Module 6 - 3 MARKS

Question 1

What is included in a standard fire policy?

Answer 1

-Fire
-Lightning
-Explosion

Question 2

What are the exceptions from fire policies?

Answer 2

-Explosion resulting from fire
-Fire damage caused by earthquake
Spontaneous fermentation or heating

Question 3

What are the special perils that can extend from a standard fire policy?

Answer 3

-Chemical type
-Social
-Nature
-Miscellaneous

Question 4

What is the Chemical Special peril?

Answer 4

-Spontaenous fermentation or heating
-Explosion - pressure vessels

Question 5

What is the Social special peril?

Answer 5

-Riot and civil commotion
-Malicious damage, vandalism

Question 6

What is the nature special peril?

Answer 6

-Storm and flood
-EQ Damage
-Subterranean fire
-Subsidence

Question 7

What is the miscelleanous special peril?

Answer 7

-Escape of water or oil
-Aircraft (parts falling)
-Impact
-Sprinkler leakage

Question 8

What is covered by All Risks insurance?

Answer 8

-Accidental losses or destruction
-Damage to property insured providing the cause is not specifically excluded

Question 9

What are the four groups for exclusions for all risks insurance?

Answer 9

-Absolute
-Gradually operating
-Aspects of cover which can be written into the policy
-Property or risks more appropriate to another LOB

Question 10

An example of absolute exclusion

Answer 10

War, Pollution

Question 11

An example of gradually operating exclusion

Answer 11

Corrosion, rain damage in open

Question 12

Example of aspects of cover which can be written into the policy

Answer 12

Money, glass

Question 13

Example of property or risks more suitable for a different LOB

Answer 13

Motor Vehicles, aircraft

Question 14

What are extensions of theft insurance from property?

Answer 14

-Breakage of glass
-Replacement of locks
-Temporary removal
-Index-linking
-Extended or full theft

Question 15

Exclusiosn on a theft policy

Answer 15

-Collusion
-Fire and explosion
-Cash, bank notes
-Live stock

Question 16

How is theft cover priced?

Answer 16

Estimated Maxiumum Loss (EML)

Question 17

What is covered under a standard glass policy?

Answer 17

-Destruction or damage to all fixed glass
-Boarding up intil a replacement as an extension

Question 18

What are the exclusions on a glass policy?

Answer 18

Fire, Lightning and Explosion

Question 19

What is the standard Excess on a glass policy?

Answer 19

£50 is moving towards £250

Question 20

What is negotiability in money insurance?

Answer 20

Refers to how easily it can be converted to cash

Question 21

Difference between non-negotiable and negotiable money

Answer 21

Non-negotiable have high limits
Negotiable have limits decided upon locailty and time

Question 22

Some extensions on a money policy

Answer 22

-Credit cards
-Personal accident

Question 23

Some specific exclusions on a money policy

Answer 23

-Errors or omissions
-Dishonesty of an employee
-Safe key left on premises while closed

Question 24

What is covered by a BI policy?

Answer 24

Covers loss of earnings and additional expenses

Question 25

What is the need for BI cover?

Answer 25

-Earnings may reduce -Overheads will still need to be paid -Costs may temporarily increase

Question 26

Who decideds the indemnity period for a BI policy?

Answer 26

Insured and it could be 12 or even 36 months

Question 27

What are the common BI policies?

Answer 27

Fire and special perils Engineering All risks

Question 28

What are some optional extensions to a BI Policy?

Answer 28

-Notifiable diseases -Prevention of access -Failure of public utilities -Damage on a contract site -Damage or loss of property of the insured

Question 29

What is the most common basis of cover in BI?

Answer 29

Gross profit

Question 30

What is legal expenses insurance?

Answer 30

Cover legal costs associated with pursuing or defending a civil court action

Question 31

What is the standard cover for legal expenses?

Answer 31

-Employment disputes -Criminal prosecution -Property disputes -Patents, copyright -Taxation

Question 32

What are the optional extensions on a EL Policy?

Answer 32

-Defence costs -Additonal person insured -Compensation for court attendance -Unsatisfied court judgements

Question 33

What are the exclusions under a PL policy?

Answer 33

-Contractual Liability -Cost of rectifying defective work -Deliberate acts -Motor vechiles -War risks

Question 34

What is one of the main reasons for some exclusions?

Answer 34

They are usually covereded under other policies

Question 35

What are the standard exclusions under a product liability policy?

Answer 35

-Contractual Liability -Damage to the actual goods supplied -Faulty design

Question 36

What is excluded from a pollution liability policy?

Answer 36

Gradual Pollution

Question 37

How much liability can an individual director have in D&O insurance?

Answer 37

Unlimited

Question 38

What are the statutory list of duties in D&O?

Answer 38

-Act within powers -Promote the success of company -Independent judgement -Reasonable care, skill and diligence -Avoid conflict of interest -Don't accept benefits -Declare interest in any proposed transaction

Question 39

What can a cyber policy cover?

Answer 39

-Damage to property -Pecunicary loss -Liability to third parties