Why does the UK make some insurance compulsory?
To ensure compensation is available for victims of accidents.
What insurance is required by the Road Traffic Act 1988?
Third‑party motor insurance covering injury, death, and property damage.
What insurance is required by the Employers’ Liability Act 1969?
Employers’ Liability insurance for employee injury/disease.
What insurance must solicitors have?
Professional Indemnity (PI) insurance.
What does the Contracts (Rights of Third Parties) Act 1999 allow?
Third parties can enforce contract terms if named or intended.
What is the purpose of the Third Parties (Rights Against Insurers) Act 2010?
Lets third parties claim directly from an insurer when the insured is insolvent.
What is the PRA’s main purpose?
Keep insurers financially safe and protect policyholders.
What are the FCA’s three objectives?
Consumer protection, market integrity, and competition.
What does the FPC do?
Looks for risks to the UK financial system.
What are Threshold Conditions?
Minimum standards firms must meet to be authorised.
What is Consumer Duty?
Firms must deliver good customer outcomes and avoid foreseeable harm.
Principles for Businesses (PRIN)
What is PRIN 6 (Customers’ Interests)?
Treat customers fairly.
Principles for Businesses (PRIN)
What is PRIN 7 (Communications)?
Information must be clear, fair, and not misleading.
Principles for Businesses (PRIN)
What is PRIN 12 (Consumer Duty)?
Act to deliver good outcomes for retail customers.
Fair Treatment of Customers (TCF)
What does TCF expect regarding product information?
It must be clear before, during, and after the sale.
Fair Treatment of Customers (TCF)
What does TCF expect regarding product performance?
Products should perform as the firm led customers to expect.
What did SM&CR replace?
The Approved Persons Regime.
What does the Fit & Proper test check?
Integrity, competence, and financial soundness.
What is a solvency margin?
Assets must exceed liabilities by a required amount.
What are the three pillars of Solvency II?
Financial requirements, governance, reporting.
What is the consumer cooling‑off period under ICOBS?
14 days.
What must intermediaries identify under ICOBS?
Customer demands and needs.
How must claims be handled?
Fairly and promptly.
IDD (Insurance Distribution Directive)
How many hours of training does IDD require per year?
15 hours.
