Improvements

Question 1

What does a Lloyd’s managing agent do?

Answer 1

Manages the underwriting and day‑to‑day running of one or more syndicates.

Question 2

What do Lloyd’s members provide?

Answer 2

Capital.

Question 3

What is a Lloyd’s syndicate?

Answer 3

A group of members’ capital combined to underwrite insurance.

Question 4

The insured keeps part of the risk and insurer pays remainder — what is this called?

Answer 4

Co‑insurance.

Question 5

Cooling‑off period for most general insurance policies?

Answer 5

14 days.

Question 6

Cooling‑off period for life/pure protection insurance?

Answer 6

30 days.

Question 7

What does CIDRA require from consumers?

Answer 7

They must take reasonable care not to make a misrepresentation.

Question 8

If a consumer leaves two questions blank and insurer doesn’t ask — what happens?

Answer 8

Insurer must investigate and settle the claim (unless careless/deliberate).

Question 9

For non‑consumers, what if info is provided recklessly/deliberately?

Answer 9

Insurer can avoid policy, refuse claim, AND keep premiums.

Question 10

Who authorises new insurance companies?

Answer 10

PRA

Question 11

What is the FCA’s strategic (overall) objective?

Answer 11

Make markets function well.

Question 12

What are the FCA’s three operational objectives?

Answer 12

Protect consumers, protect financial markets, promote competition.

Question 13

Four FCA Consumer Duty outcomes?

Answer 13

Products & services; Price & value; Consumer understanding; Consumer support.

Question 14

FCA supervision of small firms is usually done by who?

Answer 14

Flexible teams (not a single supervisor).

Question 15

Who needs FCA approval?

Answer 15

People with a “material impact” on regulated activities (SMFs).

Question 16

Who can act if insurance terms are unfair?

Answer 16

FCA + CMA

Question 17

How long must Training & Competence records be kept?

Answer 17

3 years after the employee ceases the role.

Question 18

Minimum retention period for complaint files?

Answer 18

Until 3 years from the date the complaint was received.

Question 19

Typical cooling‑off period for motor insurance?

Answer 19

14 days.

Question 20

FOS award limit for pre‑2019 acts?

Answer 20

£200,000

Question 21

Solvency II capital requirement confidence level?

Answer 21

99.5%

Question 22

What is pecuniary insurance?

Answer 22

Covers financial losses (BI, legal expenses)

Question 23

What is exempt from IPT?

Answer 23

Aircraft insurance.

Question 24

Under tort law, everyone has a duty to…?

Answer 24

Act reasonably toward others.

Question 25

Public Interest Disclosure Act 1998 introduced what?

Answer 25

Whistleblowing protections.

Question 26

How long to refer to FOS?

Answer 26

6 months from final response.

Question 27

What does FSCS cover?

Answer 27

Claims if an insurer becomes insolvent.

Question 28

What does the Insurance Act 2015 require?

Answer 28

Fair presentation of the risk (commercial clients).

Question 29

What is included in a TOBA?

Answer 29

Commission, regulatory status, responsibilities, termination.

Question 30

When does insurable interest attach during a house purchase?

Answer 30

Exchange of contracts

Question 31

What fundamental conditions must exist for insurance to work as a risk‑pooling mechanism?

Answer 31

A large number of similar risks and premiums that fairly reflect each risk (equitable premiums).

Question 32

When more than one insurer shares a risk, how do they handle claims?

Answer 32

Each insurer pays its percentage share of the claim, typically coordinated through the lead insurer.

Question 33

Historically, who provided the capital for underwriting at Lloyd’s?

Answer 33

Individual “Names,” who accepted unlimited liability.

Question 34

What is the main UK trade body for insurance intermediaries?

Answer 34

British Insurance Brokers’ Association (BIBA).

Question 35

What is a “packaged” insurance policy?

Answer 35

A policy combining multiple covers for a single type of business (e.g., shopkeepers' insurance).

Question 36

What completes a reinsurance contract once terms are agreed?

Answer 36

The insurer agreeing to pay the reinsurance premium (payment = binding).

Question 37

How long after completing a short custodial sentence until it becomes spent?

Answer 37

For a 3‑month sentence, 1 year from the end of the sentence.

Question 37

When must insurers provide renewal terms to customers?

Answer 37

In good time before renewal, allowing the customer time to review options.

Question 38

What happens if a consumer fails to disclose something innocently?

Answer 38

The insurer must still pay the claim — no penalty if it wasn’t careless or deliberate.

Question 39

How does an insurer judge whether a consumer has misrepresented something?

Answer 39

By assessing whether the consumer took reasonable care.

Question 40

What is the usual basis of settlement under modern contents insurance?

Answer 40

New‑for‑old — replacement cost for most items.

Question 41

What does personal liability insurance typically pay?

Answer 41

Court‑awarded damages plus legal and associated costs (up to the policy limit).

Question 42

Which law requires insurers to pay valid claims within a reasonable time?

Answer 42

Enterprise Act 2016.

Question 43

Who judges whether an employee in a certification function is “fit and proper”?

Answer 43

The authorised firm itself (self‑certification).

Question 44

What is the FCA’s system for receiving regulatory data returns?

Answer 44

RegData

Question 45

What is the maximum penalty the ICO can issue under UK GDPR?

Answer 45

Up to £17.5m or 4% of global turnover (whichever is higher).

Question 46

What is the current maximum compensation the FOS can award?

Answer 46

£445,000 (excluding costs/interest).