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Cert CII - i10 > Tough Questions > Flashcards

Tough Questions Flashcards

1
Q

What is the name for remuneration for providing additional administration services to an insurer?

A

Enhanced brokerage

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2
Q

What duty is imposed by the law of agency on an agent regarding remuneration?

A

To be accountable to principal for earnings

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3
Q

When a client uses the services of a broker, what will the client pay?

A

A fee - for which the calculation basis will be explained

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4
Q

What is the largest non-statutory trade association that represents UK brokers?

A

British Insurance Brokers Association

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5
Q

When does a broker disclose the amount of commission?

A

Standard practice to consumer, only if requested to client

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6
Q

What is the name for the examination of a clients business model to identify weaknesses or key dependencies?

A

Business interruption review

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7
Q

What are the material facts relating to an application for buildings and contents insurance most likely to include?

A

The proposers uninsured loss experience

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8
Q

What is organised insurance fraud?

A

Policies taken out with specific aim of committing fraud

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9
Q

What is difference between demands and needs?

A

Demand is policy, needs are optional extras

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10
Q

If previous claims have been made, what will a broker likely include in negotions?

A

The risk management process since

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11
Q

What is opportunistic fraud?

A

Exaggerating a claim

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12
Q

When should a broker begin the search for an appropriate policy?

A

When demands and needs statement is agreed

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13
Q

What is completed to recommend an insurance policy to a client?

A

Suitability statement

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14
Q

When selecting an insurer, what will a broker look for most?

A

Insurers credit facilities

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15
Q

What is the most likely benefit to a client if their insurance broker is acting as a coverholder?

A

Faster claims process

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16
Q

What is the best description for the legal duty of obedience?

A

Performing instructions in a timely manner

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17
Q

What is included in a TOBAs regulatory information?

A

Availability of compensation schemes

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18
Q

When must a client receive prescribed regulatory information?

A

Prior to the completion of the contract

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19
Q

How does a broker adhere to the FCAs requirement for full disclosure and transparency?

A

Independent file reviews

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20
Q

What law of agency requires a broker to act in the best interest of its principal?

A

Good faith

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21
Q

What must an insurance company do when designing a new product to ensure it treats customers fairly?

A

Ensure it does not expose customers to unsuitable or unidentified risks

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22
Q

In terms of insurance mediation, which regulated activity would cover the act of a broker assisting in the completion of a proposal form?

A

Arranging the purchase of general insurance policies

23
Q

A policyholder is regarded as what under GDPR?

A

Data subject

24
Q

Under cancellation rights, what may a client be charged for?

A

Services provided by the insurer

25
If a client makes a claim, what responsibility does the broker have under ICOBS 8 in relation to the insurer and claims process?
Not to delay the performance of the insurer
26
Under the FCAs principle for business, what must a broker do to create a relationship of trust?
Take care to ensure the suitability of it's advice
27
Under ICOBS 8, who is generally responsible for handling claims?
The insurer as product provider
28
Providing product information to clients falls under what regulated activity?
Arranging
29
If you achieve competent status, how will the FCA look at you?
Level of supervision reduced
30
Before a firm prepares a business plan, it must decide:
The scope of authorisation required by the FCA and how their Principles for Business apply to them
31
As well as assessing and maintaining competence, which other key area of the FCAs training and competence must all firms consider?
Record keeping
32
If data has been mishandled by broker, who should you complain to?
First broker, then Information Commissioner Office
33
What will a new firm of brokers need to demonstrate to the FCA to carry out regulated activities?
That it has a good understanding of how to treat customers fairly
34
Does ICOBS apply to Wholesale or retail brokers?
Retail
35
What is the FCAs Customer Principle?
The overarching principle that firms must deliver good outcomes for their clients
36
What is the FCAs Principle of Business?
Non-prescriptive requirements on how a broker should run it's regulated activities
37
What must an insurance broker do with the income it receives?
Segregate funds from client's and insurer's
38
What is the key aim of the IDD?
Strengthen policyholder protection
39
What document outlines when commission payments can be withdrawn?
TOBA
40
When must an Insurance Product Information Document be given to a client?
On quotation, renewal or significant mid-term adjustments
41
Under IDD, what is an organisation that sells insurance that is not part of its main business?
Ancillary Insurance Intermediary
42
Under IDD, when does a broker need to disclose the nature of its remuneration to a consumer?
Before contract is completed
43
If a broker receives premium, what must it do to follow Client Assets Sourcebook
Move the commission element from the account at least every 25 days or when client money calculation is done, whatever is sooner
44
What is the most likely reason for a broker to receive payment into it's client asset account?
Insurer return premium for cancelled policy
45
Who can give permission for a broker to store client, broker and insurer funds in the same account?
Insurer
46
What must be included in complaint information?
- right to take complaint to FOS - firms address and telephone number
47
If an error leads to a loss for a client, how will this be funded?
Indemnified by brokers E&O policy
48
If a policy is cancelled after 14 days, what premium refund is received by commercial client?
Pro rata refund, provided no claims made
49
In which document does the FCA require an insurance broker discloses it's address and authorisation status?
Initial disclosure document
50
How long can a clients passport be stored?
5 years
51
What info does the ELTO require an insurance broker to obtain from a commercial client?
Employer reference number
52
The IDD 2018 enabled the FCA to regulate what?
The point of sale of consumer products
53
If you are involved in an E&I case, can you proceed with investigation?
You can investigate and resolve if you are deemed competent
54
What action should a firm take to an E&O claim?
full review of procedures to identify remedial action

Cert CII - i10 (1 decks)

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