Which two organisations regulate the UK insurance market?
a. The FCA and PRA.
b. The FCA and FPC.
c. The FPC and PRA.
d. The FCA and Lloyd’s.
a. The FCA and PRA
Which of these options is not a main objective of the FCA?
a. Consumer protection.
b. Integrity of the financial system.
c. Promotion of effective competition.
d. Ensuring that insurers are profitable
d. Ensuring that insurers are profitable
Which is these is not a threshold condition that the PRA requires to be met when
becoming authorised?
a. Be appropriately staffed. □
b. Have a head office in Europe. □
c. Be capable of being effectively supervised. □
d. Conduct business prudently.
b. Have a head office in Europe.
- Which statement best explains the concept of fair treatment of customers?
a. Always offering very low premiums. □
b. Always paying claims even if not covered. □
c. Paying due regard to the interests of the customer.
d. Only having staff in the UK.
c. Paying due regard to the interests of the customer
- Which of the following is an example of whistle-blowing?
a. Letting the authorities know of dangerous machinery being used in a factory
without suitable training.
b. Asking your boss for a pay rise.
c. Talking to the compliance team about a sanctions query.
d. Telling the underwriting about a new claim.
a. Letting the authorities know of dangerous machinery being used in a factory
without suitable training.
- Briefly describe the concept of home state regulation within the EU.
a. Allowing an insurer regulated in their own country to operate freely within the rest
of the EU.
b. Requiring an insurer to obtain separate regulatory approval in every country in the
EU.
c. Each EU country making a separate decision whether to accept the regulation of
the home country.
d. An insurer can only operate in its own country and is not free to work in any other
country
a. Allowing an insurer regulated in their own country to operate freely within the rest
of the EU.
How do Lloyd’s syndicates obtain permission to write business in other territories?
a. Each syndicate has to contact the regulators separately.
b. Syndicates do not require any specific permission to write business in other
territories.
c. Syndicates can either arrange their own permissions or ask Lloyd’s to help them.
d. Lloyd’s obtains the permission centrally.
d. Lloyd’s obtains the permission centrally.
- Which of these options is not a power only held by the Council of Lloyd’s?
a. Making rules such as byelaws.
b. Management of all Lloyd’s affairs.
c. Setting the business plan for the market.
d. Disciplinary action
b. Management of all Lloyd’s affairs.
- Which of these categories does not describe Members of Council?
a. Working.
b. External.
c. Nominated.
d. Executive
d. Executive
- Which organisation will become involved if an insurance company is unable to pay its
claims?
a. FOS.
b. FCA.
c. FSCS.
d. IUA.
c. FSCS.
