Revision 1

Question 1

Definition of insurable interest includes

Answer 1

Loss , damage and potential liability including costs

Question 2

An insured made a verbal complaint on 2nd Dec.She then put her complaint in writing on 9th Dec .the latest she should receive final response from the broker ( or a letter explaining when she should get one )

Answer 2

Within 8 wks I e 27th Jan

Question 3

What is the current position with regards to the regulation of independent General insurance intermediaries.

Answer 3

They are subject to statutory regulation by the FCA.

Question 4

Most of the FCA work has a particular focus on protecting

Answer 4

Consumers

Question 5

Which organisation is responsible for preventing money laundering by persons or firms authorised to transact investment business

Answer 5

Financial Conduct Authority

Question 6

All FCA authorised firms, are required to report details of consumer complaints to the FCA

Answer 6

Twice yearly

Question 7

Promoting professional standards and encouraging use of ethic codes within their firms are both key to achieving which of the central principles in the CII code of ethics

Answer 7

Members must act with the highest ethical standards and integrity

Question 8

Why primarily so insurers prefer a large number of homogeneous exposures

Answer 8

It becomes easier to calculate an appropriate premium

Question 9

What method of providing indemnity is normally used to settle a claim under a business interruption insurance policy

Answer 9

Cash payment

Question 10

For how long must personal data processed for a particular person be held

Answer 10

For no longer than necessary

Question 11

Under the FCA complaint handling rules(DISP) a general insurer must inform am eligible complainant that they may refer the matter to the FOS if the complaint is not settled to their satisfaction within

Answer 11

8 wks

Question 12

What does the Senior Management Systems and Controls (SYSC) source book describe as being the main responsibility of the appointment and oversight officer within an authorised firms

Answer 12

The allocation and monitoring of regulated activities

Question 13

Under regulatory rules, what is the main difference between an independent intermediary and an appointed representative

Answer 13

An independent intermediary accepts responsibility for its own regulated activities

Question 14

Describe a feature of an agreed value policy

Answer 14

The value of the subject matter is agreed at the start of the contract

Question 15

Gerald loses a qty of eggs during a fire atvhis chicken farm.On what will be the claim settlement be based

Answer 15

The local market price of eggs

Question 16

Under the duty of disclosure

Answer 16

Under common law the duty terminates when a contract is formed

Question 17

Why do insurers insert a subrogation condition in their policies

Answer 17

To allow them to commence a recovery action before they pay a claim

Question 18

Under ICOBS, what is the usual cooling off period for most general insurance contract purchased at a distance

Answer 18

14 days

Question 19

Under FCA requirement, limit needs to hold PI insurance for independent intermediaries

Answer 19

Must hold PI insurance for at least euro 1,300, 380 millions per claim or the higher of euro 1,924,560 or 10% of the income for claims in aggregate

Question 20

With which role within the insurance market is the process of inputting reserves most closely associated

Answer 20

Claims personal

Question 21

3 stages of money laundering process

Answer 21

Placement ..layering and Intergration

Question 22

In which section of the terms of business agreement (TOBA) do the ABI recommend insurers considering a non solicitation clause

Answer 22

Broker / client relationship

Question 23

Which document is typically used to set out a firms status and any specific fees they are proposing to charge

Answer 23

Initial disclosure document

Question 24

Which statutes makes tenants responsible for the upkeep of the bldg they occupy giving them an insurable interest

Answer 24

The settle land act 1925

Question 25

Which concept is reformed by the contract ( rights of the third parties ) Act 1999

Answer 25

Estoppel

Question 26

Under which principles could an insured prevent an insurer from cancelling their policy on account of insurers previous behaviour

Answer 26

Estoppel

Question 27

The different elements of risk brought to the common pool by each of the policyholders are knwn as

Answer 27

Discrimination factors

Question 28

Duty of disclosure under a common law

Answer 28

The duty of disclosure does not apply between inception and renewal negotiations unless it affects the policy cover.

Question 29

Examine the entries in a firms accident register to look at the trends in the incident report is an example of

Answer 29

Risk identification

Question 30

Changes to legislation as a result of test achats judgment affect which policy

Answer 30

Income protection

Question 31

From a regulatory perspective , a protective cell co (PCC) is required to have an approved business plan for

Answer 31

Each cell

Question 32

Protection and indemnity clubs are associated with what type of insurance

Answer 32

Marine liability

Question 33

Contract certainty relates to which requirements for a valid contract

Answer 33

Meeting of minds

Question 34

A Lloyd brokers obtains the signature of a no of Lloyd's underwriters as confirmation of the share of risk each underwriter is to take on..this is known as

Answer 34

Subscription underwriting

Question 35

Example of statute restricting liability and therefore insurable interest

Answer 35

The hotel proprietors act 1956

Question 36

Conviction would be spent under the legal aid sentencing and punishment of offenders act 2012 ,(laspo)

Answer 36

A 2 yrs custodial sentence imposed 8 yrs ago

Question 37

Membership of FOS is compulsory for

Answer 37

All authorised insurers and firms

Question 38

Role of members of agents lloyds

Answer 38

Acting as a form of specialist financial adviser to potential individual members

Question 39

FoS deals with

Answer 39

Any time of complaint referred by an eligible complainant

Question 40

Eligible complainants who have a policy placed at Lloyd's usually have their complaints handled independently by

Answer 40

Lloyd's itself

Question 41

The purpose of ABI memorandum of understanding subrogated motor claims is to

Answer 41

Set out principles based on honesty and transparency

Question 42

In relation to a standard fire policy the below is an uninsured peril

Answer 42

Theft

Question 43

Why would public censure be an effective punishment where a films fails to abide by its rules

Answer 43

The damage to its reputation could hinder the firms future success

Question 44

The case of castellian v Preston (1883) laid down an important principle which regards to which of the following features of insurable interest

Answer 44

The subject matter of the contract

Question 45

Under the law of agency, what is undisclosed principals

Answer 45

Someone for whom an agent acts, while seeming to act on their own behalf

Question 46

What is most likely to b insured under an agreed value policy

Answer 46

Work of art

Question 47

The high level rules on trainning competence which apply to all authorised firms are found in which section of the FCA s handbook

Answer 47

SYSC

Question 48

Which of the following should be included in the premiums and credit section of an insurers terms of business agreement (tOBA)

Answer 48

The brokers obligation to release all statutory documentation

Question 49

Under the subrogation condition which is found in most insurance policies at what stage in the claims process can an insurer pursue subrogation rights from a responsible a third party

Answer 49

As soon as its own insureds claim is notified

Question 50

Under the guidelines by the joint money laundering steering group which of the following documents is acceptable for client verification purposes

Answer 50

A firearms certificate

Question 51

Under money laundering ,for ehat period of time must records of client verification be kept

Answer 51

5 years

Question 52

What does the Senior systems and Controls source book describe as being the main responsibility of the apportionment ans oversight officer within an authorised firm

Answer 52

The allocation and monitoring of regulated activities

Question 53

Under the solvency 11, which pillars governs the reporting and flow of information to the regulator and the market

Answer 53

Pillar 3

Question 54

What will the policyholders typically receives when making a claim on agousegold contents policy

Answer 54

The replacement cost for most items

Question 55

The expression broker is widely used within the insurance market.A firm that uses this term in its title

Answer 55

Usually provides independent advice

Question 56

Under the CIDRA, when determining whether a proposer has mispresented materials facts , the principle adopted is one of

Answer 56

Reasonableness