Topic 18 Flashcards
Which of the following is a standard peril that is covered by almost all buildings insurance policies?
a. Accidental breakage of fixed sanitary fittings.
b. Damage caused by the escape of oil when the property is unfurnished.
c. Damage caused by theft and attempted theft.
d. Damage to a heating system caused by corrosion.
c. Damage caused by theft and attempted theft.
What deferred period, if any, typically applies to payment protection insurance?
a. Up to 60 days.
b. 3 months.
c. 6 months.
d. None.
a. Up to 60 days.
Payments will commence after a deferred period which is typically between 30 and 60 days.
A client is choosing between a number of different protection policies and wishes to receive an income in the event of illness.
Which of the following policies could be most suitable in these circumstances?
a. Accident, sickness and unemployment cover and critical illness cover only.
b. Accident, sickness and unemployment cover and income protection insurance only.
c. Accident, sickness and unemployment cover, income protection insurance and level term assurance.
d. Income protection insurance and critical illness cover only.
b. Accident, sickness and unemployment cover and income protection insurance only.
When Adam started his decreasing term assurance plan to protect his mortgage, what factor made the waiver of premium option particularly attractive?
a. He has an interest-only mortgage.
b. He is self-employed.
c. He is worried about redundancy.
d. His mortgage repayment vehicle is a stocks and shares ISA.
b. He is self-employed.
Income benefits under accident, sickness and unemployment policies are typically payable for a maximum of:
3 to 6 months.
1 to 2 years.
3 to 5 years.
10 to 25 years.
1 to 2 years.
A client has identified that they need short-term cover for being off work due to sickness. They are age 25 and single.
In these circumstances they are most likely to consider taking out:
a critical illness policy.
a whole of life assurance policy.
accident, sickness and unemployment cover.
an income protection policy.
accident, sickness and unemployment cover.
