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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
Q

If a client makes a claim, what responsibility does the broker have under ICOBS 8 in relation to the insurer and claims process?

A

Not to delay the performance of the insurer

26
Q

Under the FCAs principle for business, what must a broker do to create a relationship of trust?

A

Take care to ensure the suitability of it’s advice

27
Q

Under ICOBS 8, who is generally responsible for handling claims?

A

The insurer as product provider

28
Q

Providing product information to clients falls under what regulated activity?

A

Arranging

29
Q

If you achieve competent status, how will the FCA look at you?

A

Level of supervision reduced

30
Q

Before a firm prepares a business plan, it must decide:

A

The scope of authorisation required by the FCA and how their Principles for Business apply to them

31
Q

As well as assessing and maintaining competence, which other key area of the FCAs training and competence must all firms consider?

A

Record keeping

32
Q

If data has been mishandled by broker, who should you complain to?

A

First broker, then Information Commissioner Office

33
Q

What will a new firm of brokers need to demonstrate to the FCA to carry out regulated activities?

A

That it has a good understanding of how to treat customers fairly

34
Q

Does ICOBS apply to Wholesale or retail brokers?

A

Retail

35
Q

What is the FCAs Customer Principle?

A

The overarching principle that firms must deliver good outcomes for their clients

36
Q

What is the FCAs Principle of Business?

A

Non-prescriptive requirements on how a broker should run it’s regulated activities

37
Q

What must an insurance broker do with the income it receives?

A

Segregate funds from client’s and insurer’s

38
Q

What is the key aim of the IDD?

A

Strengthen policyholder protection

39
Q

What document outlines when commission payments can be withdrawn?

A

TOBA

40
Q

When must an Insurance Product Information Document be given to a client?

A

On quotation, renewal or significant mid-term adjustments

41
Q

Under IDD, what is an organisation that sells insurance that is not part of its main business?

A

Ancillary Insurance Intermediary

42
Q

Under IDD, when does a broker need to disclose the nature of its remuneration to a consumer?

A

Before contract is completed

43
Q

If a broker receives premium, what must it do to follow Client Assets Sourcebook

A

Move the commission element from the account at least every 25 days or when client money calculation is done, whatever is sooner

44
Q

What is the most likely reason for a broker to receive payment into it’s client asset account?

A

Insurer return premium for cancelled policy

45
Q

Who can give permission for a broker to store client, broker and insurer funds in the same account?

A

Insurer

46
Q

What must be included in complaint information?

A
  • right to take complaint to FOS
  • firms address and telephone number
47
Q

If an error leads to a loss for a client, how will this be funded?

A

Indemnified by brokers E&O policy

48
Q

If a policy is cancelled after 14 days, what premium refund is received by commercial client?

A

Pro rata refund, provided no claims made

49
Q

In which document does the FCA require an insurance broker discloses it’s address and authorisation status?

A

Initial disclosure document

50
Q

How long can a clients passport be stored?

A

5 years

51
Q

What info does the ELTO require an insurance broker to obtain from a commercial client?

A

Employer reference number

52
Q

The IDD 2018 enabled the FCA to regulate what?

A

The point of sale of consumer products

53
Q

If you are involved in an E&I case, can you proceed with investigation?

A

You can investigate and resolve if you are deemed competent

54
Q

What action should a firm take to an E&O claim?

A

full review of procedures to identify remedial action

Cert CII - i10 (1 decks)

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