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IF 1 Insurance , Legal And Regulatory > Revision 1 > Flashcards

Revision 1 Flashcards

1
Q

Definition of insurable interest includes

A

Loss , damage and potential liability including costs

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2
Q

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 )

A

Within 8 wks I e 27th Jan

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3
Q

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

A

They are subject to statutory regulation by the FCA.

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4
Q

Most of the FCA work has a particular focus on protecting

A

Consumers

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5
Q

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

A

Financial Conduct Authority

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6
Q

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

A

Twice yearly

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7
Q

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

A

Members must act with the highest ethical standards and integrity

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8
Q

Why primarily so insurers prefer a large number of homogeneous exposures

A

It becomes easier to calculate an appropriate premium

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9
Q

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

A

Cash payment

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10
Q

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

A

For no longer than necessary

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11
Q

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

A

8 wks

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12
Q

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

A

The allocation and monitoring of regulated activities

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13
Q

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

A

An independent intermediary accepts responsibility for its own regulated activities

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14
Q

Describe a feature of an agreed value policy

A

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

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15
Q

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

A

The local market price of eggs

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16
Q

Under the duty of disclosure

A

Under common law the duty terminates when a contract is formed

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17
Q

Why do insurers insert a subrogation condition in their policies

A

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

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18
Q

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

A

14 days

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19
Q

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

A

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

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20
Q

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

A

Claims personal

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21
Q

3 stages of money laundering process

A

Placement ..layering and Intergration

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22
Q

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

A

Broker / client relationship

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23
Q

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

A

Initial disclosure document

24
Q

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

A

The settle land act 1925

25
Q

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

A

Estoppel

26
Q

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

A

Estoppel

27
Q

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

A

Discrimination factors

28
Q

Duty of disclosure under a common law

A

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

29
Q

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

A

Risk identification

30
Q

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

A

Income protection

31
Q

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

A

Each cell

32
Q

Protection and indemnity clubs are associated with what type of insurance

A

Marine liability

33
Q

Contract certainty relates to which requirements for a valid contract

A

Meeting of minds

34
Q

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

A

Subscription underwriting

35
Q

Example of statute restricting liability and therefore insurable interest

A

The hotel proprietors act 1956

36
Q

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

A

A 2 yrs custodial sentence imposed 8 yrs ago

37
Q

Membership of FOS is compulsory for

A

All authorised insurers and firms

38
Q

Role of members of agents lloyds

A

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

39
Q

FoS deals with

A

Any time of complaint referred by an eligible complainant

40
Q

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

A

Lloyd’s itself

41
Q

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

A

Set out principles based on honesty and transparency

42
Q

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

A

Theft

43
Q

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

A

The damage to its reputation could hinder the firms future success

44
Q

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

A

The subject matter of the contract

45
Q

Under the law of agency, what is undisclosed principals

A

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

46
Q

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

A

Work of art

47
Q

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

A

SYSC

48
Q

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

A

The brokers obligation to release all statutory documentation

49
Q

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

A

As soon as its own insureds claim is notified

50
Q

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

A

A firearms certificate

51
Q

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

A

5 years

52
Q

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

A

The allocation and monitoring of regulated activities

53
Q

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

A

Pillar 3

54
Q

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

A

The replacement cost for most items

55
Q

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

A

Usually provides independent advice

56
Q

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

A

Reasonableness

IF 1 Insurance , Legal And Regulatory (13 decks)

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