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Flashcards in 1. Introduction Deck (27)
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1

Two ways G indirectly regulates insurance market

Flood and Pool Re

2

Three compulsory kinds of commercial insurance

Motor, employers' liability and professional indemnity insurance

3

How does the company insurance market distribute profit

Distribute profit by dividend/retained

4

What is profit made from in the insurance market (for insurers)

Premium + investment income, less admin costs

5

Lambert v CoOp shows?

MIA applies beyond marine insurance

6

Who is the broker an agent of

Insured

7

Two kinds of specialist insurance

Aviation and space

8

What is the most common intermediary on the insurance market

Broker

9

What does PII cover

Professional advisers w/ DoC to client - negligence claims

10

What does employers' liability insurance cover

Claims by employees falling ill due to employment

11

What statute codified marine insurance, but applies beyond

MIA

12

Who pays broker's charges (brokerage)

Insurer

13

Two states of the insurance market (for whether premiums are high or low etc.)

Soft or hard

14

What is Lloyd's

Society of Ms sorted into syndicates

15

Three major classes of individual insurance

Motor, life and personal accident

16

Three distinct insurance providers

Lloyd's, company market and mutuals

17

Who must have employers' liability insurance

All UK employers

18

Up to what limit are Ms liable in a mutual

Only up to premium

19

What case shows MIA applies beyond marine insurance

Lambert v CoOp

20

Soft insurance market means...

Low premiums, broad policy coverage

21

What is a captive insurance company

Corporation sets up insurance C for its own insurance needs

22

What restriction on profit distribution applies for company insurance market

Must retain proportion to meet projected future claims ('insurer's reserve')

23

What is an insurance agent

Sales rep of insurer

24

What is a mutual

C limited by guarantee, run by policyholders for their own benefit

25

What entities make up the company insurance market

LLCs

26

Hard insurance market means...

High premiums, stringent UW guidelines

27

How is profit distributed in a mutual

Lower premium or dividend