1
Q
Describe the most significant compulsory insurance in the UK
A
Private motor insurance, required to cover legal liability for injury to others and damage to their porperty when driving on public roads
2
Q
Define the four levels of cover available for private motor insurance
A
Road Traffic Act only (RTA only), Third party only (TPO), Third party, fire and theft (TPFT), and Comprehensive
3
Q
Explain the minimum cover required by the Road Traffic Act 1988
A
Indemnity for unlimited bodily injury or death to third parties, £1.2 million for third party property damage, claimants’ costs, and emergency medical treatment charges
4
Q
How much is the minimum third party property damage limit set by the EU as of January 2017?
A
£1.2 million from December 31st, 2016
5
Q
What does RTA only cover provide?
A
Unlimited indemnity for third party bodily injury or death, £1.2 million for third party property damage, claimants costs, and emergency medical treatment charges
6
Q
Explain why RTA only policies are rarely issued
A
The difference in cover between RTA only and third party only is marginal due to compulsory third party property damage requirements since 1988?
7
Q
Describe the additional cover provided by third party only (TPO) beyond RTA only
A
Cover for vehicles not on public roads within territorial limits, £20 million limit for third party property damage for private cars, and indemnity for driving other cars (if included)
8
Q
What does third party, fire and theft (TPFT) cover include?
A
TPO cover plus repairs or compensation for the insured vehicle if damaged by fire, lightning, explosion, attempted theft or stolen and not recovered
9
Q
Identify the most common form of motor insurance cover.
A
Comprehensive cover, offering the widest protection, including accidental and malicious damage to the insured’s car
10
Q
What are the specific exclusions under comprehensive cover?
A
Loss or damage to accessories/spare parts not on the vehicle, wear and tear, depreciation, loss of use, mechanical/electrical failure, and tyre damage from punctures or bursts
11
Q
Explain what is overed under the ‘driving other cars’ extension in a comprehensive policy
A
Only Third Party cover for the vehicle being driven, not damage to that vehicle
12
Q
Define a ‘young or inexperienced drivers’ excess
A
An additional excess is applied to drivers with a provisional licence or less than one year of full licence, sometimes excluded entirely for drivers under 25
13
Q
What is a no claims discount (NCD)
A
A discount on premiums for claim-free years, typically 12% for on year up to 50%+ for five years or more
14
Q
How is NCD typically affected by a claim
A
It is reduced by two years, unless protected by paying an additional premium
14
Q
A
15
Q
Describe the uninsured driver promise in comprehensive policies
A
It protects the insured’s No Claims Discount (NCD) and policy excess if hit by an uninsured driver, provided full details of the third party vehicle are available
16
Q
Explain the breakage of glass extension in motor insurance
A
It covers glass breakage, included in comprehensive policies or added to non-comprehensive policies, with claims not affecting the No Claims Discount (NCD)
17
Q
How can personal belongings and clothing cover be enhanced in a motor insurance policy
A
By paying an additional premium to increase the modest sum provided in comprehensive policies, typically ranging from £250 to £1000
18
Q
What does loss of use cover provide in motor insurance?
A
It covers limited daily costs, such as replacement for a vehicle, while the insured vehicle is off the road, subject to an additional premium
19
Q
Define the personal accident benefits extension in motor insurance
A
It offers increased capital sums or weekly benefits for injuries, potentially including rehabilitation benefits like physiotherapy
20
Q
What is necessary for full policy cover when driving abroad in the EU?
A
Notifying the insurer to extend the policy for continental use, often with an additional premium, although some insurers offer free cover for up to 30 days
21
Q
Explain the purpose of a green card in motor insurance
A
It is an international certificate required for riving in some foreign countries, but not needed in the EU, EEA or Green Card Free Circulation Area countries after August 2nd 2021
22
Q
Describe the Spanish bail bond and its current status
A
It was an agreement to secure a driver’s release from prison in Spain after an accident, but it is no longer a legal requirement, leading to most insurers to stop issuing them
23
Q
What does the elections extension in motor insurance?
A
It covers the use of a vehicle for election purposes, typically without an additional premium except for parliamentary elections
24
Identify events that require an additional premium for motor insurance cover
Racing, competitions, rallies, and trials require an additional premium and are typically covered by specialist insurers
25
How are caravans and trailers generally covered in motor insurance?
They are covered for third party liability while attached to the insured vehicle; comprehensive cover may be added via a separate non-motor policy or extension
26
What does breakdown cover typically include?
It typically includes assistance call-out, an hour's roadside repair labour, towing to a garage, and sometimes labour/parts costs if related to an accident covered by the policy
27
Define motor legal expenses cover in motor insurance
It provides up to £100,000 for legal costs to claim financial losses or personal injury compensation after a non-fault accident
28
What are joint policies in motor insurance?
They are policies issued in joint names (e.g., spouses), treating each as a third party for claims against the other, with 'driving other cars' cover limited or deleted
29
Explain multi car policies in motor insurance
They are policies covering multiple vehicles (up to 5-6) at the same address, offering premium savings and a separate No Claims Discount (NCDs) per vehicle
30
Describe misfuelling cover in motor insurance
Cover loss or damage from accidentally filling the vehicle with the wrong fuel, typically an optional extension
31
Explain general exclusions in private motor policies
Unlicensed drivers, non-permitted user, contractual liability, war risks, radioactive contamination, riot in Northern Ireland, sonic bangs, and pollution unless from a single event
32
How does the Road Traffic Act influence policy exclusions in motor insurance
Insurers must pay RTA claims even if excluded by policy wording, but can recover outlay from the insured
33
Define the 'use of the insured vehicle' exclusion
Excludes liability for accidents when the vehicle is used outside the permitted use in the certificate of motor insurance
34
Discuss the impact of the sharing economy on motor insurance
Peer-to-peer sharing or informal car sharing may be excluded under hire and reward clauses, requiring separate polices for rental periods
35
What does the term 'motorcycle' encompass in insurance terms?
Any mechanically propelled cycle, including mopeds
36
How does comprehensive motorcycle cover differ from private motor cover?
No cover for theft or accessories/spare parts unless the motorcycle is stolen, not personal accident benefits, no medical expenses beyond emergency treatments, and no personal effects cover
37
List optional extensions available for motorcycle insurance
Trailers, riding other motorcycles, insuring multiple cycles, and cover for 'invalid carriages' (mobility vehicles)
38
Identify the main types of commercial vehicles
Goods-carrying vehicles, passenger-carrying vehicles (e.g., hire cars, buses). agricultural, forestry vehicles, and special construction vehicles (e.g., ambulances, cranes)
39
What does commercial motor insurance primarily cover?
Risks to the vehicles themselves, while driven, parked or transported, not the good being carried
40
How does third party liability cover for commercial vehicles differ from private cars?
Offers a lower limit (e.g., £5 million or £1.2 million for general haulage) compared to £20 million for private cars
41
What additional third party liability cover applies to commercial vehicles?
Covers accidents during loading/unloading, indemnity to drivers, users, and passengers, and legal expenses
42
Explain how commercial motor cover handles trailers
Third party cover for trailers while attached; some policies offer comprehensive cover or cover for disabled vehicles on tow
43
What cover is excluded from standard commercial motor policies?
Driving other vehicles, personal accident benefits, medical expenses, and personal belongings/clothing
44
Define the indemnity to firers extension in commercial motor insurance
Covers loss, damage, or liability from the negligence of the insured or hirer while the vehicle is in the hirer's custody, sometimes requiring an additional premium
45
Describe the indemnity to principal extension in motor insurance
It covers liability for a contract party when the vehicle is used for contract work, similar to indemnity for hirers
46
Explain the carnivals extension in vehicle insurance
It covers flat-bed lorries used as carnival floats, often requiring notification and possibly an additional premium
47
Define the sheets and ropes extension in motor insurance policies
It covers theft of equipment like sheets and ropes on open lorries, subject to an additional premium and storage in a locked compartment
48
How does the loss of use extension benefit commercial vehicle owners
It provides up to 80% of leasing or hire charges if the vehicle is off the road due to accidental damage, fire, or theft, with higher premiums for Western Europe or young drivers
49
What tools are covered under the loss of tools in transit extension?
Non-powered hand tools for DIY, gardening, or vehicle maintenance, or tools of trade for the insured's declared occupation, typically in comprehensive policies
50
Identify a key difference in the use of the insured vehicle exclusion for commercial vehicles
It excludes racing, pace-making, reliability trials, or speed testing, in addition to non-permitted uses in the policy schedule
51
What does the Third EU Motor Insurance Directive mandate for motor policies?
It requires minimum cover for the EU country visited or the country where the vehicle is kept, whichever is greater, and cover for employees travelling as passengers (not drivers)
52
Describe the territorial limit for most private motor policies
The territorial limit is the UK, Isle of Mann, and Channel Island, with some insurers extending full cover to the EU for a limited time
53
What legal costs are included in third party only (TPO) policies
Costs for defending a claim and limited costs for legal representation following a motoring offence prosecution that may lead to a claim
54
Explain what is excluded under the third party liability section of TPO policies
It excludes damage to property owned or controlled by the insured and liability covered by another insurance policy
55
Why might individuals opt for TPFT cover instead of comprehensive insurance?
To avoid the higher premium of comprehensive cover while still protecting against major risks like fire and theft
56
What is the role of the policy schedule in motor insurance?
It identifies the applicable sections of the standard policy form based on the level of cover chosen by the insured
57
What is the significance of the Fifth EU Motor Insurance Directive?
It brought RTA only and TPO cover closer together, making TPO the practical minimum cover offered by insurers
58
What type of vehicles are classified at invalid carriages in motorcycle insurance?
Mobility scooters and powered wheelchairs, which can be insured under specialized policies for accidental damage, theft liability and breakdown
59
Describe the difference in accessory coverage between private and commercial motor policies
Private motor policies cover accessories on the vehicle or in the insured's garage, while commercial policies only cover them when on the vehicle
60
Explain the purpose of courtesy cars in motor insurance
Courtesy cars provide a replacement vehicle while the insured's vehicle is being repaired, often offered by recommended repairers with costs included in repair charges.
61
Define the significance of the Green Card Free Circulation Area (GCFA)
The GCFA eliminates the need for green cards in 30 EEA countries, Andorra, Bosnia &Herzegovina, Serbia and Switzerland, effective from August 2nd 2021
62
How does the 'loss of use' exclusion affect TPFT policies?
The 'loss of use' exclusion in TPFT policies excludes payments for alternative transport (e.g., taxis) while the insured vehicle is being repaired or recovered
63
What types of personal accident benefits are included in comprehensive motor policies?
Comprehensive policies typically include capital sums for specific injuries (e.g., loss of limb or sight) and sometimes temporary total disablement benefits.
64
Identify the standard medical expenses limit in comprehensive private motor policies
The standard medical expenses limit is typically £250 to £500 for the insured or passengers, beyond compulsory emergency treatment cover
65
Discuss why insurers might restrict 'driving other cars' cover
Insurers may restrict driving other cars' cover to prevent the release of seized uninsured vehicles back onto the road, using market wording for clarification
66
Compare third party property damage limits between private and commercial motor policies
Private motor policies offer £20 million in third party property damage limits, while commercial policies typically offr £5 million, or as low as £1.2 million for general haulage
67
What is the purpose of the 'loading or unloading'' cover in commercial motor policies?
The 'loading or unloading cover in commercial policies is designed to cover third party liabilities during the loading or unloading, extending beyond the carriageway for driver or attendants
68
List the types of vehicles classified as 'special types' in commercial motor insurance.
Special types of vehicles in commercial motor insurance include ambulances, cranes, and fork-lift trucks, which are designed for specific purposes
69
Explain the significance of the 'insured's order or permission' in motor policies
The 'insured's order permission' allows indemnity for anyone driving or using the vehicle with the insured's permission, unless restricted to named individuals or spouses
70
What role does the Motor Insurers' Bureau (MIB) play regarding uninsured or untraced drivers
The MIB provides compensation for victims of accidents caused by uninsured or untraced drivers, referenced in the uninsured driver promise and related agreements,
71
Describe the primary purpose of personal accident insurance
To provide compensation for death or serious injury caused by an accident
72
Explain what sickness insurance covers
Disablement due to sickness, providing benefits for loss of income or additional expenses
73
Define the purpose of medical expenses insurance
To cover private medical treatment outside the NHS, offering greater choice of specialists, hospital, and treatment timing
74
How is a personal accident and sickness policy classified
As a benefit policy, paying a sum of money for specific contingencies, not an indemnity contract
75
What distinguishes a benefit policy from an indemnity contract?
A benefit policy pays a fixed sum regardless of financial loss, while an indemnity contract compensates based on the extent of financial loss
76
Identify the main rating factor for personal accident insurance
The proposer's occupation, which determine the level of accident risk
77
How are occupations grouped for personal accident premiums?
Into four main classes based on the level of accident and health risk involved
78
Explain why insurers limit weekly benefits to normal earnings
To avoid inducement to remain off work in genuine claims, ensuring benefits are realistic
79
Describe how personal accident and sickness insurance is often purchased
As a standalone policy or as an add-on to travel, motor, or household insurance
80
What does the term 'fortuitous' mean in the context of accident cover?
An event caused by an identifiable, unexpected accident, not deliberate or inevitable
81
What time limit typically applies to claims under accident cover?
A specified period from the date of the accident to the event, typically 12 or 24 months
82
What types of benefits are provided for accidental death?
Capital sums, starting from £20,000 depending on the policy
83
Explain what is covered under total loss of sight in personal accident policies
Total and irrecoverable loss of sight in one or both eyes, typically paying £20,000
84
How do some insurers adjust benefits for loss of sight in both eyes?
They may offer an increased capital benefit compared to loss of sight in one eye
85
What is the typical capital sum for total loss of one or both limbs?
£20,000, with some insurers offering more for loss of use of both limbs
86
When is compensation for permanent total disablement typically paid
Usually 12 or 24 months, once it's confirmed as permanent and total
87
Describe permanent partial disablement in personal accident policies
Loss of specified parts o limbs (e.g., toes or fingers), with benefits paid on a sliding scale
88
What is the maximum duration for temporary total disablement benefits?
Up to 104 weeks, typically at £200 per week
89
Explain temporary partial disablement
Temporary inability to attend to a substantial part of normal business due to an accident, not sickness
90
What is the typical weekly benefit for temporary partial disablement
At least £100 per week, often 40% of the temporary total disablement amount.
91
How do personal accident policies cover medical expenses?
They cover costs for medical, surgical, or remedial treatment, hospital, nursing home, and ambulance charges after an accident.
92
Why are medical expenses limited in personal accident policies?
To encourage fuller provision through private health cover for comprehensive medical expenses
93
Define a time franchise in sickness insurance
A threshold (e.g., 7 days) where no payment is made for shorter periods, but the full period is covered if exceeded
94
How does a franchise differ from an excess in insurance?
A franchise acts a threshold for claim eligibility, while an excess is deducted from the claim settlement
95
What is the purpose of the 21-day exclusion for sickness cover?
To ensure the insurer is only liable for sickness contracted after the policy starts, not pre-existing conditions
96
What is the typical capital sum for personal accident polices?
From £20,000 to £150,000, depending on the insurer and policy
97
What happens if death follows permanent total disablement in a claim?
Only one capital benefit is paid, as benefits are not cumulative
98
Describe the legal expenses cover extension in personal accident policies?
Covers up to £15,000 for legal actions against negligent third parties causing bodily injury
99
What are the geographical limits for accident cover?
Usually worldwide, but benefits may not be paid if the insured resides outside the UK for over 180 consecutive days
100
Explain the geographical limits for sickness cover?
Typically restricted to the UK, Europe, USA, Canada, Australia , and New Zealand, with extensions available for an additional premium
101
Describe the typical age range for accident cover inception
The typical age range for accident over inception is 16-70 years, with renewals sometimes extended for existing policyholders
102
Define the age range for sickness cover inception
The typical age range for sickness cover inception is 16-60 years, with renewals sometimes extended for existing policyholders
103
Explain how children are covered under family personal accident policies
Children are covered from 6 months to 16 years, or up to 23 if living with or dependent on the policyholder in full-time education, with lower benefits.
104
What evidence might insurers require for renewal beyond standard age limits?
Insures may require a report from the policyholder's general medical practitioner confirming continuing good health.
105
Identify a common exclusion for personal accident and sickness policies.
A common exclusions is being under the influence of alcohol or drugs, unless under medical supervision
106
List types of injuries or conditions excluded form personal accident policies
Excluded conditions include self-inflicted injuries, pre-existing physical defects, childbirth, pregnancy, venereal diseases, and AIDS
107
Describe activities typically excluded from personal accident cover
High-risk sports like aviation, motorcycling polo, racing, winter sports, or mountaineering with ropes are typically excluded unless covered for an additional premium
108
Explain why pre-existing conditions are excluded form personal accident policies
Pre-existing conditions are excluded to cover only fortuitous losses, not those likely or inevitable due to prior conditions
109
How do insurers identify pre-existing conditions?
Insurers identify pre-existing conditions through answers on proposal forms or specific underwriting actions, though some policies may not require a form
110
What is the purpose of asking about other policies on proposal forms?
The purpose is to ensure overall benefits from all policies are set at realistic levels relative to the insured's earnings
111
Why does contribution not apply to personal accident and sickness claims?
Contribution does not apply because these are benefit policies, not indemnity contracts allowing multiple polices to pay out independently
112
What is a typical capital sum for permanent total disablement?
A typical capital sum for permanent total disablement is £20,000 or more depending on the policy
113
Identify an alternative to a capital sum for permanent total disablement
An alternative is a ten-year annuity, though this option is less common
114
What is the typical duration for confirming permanent total disablement?
The typical duration for confirming permanent total disablement is 12-24 months after the accident to determine permanence and totality.
115
Describe the benefit structure for personal accident and sickness policies
Offered in units, allowing the proposer to purchase multiple units within financial and earning capabilities
116
Explain the advantage of medical expenses insurance compared to NHS treatment
Greater choice of specialist consultants, hospitals, and treatment timing
117
How is medical expenses insurance typically arranged?
On a group basis by employers as an employment benefit or individually
118
Define how premiums for medical expenses insurance change with age
They increase with age, unlike personal accident and sickness premium, which remain static within age ranges
119
What does inpatients' cover include in medical expenses insurance?
Hospital charges (e.g., theatre fees, surgical dressings), specialist fees (e.g., surgeons, anaesthetists), and additional costs (e.g., ambulance, nursing fees)
120
Differentiate between high-cost and low-cost medical policies
High-cost policies offer generous provisions, while low-cost policies limit hospital accommodation and require NHS use if treatment is available within 6 weeks
121
Identify medical conditions typically excluded from medical expenses policies
Conditions treated within 5 years before applying to the insurer
122
Does medical expenses insurance provide coverage for long-term residential care?
No, it typically excludes long-term residential care
123
When do benefits from a medical expenses policy become payable?
On undergoing minor surgery, not on diagnosis, inability to work, or accidents alone
124
Explain the role of a franchise in sickness cover
It sets a minimum period (e.g., 7 days) for claims, covering the full period if exceeded, including the initial days
125
What is the typical franchise period for sickness benefits?
Seven days, meaning no payment is made for sickness lasting less than seven days.
126
State the maximum benefit period for temporary total disablement due to sickness
Up to 104 weeks, typically at a fixed weekly rate
127
What type of injuries qualify for capital sums in personal accident policies?
Death, total loss of sight, total loss of limbs, or permanent total disablement.
128
How do insurers manage claims for temporary disablement followed by permanent disablement?
No deduction is made for temporary benefits paid if permanent total disablement is later confirmed.
129
Describe the typical capital sum for the loss of one eye in personal accident policies
The typical capital sum for the loss of one eye is £20,000, with some insurers offering more for the loss of sight in both eyes.
130
Explain the purpose of the sliding scale for permanent partial disablement
The sliding scale for permanent partial disablement is designed to pay a percentage of the capital sum based on the extent of loss, such as toes or fingers
131
What types of costs are covered under medical expenses in personal accident policies?
Medical expenses under personal accident policies include medical, surgical, remedial treatment, hospital, nursing home, and ambulance charges prescribed by a qualified medical professional
132
Define the typical limit for legal expenses cover in personal accident policies
The typical limit for legal expenses cover in personal accident policies is up to £15,000 for pursuing actions against negligent third parties causing bodily injury
133
How might sickness cover be geographically restricted in personal accident policies?
Sickness cover may be geographically restricted to manage risk exposure, typically limited to the UK, Europe, USA, Canada, Australia, and New Zealand
134
Do insurers have specific practices for renewing policies for older policyholders?
Insurers may extend age limits beyond standard ranges for older policyholders, often requiring evidence of good health at renewal
135
Explain the significance of the 180-day residence limit for accident cover
The 180-day residence limit is significant because benefit may not be paid if the insured resides outside the UK fro more than 180 consecutive days.
136
What is the age limit for children covered under family personal accident policies?
The age limit for children in family personal accident policies is from 6 months to 16 years, or up to 23 if in full-time education and dependent on the policyholder
137
Describe the reason for excluding high-risk sports in personal accident policies
High-risk sports are exclude din personal accident policies to avoid covering activities with a high likelihood of injury, although some can be included for an additional premium
138
How do low-cost medical expenses policies differ in terms of hospital accommodation
Low-cost medical expenses policies limit the level of hospital accommodation available compared to high-cost policies
139
What is the typical waiting period for NHS treatment in low-cost medical expenses policies?
The typical waiting period for NHS treatment in low-cost medical expenses policies is six week, requiring the insured to use NHS if treatment is available within that time.
140
Why do insurers inquire about prior medical treatment in medical expense policies?
Insurers ask about prior medical treatment to exclude conditions treated within five years before applying, ensuring coverage for new conditions only
141
Define a package policy in insurance
A package policy is a policy that includes all covers required by a specific policyholder in one document
142
Explain why insurers prefer package policies
Insurers favour package policies due to the homogeneity of risks, predictability of claims costs, and administrative savings that can be passed on as reduced premiums
143
Describe household insurance
Household insurance is a package policy that covers buildings and/or contents against perils such as fire, theft, and liability.
144
What does homogeneity of risks' refer to in insurance terms?
Homogeneity of risks refers to risks that share similar characteristics and trends, making claims costs more predictable.
145
Identify the two settlement options available for household claims
The two settlement options four household claims are indemnity (market value with wear and tear deduction) adn new for old (full replacement costs)
146
How is the sum insured for buildings determined in a household policy?
The sum insured for buildings in a household policy is based on the rebuilding cost at the time rebuilding is complete
147
List what buildings insurance typically covers?
Buildings insurance typically includes the main structure, garages, sheds, greenhouses, swimming pools, tennis courts. walls, gates, fences and paths
148
What perils are generally covered under buildings insurance?
Buildings insurance generally covers perils such as fire, lightning, explosion, and earthquake
149
What exclusions apply to riot and malicious damage cover in buildings insurance?
Exclusions for riot and malicious damage cover apply when the building is unfurnished or unoccupied for over 30/60 days
150
What is excluded from storm or flood cover in buildings insurance?
Storm or flood cover excludes damage caused by frost, subsidence, ground heave, landslip, and damage to gates, fences, or hedges
151
Explain what escape of water cover includes
Escape of water cover includes damage from bursting or overflowing of water tanks, pipes, or domestic appliances, typically with an excess
152
What exclusion applies to escape of oil cover?
Escape of oil cover is excluded when the building is unfurnished or unoccupied for over 30/60 days
153
How is theft defined in buildings insurance
Theft is defined in buildings insurance as the dishonest appropriation of property with the intent to permanently deprive, as per the Theft Act 1968
154
What does impact/collision cover in buildings insurance entail?
Impact/collision cover includes damage from aircraft, aerial devices, road vehicles, or animals, with exclusions for pets
155
Identify key exclusions for subsidence, ground heave, or landslip cover
Key exclusions for subsidence, ground heave, or landslip cover typically include specific conditions or circumstances that are not covered under the policy
156
Describe the factors that can lead to damage in buildings insurance
Normal shrinkage, faulty workmanship, coastal erosion, and damage to certain structures unless the house is also damaged
157
Explain what accidental damage to drains, pipes, and cables includes
Accidental damage to water, oil, gas, sewage, telephone, television, and electricity services
158
Define what is covered under accidental breakage of glass and sanitary fixes
Fixed glass in windows, doors, and sanitary fittings like basins and baths
159
What costs are included under legal fees and debris removal in buildings insurance
Reasonable legal, architects', surveyors' fees, and costs for demolition or debris removal
160
How is the loss of rent cover typically limited in buildings insurance?
10-15% of the buildings sum insured or reasonable accommodation expenses
161
Describe the accidental damage extension in buildings insurance
I covers incidents like drilling through pipes or putting a foot through a ceiling, with an excess
162
What exclusions apply to the accidental damage extension in buildings insurance
Damage while let, wear and tear, rot, vermin, pets, and specific perils like storm damage to fences
163
How are contents defined in household insurance?
Household good and personal effects of the insured or family members ling in the property
164
What is the single article limit in contents insurance?
Typically 5% of the contents sum insured or £1500 for items like art or jewellery
165
Explain the valuables limit in contents insurance
Often one-third of the contents sum insured, extendable with an additional premium
166
What is covered under temporary removal in contents insurance?
Contents temporarily removed within Great Britain, Ireland, or Northern Ireland, up to 20% of sum insured
167
What exclusions exist for theft over during temporary removal?
Storm, flood, or theft without forcible entry, unless at a bank or residence
168
Describe what home office equipment covers in contents insurance
Office furniture, computers, printers, and phones used for business, often up to £5,000
169
What is covered under accidental damage to entertainment equipment?
Accidental damage to items such as televisions, audio systems, and gaming consoles
170
Describe the coverage provided by the legal liability section for buildings in household insurance
It covers liability as the property owner and under the Defective Premises Act 1972
171
Explain what legal liability section covers for contents in household insurance
It includes liability as occupier, personal liability, and employer of domestic employees
172
Define the typical limit of indemnity for legal liability in household insurance
The typical limit is £2 million for buildings/contents and £10 million for employers' liability
173
What items are covered under the personal possessions extension in household insurance?
It covers items like jewellery and laptops taken out of the property, often on an all risks basis
174
Identify specific exclusions for the personal possessions extension
Exclusions include wear and tear, insects, corrosion, mechanical breakdowns, and official confiscation
175
How does the money extension in household insurance function?
It covers cash, cheques, postal orders, and tickets, with a limit of £200-£500 and an excess
176
What is included under the credit cards extension in household insurance?
It covers financial loss from loss or theft of credit cards, reported within 24 hours, up to £500
177
List specific exclusions for the bicycles extension in household insurance
Exclusions include loss of accessories unless the cycle is damaged, use in competitions, or theft when unattended
178
Explain what the freezer contents extension covers in household insurance
It covers deterioration due to temperature change or contamination, up to £1000
179
What is excluded from the freezer contents cover?
Exclusions include fire, lightning, explosion, deliberate power restriction, or damage to old freezers
180
Describe the coverage provided by the caravans extension in household insurance
It covers the caravan, equipment, clothing, personal effects, and liability up to £1 million
181
Identify specific exclusions for the caravans extension
Exclusions includes theft when unattended, hire, business use, and storm damage to awnings
182
What does the small craft extension cover in household insurance?
It covers accidental loss, personal effects, salvage charges, and liability up to £1 million
183
List exclusions for the small craft extension in household insurance.
Exclusions include use for hire, employee injury, and theft of outdated motors without security measures
184
How does household insurance protect personal possessions taken outside the property?
Through the personal possessions extension, which covers items like jewellery and laptops on an all risks basis
185
Describe the coverage provided by the sports equipment extension
It covers accidental loss or damage to sports equipment and clothing, with worldwide cover for 60 days
186
Explain what is excluded from the sports equipment extension
Exclusions include damage during use, non-specialist clothing, and equipment for hazardous pursuits
187
Define the personal accident extension and its coverage
It covers accident, sickness, redundancy, or unemployment, providing benefits for up to 24 months
188
What does the domestic animals extension cover for horses?
It covers death, economic slaughter, theft, veterinary fees, and liability.
189
How does the domestic animals extension apply to cats and dogs?
It overs veterinary fees, death, theft, kennel fees, and holiday cancellation
190
Describe the legal expenses extension and its coverage limits
It covers recovery, civil defence, prosecution defence, and employment dispute costs, up to £50,000
191
What exclusions apply to the legal expenses extension?
Extension include claims outside the UK, fines, unagreed costs, and business or matrimonial disputes
192
Explain the identity fraud extension and its financial limits
It covers administration fees, loss of earnings, and notarizing costs, up to £12,000
193
What risks are covered under the personal cyber extension?
It covers cyber attacks, ransomware, identity theft, and risks associated with smart devices.
194
Define standard market exclusions for household policies
Exclusions include wat, radioactive contamination, sonic bangs pollution, and matching pairs clauses
195
How does peer-to-peer accommodations like AirBnB effect insurance coverage?
Standard policies may not cover paying guests, necessitating specialist landlord insurance
196
What risks does travel insurance typically cover?
It covers cancellation, injury, death, medical fees, loss of possessions, and liability
197
Describe the typical duration for a single-trip travel insurance
It typically covers trips up to three months, with annual multi-trip policies also available
198
What benefits are included in personal accident coverage within travel insurance?
It covers death, loss of limbs/eyes, or permanent disablement, with limits of £10,000-£30,000
199
What activities are excluded form personal accident benefits in travel insurance?
Exclusions include hazardous activities like winter sports, unless specifically insured.
200
Describe what the medical expenses section in travel insurance covers
It covers medical treatment, hotel/travel expenses, air ambulance, and party delays, up to £10 million
201
Explain the typical excess for a medical expenses in travel insurance
The typical excess is around £35, with lower limits for UK holidays
202
Identify the causes covered under loss of deposits in travel insurance
Covered causes include death, illness, jury service, redundancy, or theft/fire, with a £25 excess
203
Define the typical sum insured for baggage in travel insurance
The typical sum insured ranges from £1000 to £2000, with a single article limit of £250 and valuable limit of £200-£500
204
What does the personal liability section in travel insurance cover?
It covers injury or property damage to third parties, with a limit of £500,000 to £2million
205
Describe what the delayed baggage section covers
It covers essential clothing and toiletries after a 12-hour delay, up to £50 to £250
206
Explain the benefits provided by the hospital cash benefits sections
It provides a daily benefit of £50, up to £1000 for a hospital confinement
207
What does the travel interruption section cover?
It covers additional accommodation/travel costs due to public transport failure, up to £300
208
How did COVID-19 affect travel insurance claims?
Post 11th March 2020, cancellations due to COVID-19 were not covered as unforeseen
209
Define what commercial package insurance covers for small businesses
It covers fire, business interruption, theft, money, glass, liability, and assault
210
Explain what is covered under business interruption in commercial insurance
It covers loss of trading profit and increased costs for up to 12 months after an insured peril
211
Describe the purpose of a standard fire policy
To provide compensation for damage to insured property (buildings, stock, contents) caused by fire, lightning and limited explosion
212
Identify the perils covered by a standard fire policy
Fire, lightning and explosion of boilers or gas used for domestic purposes
213
Define the term 'DAMAGE' in the context of the ABI Standard Fire and Special Perils Policy
Loss, destruction, or damage to the property insured
214
Explain what is excluded from fire over in a standard fire policy
Explosion resulting from fire, earthquake, subterranean fire, and spontaneous fermentation or heating
215
How does lightning differ from fire cover in a standard fire policy?
Lightning covers all damage caused by lightning, without requiring fire damage
216
What qualifies as 'domestic purposes' for explosion cover in a standard fire policy?
Purposes related to the home, such as boilers for hot water or central heating, even in non-residential buildings like a factory canteen
217
In the haystack fire scenario, what is covered by a standard fire policy?
Damage to the neighbouring haystack and barn, but not the initial haystack that spontaneously ignited
218
What does the explosion special peril cover?
Damage from chemical reactions producing expanding gases, excluding domestic explosions and statutory-inspected pressure vessels
219
List the four broad categories of special perils in fire insurance
Chemical perils, social perils, perils of nature, and miscellaneous perils
220
Identify what is excluded form the explosion special peril cover
Fire resulting from explosion, domestic explosions, pressure vessel explosions and sonic bangs
221
Describe what the aircraft special peril covers
Damage from crashing aircraft, aerial devices, or articles dropped from them, excluding fire damage and sonic bangs
222
What are the two types of riot and civil commotion cover available
Fire caused by riot/civil commotion, or wider cover for any damage from riot, strikers, or malicious persons
223
Explain what is excluded from riot and civil commotion cover
Damage from cessation of work or government-ordered confiscation, requisition, or destruction
224
How does a standard fire policy provide compensation
By covering damage to insured property caused by specific perils like fire and lightning
225
What is the significance of the term 'special perils' in fire insurance?
It refers to additional risks beyond standard fire coverage that can be insured against
226
Describe what malicious damage covers as a special peril
Malicious damage covers all malicious damage as an extension of riot cover, excluding theft-related damage and damage to empty buildings
227
Define the minimum excess for malicious damage claims
The minimum excess for malicious damage claims is at least £250
228
Calculate the insurer's payment for a malicious damage claim of £375 with a £250 excess
The insurer would pay £125
229
Explain what earthquake cover includes as a special peril
Earthquake cover includes shock risks or both fire and shock risks caused by earthquakes
230
Why is subterranean fire excluded form the standard fire policy?
Subterranean fire is excluded because it is a specific peril covered separately under the special perils section.
231
Describe the typical application of spontaneous fermentation or heating coverage
This coverage typically applies to hayricks and crops stored in bulk, often requested by farmers
232
How is flood cover related to storm cover?
Flood cover is only granted with storm cover, omitting the exclusion for escape of water from watercourses
232
What exclusions are present in storm cover under the special perils section?
Storm cover excludes damage from flood, changes in water table, lightning, frost, subsidence, ground heave, landslip, and damage to fences or gates
233
State the minimum excess for storm cover
The minimum excess for storm cover is at least £100, often higher
234
Explain why escape of water excludes damage in empty premises
It excludes damage in empty premises due to the increased risk of freezing in unheated buildings and delayed discovery of leaks
234
What does escape of water cover in the special perils cover?
Escape of water covers damage from water escaping tanks, apparatus, or pipes, with a minimum excess of £250
235
What does impact cover include in the special perils section?
Impact cover includes damage from vehicles or animals owned by third parties, excluding those owned by the insured or employees
236
Define 'own impact' cover and its excess
'Own impact' cover includes damage from the insured's own vehicles or animals, with a minimum excess of £250
237
What does sprinkler leakage cover?
Sprinkler leakage covers accidental escape of water from sprinkler systems, excluding freezing in empty premises and certain perils
238
Identify the causes of sprinkler leakage
Sprinkler leakage can be caused by impact damage to sprinkler heads, mechanical defects, or freezing causing pipes burst
239
Define subsidence in the context or special perils
Subsidence refers to the movement of land due to underground workings, dissimilar soils, or changes in moisture content
240
Describe ground heave
Swelling of ground due to increased moisture absorption, such as post-draught conditions
241
Explain landslip as defined in Oddy v. Phoenix Assurance Co, Ltd (1966)
A rapid downward movement of rock or earth on a slope under gravity, similar to a small landslide
242
Define the minimum excess for subsidence, ground heave, or landslip cover
£1,000
243
What is excluded from subsidence, ground heave, or landslip cover?
Damage to yards, walls, or fences unless the building in affected, normal settlement or defective design
244
List standard market exclusions for property insurance
Riot, war, radioactive contamination, Northern Ireland risks, terrorism, pollution, marine policies, specific insurance, and consequential loss
245
What is the purpose of 'all risks' insurance?
To provide broader cover by excluding specific risks rather than adding perils, unlike fire and special perils policies
246
Explain what the ABI Standard All Risks Policy covers
Accidental loss, destruction, or damage to insured property, unless specifically excluded
247
Identify the four groups of exclusions in an 'all risks' policy
Absolute exclusions, carefully underwritten exclusions, insurable exclusions, and exclusions for other classes of business
248
Provide examples of absolute exclusions in an 'all risks' policy
War, nuclear assemblies, terrorism, pollution, and faulty workmanship
249
What are examples of carefully underwritten exclusions in an 'all risks' policy?
Corrosion, rust, temperature changes, wind/rain to moveable property, and malicious damage in empty buildings
250
What exclusions can be written into an 'all risks' policy?
Money, Jewellery, glass, computers, goods int transit, theft, subsidence, ground heave, and landslip
251
Identify risks excluded as belonging to other classes of business in an 'all risks' policy
Motor vehicles, watercraft, aircraft, livestock, and buildings under construction
252
Define a first loss basis in 'all risks' insurance
Covering less than the total property value, assuming total destruction is unlikely, with premium discounts if exposure is reduced
253
Describe the changes insurers made regarding unoccupancy periods
Insurers extended unoccupancy periods, for example, from 60-90 days, or worked on a case-by-case basis for equitable solutions
254
Define what property is covered under theft insurance for business premises
The property covered under theft insurance includes stock and contents, but excludes buildings, although it covers building damage during theft if the insured is responsible
255
Explain how theft insurance differs from the Theft Act 1968 definition
Theft insurance requires forcible and violent entry or exit (FAVE), excluding shoplifting or non-violent theft
256
What is the typical wording for theft insurance cover?
The typical wording for theft insurance cover involves theft that includes entry to or exit from the premises by forcible and violent means
257
Describe what a restricted theft wording excludes
A restricted theft wording excludes entry by key, trick, or hiding on premises during business hours, unless forcible exit occurs
258
What is hold-up cover in theft insurance?
Hold-up cover in theft insurance refers to theft accompanied by assault or threat of violence to the insured or employees, often included automatically
259
Explain the condition of average in theft insurance
The condition of average in theft insurance means that claim settlements are adjusted based on the full value at risk compared to the declared value, unless on a first loss basis
260
What does the breakage of glass extension cover in theft insurance?
The breakage of glass extension covers glass breakage during theft or attempted theft, unless covered by a specific glass policy
261
Describe what the replacement of locks extension covers
The replacement of locks extension covers the costs of replacing locks after the theft of keys
262
What does the temporary removal extension cover in theft insurance?
The temporary removal extension covers items (excluding stock) that are temporarily removed for cleaning or repair within Great Britain and Northern Ireland
263
Explain index linking in theft insurance
Index linking in theft insurance involves adjusting sums insured monthly based on the Retail Prices Index to keep values updated
264
What does the collusion extension cover in theft insurance
The collusion extension covers theft involving plotting between a thief and employee(s), subject to careful underwriting
265
Define extended or full theft cover
Extended or full theft cover includes theft without requiring forcible entry or exit, covering open doors/windows and property in the open
266
What does robbery and aggravated burglary cover include?
Robbery and aggravated burglary cover includes theft with force or fear of force, or the use of firearms/explosives, mainly for stock during business hours
267
List some specific exclusions in theft insurance
Specific exclusions in theft insurance may include certain types of theft, non-violent theft, or theft under specific circumstances not covered by the policy
268
Describe the basis on which theft insurance is often provided
Theft insurance is often on a first loss basis because thieves are selective, which reduces the likelihood of total loss and allows for premium discounts
269
Explain what glass insurance covers
Glass insurance covers destruction or damage to fixed glass, such as windows, doors, showcases, and mirrored glass, on an 'all risks' basis
270
What is included in the standard glass insurance cover?
Standard glass insurance includes the cost of boarding up, alarm foil, lettering, display on glass and damage to window frames
271
How do insurers typically manage glass insurance claims?
Insurers typically handle glass insurance claims through replacement arrangements with national glazing companies
272
Identify what is excluded from glass insurance coverage
Glass insurance excludes damage caused by fire, lightning, and explosion, as these are covered under a fire policy
273
What is a typical excess amount for glass insurance?
A typical excess for glass insurance is £50 to avoid small claims
274
List optional extensions available for glass insurance
Optional extensions for glass insurance include coverage for damage to shopfront contents from broken glazing and damage to washbasins or sanitary fittings in hairdressing salons
275
Define what money insurance covers
Money insurance covers all risks of loss, or damage to money in various situations, each with separate limits
276
What items are classified as money under money insurance?
Items included in the definition of money are cash, bank notes, cheques, postal/money orders, postage stamps, national insurance cards and luncheon vouchers
277
What is specifically excluded from the definition of money?
Lottery tickets are specifically excluded from the definition of money.
278
Describe the focus of pecuniary insurance
Pecuniary insurance is concerned with the intangibles such as income, revenue, or value, unlike property insurance which covers tangible materials
279
Explain how the indemnity definition for business interruption differs from property insurance
The indemnity definition for business interruption is forward-looking, aiming to reflect the trading position the insured would have been in without the loss rather than valuing what was lost
280
Define the basic purpose of legal expenses insurance
The basic purpose of legal expenses cover is to provide indemnity for costs arising from seeking legal advice or pursuing/defending a civil action
281
What distinguishes civil actions from criminal prosecutions
Civil actions seek legal redress like compensation or injunctions, while criminal prosecutions involve state punishment for wrongdoers
282
Describe Before the Event (BTE) legal expenses policies
BTE legal expenses policies are brought to protect against future legal actions, often added to home or car insurance
283
What are After the Event (ATE) legal expenses policies?
ATE legal expenses policies are standalone policies bought after deciding to take or defend a legal action, covering the other side's costs
284
Identify the target audience for group legal benefit policies
Group legal benefit policies are designed for groups like company employees and their immediate families, arranged as an employee benefit
285
List the four sections of group legal benefit policies
The four sections of group legal benefit policies are employment cover, personal cover, motor over, and conveyancing cover
286
Explain what employment cover includes in group legal benefit policies
Employment cover includes defence of claims from employment, compensation for wrongful dismissal, discrimination, or injury
287
What does personal cover provide in group legal benefit policies?
Personal cover provides costs for pursuing personal rights or defending personal actions
288
Describe what motor cover includes in group legal benefit policies
Motor cover includes costs for defending claims from motor vehicle ownership or use, not covered by motor policies
289
What does conveyancing cover provide in group legal benefit policies
Conveyancing cover provides legal costs for buying or selling a house, up to a specified limit
290
Explain the purpose of commercial legal protection policies
Commercial legal protection policies are designed to cover businesses as employers, manufacturers, property owners, or traders exposed to litigation
291
Identify the legislation that highlights the need for commercial legal protection policies
The specific legislation that highlights the need for commercial legal protection policies is not mentioned in the content
292
Describe the Employment Relations Act 1999
It is legislation that governs the relationship between employers and employees, focusing on rights and responsibilities in the workplace
293
Explain the purpose of the National Minimum Wage Act 1998
The act establishes the minimum wage that must be paid to workers in the UK, ensuring fair compensation for labor
294
Define the Data Protection Act 2018
It is a law that governs the processing or personal data, ensuring individuals' privacy rights are protected in the UK
295
How do commercial legal protection policies differ from household policies?
Commercial policies cover issues like landlord-tenant disputes and criminal prosecutions, which are not typically included in household policies
296
What are the five main sections covered by commercial legal protection policies?
Employment, criminal prosecution defence, property disputes, motor, and patents/designs/copyright/trademarks
297
What does employment cover include in commercial legal protection policies?
It includes costs for defending unfair dismissal or discrimination claims, as well as awards if the defence fails
298
What is included in criminal prosecution defence coverage?
It covers costs for defending actions under Health and Safety at Work legislation, but excludes fines
299
Describe what property disputes cover includes
It includes costs for disputes over possession of business premises, such as landlord-tenant issues.
300
What does motor cover in commercial policies entail?
It includes costs for uninsured loss recoveries, vehicle-related disputes, and defending motoring prosecutions
301
Explain what patents and trademarks cover provides
It covers costs for pursuing actions against infringement of intellectual property rights
302
What are optional extensions for legal expenses insurance?
They include defending libel/slander, public inquiries, professional body investigations, taxation proceedings, contract disputes, and debt recovery
303
What does contract disputes cover include?
It includes negotiation of rights in disputes over good or services exceeding a minimum amount.
304
How does debt recovery cover assist businesses?
It provides negotiation support recovering money and interest from sales of good or services
305
What is a key limitation of commercial legal protection insurance?
There is no cover for actions where costs are recoverable elsewhere, such as under liability policies
306
Why is cover excluded if pursued against the insurer's solicitor's advice?
To protect against frivolous or unwinnable cases, ensuring an impartial assessment of claims
307
Describe the main focus of business interruption insurance
It focuses on covering actual or potential loss of earning and additional expenses due to material loss or damage
308
Explain how business interruption insurance differs from property insurance
Business interruption insurance covers intangible losses like earnings and extra costs, while property insurance focuses on direct material change
309
Define the two dimensions of business interruption cover
The two dimensions are the monetary amount insured and the time the interruption affects the business
310
What is the indemnity period in business interruption insurance?
It is the period from the occurrence of the loss to the end of the maximum indemnity period. during which the business is affected
311
Identify the typical maximum indemnity period chosen for business interruption insurance
The typical maximum indemnity period is 12 months - though longer periods may be needed on business type
312
Explain the concept of turnover in the context of business interruption insurance
Turnover refers to the total income from business activities, which is broken into net profit, variable charges, and fixed charges.
313
What is gross profit in business interruption insurance?
Gross profit is defined as net profit plus standing charges, excluding variable charges
314
Why are variable charges not insured under business interruption policies
Variable charges are not insured because they reduce proportionally with turnover, meaning no loss is suffered.
315
How are wages and salaries treated in business interruption policies?
Wages and salaries are included in the sum insured but are rated separately at a lower rate
316
Describe the difference basis for fixing sums insured in business interruption insurance
It involves deducting uninsured variable charges from turnover, adjusted for stock differences
317
How does the projection method for sums insured work?
It projects turnover for future years, assuming a worst-case loss, with premium rebates based on actual gross profit
318
What is a declaration linked policy in business interruption insurance?
It estimates turnover for the next year with one-third uplift for growth, simplifying projections
319
Explain what Increase in Cost of Working (ICOW) cover entails
ICOW cover includes increased expenses like renting premises or hiring staff, provided there's an equivalent claim saving
320
Why are accountants'' fees covered in business interruption claims?
Accountants' fees are covered because they require the insured's accountants' input to understand finance, unlike fire claims
321
What is the material damage warranty in business interruption policies?
The material damage warranty ensures that there is coverage for the physical damage that triggers the business interruption claim
322
Describe the importance of a material damage warranty in business interruption insurance
It ensures fund for rebuilding, limits interruption, and applies material damage warranties
323
Explain the consequences of non-domestic boilers not being covered by material damage insurance
Business interruption cover for their explosion becomes invalid due to the material damage warranty
324
Identify the most common types of business interruption policies
Fire and special perils, all risks, and engineering
325
How do standard perils in business interruption policies differ from those in material damage policies?
Standard perils include explosion of non-domestic boilers in addition to domestic boilers
326
What special perils are unique to business interruption policies?
Explosion/collapse of steam pipes, vessels, boilers, and overheating of tubes or boilers
327
How does the all risks business interruption policy ensure uniformity?
It is issued as a combined material damage and business interruption policy with matching cover
328
What does the specified suppliers extension in business interruption insurance cover?
It covers business interruption from damage at named suppliers' premises
329
Define the unspecified suppliers extension in business interruption policies
It includes damage at unnamed suppliers' premises or where insured property is stored
330
What is the basis for the specified customers extension in business interruption insurance?
It is based on estimated maximum trading with named customers
331
Explain what the transit extension covers in business interruption insurance
It covers business interruption from damage to insured property while in transit
332
What is prevention of access (POA) cover?
It covers losses form damage to nearby premises that prevent access to the insured's premises
333
Define the POA non-damage cover
It covers prevention of access due to events like bomb threats without physical damage
334
What does the public utilities extension cover in business interruption policies?
It covers interruption form damage at electricity, gas, water, or telecom supply stations
335
What types of losses does the notifiable disease extension cover?
It covers losses from notifiable diseases, vermin, defective sanitation, murder or suicide
336
Which types of businesses are typically covered by notifiable disease extensions?
Hotels, restaurants, schools, private hospitals, and food processors/distributors
337
Describe the focus of the FCA's test case on business interruption policies
The FCA's test case addressed whether disease and denial of access clauses cover COVID-19 related losses
338
Define the three categories of policy wordings identified in the FCA test case
The three categories are disease, prevention of access/public authority, and hybrid wordings
339
Explain the findings of the FCA test case regarding disease clauses
Most disease clauses provide cover for COVID-19 related business interruption within a specified radius
340
How do denial of access clauses function according to the FCA test case findings
Cover under denial of access clauses depends on the specific wording and government actions such as mandatory closure orders
341
What key causation issue was clarified by the FCA test case?
The test case clarified that COVID-19 and the government response were considered a single cause of loss for covered claims
342
What was the outcome of the Supreme Court appeals in the FCA test case?
The Supreme Court dismissed insurers' appeals and allowed the FCA's appeals requiring insurers to review business interruption wordings
343
Identify the two headings for engineering business interruption perils
The two headings are failure of public utilities and sudden, unforeseen damage to machinery/plant
344
What exclusions are present in engineering business interruption policies?
Exclusions include fire and special perils, general market exclusions, supply rationing, and deliberate acts
345
Why are losses prior to insurer acceptance excluded in legal expenses policies?
They are excluded to avoid covering costs for unapproved or frivolous actions
346
What is a key feature of legal expenses cover for businesses?
It covers costs of employees' time spent in court, which is different from household policies
347
How do insurers keep legal expenses cover current.
Insurers monitor events and legislation to adapt coverage accordingly
348
Describe the purpose of liability insurance
To cover damages, costs, and expenses for injury or loss due to negligence, even if the insured is not liable
349
List the types of liability insurance available
Employers Liability, Public Liability, Product liability, directors' and officers' liability, professional indemnity, trustee and cyber insurance
350
Explain what employer's liability (EL) covers
Covers employers for legal liability for bodily injury, death, disease or illness to employees arising from employment
351
Identify the legislation that makes EL insurance compulsory in the UK
Employers' liability (compulsory insurance) Act 1969, extended by the 1998 Regulations
352
What is the minimum limit of indemnity for EL insurance?
£5 million, though most insurers provide £10 million since January 1995
353
Define the Employers' Liability Tracing Office (ELTO)
An independent, not-for-profit company set up in 2011 to provide access to a database of EL policies for tracking claims
354
Explain the importance of the employer reference number (ERN) in EL insurance
A unique identifier for employers, required by the FCA for ELTO to track policies, even if the employer changes or ceases trading
355
What does an EL policy typically cover?
Legal liability for damages and claimants' costs for employee injuries or diseases caused during employment within territorial limits
356
Describe vicarious liability in the context of EL insurance
Employer liability for negligence of employees during employment
357
What are claimants' costs and expenses in EL insurance?
Factual amounts paid by claimants to pursue claims including legal fees and expert witness costs
358
How is an employer defined in EL policies?
Any person under a contract of service or apprenticeship, including self-employed, hired persons, and work experience students
359
Discuss the impact of the Pimlico Plumbers Ltd v. Smith (2018) case on EL insurance
Raised concerns about gig economy workers being misclassified, potentially affecting EL policy coverage.
360
How does working from home influence EL insurance responsibilities?
Employers must assess home workspaces for health and safety, but may not be liable for structural issues
361
What are the territorial limits for EL insurance coverage?
Great Britain, Northern Ireland, Isle of Mann, Channel Islands, and sometimes offshore or temporary overseas work.
362
Explain how long-term diseases are managed in EL insurance
Insurers share costs based on the period they covered the risk, even if the policy has expired
363
Describe the coverage provided by public liability insurance
Public liability insurance covers legal liability for third-party bodily injury, death, disease, or property damage resulting form business activities
364
Explain how EL policy premiums are determined
EL policy premiums are calculated based on estimated wages, which are adjusted at the end of the period, often including minimum and deposit premiums
365
Define the term 'accident' in the context of public liability policies
In public liability policies, 'accident' refers to unexpected events, excluding deliberate acts unless specified as accidental
366
How can the coverage of an EL policy be limited?
Coverage can be limited through trade clauses that restrict business definitions and exclude specific work machines, or processes
367
What forms of legal liability are covered under public liability insurance?
Public liability insurance cover negligence nuisance, trespass, and liability under statue
368
Describe the impact of the IICSA report on public liability insurance
The IICSA report prompted the ABI to explore a tracing service for historic policies related to child sexual abuse claims
369
What is meant by 'consequential loss' in public liability insurance?
Consequential loss refers to losses that directly result from accidents, such as car hire costs incurred after property damage
370
Explain the coverage for injury to persons under public liability insurance
Coverage includes bodily injury, death, illness, or disease that causes physical or medical impairment
371
How does public liability insurance differ from specific policies
Public liability is defined by exclusions rather than specific perils, unlike EL, product liability or professional indemnity policies
372
What does loss of or damage to property entail in public liability insurance?
It covers physical damage to material property and loss, such as theft of customers' or employees' goods
373
What is pure financial loss cover in public liability insurance?
It provides limited cover for financial loss that occurs without injury or property damage, related to sold of vacated premises.
374
What is the typical limit of indemnity for public liability insurance?
The typical limit of indemnity is £2 million per occurrence, with some policies offering limits up to £10 million
375
Identify the two most common optional extensions for public liability insurance
The two most common optional extensions re tenants' liability and defective premises cover
376
What does tenants' liability cover in public liability insurance?
Tenants' liability covers liability for damage to leased or rented premises typically with an excess of £100-£250
377
Describe the coverage provided by defective premises insurances
Defective premises insurance covers liability for defects in previously owned or occupied premises, as per the Defective Premises Act 1972
378
How does the Building Safety Act 2022 influence defective premises cover?
The Building Safety Act 2022 affects defective premises cover by potentially introducing new regulations or requirements for liability related to building safety
379
Describe the extension of retrospective compensation claims in insurance
Retrospective compensation claims have been extended rom 6 - 30 years, while new work claims are extended to 15 years
380
Explain the exclusions typically found in public liability policies
Exclusions in public liability policies include injury to employees, owned property, product liability, contractual liability, defective work, professional negligence, deliberate acts, motor vehicles, vessels, lifts, war, and radioactive contamination
381
How are public liability premiums determined?
Public liability premiums are calculated based on factors such as wages, turnover, or specific measures like hotel room numbers, with flat rates for premises-only risk
382
Define product liability insurance
Product liability insurance covers legal liability for injury or property damage resulting from good manufactured, sold or supplied by the insured.
383
What typical hazards are covered by product liability insurance?
Typical hazards include faulty electrical appliances, contaminated food, defective tyres, and improper instructions for weed killers or fertilisers
384
Explain what product liability insurance covers
Product liability insurance covers bodily injury or property damage during the policy period, including consequential losses resulting from liable damage
385
What is the limit of indemnity in product liability insurance?
The limit of indemnity is typically a yearly aggregate limit that matches the per-occurrence limit
386
Identify specific exclusions in product liability policies
Specific exclusions in product liability policies include contractual liability, damage to good supplied, faulty design, and unsuitability or failure to perform
387
How are product liability premiums calculated?
Product liability premiums are adjustable based on turnover, similar to employers' liability (EL) insurance
388
IF2
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