False. (IF conflicts of interest are disclosed and managed : it has NO detrimental effect on the policyholder).

Question 13

Which rule makes a distinction between consumer and commercial customers?

Answer 13

ICOBS

Question 14

Who other than the insurer can be involved in conflict of interest?

Answer 14

Intermediary

Question 15

what IF the insurer or intermediary, finds itself involved in conflict of interest??

Answer 15

It must manage the conflict fairly.

Question 16

Motor or liability claim involves several parties, some or all of which are insured by the same insurer, this is an example of :

Answer 16

Conflict of interest.

Question 17

In respect of consumers, ICOBS considers it to be unreasonable for claims to be refused for :

Answer 17

misrepresentation which is not qualifying under CIDRA2012

Question 18

in respect of General Insurance contract, a breach of warranty or condition, unless the circumstances of the claim are connected with the breach, what other exceptions also apply :

Answer 18

when there is evidence of fraud.

Question 19

The insurer must provide reasonable guidance on how to make a claim and give appropriate information on its progress, Once settlement terms are agreed, the claim should be settled :

Answer 19

promptly.

Question 20

“Firms should retain records for as long as is relevant for the purposes for which they were made and their own business needs”.
In deciding how long this should be, ICOBS requires firms to take account of:

Answer 20

what other information the FCA might request.

Question 21

Firms will also be required to consider what will be needed to deal with :

Answer 21

complaints and queries from customers as to how claims have been settled and why.

Question 22

Under section 57 of the Criminal Justice and Courts Act 2015 (April 2015) defendants can request that, :

Answer 22

Where part of a personal injury claim found to be fundamentally dishonest the whole claim to be struck out.

Question 23

Regulation of the fair treatment of customers is the responsibility of the?

Answer 23

FCA

Question 24

All regulated firms must be able to demonstrate that they are?

Answer 24

Consistently treating their customers fairly.

Question 25

How many customer outcomes are there?

Answer 25

SIX (!!!LOOK AT THE REPORT!!!!)

Question 26

Which body provides guidance on vulnerable customers, including what makes a vulnerable customer and how insurers need to treat them in the claims handing process???

Answer 26

The Financial Conduct Authority

Question 27

Application to claims handling, Specific applications to claims handling is given in :

Answer 27

ICOBS 8

Question 28

Insurer should document its approach by defining its customer base and?

Answer 28

Setting out procedures to ensure that claims are handled promptly and fairly, does not unreasonably reject a claim, providing reasonable guidance in helping policyholder and settling claims promptly once settlement terms agreed.

Question 29

Motor Vehicle liability insurers have to comply with :

Answer 29

More onerous regulations.

Question 30

Specific conditions for appointing claims representatives and adhering to specific rules regarding the handling of motor vehicle liability insurance for claims involving UK policyholders occurring within the EEA, but outside THE UK jurisdiction.

Answer 30

true

Question 31

In the event of a breach of some of these rules, firm may be obliged to:???

Answer 31

Pay penal interest on compensation offered to injured party.

Question 32

All insurance intermediaries must manage:

Answer 32

conflicts of interest fairly

Question 33

Whose best practice is to document conflicts of interest procedure?

Answer 33

Insurance intermediaries

Question 34

What must insurance intermediaries manage?

Answer 34

Conflicts of interest and document conflicts of interest procedure.

Question 35

ConsumerRightsAct2015 (October 2015) regards to?

Answer 35

the supply of services.

Question 36

FCA rules on:

Answer 36

Claims handling process.

Question 37

Main impact for claims handlers :

Answer 37

Requirements in CR2015 act, which ensure that any policy exclusions are identifiable and understandable to the average consumer.

Question 38

The CR2015 also impacts claims handlers in:

Answer 38

Not hiding away any policy exclusions in the documents….

Question 39

Which act suggests that claims should be managed promptly by:

Answer 39

ICOBS

Question 40

The Act that requires that services to be performed within a reasonable time?

Answer 40

The Consumer Rights 2015

Question 41

The new implied term introduced by the:

Answer 41

Enterprise Act 2016

Question 42

What does the Enterprise Act 2016 state?

Answer 42

an implied term of every contract of insurance that if the insured makes a claim under the contract, the insurer must pay any sums due in respect of the claim within a reasonable time.