Topic 1 Flashcards
The cooling off period is a required under who??
Insurance council of Australia’s general insurance code and the corporations act.
What are the two policy documents issued as part of an insurance agreement or contract
Policy document = general info about what is covered. Doesn’t provide specific info about client or what is covered and
policy schedule or certificate= client details, what is covered/insured etc.
4 categories of pure risk-
Personal risk
Property risk
Liability risk
Non-performance risks
What is self insurance??
Where client takes on some or all of the risk. Pays out of pocket for some it all of the loss.
What is co-insurance??
When asset is insured for less than 80% of value of the asset, and client is taking on the extra cost of loss.
What is indemnity value-
Replacement cost of loss at time.
For income insurance- income to be proved at time of claim.
What is an agreed value policy??
Client has damaged or lost property replaced with new that is equal in value to previous item.
For income insurance- income is agreed at a figure at start of policy and is an agreed amount.
What is legal liability insurance??
Insurance to cover injury/death to another person or damage to assets owned by another person.
Can be property owner liability- eg/ another person suffering a loss while at your property such as tripping on a broken step.
Personal liability insurance covers the insured if they are responsible for another person suffering a loss such as the insurers dog biting another person while at the park and that person sues.
What codes is Duty of Disclosure a requirement??
Insurance contracts act.
What acts is a dispute resolution scheme as requirement of??
The Corporations Act and General insurance Code of Practice.
How long do you have to respond to a complaint under the general Insurance Code of Practice??
15 business days
Decisions made by the financial ombudsman service are binding on the insurance provider but not the client. True/false
True
ASIC requires complaints be resolved within how long before the client is to be supplied contact details for their external dispute resolution scheme??
45 days
