Revision 1 Flashcards
Definition of insurable interest includes
Loss , damage and potential liability including costs
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 )
Within 8 wks I e 27th Jan
What is the current position with regards to the regulation of independent General insurance intermediaries.
They are subject to statutory regulation by the FCA.
Most of the FCA work has a particular focus on protecting
Consumers
Which organisation is responsible for preventing money laundering by persons or firms authorised to transact investment business
Financial Conduct Authority
All FCA authorised firms, are required to report details of consumer complaints to the FCA
Twice yearly
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
Members must act with the highest ethical standards and integrity
Why primarily so insurers prefer a large number of homogeneous exposures
It becomes easier to calculate an appropriate premium
What method of providing indemnity is normally used to settle a claim under a business interruption insurance policy
Cash payment
For how long must personal data processed for a particular person be held
For no longer than necessary
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
8 wks
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
The allocation and monitoring of regulated activities
Under regulatory rules, what is the main difference between an independent intermediary and an appointed representative
An independent intermediary accepts responsibility for its own regulated activities
Describe a feature of an agreed value policy
The value of the subject matter is agreed at the start of the contract
Gerald loses a qty of eggs during a fire atvhis chicken farm.On what will be the claim settlement be based
The local market price of eggs
Under the duty of disclosure
Under common law the duty terminates when a contract is formed
Why do insurers insert a subrogation condition in their policies
To allow them to commence a recovery action before they pay a claim
Under ICOBS, what is the usual cooling off period for most general insurance contract purchased at a distance
14 days
Under FCA requirement, limit needs to hold PI insurance for independent intermediaries
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
With which role within the insurance market is the process of inputting reserves most closely associated
Claims personal
3 stages of money laundering process
Placement ..layering and Intergration
In which section of the terms of business agreement (TOBA) do the ABI recommend insurers considering a non solicitation clause
Broker / client relationship
Which document is typically used to set out a firms status and any specific fees they are proposing to charge
Initial disclosure document
Which statutes makes tenants responsible for the upkeep of the bldg they occupy giving them an insurable interest
The settle land act 1925
Which concept is reformed by the contract ( rights of the third parties ) Act 1999
Estoppel
Under which principles could an insured prevent an insurer from cancelling their policy on account of insurers previous behaviour
Estoppel
The different elements of risk brought to the common pool by each of the policyholders are knwn as
Discrimination factors
Duty of disclosure under a common law
The duty of disclosure does not apply between inception and renewal negotiations unless it affects the policy cover.
Examine the entries in a firms accident register to look at the trends in the incident report is an example of
Risk identification
Changes to legislation as a result of test achats judgment affect which policy
Income protection
From a regulatory perspective , a protective cell co (PCC) is required to have an approved business plan for
Each cell
Protection and indemnity clubs are associated with what type of insurance
Marine liability
Contract certainty relates to which requirements for a valid contract
Meeting of minds
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
Subscription underwriting
Example of statute restricting liability and therefore insurable interest
The hotel proprietors act 1956
Conviction would be spent under the legal aid sentencing and punishment of offenders act 2012 ,(laspo)
A 2 yrs custodial sentence imposed 8 yrs ago
Membership of FOS is compulsory for
All authorised insurers and firms
Role of members of agents lloyds
Acting as a form of specialist financial adviser to potential individual members
FoS deals with
Any time of complaint referred by an eligible complainant
Eligible complainants who have a policy placed at Lloyd’s usually have their complaints handled independently by
Lloyd’s itself
The purpose of ABI memorandum of understanding subrogated motor claims is to
Set out principles based on honesty and transparency
In relation to a standard fire policy the below is an uninsured peril
Theft
Why would public censure be an effective punishment where a films fails to abide by its rules
The damage to its reputation could hinder the firms future success
The case of castellian v Preston (1883) laid down an important principle which regards to which of the following features of insurable interest
The subject matter of the contract
Under the law of agency, what is undisclosed principals
Someone for whom an agent acts, while seeming to act on their own behalf
What is most likely to b insured under an agreed value policy
Work of art
The high level rules on trainning competence which apply to all authorised firms are found in which section of the FCA s handbook
SYSC
Which of the following should be included in the premiums and credit section of an insurers terms of business agreement (tOBA)
The brokers obligation to release all statutory documentation
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
As soon as its own insureds claim is notified
Under the guidelines by the joint money laundering steering group which of the following documents is acceptable for client verification purposes
A firearms certificate
Under money laundering ,for ehat period of time must records of client verification be kept
5 years
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
The allocation and monitoring of regulated activities
Under the solvency 11, which pillars governs the reporting and flow of information to the regulator and the market
Pillar 3
What will the policyholders typically receives when making a claim on agousegold contents policy
The replacement cost for most items
The expression broker is widely used within the insurance market.A firm that uses this term in its title
Usually provides independent advice
Under the CIDRA, when determining whether a proposer has mispresented materials facts , the principle adopted is one of
Reasonableness
