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Flashcards in 2. Lloyd's and Insurance Market Deck (79)
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1

When do intermediaries not need to be authorised

If EU passporting applies

2

How many limbs to Fit and Proper test

3

3

Do brokers have to complete Lloyd's accreditation process

No

4

What is the only Article for which there are applicable exclusions under FSMA

Article 10

5

If insurer UW risk in different country, what must they ensure?

Licensed in accordance w/ local laws

6

What is a broker

A of insured w/ specialist knowledge

7

What is an excess

Sits under policy limit, paid by insured - if within excess, policy not triggered

8

327 FSMA states what exemption

No need for authorisation if work incidental

9

What is an 'authorised person' for FSMA?

Lloyd's syndicate

10

Who regulates the intermediaries in Lloyd's?

FCA

11

What is the 'approved person' regime?

Approval by FCA to perform 1+ controlled functions on behalf of 'authorised person'

12

What is a regulated activity

Specified Activity and Specified Investment

13

Who are subject to compulsory J of Financial Ombudsman

Insurers

14

Why are spent convictions under ROA still considered for Fit and Proper test

ROA (Exceptions) Order requires disclosure for certain positions

15

What is acceptance on subscription market

Scratching placing slip

16

What will the FCA consider if criminal record

Nature of crime - e.g. basis of theft is dishonesty

17

How many links in the Chain of Security?

Three

18

What is considered for 'Competence' in Fit and Proper test

Qualifications

19

What is an insurance tower

Risk spread out in layers

20

What two entities regulate insurance Cs and Lloyd's entities

FCA + PRA

21

What is Solvency II

Aimed at consumer protection + enhancing competition through three pillars

22

What are the sanctions under 23 FSMA

Criminal - imprisonment and/or fine

23

What is the 'subscription market'?

Risk is shares between insurers, and premium pro-rated

24

Two biggest areas of Lloyd's

Property and casualty

25

Third limb to Fit and Proper test

Financial soundness

26

What do brokers use for contract certainty on subscription market

Checklist to ensure satisfying Contract Certainty principles, and Market Reform Contract for standardised slip

27

What powers do Council of Lloyd's have for breach of its byelaws

Enforcements Ps and impose a range of sanctions (from fines to bans)

28

Three kinds of intermediaries at Lloyd's

Managing A, coverholders and brokers

29

What happens on subscription market if later insurer changes terms?

Only applicable to that insurer

30

How is there internal regulation at Lloyd's

Byelaws created by the Council of Lloyd's