5 Legal And Regulatory Requirements

Question 1

Under employers liability compulsory insurance reg 1998 what happens if uw breaches warranty

Answer 1

Pays claim and then takes action against insured

Question 2

Why are there compulsory insurances

Answer 2

Compensation
National concerns

Question 3

Types of compulsory insurance

Answer 3

Motor third party
Employers liability
Public liability (for both commercial and private individuals if dangerous animals)
Professional indemnity

Question 4

Long tail business meaning for liability insurance

Answer 4

Claims take time to develop

Question 5

Who pays legal fees in compulsory insurance

Answer 5

Insurers

Question 6

Whats a warranty

What happens breach of warranty

Answer 6

Promise

Suspension of policy

Question 7

Employs liability reg 1998

Answer 7

Insurer cannot refuse to pay claim and then proceeds against insured

Question 8

USA workers compensation

Answer 8

Cover for injured or ill at work

Employees relinquish right to sue for damages unless intentional

Question 9

USA car insurance

Answer 9

Compulsory for commercial, not private

Question 10

Consumer rights act 2015

Answer 10

Consumers only

terms in consumer contracts have to be fair

If unfair term, not binding on that consumer unless consumer wants it to

Unfair term = causes imbalance in rights and obligations under contract determiner of the consumer

Must be transparent legible, prominent, plain

Question 11

Contracts right of third parties act 1999

Answer 11

Reformed privity rule - third party can enforce terms of contract

For liability claim

Question 12

Injunction

Answer 12

Remedy that the court awards. Prevents party from doing something

Question 13

Order specific performance

Answer 13

Opposite of injunction - orders party do something

Question 14

Tax rates

Answer 14

Standard is 12%
Higher 20% (for travel eg)

Insurers pay hmrc quarterly basis

Most long term insurers excluded as risk is outside uk, may be subject to country of risk tax though

Question 15

Senior managers and verification regime (sm&cr)

3 parts

Answer 15

Applies to insurers and intermediaries

Framework focusing on senior staff and states what they’re required to do

Regulators want regime to encourage personal responsibility, improve conduct etc

firms must collect evidence to check candidates are suited to the roles - criminal record checks/regulatory references, etc

Part 1 - senior managers regime
Regime applying to people performing senior management functions. Each individuals CVs must be appropriate. statement of responsibilities must be prepared for each senior manager.

Part 2. Certification regime
Roles that are not SMFS but could cause harm. Firms must assess these people.

Part 3. rules of conduct for SMF:

First tier - for individuals / certified persons. Similar to FCA guidelines.

Second tier - senior managers conduct rules

Question 16

Who are compliance and mlr regulated by

Answer 16

FCA and PRA

Question 17

Compulsory insurance for individuals vs professionals/businesses

Answer 17

individuals - third party motor, public liability for dangerous animals

companies - motor/employers liability

Question 18

Employers liability - minimum indemnity

requirements?

where can you search for it?

Answer 18

GBP 5m but insurance market is GBP 10m standard

must display certificate

Employers Liability Tracing Office to identify insurers that provide cover to their employers

Question 19

privity of contract

Answer 19

only persons party to a contract can enforce its terms

Question 20

cargo insurance - assignability

Answer 20

freely assignable as long as the person claiming has a clear insurable interest (unless there’s an additional exclusion put into the policy)

Question 21

Compliance Offer

Answer 21

Has to be director/Senior manager

reports to board of directors

ensure firm abides to UK law

Question 22

Key functions have to be a

Answer 22

director