Wrong answer Flashcards
A commercial insurance client has received initial disclosure documentation from their intermediary. What information would they expect this to include?
a. A summary of the cover provided.
b. A statement of the client’s demands and needs.
c. Suitability of a recommended product.
d. Details of any fees.
D
What area of regulation is NOT covered by the FCA’s Insurance: Conduct of Business Sourcebook?
a. Claims handling.
b. Insurers’ solvency requirements.
c. Product information.
d. General matters.
B
Cover for trade contents is usually arranged on a[n]:
a. first loss basis.
b. replacement as new basis.
c. indemnity basis.
d. market value basis.
B
Fixtures & fittings and internal decorations are covered as standard for an insured who is a:
a. tenant.
b. lessor.
c. managing agent.
d. landlord.
A
Full theft cover on a hotel packaged policy is:
a. restricted to theft involving forcible exit from the premises.
b. not restricted to theft involving forcible and violent entry to or exit from the premises.
c. restricted to theft involving forcible and violent entry to or exit from the premises.
d. not restricted to theft involving forcible and violent entry to the premises.
B
A commercial insurance client has received initial disclosure documentation from their intermediary. What information would they expect this to include?
a. A summary of the cover provided.
b. A statement of the client’s demands and needs.
c. Suitability of a recommended product.
d. Details of any fees.
D
At common law when does an insurer’s right of subrogation apply?
a. On receipt of the claim details.
b. At first notification of a claim.
c. On receipt of the insured’s agreement to accept a claim payment.
d. Following payment of a claim.
D
If a condition precedent to liability is NOT observed, what action can the insurer take?
a. It may cancel the policy from outset and avoid liability for any loss.
b. It may cancel the policy from the date of any loss and avoid liability for it and any future losses.
c. It is still liable for a particular loss and any subsequent valid claims on the policy.
d. It may avoid liability for a particular loss but cannot avoid the policy as a whole.
D
Under a packaged commercial policy, the building sum insured is increased automatically during the course of the policy year, often in line with the:
Select one:
a. Base Rate published by the Bank of England. IncorrectIncorrect, chapter reference 8B1
b. House Prices Index published by the Office for National Statistics.
c. General Building Cost Index of the Royal Institution of Chartered Surveyors.
d. Government’s Consumer Price Index.
Under a packaged commercial policy, the building sum insured is increased automatically during the course of the policy year, often in line with the:
a. Base Rate published by the Bank of England.
b. House Prices Index published by the Office for National Statistics.
c. General Building Cost Index of the Royal Institution of Chartered Surveyors.
d. Government’s Consumer Price Index.
C
When an insured cancels a policy mid-term what refund, if any, are they entitled to?
a. No premium refund.
b. A proportionate premium refund.
c. A pro-rata premium refund.
d. A less than proportionate premium refund.
D
What is LEAST likely to be a benefit to an insurer of employing authorised suppliers and repairers?
a. The work will be carried out quickly.
b. The insurer can reduce the work involved in the claim preparation.
c. The insurer can control the claim costs.
d. The insurer can control the standard of worK
B
What right does a contribution condition in a policy give to an insurer?
a. It is a method of claims recovery.
b. It is a method of claims settlement.
c. It is a method of claims repudiation.
d. It is a method of claims indemnity.
A
With packaged commercial policies, what does the fraud condition refer to?
a. Disclosure when setting up the policy only.
b. Claims and mid-term alterations.
c. Claims and with disclosure when setting up the policy.
d. Claims only.
D
With a major UK insurer, the:
a. Prudential Regulation Authority would regulate how they sell insurance business and pay claims.
b. FCA would regulate all aspects of their business.
c. Prudential Regulation Authority would regulate all aspects of their business.
d. Prudential Regulation Authority would regulate how they meet their solvency requirements.
D
Which businesses are combined policies most suited to?
a. Medium or large businesses.
b. Sole trader businesses.
c. Small businesses.
d. New start up businesses.
A
Under what circumstances would the financial limits on the strict liability for guest property under the Hotel Proprietors’ Act 1956 apply?
a. The guest asked the hotel to keep the property in the hotel safe, but the hotel refused this request.
b. The hotel is shown to have acted negligently.
c. The property was deposited with the hotel for safe keeping.
d. The property was in the guest’s bedroom and the door was locked.
D
Under the Insurance Distribution Directive, a customer must receive an insurance product information document. Who is responsible for giving this to the customer and when must this happen?
a. The insurer must provide this information before the completion of the contract.
b. The distributor must provide this information at the start of the advice process.
c. The insurer must provide this information at the start of the advice process.
d. The distributor must provide this information before the completion of the contract.
D
What ongoing claims statistics is a claims manager for an insurer LEAST likely to review?
:
a. The causes of claims.
b. The accuracy of individual claim reserves.
c. Large claims that are distorting the pattern.
d. The number of claims declined in the last underwriting year.
D
