1
Q
A legal expenses insurance policy normally covers the insured for:
A. the cost of attending jury service
B. fines and penalties incurred
C. negligent advice provided by the insured
D. solicitors’ costs incurred in pursuing a claim against a third party
A
D. solicitors’ costs incurred in pursuing a claim against a third party
2
Q
Under which insurance policy does an employer normally insure his liability in respect of injury to his employees being driven as passengers in the employer’s cars?
A. An employers’ liability insurance policy
B. A motor insurance policy
C. A personal accident insurance policy
D. A public liability insurance policy
A
B. A motor insurance policy
3
Q
An employee is assaulted and robbed of his employer’s takings whilst en route to bank them. Which insurance policy is most likely to provide personal accident benefits to the employee for the injuries sustained during the robbery?
A. An employers’ liability insurance policy
B. A money insurance policy
C. A public liability insurance policy
D. A theft insurance policy
A
B. A money insurance policy
4
Q
Under a personal accident insurance policy, standard cover normally provides for payment of
A. Benefits while incapacitated
B. Damages for pain and suffering
C. Private Medical Expenses
D. Private nursing
A
A. Benefits while incapacitated
5
Q
Under a third party only private motor insurance policy, cover in respect of third party property damage is usually subject to what maximum limit?
A. £250,000
B. £1,200,000
C. £10,000,000
D. £20,000,000
A
D. £20,000,000
6
Q
What element of cover under a buildings insurance policy normally attracts a substantial compulsory excess?
A. Earthquake
B. Impact
C. Storm and flood
D. Subsidence, ground heave and landslip
A
D. Subsidence, ground heave and landslip
7
Q
When criminal prosecution defence cover is included under a commercial legal expenses insurance policy, what types of fines, if any, are typically covered?
A. Fines are not covered
B. Fines above the policy excess
C. Fines which equal or exceed the franchise
D. All fines are covered
A
A. Fines are not covered
8
Q
In what way are legal costs for landlord/tenant disputes normally covered, if at all, under legal expenses extension of a household insurance policy?
A. All costs are covered covered rather than just court fees
B. A significantly lower excess applies
C. The standard sum insured limit is doubled
D. They are not covered
A
D. They are not covered
9
Q
Under what type of insurance policy is a material damage warranty automatically imposed?
A. A business interruption insurance policy
B. An extended warranty insurance policy
C. A products liability insurance policy
D. A professional indemnity insurance policy
A
A. A business interruption insurance policy
10
Q
What limit of indemnity is normally provided under an employers’ liability insurance policy?
A. £2,000,000
B. £5,000,000
C. £10,000,000
D. £25,000,000
A
C. £10,000,000
11
Q
One of the common exclusions under an extended warranty insurance policy relates to any risks normally covered by which other type of insurance policy?
A. A buildings insurance policy
B. A household contents insurance policy
C. A motor insurance policy
D. A theft insurance policy
A
B. A household contents insurance policy
12
Q
Under a typical extended warranty insurance policy, what proportion of the cost of labour and parts is normally covered?
A. 80% of the cost of labour and parts
B. 80% of the cost of labour, and 100% of the cost of parts
C. 100% of the cost of labour and parts
D. 100% of the cost of labour, and 80% of the costs of parts
A
C. 100% of the cost of labour and parts
13
Q
A commercial property insurance policy will usually exclude damage arising from impact by
A. aircraft
B. animals
C. own vehicles
D. third party vehicles
A
C. own vehicles
14
Q
For the theft of shop stock to be covered under a theft insurance policy, there would usually need to be evidence of
A. Forcible and violent entry to and exit from the premises
B. Forcible or violent entry to and exit from the premises
C. Forcible and violent entry to or exit from the premises
D. Forcible or violent entry to or exit from the premises
A
C. Forcible and violent entry to or exit from the premises
15
Q
Following an insured loss at a solicitor’s premises, which insurance policy specifically covers the solicitor for loss of profits?
A. A business interruption policy
B. A legal expenses insurance policy
C. A money insurance policy
D. A professional indemnity policy
A
A. A business interruption policy
16
Q
What cover, if any, is provided under a comprehensive private motor insurance policy for a caravan whilst it is attached to the insured vehicle?
A. No cover is provided
B. Third Party Only
C. Third party, fire and theft
D. Comprehensive
A
B. Third Party Only
17
Q
What standard cover is provided under a third party only motorcycle insurance policy in respect of injury to the insured in the event of an accident?
A. Emergency Treatment Fees
B. Loss of Earnings
C. Medical Expenses
D. Personal accident benefits
A
A. Emergency Treatment Fees
18
Q
In what circumstances will a public liability insurance policy pay a claim for pollution of air, water or soil?
A. When a court finds that the cause of pollution was an act of God
B. When Pollution is caused by immediate discharge consequent upon an accident
C. When the insured has paid the appropriate additional premium for pollution
D. When the insured is legally liable for pollution clean-up costs
A
B. When Pollution is caused by immediate discharge consequent upon an accident
19
Q
What type of insurance policy would provide cover for an accountant’s liability to compensate her clients for losses due to errors or omissions by her staff?
A. A employers’ liability insurance policy
B. A money insurance policy
C. A professional indemnity insurance policy
D. A public liability insurance policy
A
C. A professional indemnity insurance policy
20
Q
A shoe manufacturer’s products liability insurance policy is issued with a limit of indemnity of £1,000,000. There are three different products liability claims in the first period of insurance, one for £500,000, one for £750,000 and a final one for £1,100,000. hat will the policy pay out in total for the three claims?
A. £1,000,000
B. £1,250,000
C. £2,250,000
D. £2,350,000
A
A. £1,000,000
21
Q
Under a personal accident insurance policy, what is the maximum number of weeks for which temporary total disablement benefit is usually paid?
A. 26 weeks
B. 52 weeks
C. 104 weeks
D. 156 weeks
A
C. 104 weeks
22
Q
What amount should the sum insured under the buildings section of a household insurance policy represent?
A. The cost of rebuilding the property
B. The market value of the property
C. The maximum likely cost of fire damage to the property
D. The outstanding mortgage loan on the property
A
A. The cost of rebuilding the property
23
Q
The cancellation section of a travel insurance policy normally excludes claims in relation to
A. Death of a close relative
B. Jury service
C. Permanent disablement
D. Pregnancy
A
D. Pregnancy
24
Q
An insurance policy for a small business includes cover for fire, special perils, theft, business interruption, money and other types of insurance under a single contract.
A. an all risks insurance policy
B. a collective insurance policy
C. an open cover insurance policy
D. a packaged insurance policy
A
D. a packaged insurance policy
25
From where may an insured obtain free advice regarding the cover provided under his motor insurance policy?
A. The Chartered Insurance Institute
B. The financial Ombudsman Service
C. The insurer's telephone helpline
D. The Motor Insurers' Bureau
C. The insurer's telephone helpline
26
Authorised motor repairers are approved by the
A. Department for Business, Energy, and Industrial Strategy
B. Financial Conduct Authority
C. Insurer
D. Motor Insurers' Bureau
C. Insurer
27
Which type of personal insurance policy most commonly provides an uninsured loss recovery service?
A. A household insurance policy
B. A private motor insurance policy
C. A sickness insurance policy
D. A travel insurance policy
B. A private motor insurance policy
28
Under a typical legal expenses insurance policy, what limit of cover, if any, usually applies during the period of insurance?
A. Cover is unlimited
B. Overall cover is limited but there is no limit per claim
C. Overall cover is limited and there is also a limit per claim
D. Overall cover is unlimited, but there is a limit per claim
D. Overall cover is unlimited, but there is a limit per claim
29
Under a travel insurance policy, cover for baggage will not generally include damager to
A. Binoculars
B. Clothing
C. Contact lenses
D. Jewellery
C. Contact lenses
30
Under a household insurance policy, subsidence cover responds to damage caused by
A. Faulty workmanship
B. Riverbank erosion
C. Settlement
D. Tree roots
D. Tree roots
31
What is the minimum limit of indemnity legally required under an employers' liability insurance policy?
A. £1,000,000
B. £2,000,000
C. £5,000,000
D. £10,000,000
C. £5,000,000
32
A basics feature of glass insurance is that it will exclude glass breakages caused by:
A. fire, lightning or explosion
B. impact by vehicles
C. storm, tempest or flood
D. theft or malicious damage
A. fire, lightning or explosion
33
Who would take out an extended warranty insurance policy in respect of electrical goods?
A. The manufacturer
B. The purchaser
C. The repairer
D. The retailer
B. The purchaser
34
What cover must be included under a motor policy to comply with the Road Traffic Act?
A. Death or injury to the insured only
B. Death or injury to the insured driver, any passengers and any third parties
C. Legal liability for death or injury to third parties
D. Personal accident for any passengers
C. Legal liability for death or injury to third parties
35
Owing to an accident resulting in injury to an arm, a hairdresser is unable to carry out any work for three months. What benefit will be provided under his personal accident insurance policy?
A. a capital sum for the partial loss of the use of a limb
B. a capital sum for the total loss of use of a limb
C. a regular payment for temporary partial disablement
D. a regular payment for temporary total disablement
D. a regular payment for temporary total disablement
36
A woodwork company has a fire insurance policy containing a clause which requires the removal of any sawdust shavings from the premises at the end of each working day. Failure to do so may make any associated claim invalid. This is known as
A. an exclusion
B. a franchise
C. a representation
D. a warranty
D. a warranty
37
What is normally the main rating factor used when considering an application for personal accident insurance?
A. Geographical location
B. Health
C. Income
D. Occupation
D. Occupation
38
An insurance policy's legal significance is as the
A. basis of the contract
B. confirmation of cover
C. contract itself
D. evidence of the contract
D. Evidence of the contract
39
Why does an underwriter need to be aware of material circumstances when processing an application for insurance?
A, They can affect the terms on which the risk is accepted
B. They can reduce the likelihood of subrogation
C. They will dictate whether or not the contract is regulated by the Financial Conduct Authority
D. They will indicate the legal status of the contract
A, They can affect the terms on which the risk is accepted
40
An underwriter has identified a good physical hazed in relation to an insurance application. What impact will this tend to have on the likelihood and severity of loss?
A. An increase in both the likelihood and severity
B. A decrease in both the likelihood and severity
C. An increase in the likelihood, but a decrease in the severity
D. A decrease in the likelihood but an increase in the severity
B. A decrease in both the likelihood and severity
41
The proposal form being completed by an applicant specifically asks for the details of anyone under
the age of 25 who is to be covered by the insurance policy. What type of policy is this most likely to
be?
A. A medical expenses insurance policy.
B. A motor insurance policy.
C. A personal accident insurance policy.
D. A travel insurance policy
B. A motor insurance policy.
42
Under which part of a property insurance policy will the insured perils be listed?
A. The conditions.
B. The exceptions.
C. The operative clause.
D. The recital clause.
C. The operative clause.
43
By what means would an insurer normally collect the premium from an insured who is permitted to pay by instalments?
A. By banker’s draft.
B. By cash.
C. By direct debit.
D. By post-dated cheques.
C. By direct debit.
44
Martin buys a car and asks an intermediary to arrange insurance. From what point does the insurance become effective?
A. When the intermediary submits the quotation.
B. From the time and date shown on the cover note issued by the intermediary.
C. When Martin receives the insurance policy document.
D. When the intermediary receives the full premium.
B. From the time and date shown on the cover note issued by the intermediary.
45
A fire occurs at a factory one month after the insurance policy renewal date, but the renewal premium has NOT been paid. What is the legal position of the insurer in the event of a claim?
A. The insurer can reject the claim in its entirety.
B. The insurer must pay the claim, but with a deduction for the unpaid premium.
C. The insurer must pay the claim in full, unless a cancellation notice has been issued.
D. The insurer must delay settlement until the premium has been paid.
A. The insurer can reject the claim in its entirety.
46
Which part of an insurance policy personalises the cover to the insured?
A. The heading.
B. The operative clause.
C. The recital clause.
D. The schedule.
D. The schedule.
47
Under the standard fire insurance policy, the pro rata condition of average requires the sum
insured, at the date of loss, to be what minimum percentage of the value at risk to obtain full
settlement?
A. 70%
B. 80%
C. 90%
D. 100%
D. 100%
48
When two insurance policies cover the same risk and they both contain a contribution condition,
how would a claim usually be settled?
A. Only one policy would contribute the full amount.
B. Both policies would contribute a proportionate amount.
C. Both policies would contribute an equal amount.
D. Both policies would contribute the full amount.
B. Both policies would contribute a proportionate amount.
49
An insured has a household insurance policy with an excess of £100 in respect of each claim. If a
valid claim for £450 is submitted, what maximum amount would the insured receive in settlement?
A. £100
B. £350
C. £450
D. £550
B. £350
50
A franchise under an insurance policy means that the
A. insured always pays an agreed amount towards a claim.
B. insured never has to contribute towards a claim.
C. insurer pays the full value of any claim which exceeds a specified amount.
D. insurer pays the full value of any claim which falls below a specified amount.
C. insurer pays the full value of any claim which exceeds a specified amount.
51
What is always the consequence of a proposer failing to inform an underwriter of material
circumstances relating to a proposed industrial risk?
A. A claim cannot be made against the insurance policy.
B. The insurer’s liability is limited to third parties.
C. The premium is set at a higher level.
D. The risk is not accurately assessed.
D. The risk is not accurately assessed.
52
A proposal form is normally used by an underwriter as a means of obtaining material information
because it
A. is a regulatory requirement.
B. is convenient and cost-effective.
C. prevents misrepresentation by the proposer.
D. provides evidence of a contract.
B. is convenient and cost-effective.
53
Which peril is always excluded under a commercial fire and special perils insurance policy as a
market exclusion?
A. Earthquake.
B. Flood.
C. Riot.
D. War.
D. War.
54
An insurer usually grants a limited grace period in order to give an insurance policyholder time to
A. cancel the policy without penalty.
B. notify the insurer of a claim.
C. notify the insurer of a complaint.
D. pay the policy renewal premium.
D. pay the policy renewal premium.
55
What is the rate of Insurance Premium Tax on a private motor insurance policy?
A. 6%
B. 12%
C. 17.5%
D. 20%
B. 12%
56
Under the cancellation clause of a personal insurance policy, what postal method does the
insurer usually use to advise the insured that the policy is cancelled?
A. A couriered letter to the insured’s intermediary.
B. A couriered letter to the insured’s last known address.
C. A recorded delivery letter to the insured’s intermediary.
D. A recorded delivery letter to the insured’s last known address.
D. A recorded delivery letter to the insured’s last known address.
57
Under a cancellation clause, when may an insurer cancel an insurance policy?
A. At inception of the policy only.
B. At renewal of the policy only.
C. At any time during the period of the policy.
D. Only after a claim has occurred under the policy
C. At any time during the period of the policy.
58
How is the likelihood of a loss occurring usually affected by the existence of a poor physical hazard?
A. It always remains constant.
B. It may remain constant or increase.
C. It may remain constant or decrease.
D. It may increase or decrease
B. It may remain constant or increase.
59
An insurer mistakenly quotes a premium of £500 instead of £5,000. The quotation has NOT yet
been accepted. What option, if any, is available to the insurer to rectify its mistake?
A. The insurer is bound by the quotation.
B. Send the proposer a second quotation with the correct premium stated.
C. Vary the level of cover to suit the misquoted premium.
D. Vary the period of cover to suit the misquoted premium.
B. Send the proposer a second quotation with the correct premium stated.
60
What personal information about the proposer, other than name and address, is required on a
commercial fire insurance proposal form?
A. Age.
B. Marital status.
C. Nationality.
D. Occupation.
D. Occupation.
61
A theft insurance policy has a £50,000 franchise. If a valid claim of £55,000 is made, how much, if
anything, will the insurer pay?
A. Nothing.
B. £5,000
C. £50,000
D. £55,000
D. £55,000
62
A direct motor insurer asks a proposer questions over the telephone and prepares a statement of
fact based on the proposer’s responses. What is the next stage in processing this proposal?
A. The insurer draws up an insurance policy which is sent to the proposer for consideration.
B. The insurer issues a certificate pending receipt of the premium.
C. The insurer issues a cover note pending receipt of the premium.
D. The statement of fact is sent to the proposer to check.
D. The statement of fact is sent to the proposer to check.
63
John purchases a motor insurance policy and asks the insurer NOT to send him a policy document
as he understands the extent of cover. Why would the insurer send him a policy document
anyway?
A. John cannot make a claim under the policy without the policy document.
B. The insurer is legally obliged to issue the policy document within 60 days of inception.
C. The policy is evidence of the contract and it must be sent to meet contract certainty regulations.
D. The policy document must be issued before the premium is legally payable
C. The policy is evidence of the contract and it must be sent to meet contract certainty regulations.
64
A customer requests an insurance quotation and indicates a wish to accept it. At what point is the
contract made?
A. When the customer agrees to pay the premium.
B. When the customer pays the premium.
C. When the policy document is issued by the insurer.
D. When the policy document is received by the customer
A. When the customer agrees to pay the premium.
65
What type of fact, if fraudulently omitted by the proposer when completing a public liability form,
might allow the insurer to avoid the insurance policy?
A. A fact of common knowledge.
B. A fact of law.
C. A fact which lessens the risk.
D. A material fact.
D. A material fact.
66
A public liability insurance policy contains a condition precedent to liability concerning the
precautions to be taken when using cutting torches. In the event of a claim for damage arising from
the use of cutting torches and the insured has specifically failed to comply with this condition, the
insurer will normally
A. cancel the policy.
B. offer part payment of the claim.
C. refuse to settle the claim.
D. settle the claim and sue the insured for recovery.
C. refuse to settle the claim.
67
The sum insured under a buildings insurance policy is £70,000. A rate of £0.30% applies and a 10%
discount is allowed. What is the premium excluding Insurance Premium Tax?
A. £63
B. £189
C. £210
D. £231
B. £189
68
What is the premium before Insurance Premium Tax for a products liability insurance policy rated at
£1 per mille on a turnover of £5,000,000?
A. £50
B. £500
C. £5,000
D. £50,000
C. £5,000
69
When considering a motor claim settlement, salvage is the
A. actual cost of repairing a vehicle beyond economic repair.
B. actual vehicle remnants following a total loss claim.
C. amount paid in settlement of a claim.
D. destruction of a vehicle following a claim
B. actual vehicle remnants following a total loss claim.
70
A consumer used the services of an intermediary to effect a household insurance policy. In the
event of a claim, who is legally responsible for proving the amount of the loss?
A. The consumer in all cases.
B. The insurer in all cases.
C. The intermediary in all cases.
D. The intermediary if independent, otherwise the customer.
A. The consumer in all cases.
71
What settlement method would normally be used for a valid claim under a business interruption
insurance policy?
A. Payment for repairs.
B. Payment of money.
C. Reinstatement.
D. Replacement.
B. Payment of money.
72
When a motor insurer takes advantage of contribution rights, from whom can some of its claims
settlement costs be recovered?
A. Another insurer.
B. A negligent third party.
C. The Motor Insurers’ Bureau.
D. The policyholder.
A. Another insurer.
73
A specialist motor insurer has recently experienced a high level of fraudulent claims. Which of its
policyholders could suffer as a result of this fraud?
A. All policyholders.
B. New policyholders only.
C. Policyholders who pay by instalments only.
D. Policyholders with a significant no claims discount only.
A. All policyholders.
74
Application of the arbitration clause might occur under a fire insurance policy as a result of a
dispute between the insurer and the insured regarding the
A. amount of a claim.
B. amount of the premium.
C. policy cover.
D. policy renewal terms.
A. amount of a claim.
75
Vanessa insures the contents of her house under a typical household contents insurance policy with
a £250 excess, but fails to advise her insurer that she takes in lodgers. She discovers that some
jewellery valued at £1,000 is missing and there is no evidence of a forced entry. What maximum
payment, if any, is her insurer obliged to make?
A. Nil.
B. £250
C. £750
D. £1,000
A. Nil.
76
An insured is subject to implied duties when
A. amending an insurance policy.
B. proposing an insurance policy.
C. renewing an insurance policy.
D. submitting a claim under an insurance policy
D. submitting a claim under an insurance policy
77
In the event of a valid claim under a personal accident and sickness insurance policy, what
documentary evidence will an insurer always require in addition to a claim form?
A. A doctor’s certificate to confirm the nature and duration of the claimant’s disability.
B. A letter from the claimant’s employer to confirm that he has been absent from work.
C. The policy document or renewal confirmation to confirm that cover exists.
D. A statement of earnings to confirm the amount earned by the claimant during the past year.
A. A doctor’s certificate to confirm the nature and duration of the claimant’s disability.
78
A motorist suffers damage to his comprehensively insured vehicle and takes it to a repairer with
whom the insurer has direct billing arrangements. The insurance policy has a £100 excess.
Assuming the claim is valid, how is the claim likely to be settled?
A. The insurer pays the repairer in full, reclaiming the excess from the insured.
B. The insured pays the repairer in full, reclaiming the costs less the excess from the insurer.
C. The insured pays the excess to the repairer and the insurer then pays the balance to the repairer.
D. The insured pays the excess to the insurer and the insurer then pays the full amount to the
repairer.
C. The insured pays the excess to the repairer and the insurer then pays the balance to the repairer.
79
Which organisation will settle a claim from a pedestrian injured by an uninsured motorist?
A. The Association of British Insurers.
B. The British Insurance Brokers’ Association.
C. The Financial Conduct Authority.
D. The Motor Insurers’ Bureau.
D. The Motor Insurers’ Bureau.
80
Under the standard fire policy, in order for a claim to be accepted it is essential that the damage is
caused by
A. the actions of a third party.
B. a fire.
C. an inevitable event.
D. a named peril.
D. a named peril.
81
Upon becoming aware that a fraudulent claim has been made, what is the earliest point from which
an insurer may terminate the insurance policy?
A. From inception of the policy.
B. From the date of the fraudulent act.
C. From the date of discovery of the fraud.
D. From the next renewal date of the policy
A. From inception of the policy.
82
When is an amount initially reserved in the claims process?
A. At inception of the insurance policy.
B. At the time the claim is notified.
C. At the time the claim is settled.
D. At the time average is applied.
B. At the time the claim is notified.
83
Why would an insurer register claim details on MIAFTR2?
A. To allow claim payments to be made by electronic transfer.
B. To check claim information against details provided on the proposal form.
C. To enable intermediaries to access information electronically.
D. To help prevent fraud.
D. To help prevent fraud.
84
Which insurance policy condition can an insurer invoke to recover all of its outlay in respect of a
claim?
A. Arbitration.
B. Average.
C. Contribution.
D. Subrogation.
D. Subrogation.
85
The purpose of the Claims and Underwriting Exchange is to
A. decide which party is liable for a claim.
B. help detect fraudulent claims.
C. pursue recovery of uninsured losses.
D. set premium rates.
B. help detect fraudulent claims.
86
Under an employers’ liability insurance policy, delays often occur between a claim being notified
and final settlement. To ensure adequate funds are available to ultimately pay the claim, an
insurer will rely on correct
A. excesses.
B. rates.
C. reserving.
D. wages declarations.
C. reserving.
87
An insurer can usually terminate an insurance policy without refunding premiums if the
policyholder
A. arranges identical cover elsewhere.
B. becomes insolvent.
C. loses insurable interest.
D. makes a fraudulent claim.
D. makes a fraudulent claim.
88
A commercial fire insurance policy contains a condition requiring the insured to provide proof of
loss. In the event of a fire giving rise to damage, the insured must supply the insurer with
A. a brief description of the damaged property.
B. full information relating to the damaged property.
C. a statement from the fire brigade about the cause of the fire.
D. a supplier’s estimate of the cost to replace the damaged property
B. full information relating to the damaged property.
89
Mediation and conciliation are methods of
A. alternative dispute resolution.
B. assessing indemnity limits.
C. fraud detection.
D. reserving
A. alternative dispute resolution.
90
John’s car is involved in an accident and declared to be beyond economic repair. He has a
comprehensive insurance policy with no excess and his insurer assesses the pre-accident value of
the car to be £1,000. The insurer estimates the salvage could be sold for £100, but John asks to
keep the car. How much will the insurer offer to settle the claim?
A. £100
B. £900
C. £1,000
D. £1,100
B. £900
91
Colin has a comprehensive motor insurance policy allowing any driver to use his car. Joan, who has
the same level of cover and a driving other cars extension, borrows Colin’s car and injures a third
party whilst driving. How will the subsequent claim from the third party be dealt with?
A. Both insurers will share the cost of the claim equally.
B. Colin’s insurer will pay in full.
C. Joan’s insurer will pay for the injury claim and Colin’s insurer will pay for the damage claim.
D. Joan’s insurer will pay in full.
B. Colin’s insurer will pay in full.
92
A workshop is insured for £40,000 under a fire insurance policy subject to the pro rata condition of
average. A fire occurs causing £10,000 of damage and at the time of the fire the full rebuilding cost
is assessed at £50,000. What amount, if any, is payable by the insurer?
A. Nil.
B. £2,000
C. £8,000
D. £10,000
C. £8,000
93
Gary would like to have a copy of all the records held on computer and paper by his insurer
concerning his motor insurance policy and its associated claims. Under the Data Protection Act
1998, what are Gary’s rights, if any?
A. He has no right to have a copy of any records held.
B. He only has the right to have a copy of any computer records held.
C. He only has the right to have a copy of any paper records held.
D. He has the right to have a copy of both computer and paper records held.
D. He has the right to have a copy of both computer and paper records held.
94
A high street intermediary has installed a new router into its computer system. What is
the main purpose of this device?
A. To create a daily backup of data.
B. To expand the system’s memory capacity.
C. To manage the flow of electronic traffic.
D. To protect the system from viruses.
C. To manage the flow of electronic traffic.
95
It is prudent for a company to house a backup copy of important computer data to protect the data
from being
A. accessed by an unauthorised third party.
B. copied by an industrial spy.
C. lost due to a disastrous event such as a fire.
D. stolen by a competitor.
C. lost due to a disastrous event such as a fire.
96
What is the main reason for which an employee must enter a password before using a company
computer?
A. To ensure that any documents printed will include employee details.
B. To prevent open access to confidential information.
C. To register the time that the employee signed in.
D. To run a report showing the amount of work input.
B. To prevent open access to confidential information.
97
Which type of computer-held data is regulated under the Data Protection Act 1998?
A. All data.
B. Corporate data only.
C. Personal data only.
D. Public data only
C. Personal data only.
98
What major benefit is a customer most likely to derive from an insurer which has instigated a
quality customer service policy?
A. Enhanced claim payments.
B. Faster claim settlements.
C. Longer policy terms.
D. Wider cover.
B. Faster claim settlements.
99
Which body imposes regulations which require claims to be handled promptly and fairly?
A. Association of British Insurers.
B. Chartered Insurance Institute.
C. Consumers’ Association.
D. Financial Conduct Authority.
D. Financial Conduct Authority.
100
When an insurer implements a service standard, this will usually be aimed at
A. all staff.
B. claims handlers only.
C. customer-facing staff only.
D. underwriters only
A. all staff.
101
Under what type of insurance policy does cover often commence one year after the premium is paid?
A. Business interruption.
B. Directors’ and officers’ liability.
C. Extended warranty.
D. Professional indemnity
C. Extended warranty.
102
Under a business interruption insurance policy, the indemnity period is the period of time
A. after the date of any loss which is excluded in calculating the loss.
B. for which the policy must be in force before a claim can be considered.
C. for which the policy reimburses the insured in respect of a claim.
D. from the date of loss to the next renewal date.
C. for which the policy reimburses the insured in respect of a claim.
103
Which class of insurance provides cover for injury claims but NOT property claims?
A. Employers’ liability.
B. Products liability.
C. Public liability.
D. Trustees’ indemnity.
A. Employers’ liability.
104
Harinder has comprehensive motor insurance cover and is involved in an accident which was NOT his fault. In relation to this accident, an uninsured loss recovery service will assist in
recovering the
A. cost of emergency medical treatment.
B. cost of repair to the other vehicle.
C. excess on Harinder’s policy.
D. legal costs of the third party solicitor.
C. excess on Harinder’s policy.
105
A motor vehicle must be insured unless
A. it is being kept in a garage and not driven on public roads.
B. it is kept on a private driveway and is not driven on public roads.
C. it is only driven on private roads and is not driven on public roads.
D. a Statutory Off Road Notification declaration is made to the Driver and Vehicle Licensing Agency (DVLA).
D. a Statutory Off Road Notification declaration is made to the Driver and Vehicle Licensing Agency (DVLA).
106
What is the minimum legal limit of indemnity in respect of third party property damage under a
commercial vehicle insurance policy?
A. £100,000
B. £250,000
C. £500,000
D. £1,200,000
D. £1,200,000
107
Under a motorcycle policy, accessories are only covered if stolen
A. from a locked garage.
B. from the motorcycle.
C. using force and violence.
D. with the motorcycle.
D. with the motorcycle.
108
What cover is omitted from a comprehensive commercial vehicle insurance policy which would be
provided under a comprehensive private car insurance policy?
A. Foreign use.
B. Legal costs in defence of a claim.
C. Personal accident benefits.
D. Towing of a disabled vehicle
C. Personal accident benefits.
109
A policyholder is considering theft and money insurance policies to protect himself against theft of
money due to employee fraud. Which of these policies, if either, will provide some protection against this loss?
A. Both policies.
B. Only the theft policy.
C. Only the money policy.
D. Neither policy
C. Only the money policy.
110
A medical expenses policy will generally NOT pay the cost of
A. ambulance fees.
B. anaesthetist’s fees.
C. long-term residential care.
D. surgical dressings.
C. long-term residential care.
111
In order for a death claim to be made under a personal accident insurance policy, death must occur
within how many months of the accident?
A. 12 months.
B. 18 months.
C. 24 months.
D. 36 months.
A. 12 months.
112
In certain areas of the UK, riot damage may be covered under which type of insurance policy?
A. Money.
B. Property.
C. Public liability.
D. Travel
B. Property.
113
Under which section of a travel insurance policy would a fixed benefit be paid in the event of a claim?
A. Medical expenses.
B. Personal accident.
C. Personal liability.
D. Personal possessions
B. Personal accident.
114
What is the normal excess applicable to subsidence cover under a household buildings insurance policy?
A. £250
B. £500
C. £750
D. £1,000
D. £1,000
115
A standard household insurance policy for a house near the sea would NOT normally cover damage to the house arising from
A. coastal erosion.
B. ground heave.
C. a hurricane force wind.
D. tidal flooding
A. coastal erosion.
116
A shop owner has a commercial insurance policy which includes cover for plate glass. An employee
accidentally breaks the shop window and wooden frame. Which of the damaged items, if either, is covered?
A. Neither of them.
B. The window only.
C. The wooden frame only.
D. Both of them.
D. Both of them.
117
A failed suicide attempt results in temporary partial disablement. What benefit, if any, can normally be claimed under a personal accident and sickness insurance policy?
A. The cost of medical expenses.
B. A fixed weekly benefit until recovery.
C. A lump sum.
D. No benefit can be claimed.
D. No benefit can be claimed.
118
When a commercial insurance policy includes an all risks section, this usually means that cover is provided
A. away from the risk address.
B. including electrical breakdown.
C. on an agreed value basis.
D. with no excess.
A. away from the risk address.
119
Money insurance provides cover for
A. cash, cheques and credit and debit cards.
B. cash, cheques and postage stamps.
C. cash, postage stamps and credit and debit cards.
D. cheques, postage stamps and credit and debit cards
B. cash, cheques and postage stamps.
120
A building is covered under a fire and special perils insurance policy. When the building becomes unoccupied as defined in the policy, the cover will normally exclude theft, storm, escape of water
and which other peril?
A. Fire.
B. Flood.
C. Impact.
D. Malicious damage
D. Malicious damage
121
Under which class of insurance are proposers usually asked questions at the proposal stage regarding how they would react in the event of a claim?
A. Business interruption.
B. Commercial vehicle.
C. Employers’ liability.
D. Public liability.
A. Business interruption.
122
A commercial legal expenses insurance policy would NOT normally provide cover for
A. employment disputes.
B. patents and copyright disputes.
C. property disputes.
D. public liability disputes.
D. public liability disputes.
123
Who may be held personally responsible for negligence in the running of a limited company?
A. Auditors only.
B. Company directors only.
C. Ordinary shareholders only.
D. Preferential shareholders only.
B. Company directors only.
124
A secretary develops repetitive strain injury caused by her working conditions which permanently prevents her from continuing her existing employment. Under which of her employer’s insurance
policies could compensation be paid?
A. Employers’ liability.
B. Legal expenses.
C. Professional indemnity.
D. Public liability.
A. Employers’ liability.
125
A claim under an architect’s professional indemnity policy is usually settled by
A. a cash payment to the insured.
B. payment to the insured’s contractors.
C. payment to the insurers’ contractor.
D. payment to a third party.
D. payment to a third party
126
Products liability is often found as an extension to which type of insurance policy?
A. Employers’ liability.
B. Professional indemnity.
C. Public liability.
D. Trustees’ indemnity.
C. Public liability.
127
An insurer provides a 24-hour helpline to provide emergency assistance to its policyholders. How would this helpline be funded?
A. By a grant from the Association of British Insurers.
B. By Insurance Premium Tax on individual policies.
C. The cost would be built into a policyholder’s standard premium.
D. The Insurance Ombudsman’s office meets all costs.
C. The cost would be built into a policyholder’s standard premium.
128
A household insurer will usually provide a different helpline number for policyholders with a domestic emergency to those requiring legal advice because
A. the domestic emergency number will need to direct the caller immediately to a contractor.
B. the domestic emergency service requires a 24-hour helpline.
C. the legal advice service will often be outsourced.
D. policyholders requiring legal advice may need to make a claim on the public liability section of
their policy.
C. The legal advice service will often be outsourced
129
David makes a claim under his motor insurance policy for repairs to his vehicle. How would David benefit from using his insurer’s authorised repairer?
A. The cost to David will be lower.
B. The garage will be local.
C. A reduced excess will apply.
D. There is no need to obtain repair estimates.
D. There is no need to obtain repair estimates.
130
What type of commercial property insurance claim would usually involve an approved repairer?
A. Business interruption.
B. Glass.
C. Products liability.
D. Theft.
B. Glass.
131
When an insurer recommends that the policyholder upgrades his burglar alarm, this is an example of the insurer
A. carrying out a demands and needs analysis.
B. imposing a warranty.
C. making the policyholder a co-insurer.
D. providing risk control advice.
D. providing risk control advice.
132
If Zac has third party only motor cover, which non-insurance service may he use to pursue a claim for damage to his vehicle incurred in an accident for which he was NOT at fault?
A. Authorised repairer.
B. Insurance helpline.
C. Risk control.
D. Uninsured loss recovery.
D. Uninsured loss recovery.
133
Under what type of insurance policy would an individual be able to claim for a defect that occurred with his dishwasher after the original guarantee expired, assuming he paid for such cover?
A. All risks.
B. Extended warranty.
C. Household contents.
D. Products liability.
B. Extended warranty.
134
A hotel owner wishing to insure his business against third party injury and property claims is most likely to require insurance covering
A. employers’ liability.
B. professional indemnity.
C. public liability.
D. trustees’ indemnity.
C. public liability.
135
A charity arranges trustees’ indemnity cover in order to protect themselves against claims arising from
A. injury to employees.
B. injury to third parties.
C. personal liability.
D. third party property damage.
C. personal liability.
136
Henry purchased a television from a high street chain store and it stopped working after 14 months. What type of insurance product would his claim for a replacement television be considered under?
A. All risks.
B. Extended warranty.
C. Legal expenses.
D. Products liability.
B. Extended warranty.
137
Under the cancellation clause of a personal insurance policy, what minimum period of time must an
insurer give the policyholder when sending the required registered letter to the policyholder’s last known address?
A. 7 days.
B. 10 days.
C. 21 days.
D. 30 days.
A. 7 days.
138
An underwriter needs to be aware of the relevant information relating to a risk because it
A. establishes the frequency of any loss that will occur.
B. establishes the severity of any loss that will occur.
C. identifies the event which will give rise to any loss that may occur.
D. may affect the decision regarding accepting and rating the risk.
D. may affect the decision regarding accepting and rating the risk.
139
After Mark asks for a quotation to cover his house, the insurer provides one that is valid for 30 days.
Who, if anyone, is bound by this 30-day period if there are no changes to the risk?
A. Mark only.
B. The insurer only.
C. Both Mark and the insurer.
D. Neither Mark nor the insurer.
B. The insurer only.
140
A proposer approaches an insurer for a quotation for household insurance and discloses that the
property is built on a flood plain. The insurer would consider this to be
A. a moral hazard.
B. a physical hazard.
C. a specific peril.
D. an uninsured peril.
B. a physical hazard
141
For which type of liability business must a certificate of insurance be issued?
A. Employers’ liability.
B. Products liability.
C. Professional indemnity.
D. Public liability.
A. Employers’ liability.
142
An insurer sends the insured a document detailing the relevant information disclosed. This is
known as
A. contract certainty.
B. the proposal form.
C. the schedule of insurance.
D. the statement of facts.
D. the statement of facts.
143
A statement that a quotation is issued by an insurer, subject to the completion of a proposal form, is an example of
A. a representation.
B. a condition.
C. an endorsement.
D. a warranty
B. a condition.
144
Daniel telephones an insurer asking for a private motor insurance quotation. The insurer quotes Daniel £500, which he rejects. A week later he calls the insurer back saying that he now wishes to accept the quote, but is told that the price has risen to £600. What option, if any, is now available to Daniel?
A. He can insist on paying £500 for the insurance policy.
B. He is no longer entitled to an insurance policy at £500.
C. He may complain to the Motor Insurers’ Bureau.
D. He may refer the dispute to arbitration.
B. He is no longer entitled to an insurance policy at £500.
145
Where in an insurance policy does it usually state that the insurer will NOT be liable to pay a fraudulent claim?
A. The general conditions.
B. The general exclusions.
C. The operative clause.
D. The schedule.
A. The general conditions.
146
In a general insurance policy, details of the insured and the subject matter of the insurance are given in the
A. operative clause.
B. policy conditions.
C. policy schedule.
D. recital clause.
C. policy schedule.
147
With regard to aircraft, what is specifically excluded under the general exceptions found in a buildings insurance policy?
A. Impact by an aircraft.
B. Impact by items falling from an aircraft.
C. Reduction in value following local siting of a new airport.
D. Sonic bangs.
D. Sonic bangs.
148
Market exclusions are used by insurers to
A. detail the insurance market(s) in which excluded risks can be placed.
B. exclude cover for a type of risk which it is commonly agreed cannot be insured.
C. exclude risks which insurers are forbidden to write under UK law.
D. prevent selection against the insurers.
B. exclude cover for a type of risk which it is commonly agreed cannot be insured.
149
Sheza has an insurance policy with a franchise of £100. She suffers a loss of £250 by an insured peril. How much, if anything, would he be able to claim?
A. Nil.
B. £100
C. £150
D. £250
D. £250
150
What is an excess?
A. The additional premium following an adjustment to a policy.
B. The amount payable by the insured in the event of a claim occurring.
C. The amount reserved for a claim.
D. The return of premium to the insured if overpayment is made
B. The amount payable by the insured in the event of a claim occurring.
151
What key financial information will an underwriter ask a proposer in order to rate a professional indemnity risk?
A. Gross profit.
B. Gross revenue.
C. Net profit.
D. Wage roll.
B. Gross revenue.
152
During the course of negotiating a business insurance contract, a proposer may make statements concerning the nature of the risk. This type of statement is known as a
A. presentation.
B. representation.
C. submission.
D. warranty.
B. representation.
153
Details of relevant information are usually obtained by an underwriter by asking direct questions to the
A. actuary.
B. claims handler.
C. previous insurer.
D. proposer
D. proposer
154
A theft insurance policy contains a stipulation that the insured premises are protected by a burglar alarm. What does this stipulation constitute?
A. A condition precedent to contract.
B. An express warranty.
C. An implied warranty.
D. A representation.
B. An express warranty.
155
A manufacturer overlooks the renewal of his buildings insurance policy and pays the premium 5 days after the renewal date. There have been no claims during this period. What effect will this normally have on his insurance?
A. Cover will cease at the renewal date.
B. Cover will only commence from the date of premium payment.
C. Cover will continue unbroken.
D. Cover will continue, but only for third party claims.
C. Cover will continue unbroken.
156
When an insurer issues a renewal notice to a policyholder, what legal process does this represent?
A. Acceptance of an offer.
B. Consideration.
C. An offer.
D. Ratification.
C. An offer.
157
What is an employer required to do with an employers’ liability certificate within 30 days of inception of the policy?
A. Confirm receipt to the insurer.
B. Forward a copy to the Department for Business, Energy & Industrial Strategy.
C. Make it available for employees to view.
D. Take a copy and retain it for 40 years.
C. Make it available for employees to view.
158
A proposer with a recent criminal conviction for money laundering approaches an insurer for theft
insurance. The underwriter would consider this to be
A. a moral hazard.
B. a physical hazard.
C. a special peril.
D. an uninsured peril.
A. a moral hazard.
159
A proposer for business insurance must make a fair presentation of the risk insured so that an
underwriter can
A. assess the risk.
B. differentiate between moral and physical hazards.
C. issue a certificate of insurance.
D. provide risk control advice.
A. assess the risk.
160
To what does a market exclusion usually apply?
A. Specific areas of one type of insurance policy only.
B. All areas of one type of insurance policy.
C. Specific areas of all general insurance policies only.
D. All areas of all general insurance policies
D. All areas of all general insurance policies
161
An underwriter reviewing a trader’s combined insurance policy proposal form may NOT be able to
assess the risk fully from the information contained within it. From whom is he most likely to
obtain further relevant information?
A. The Financial Ombudsman Service.
B. A loss adjuster.
C. A salvage adjuster.
D. A surveyor.
D. A surveyor.
162
A motor insurer issues a recorded delivery seven day notice of cancellation to a client on 1 May.
The letter is received by the client on 3 May. From what date will the cancellation become effective?
A. 1 May.
B. 3 May.
C. 8 May.
D. 10 May.
C. 8 May.
163
A policyholder has a personal accident insurance policy with a 2-week franchise. He is off work for
8 weeks as a result of an injury. For how long is he entitled to benefit?
A. 2 weeks.
B. 6 weeks.
C. 8 weeks.
D. 10 weeks.
C. 8 weeks.
164
An insurer increases its private car premium rates by 15% from 1 January. Bill’s policy fell due for
renewal on 28 December. He confirms his intention to renew before the renewal date, but he does
NOT pay his premium until 7 January. How will his insurer respond?
A. Ask for a further 15% premium.
B. Renew his policy for 12 months from 28 December.
C. Renew his policy for a reduced period reflecting the rate increase.
D. Return his payment advising the policy has lapsed
B. Renew his policy for 12 months from 28 December.
165
When underwriting a proposal for motor insurance which material fact about the proposer would
an underwriter need to know?
A. Their address and post code.
B. Their date of birth.
C. Their occupation.
D. Their speeding conviction of 11 years ago.
D. Their speeding conviction of 11 years ago.
166
A policy wording stipulates that, in the event of a claim, the insured pay all of the loss up to £1,000 but that if the loss exceeds £1,000 then the insurer will pay the loss in full. This is known as
A. a deductible.
B. an excess.
C. a franchise.
D. reserving.
C. a franchise.
167
An underwriter calculates a basic insurance premium of £300 for a vehicle, but charges £336 to the insured. The difference of £36 is most likely to represent
A. commission.
B. a fee.
C. Insurance Premium Tax.
D. Value Added Tax.
C. Insurance Premium Tax.
168
An underwriter is asked to rate a building with a sum insured of £300,000. The rate is £0.125% and a discount of 20% is allowable. What is the premium before Insurance Premium Tax?
A. £30
B. £300
C. £375
D. £3,000
B. £300
169
In what circumstances would the Motor Insurers’ Bureau pass a claim to the insurer concerned for settlement?
A. For third party injury claims only.
B. For third party property damage claims only.
C. Where policy terms have been breached.
D. Where the uninsured driver was not at fault.
C. Where policy terms have been breached.
170
Stephen, aged 32, suffers a broken leg as a direct result of a car accident. What is the maximum period of time after the accident during which he may initiate legal proceedings for compensation in respect of his personal injury?
A. One year.
B. Three years.
C. Five years.
D. Six years.
B. Three years
171
What key effect does application of the average clause have in connection with a claim submitted under a property insurance policy?
A. It allows the insurer to exercise its contribution rights.
B. It allows the insurer to exercise its subrogation rights.
C. It increases the size of the settlement.
D. It reduces the size of the settlement.
D. It reduces the size of the settlement.
172
When an insured retains salvage, how is the claim payment affected?
A. The insurer pays the total loss value only.
B. The insurer pays the salvage value only.
C. The insurer pays the difference between the total loss value and the salvage value.
D. The insurer pays the sum of the total loss value and the salvage value.
C. The insurer pays the difference between the total loss value and the salvage value.
173
Who must prove that the insured has suffered a valid loss under a property insurance policy in order to validate a claim?
A. The broker.
B. The insured.
C. The insurer.
D. The loss adjuster.
B. The insured.
174
With a commercial motor insurance policy, what specific documentation is always required from the insured when the vehicle is deemed a total loss?
A. Driver’s licence.
B. Insurance certificate.
C. Police report.
D. Vehicle registration certificate.
D. Vehicle registration certificate.
175
The ABI Domestic Subsidence Claim Handling Agreement exists between two household insurers. When would a subsidence claim from a policyholder who has changed insurer first be passed completely to the new insurer?
A. At the time of changing insurer.
B. 6 months after changing insurer.
C. 12 months after changing insurer.
D. 24 months after changing insurer.
C. 12 months after changing insurer.
176
Following full settlement of a claim under a property insurance policy, an insurer has written to some other insurers with details of the claim. What is the most likely reason for this?
A. To ask the other insurers to share the claims payment.
B. To assist the policyholder in recovering an uninsured loss.
C. To make the other insurers aware that the claim was fraudulent.
D. To request that the other insurers participate in arbitration.
A. To ask the other insurers to share the claims payment.
177
Amar owns a house with a rebuilding value of £1,000,000 and with a sum insured of £700,000. It is completely destroyed by a fire. The insurer is most likely to settle the claim by
A. cash payment.
B. reinstatement.
C. repair.
D. replacement.
A. cash payment.
178
Where a wooden door frame is damaged during a break-in, the most likely way an insurer will deal with the damage is by
A. cash payment to the insured.
B. issuing a cheque to the insured.
C. repair.
D. replacement
C. repair.
179
A modern watch covered under a household contents insurance policy is stolen and the insurer agrees to settle the claim in full. The watch is of a type supplied by a jeweller with whom the insurer has negotiated preferential prices. What method of settlement would the insurer normally offer?
A. The full market value of the watch.
B. The original cost of the watch.
C. The original cost of the watch less an allowance for wear and tear.
D. A replacement watch from the specified jeweller.
D. A replacement watch from the specified jeweller.
180
When a listed building sustains extensive damage by an insured peril, the claim settlement is most likely to be by
A. a cash payment to the insured.
B. an indemnity payment.
C. payment of a previously agreed amount.
D. reinstatement.
D. reinstatement.
181
When an insurer is notified of a claim, it sets aside an amount to pay the claim in the future. This is known as
A. arbitration.
B. contribution.
C. reserving.
D. subrogation.
C. reserving.
182
An insurer pays a third party in full under the terms of a public liability insurance policy. Another party is partially responsible, but has NOT contributed to the settlement. What action is the insurer most likely to take?
A. Instruct a loss adjuster to enquire into the circumstances of the claim.
B. Invoke the arbitration clause.
C. Place the matter into the hands of the insured’s solicitor.
D. Write to the other party requesting payment towards its outlay.
D. Write to the other party requesting payment towards its outlay.
183
An insurer suspects a property claim to be fraudulent. Whom is the insurer most likely to appoint to investigate the claim?
A. An arbitrator.
B. A loss adjuster.
C. A loss assessor.
D. A surveyor.
B. A loss adjuster.
184
What is the most likely consequence of insurance fraud for all policyholders?
A. Increased premiums.
B. A more detailed renewal questionnaire.
C. Slower claims settlement.
D. Withdrawal of instalment facilities.
A. Increased premiums.
185
The easiest way for a museum to check whether a painting, which it has been offered, is NOT genuine is for them to contact
A. the Art Loss Register.
B. the Claims and Underwriting Exchange.
C. the Serious Fraud Office.
D. a specialist fine art insurer
A. the Art Loss Register
186
When an insurer accepts salvage this will
A. decrease the insurer’s total outlay.
B. discourage fraudulent claims.
C. encourage fraudulent claims.
D. increase the insurer’s total outlay.
A. decrease the insurer’s total outlay.
187
Helen’s wall is damaged by a vehicle and she wishes to claim from the driver responsible. What is the maximum length of time she has to make her claim?
A. 3 years.
B. 5 years.
C. 6 years.
D. 10 years.
C. 6 years.
188
Louise makes a claim under her motor insurance policy and the claim is repudiated by her insurer. She requests that the claim now proceeds to arbitration. Why would this NOT be appropriate?
A. All disputes must first be referred to the ombudsman.
B. Arbitration relates only to disputes regarding the amount of the claim.
C. Louise has already subrogated her rights to her insurer.
D. Only the insurer may refer the claim to arbitration.
B. Arbitration relates only to disputes regarding the amount of the claim.
189
A person sustaining an injury following a motor accident caused by an untraced motorist would be compensated by which body?
A. The Association of British Insurers.
B. The Financial Ombudsman Service.
C. The Financial Services Compensation Scheme.
D. The Motor Insurers’ Bureau.
D. The Motor Insurers’ Bureau.
190
How is the Motor Insurers’ Bureau funded?
A. By a levy on its members.
B. By Insurance Premium Tax.
C. By the Financial Services Compensation Scheme.
D. By the government.
A. By a levy on its members.
191
Following a claim, the duty of an insured to NOT hinder the insurers in the claims investigation process is known as
A. the duty of fair presentation.
B. an express duty.
C. an implied duty.
D. a statutory duty.
C. an implied duty.
192
A commercial insured suffers a flood to an office, following a storm that had been predicted. Which policy condition would require the insured to mitigate their exposure to the consequences of the predicted flood?
A. Average.
B. Contribution.
C. Reasonable precautions.
D. Subrogation.
C. Reasonable precautions.
193
In relation to a personal computer, what is a CPU?
A. Central Processing Unit.
B. Colour Printing Utility.
C. Computer Protection Utility.
D. Core Programming Unit.
A. Central Processing Unit.
194
An insurer holds sensitive personal data on its health insurance policyholders. Owing to staffing problems it needs to transfer this data outside the UK for processing. Under the Statutory Data Protection Principles, where, if at all, can the data be transferred without first checking the level of protection?
A. Anywhere in the European Economic Area.
B. India and South Africa only.
C. The United States and Canada only.
D. This type of transfer is not allowed.
A. Anywhere in the European Economic Area.
195
The disposal of private and confidential files from an insurance company should be carried out by
A. authorised personnel.
B. Data Protection Officers.
C. full-time employees.
D. senior management.
A. authorised personnel.
196
From whom should confidential personal details held on a computer system be protected?
A. Authorised data users.
B. Authorised third parties.
C. Computer hackers.
D. Individuals to whom the data pertains.
C. Computer hackers.
197
The main purpose of the Data Protection Act 2018 is to protect
A. computer software developers from hackers.
B. computer systems manufacturers against misuse of their products by third parties.
C. corporate entities which hold data on a computer system concerning clients.
D. individuals on whom data is held.
D. individuals on whom data is held
198
For what purpose do insurers introduce customer service standards?
A. To fulfil the criteria required to operate within the EU.
B. To maintain and increase their customer base.
C. To reduce the incidence of fraudulent claims from dissatisfied customers.
D. To satisfy their statutory obligations.
B. To maintain and increase their customer base.
199
Customer service standards should always be realistic, understandable and
A. competitive.
B. manageable.
C. measurable.
D. staff-founded.
C. measurable.
200
The regulatory obligations to provide improved customer service throughout the lifecycle of an insurance product are overseen by the
A. Association of British Insurers.
B. Chartered Insurance Institute.
C. Financial Conduct Authority.
D. Financial Ombudsman Service.
C. Financial Conduct Authority.
201
The FCA rules covering renewals for consumer customers apply to policies with a duration of:
A. months or more.
B. 1-3 years.
C. 6 months or more.
D. 4 years or more.
C. 6 months or more.
202
The information contained in a SLA typically includes:
A. Terms of credit
B. Details of any fees
C. Authority levels
D. Response times for enquiries
D. Response times for enquiries
203
Ollie's car is badly damaged in an accident caused by George. Whilst Ollie's car is being repaired, he books a taxi to get to a hospital appointment, as he has no other way of getting there. Which of the following extensions to Ollie's private car policy could help him in recovering the taxi fare from George?
A, Legal expenses
B. Loss of use
C. Personal accident
D. Breakdown
A, Legal expenses
204
The repair option for settling a claim is most commonly used in relation to which type of claim?
A. Motor
B. Goods in transit
C. Commercial Property Damage
D. Household buildings
A. Motor
205
The maximum indemnity period under a business interruption policy:
A, Can only be calculated once a loss has occurred
B. Is chosen by the insured
C. If a standard limit stated in the policy wording
D. Is subject to an automatic uplift to allow for growth in the business
B. Is chosen by the insured
206
Under an employers' liability policy, why do insurers ask for any notification of prosecution to be forwarded to them as soon as possible?
A. It may give grounds for declining a claim
B. It may be evidence of a breach of duty of utmost good faith
C. So that a suitable defence can be arranged
D. It may make the policy void
C. So that a suitable defence can be arranged
207
The cover under an employers ' liability policy includes claims arising out of the trade or business of the insured as defined in the policy wording plus any ancillary activities. This includes:
A. Private fire brigades
B. Employees living and working abroad
C. employees travelling as passengers on company business
D. Commuting to and form work
A. Private fire brigades
208
Which of the situations covered by a money policy is most likely to carry the highest standard limit?
A. On the insured's premises, not in a safe, out of business hours
B. In transit
C. In the private residence of any principal or employee
D. In a locked safe or strong room out of business hours
B. In transit
209
One of the main reasons why customer service has become a dominant issue is:
A. The need to lower customer expectations
B. To meet statutory customer service standards
C. Reduced consumer awareness
D. To compete with other insurers
D. To compete with other insurers
210
The transfer of data to which country is restricted to ensure that the level of protection afforded under the UK General Data Protection Regulation is not undermined?
A. Portugal
B. Australia
C. Germany
D. Luxemburg
B. Australia
211
Which details do not appear in the information and facilities section of a general insurance policy document?
A. Policy Conditions
B. Definitions
C. Customer Service Standards
D. Complaints Procedure
A. Policy Conditions
212
Which special peril is not subject to a standard policy excess?
A. Malicious Damage
B. Sprinkler leakage
C. Storm
D. Flood
B. Sprinkler leakage
213
The Charity Commission states that trustee indemnity insurance cannot as a matter of public policy provide indemnity for:
A. Theft of assets
B. Management risks
C. Fines
D. Loss of documents
C. Fines
214
The premium for a money policy is adjustable based on an end of year declaration of:
A. The annual carryings
B. The maximum amount of money in any one transit
C. The maximum amount of money in safe
D. The maximum amount of money in the custody of collectors or travellers whilst in transit
A. The annual carryings
215
The standard sections in a commercial legal protection policy do NOT include:
A. Property disputes cover.
B. Criminal prosecution defence cover.
C. Employers' liability cover.
D. Motor cover.
C. Employers' liability cover.
216
Personal accident insurance is often an 'add-on' to:
A. a household policy.
B. An employers' liability policy.
C. A fire and special perils policy.
D. A medical expenses policy
A. a household policy.
217
Which element of the cover provided by a household contents policy has come under increased focus to ensure coverage is sufficient due to the COVID-19 pandemic?
A. Riot and civil commotion.
B. Home office equipment.
C. Theft or attempted theft.
D. Loss of rent.
B. Home office equipment.
218
How do insurers calculate the payments for permanent partial disablement under a personal accident policy?
A. As a fixed percentage of the capital benefits for all forms of permanent partial disablement.
B. Based on the lump sum benefit stated in the policy.
C. Based on the weekly benefit stated in the policy.
D. As a percentage of that paid for the loss of an entire limb on a sliding scale.
D. As a percentage of that paid for the loss of an entire limb on a sliding scale.
219
Which section of cover is available as an optional extension to a commercial package policy?
A. Refrigerated Stock
B. Goods in transit
C. Glass
D. Product Liability
A. Refrigerated Stock
220
Which part of the policy documentation issued for a motor policy usually carries the pre-printed signature of an official from the insurer?
A. The policy booklet.
B. The direct debit mandate.
C. The certificate.
D. The policy schedule.
C. The certificate.
221
Under a business interruption policy Gross Profit is calculated using the formula:
A. turnover less uninsured working expenses (adjusted for opening and closing stock).
B. uninsured working expenses less turnover (adjusted for opening and closing stock).
C. turnover less payroll (adjusted for opening and closing stock).
D. payroll less turnover (adjusted for opening and closing stock).
A. turnover less uninsured working expenses (adjusted for opening and closing stock).
222
The new Consumer Principle introduced by the FCA's Consumer Duty requires firms to act to deliver good outcomes for retail customers. These outcomes relate to:
A. value and performance.
B. price and performance.
C. price and value.
D. price and targeting.
C. price and value.
223
The determining factor in the acquisition of private motor business is usually:
A. value added benefits.
B. accurate advice
C. speedy claims settlement.
D. the pricing of products.
D. the pricing of products.
224
The document used to present risk information in the London market is called:
A. a proposal form.
B. a supplementary questionnaire.
C. a statement of fact.
D. a market reform contract
D. a market reform contract
225
The Cyber Security Breaches Survey 2024 found that, of the UK businesses which identified an attack, the most common cyber threat was:
A.. phishing.
B. denial of service.
C. ransomware.
D. malware.
A.. phishing.
226
How, if at all, does the cover for spare parts and accessories under a commercial vehicle policy differ to that under a private car policy?
A. Under a commercial vehicle policy there is no cover for spare parts and accessories whilst they are detached from the vehicle.
B. Under a commercial vehicle policy spare parts and accessories are only covered whilst in the insured's premises.
C. There is no difference.
D. Under a commercial vehicle policy theft of spare parts and accessories are covered if detached or attached from/to the vehicle.
A. Under a commercial vehicle policy there is no cover for spare parts and accessories whilst they are detached from the vehicle.
227
There are four types of offences under the Computer Misuse Act 1990. These include:
A. unauthorised transfer of data outside the European Economic Area.
B. breach of copyright to computer software.
C. unauthorised modification of data.
D. failure to register with the office of the Information Commissioner.
C. unauthorised modification of data.
228
What is the main rating factor for a personal accident policy?
A. Age.
B. Postcode.
C. Gender.
D. Occupation.
D. Occupation
229
A business interruption policy is designed to provide cover for:
A. the net profit of the business only.
B. the whole of the turnover of the business.
C. the turnover of the business less any variable charges.
D. the turnover of the business less any fixed costs
C. the turnover of the business less any variable charges.
230
The COVID-19 pandemic forced some businesses to close, leaving the premises unoccupied. The insured did not usually need to notify insurers, provided the closure did not exceed a maximum of:
A. 60 days.
B. 15 days.
C. 30 days.
D. 90 days.
D. 90 days.
231
Paolo renews his home insurance with ABC Insurers, paying the premium in full. He later realises that this is not the best policy for his needs and advises ABC Insurers that wants to cancel his policy, 16 days after renewal. How much of the premium paid will ABC Insurers return to Paolo?
A. The premium paid, less an administration fee and an amount for the period the policy was in force.
B. The full premium.
C. There will be no refund of premium.
D. The premium paid, less an administration fee.
A. The premium paid, less an administration fee and an amount for the period the policy was in force.
232
Naga is involved in an accident caused by Bill, the driver of the other vehicle involved. 3 months after the accident Naga starts to suffer from bad headaches. On medical examination this is shown to be due to a hairline skull fracture, caused when she banged her head in the accident. If Naga wants to make a claim against Bill for her injuries, her claim must be commenced:
A. within 6 years of the date of the accident.
B. within 3 years of the date of the accident.
C. within 6 years of the date of knowledge of the injury.
D. within 3 years of the date of knowledge of the injury
D. within 3 years of the date of knowledge of the injury
233
The copying of software which is protected by copyright is:
A. a security risk.
B. an illegal act.
C. a breach of contract.
D. a negligent ac
B. an illegal act.
234
The optional extensions to a commercial vehicle policy do NOT include:
A. indemnity to hirers.
B. Sheets and ropes.
C. use as a carnival float.
D. use for speed testing.
D. use for speed testing.
235
Under the Insurance Distribution Directive 2016, how much professional training or development must staff complete per year?
A. 30 hours.
B. 30 days.
C. 15 hours.
D. 15 days
C. 15 hours.
236
Which contingency is an example of a peril of nature that can be added to a standard fire policy?
A. Impact.
B. Escape of water.
C. Spontaneous fermentation.
D. Subterranean fire.
D. Subterranean fire.
237
Raman goes on holiday to an apartment in Spain for three weeks. 4 days into the holiday the hotel staff go on strike for two weeks. As a result guests are no longer able to use the swimming pool or restaurant facilities. If Raman makes a claim under the lack of services or amenities section of a typical travel policy how much will insurers pay in settlement of the claim?
A. £240.
B. £280.
C. £160.
D. £200.
D. £200.
238
One of the reasons why insurers issue a policy document is because:
A. contractually a policy document must be issued for cover to be valid.
B. the policy document can be used to promote other products to customers.
C. it is a legal requirement to issue a policy document for all types of insurance.
D. it is useful as proof in the event of a dispute over the terms agreed.
D. it is useful as proof in the event of a dispute over the terms agreed.
239
Where a motor insurer provides free continental cover, this typically provides cover for up to:
A. 15 days in any period of insurance.
B. 30 days any one trip.
C. 30 days in any period of insurance.
D. 15 days any one trip.
C. 30 days in any period of insurance.
240
Which of the four options for settling claims is used least frequently by insurers?
A. Replacements
B. Reinstatement
C. Repair
D. Cash
B. Reinstatement
241
When managing Environmental, Social and Governance (ESG) risks, the Social element involves driving change in relation to:
A. Diversity.
B. Conduct.
C. The companies an insurer insures.
D. Business ethics
A. Diversity.
242
What is 'dual pricing'?
A. Customers are automatically offered alternative quotations that reduce their premium at renewal
B. Existing customers are offered lower premiums than new customers
C. New customers are offered lower premiums than existing customers
D. Customers are offered discounts if they take out two policies with the same insurer
C. New customers are offered lower premiums than existing customers
243
Roger's car is insured on a third party only basis with ABC insurance company. He is late in setting off for work one day and because he is speeding causes an accident, involving a lorry which is carrying a large number of rare antiques and paintings to an exhibition. The lorry catches fire and both it and its contents, which in total value £21 million, are completely destroyed. How much of these third party losses will be covered by Roger's policy?
A. The total amount of £21,000,000.
B. Up to £1,200,000.
C. Up to £5,000,000.
D. Up to £20,000,000.
D. Up to £20,000,000.
244
A standard personal accident policy can be extended to include cover for:
A. legal expenses.
B. medical expenses.
C. loss of sight.
D. temporary total disablement
A. legal expenses.
245
An authorised supplier is most likely to be used when settling a total loss claim for which type of property?
A. A television.
B. A car.
C. A window pane.
D. An antique vase.
A. A television.
246
To remain competitive every organisation needs to consider:
A. how to move to a position where the customer is no longer king.
B. how to develop the customer skills of its employees.
C. doing more business through face to face meetings.
D. the advantages of working to minimal customer service standards.
B. how to develop the customer skills of its employees.
247
For which proposer are insurers most likely to obtain the information needed to assess the risk by using a supplementary questionnaire?
A. A large manufacturing risk seeking property damage insurance.
B. A hairdresser seeking public liability insurance.
C. A convenience store seeking a package policy.
D. A private individual seeking household contents insurance.
B. A hairdresser seeking public liability insurance.
248
What is the purpose of the policy schedule?
A. to detail the customer service standards that the policyholder can expect
B. To make the policy personal and specific to the insured
C. To tell the insured what to do in the event of a claim.
D. To outline the nature of the contract between the insured and the insurer in general terms.
B. To make the policy personal and specific to the insured
249
What change was introduced by the Companies Act 2006?
A. It permitted companies to indemnify their directors against certain liabilities to third parties, even where the directors were at fault.
B. It allowed companies to assist their directors financially with litigation.
C. It codified certain responsibilities of directors.
D. It imposed restrictions on the indemnity that a company could make to its directors.
C. It codified certain responsibilities of directors.
250
The benefits of insurers using the motor insurance subrogation portal on a bilateral basis do NOT include:
A. Smaller backlogs
B. Fewer fraudulent claims
C. Reduced errors
D. Faster recoveries
B. Fewer fraudulent claims
251
Where a policy is sold WITHOUT a personal recommendation, the FCA's requirement for an intermediary to set out the clients demands and needs can be fulfilled by:
A. including a statement in the proposal form.
B. including a statement in the renewal letter at first renewal.
C. providing the information face to face after conclusion of the contract.
D. providing the information over the telephone after arranging cover.
A. including a statement in the proposal form.
252
To help firms fulfil their obligations for the fair treatment of customers, the FCA publishes a series of outcomes based principles which apply to what type(s) of customer?
A. Consumers.
B. Commercial customers.
C. All customers.
D. Consumers and small commercial customers.
A. Consumers.
253
One of the benefits of a motor insurer having a panel of authorised repairers is:
A. a lower excess is payable by the policyholder.
B. the authorised repairer can usually settle claims on the insurer's behalf.
C. the insurer does not need to inspect the damage to vehicles.
D. lower labour and parts costs.
D. lower labour and parts costs.
254
Which feature is covered under a standard private car policy and NOT covered by a standard motor cycle policy?
A. Personal accident benefits.
B. Indemnity to permitted drivers.
C. Claimant's costs and expenses.
D. Emergency treatment fees.
A. Personal accident benefits.
255
Where the insured commits fraud in relation to a claim, the insurer can avoid the contract from the time of the fraudulent act. Having given notice of this to the insured, insurers are NOT liable for:
A. any subsequent claims only.
B. the fraudulent claim only.
C. both the fraudulent and any subsequent claims.
D. any claims under the policy
C. both the fraudulent and any subsequent claims.
256
Under the Third Parties (Rights Against Insurers) Act 2010, where notice is served on an insurer requesting insurance information, a response must be provided within what time period?
A. 10 days.
B. 45 days.
C. 90 days.
D. 28 days
D. 28 days
257
Why is the permanent total disablement benefit under a personal accident policy not usually paid out until 12 or 24 months after the accident?
A. It may take this long to decide if the disablement is permanent and total.
B. Any claims for shorter periods of time are excluded by the franchise applicable to personal accident policies.
C. It may take this long to agree the amount of any claim settlement.
D. The outcome of any claims against responsible third parties need to be taken into account.
A. It may take this long to decide if the disablement is permanent and total.
258
Why can engagement with social media create a potential reputational risk to an organisation?
A. It rivals the traditional means of reaching out to customers.
B. Detrimental comments can spread rapidly.
C. There are increased opportunities for internal and external fraud.
D. It involves the storage of large volumes of personalised dialogue
B. Detrimental comments can spread rapidly.
259
What does the travel interruption section of a standard travel policy cover?
A. The failure of public transport to deliver the insured to the departure point in time to take the trip booked.
B. The cancellation of a holiday due to causes beyond the insured's control.
C. The costs of repatriating the insured if taken ill whilst on holiday.
D. Delay of the transport in which the insured has arranged to travel
A. The failure of public transport to deliver the insured to the departure point in time to take the trip booked.
260
Bob is severely injured in an accident. As a result he loses both legs and subsequently dies. He has a personal accident policy with capital benefits of £20,000. How much will Bob's insurers usually be liable to pay in settlement of his claim?
A. £40,000.
B. £60,000.
C. £20,000.
D. £2,000 a year for 10 years.
C. £20,000.
261
Which of the following costs is not covered under a standard low-cost medical expenses insurance policy?
A. When treatment can provided by the NHS within 6 weeks of diagnosis.
B. When treatment cannot be provided by the NHS within 6 weeks of diagnosis.
C. When an ambulance is needed to transport an inpatient.
D. When an inpatient requires surgery.
A. When treatment can provided by the NHS within 6 weeks of diagnosis.
262
The only exception to the general rule that prevents the unauthorised disclosure of personal information is under the terms of the:
A. Money Laundering Regulations.
B. Data Protection Act.
C. Computer Misuse Act.
D. Road Traffic Act.
A. Money Laundering Regulations
263
One of the optional extensions to a commercial legal protection policy is:
A. motor cover.
B. cover against taxation proceedings.
C. patents, registered designs, copyrights and trademarks cover.
D. property disputes cover
B. cover against taxation proceedings.
264
For which type of claim would an insurer's claim form ask for details of any independent witnesses?
A. Theft.
B. Motor.
C. Professional indemnity.
D. Fire.
B. Motor.
265
The use of a specialist security firm is relevant to the assessment of which aspect of a money risk?
A. The on the premises when open for business risk.
B. The in safe risk.
C. The on the premises overnight risk.
D. The transit risk.
D. The transit risk.
266
Poor housekeeping is an example of:
A. good physical hazard.
B. good moral hazard.
C. poor physical hazard.
D. poor moral hazard.
D. poor moral hazard.
267
When creating a password as a security device it is good practice to:
A. share passwords with colleagues on the same team.
B. use a favourite family name.
C. use fingerprint access, voice and facial recognition.
D. maintain the same password for all systems so that it is easy to remember.
C. use fingerprint access, voice and facial recognition.
268
A condition subsequent to the contract:
A. must be complied with once the contract is in force.
B. must be complied with when a claim is made.
C. must be complied with prior to the formation of the contract.
D. must be complied with after a policy is cancelled.
A. must be complied with once the contract is in force.
269
Which organisation issues warnings of potential flooding in England?
A. The Financial Conduct Authority.
B. The Association of British Insurers.
C. The Environment Agency.
D. The Fire Protection Association.
C. The Environment Agency.
270
A standard fire policy includes 'limited' explosion cover. This is restricted to:
A. explosion of boilers or gas used for commercial purposes only.
B. explosion of boilers or gas used in a manufacturing process only.
C. explosion of boilers or gas used for domestic purposes only.
D. explosion of boilers used for any purposes.
C. explosion of boilers or gas used for domestic purposes only.
271
Why does a proposal form for theft insurance ask for details of any other insurances?
A. To alert insurers to potential contribution rights.
B. To ensure that cumulative benefits are not too high.
C. This may reduce the rate to be charged by insurers.
D. To enable insurers to amend the policy wording to exclude the cover provided under any other policy.
A. To alert insurers to potential contribution rights.
272
Personal cyber protection insurance does NOT include cover for:
A. online banking fraud.
B. loss of insured data.
C. theft of mobile phones.
D. defamation.
C. theft of mobile phones.
272
The special peril of explosion includes cover for:
A. explosion of steam pressure vessels.
B. fire resulting from explosion.
C. explosion of flammable vapours.
D. explosion of gas or boilers used for domestic purpose
C. explosion of flammable vapours.
273
The standard sections of a group legal benefit policy do NOT include:
A. Criminal prosecution defence cover.
B. Motor cover.
C. Employment cover.
D. Conveyancing cove
A. Criminal prosecution defence cover.
274
Which information is an example of a general question which would appear on a proposal form for motor insurance?
A. Age of drivers.
B. Type of vehicle.
C. Proposer's address.
D. Use of vehicle.
C. Proposer's address.
274
Jeremy, who is 17 years old, has been fined for speeding. After what period of time will this conviction become 'spent'?
A. 6 months from the date of conviction.
B. 1 year from the date of conviction.
C. 6 months from the date of the offence.
D. 1 year from the date of the offence.
A. 6 months from the date of conviction.
275
XYZ Local are applying for a shopkeeper's policy online. If they request an increase in the standard contents sum insured, this will usually result in:
A. the risk being referred to the insurer.
B. a survey being carried out.
C. a system generated additional premium being applied.
D. the risk being decline
A. the risk being referred to the insurer.
276
The cover provided by a medical expenses policy excludes:
A. theatre fees.
B. long term residential care.
C. ambulance fees.
D. specialist consultations.
B. long term residential care.
277
Under the FCA's Principles for Businesses, Principle 12 was introduced to:
A. ensure retail customers do not face unreasonable post-sale barriers.
B. ensure commercial customers have access to a wider range of insurance products.
C. impose a higher and more exacting standard of conduct for retail customers.
D. Impose higher fines on insurers.
C. impose a higher and more exacting standard of conduct for retail customers.
278
Which statute introduced rules which place restrictions on the circumstances under which an insurer can reject a claim for misrepresentation?
A. The Bribery Act 2010.
B. The Financial Services Act 2012.
C. The Consumer Insurance (Disclosure and Representations) Act 2012.
D. The Marine Insurance Act 1906.
C. The Consumer Insurance (Disclosure and Representations) Act 2012.
279
Under the Insurance Distribution Directive, staff must demonstrate eight core competencies. These do NOT include minimum necessary knowledge of:
A. complaints handling.
B. business ethics standards.
C. key business objectives.
D. the insurance market
C. key business objectives.
280
The key growth platform for personal general insurance distribution is:
A. the internet.
B. written communication.
C. high street intermediaries.
D. the telephone.
A. the internet.
281
The single article limit under the baggage section of a travel policy is typically:
A. £250.
B. £1,500.
C. £500.
D. £1,000.
A. £250.
282
Under a comprehensive private motor policy, loss of or damage to accessories and spare parts:
A. is covered only if the insured vehicle suffers loss or damage at the same time.
B. is specifically excluded.
C. is covered whilst they are on the insured vehicle or in the insured's garage.
D. is covered without restriction.
C. is covered whilst they are on the insured vehicle or in the insured's garage.
283
Given that many people are now travelling well into their 80s, many insurers have increased the age limits applicable to the personal accident section of their travel policies. A lower age limit is still usually applied to which extension to cover?
A. Winter sports.
B. Loss of passport.
C. Legal expenses.
D. Medical expenses.
A. Winter sports.
284
Which section of a general insurance policy document states that it is a contract between the insured and the insurer?
A. Operative Clause.
B. Signature clause.
C. Preamble.
D. Policy schedule
C. Preamble.
285
Under the Consumer Insurance (Disclosure and Representations) Act 2012, what remedy is available to insurers where a misrepresentation is made by a consumer which is careless?
A. It must pay any claims made.
B. It can decline any claims made.
C. It can reject any claim falling within an exclusion that it would otherwise have applied.
D. It can retrospectively charge a higher premium.
C. It can reject any claim falling within an exclusion that it would otherwise have applied.
286
Pat is asked to accompany her sales manager, Daniel, to a client meeting. Daniel offers to drive them there in his company car. On the way Daniel causes an accident by driving too fast and Pat is badly injured. If Pat makes a claim against her employer for her injuries this will be dealt with under which of their policies?
A. On a shared basis under the motor and employers' liability policies.
B. Either the motor or the employers' liability policy, depending on which insurer the claim is reported to first.
C. Employers' Liability policy.
D. Motor policy.
D. Motor policy.
287
One of the changes made to the Road Traffic Act 1988 as a result of the introduction of the Deregulation Act 2015 is:
A. insurers can no longer charge an administration fee for re-issuing a motor insurance certificate.
B. insurers must give at least 30 days notice if they intend to cancel a motor insurance policy.
C. the policyholder no longer needs to return the certificate when a motor policy is cancelled.
D. motor insurance certificates no longer need to be issued
C. the policyholder no longer needs to return the certificate when a motor policy is cancelled.
288
For a valid claim to be made under an employers' liability policy the bodily injury or death must have:
A. occurred during the period of cover or within the following 12 months.
B. been caused during the period of insurance.
C. been discovered during the period of insurance.
D. Led to a claim being made during the period of insurance.
B. been caused during the period of insurance.
289
The new Consumer Principle introduced by the FCA's Consumer Duty requires firms to act to deliver good outcomes for retail customers. These outcomes relate to:
A. price and value.
B. value and performance.
C. price and performance.
D. price and targeting.
A. price and value.
290
Which of the four options for settling claims is used least frequently by insurers?
A. Replacement.
B. Reinstatement.
C. Repair.
D. Cash.
B. Reinstatement.
291
What key financial information will an underwriter ask a proposer in order to rate a professional indemnity risk?
A. Gross Profit
B. Income
C. Net profit
D. Wage roll
B. Income
292
Following an investigation by their loss adjuster, an insurers discovers that the owner of a large factory has made an exaggerated theft claim. Whilst some minor items of stock have actually been stolen, the owner has also claimed for some expensive items of equipment that he never had. How is the insurer likely to respond to the claim?
A. Pay the claim for the stolen stock but not the equipment and give the policyholder notice of cancellation
B. Pay the claim for both the stock and equipment but notify the owner that the policy will not be renewed.
C. Refuse to pay any part of the claim and treat the policy like it never existed.
D. Refuse to pay any part of the claim but keep the policy in force until the next renewal
C. Refuse to pay any part of the claim and treat the policy as if it never existed
293
When an insurer accepts salvage this will
A. Decrease the insurer’s total outlay
B. Discourage fraudulent claims
C. Encourage fraudulent claims
D. Increase the insurer’s total outlay
A. Decrease the insurer’s total outlay B
294
Who introduced a standardised Insurer TOBA template in 2018 with the aim of lowering costs?
A. BIBA
B. Lloyds
C. PRA
D. Association of British Insurers
A. BIBA
295
Paula is involved in a road traffic accident with an untraced driver on 30th June 2017. She injures her back and has to go to the hospital for weekly treatment for 6 weeks. Apart from her injuries, there is also damage to Paula's car totalling £2,500. She successfully pursues a claim for this damage with the Motor Insurers' Bureau. How much will Paula receive in settlement of her vehicle claim?
A. £2500
B. £2200
C. £1250
D. £2100
D. £2100
296
How do the perils insured under a standard fire and special perils business interruption policy differ from those covered by a standard fire and special perils material damage policy?
A. They exclude the explosion of domestic boilers
B. They exclude the explosion of non domestic boilers
C. They include the explosion of non domestic boilers
D. They include the explosion of domestic boilers
C. They include the explosion of non domestic boilers
297
Most insurers introduced a Privacy Notice within the Information and Facilities section of the policy document as a result of the:
A. Equality Act 2010
B. Deregulation Act 2015
C. Bribery Act 2012
D. DPA 2018
D. DPA 2018
298
The standard extensions to an employers' liability policy include:
A. Employees' effects
B. indemnity to principal
C. Commuting to and from work
D. Defective Premises
B. Indemnity to principal
IF2
flashcards
Decks in class (2)
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