THE MARKET, TRADE & PROFESSIONAL BODIES Flashcards
(24 cards)
1
Q
Insured?
A
- Must be recognised legal entity (individual or company)
- Settlement to be made to PH or as directed
- Ensure clear audits of payments made
2
Q
What if an insured dies?
A
- LA deal with executor or administrator
3
Q
Mortgagee concern with Insured?
A
- Property is reinstated or pay off mortgage debt
4
Q
Insurance companies & regulated bodies
A
- Insurers accept risk in return for premiums
- All Insurers regulated by FCA
- Purpose of regulatory bodies is to promote confidence in insurance providers and they set high standards.
5
Q
Underwriters
A
- Presented w material on risk & decide whether to accept/impose terms
- Play key role in claims
- FOS will seek detailed info on through process of UW’s and their operating procedures
6
Q
Claims department
A
- Where claims are handled by Insurers
- Organisational set up will vary
- Typical activities include FNOL, appt of LA’s, managing losses & making claim payments.
7
Q
Lloyds of London
A
- Marketplace where insurance is bought & sold
- Incorporated under an Act of Parliament in 1871
- Regulated by FCA since 2001
- Brokers create doc called “slip” that describes risk needing insurance. They then take to different syndicates at Lloyds who will decide if they want to accept the risk.
8
Q
Co-Insurers
A
- Insurers share risk equally
- Usually associated with large risks
- Will be a lead insurer who takes largest proportion of risk
- Usually LA deals with lead Insurer
- Lead Insurer agree liability & make payments, co-insurers bound to make payments to lead co-insurer by given date
8
Q
Re-insurers
A
- Insurers re-insure a risk again
- 1/3 of business at Lloyds is reinsurance
- No direct relationship with PH & reinsurer
- Reinsurance allows Insurers to accept large risks whilst limiting their exposure
- Reinsurers often don’t instruct LA directly
- LA to be mindful that their reports will likely be passed to re-insurer so setting reserves important
9
Q
Ceding Insurer?
A
UW’s the risk & issues the policy documentation and transfers portion of risk to reinsurer.
10
Q
Brokers/Intermediaries
A
- Agents of PH
- Can act for Insurer where given DA
- Since 2005 all brokers/agents have to be registered with FCA
- Can act for both parties at different stages
- LA to be careful of relationship between insurers & brokers, liaise sensitively over things like repudiations
11
Q
UW Agencies
A
- UW’s business & places the risk w Insurers
- Doesn’t hold risk but is an agent of Insurer
12
Q
FCA
A
- Independent non-governmental body
- Four regulatory objections;
1. Maintain market confidence
2. Promote public understanding
3. Secure appropriate degree of protection for consumers
4. Reduce financial crime
13
Q
FOS
A
- Independent public body
- aims to resolve matters fairly, reasonably, quickly & informally
-Adjudicate complaints between consumers and business’ - Eligible complainants are - private individuals & small business’ that employ less than 10 and turnover no more than 6.5m
- Can make compensation payment
- Not bound by case law
- Insurers bound by their decision
- PH can still bring legal action if referral not successful
14
Q
Loss adjusters
A
- May be appointed to investigate; COD, policy cover & financial liability on behalf of Insurer
- Members of CILA can act on behalf of PH’s
- May also assist uninsured parties
15
Q
Loss Assessors
A
Works on behalf of Insured
Need not be chartered but are regulated by FCA
Can be apart of Institute of Public Loss Assessors
16
Q
CILA
A
- Founded 1941, granted Royal Charter in 1961
- globally recognised membership organisation for claims professionals
17
Q
Supply chain?
A
- Forensic experts
- Restoration services
- Building services
- Goods suppliers
18
Q
Association of British Insurers?
A
- Voice of UK insurance industry
- Supports towns & cities across the UK
- Represents over 200 member companies
19
Q
British Insurance Brokers Association
A
- UK’S Leading general insurance intermediary organisation representing brokers interests
- Members include 1800 firms
20
Q
Association of Insurance & Risk Managers in Industry & Commerce (AIRMIC)
A
- Association for everyone who has responsibility for risk management or insurance in their organisation
- Develops technical knowledge and services
- Set professional standards & qualifications
21
Q
CII
A
- Professional body dedicated to building trust in the in surance & financial profession
- Driving industry standards
- Promote learning
- 125,00 members
- Standards, Professionalism and trust
22
Q
BDMA
A
- Represents interests of practitioners working in damage management industry
- Members of CILA also take BDMA courses to aid understanding.
23
Q
FCA consumer definition
A
“Any natural person acting for purposes outside his trade, business or profession.”
