Other Finanacial Protection Products

Question 1

What does insurance premium tax stand at?

Answer 1

12%

Question 2

How are MPPI payments made?

Answer 2

As a percentage of a salary subject to a total claim limt or by refferance to actual mortgage costs.

Question 3

How long in general does MPPI Payout?

Answer 3

12-24 months

Question 4

What % of the population would struggle to pay their mortgage if they couldn’t work?

Answer 4

55%

Question 5

Who sets the standards for MIIP?

Answer 5

ABI and the council for mortgage lenders (cml)

Question 6

What are the 7 standard conditions regarding MPPI

Answer 6

Generally available to those aged 18 to 64 and resident in the UK, chanel Islands along Isle of man

Must be employed or self-employed atheist 16 hours a week and not at risk of redundancy.

Pre-existing conditions are excluded, and you should be actively in work.

Deffered periods may apply between first taking the policy and making the claim.

Benefit will be limited by other incomes

Self-employed people will generally have to have stopped working and gone into liquidation

Plans are portable (change to other providers)

Question 7

When can MPPI be sold?

Answer 7

Not on the same day as the mortgage sale

7 days after the sale or the point of providing a personalised illustration.

Similar to PPI, which is 7 days with illustration.

Question 8

How much notice must MPPIs provide to cancel or withdraw a policy

Answer 8

90 days

Question 9

How much notice do MPPI providers have give to amend a policy?

Answer 9

30 days

Question 10

How is accident, sickness and unemployment insurnce (ASU) paid?

Answer 10

Flat rate or percentage of earnings.

Question 11

How is PAS paid?

Answer 11

Weekly, tax-free payments for limited time 12-24 months

Question 12

What are group PAS insurances used for?

Answer 12

Either general in nature or to cover specific activities of the group.

Question 13

What is an indemnity policy?

Answer 13

A policy that will only pay out what treatment costs in the event of a claim.

Question 14

What are the 4 main principles ABI gives for PMI cover?

Answer 14

Common terminology and definitions should be used.
Mandatory information provided to customers.
Explanation of core terms and conditions should be in plain language.
Specific point of sale information regarding coverage and options.

Question 15

What does basic PMI cover?

Answer 15

Accommodation
Drugs
Dressings
Doctors
Costs kept down with high excess level.

Question 16

What is included in standard level PMI?

Answer 16

Diagnostic tests
Outpatient treatment
Psychiatric

Question 17

What is included in standard level PMI?

Answer 17

Higher limits and longer claim period
Private ambulances
Cancer treatment
Wide range of hospitals

Question 18

How does undewriting via moratorium work?

Answer 18

Reduces premiums, administration, and need for medical evidence.

Excludes any past medical condition the customer has had in the last 5 years for 2 years from the policy start. The customer must also be treatment free for 2 years for each condition.

Question 19

What could be an issue with moratorium underwriting?

Answer 19

Regualr checkups for a condition and classed as ongoing treatment so would negate the insurance for that condition.

Question 20

What are the 6 general exclusions from PMI

Answer 20

Conditions of self-harm
HIV/AIDS related conditions
Conditions arising from pregnancy
Alcohol and drug abuse
Chronic conditions
Organ transplants

Question 21

How can a claim for PMI be made?

Answer 21

In general, only with a GP recommendation unless being admitted straight to hospital through A&E.

Most insurers have claims specialists that will pre-approve treatment with certain conditions.

Approval should generally be sort before accepting treatment.

Question 22

How are PMI payments made?

Answer 22

Benefits are non taxable, paid directly to the health provider.

Question 23

What are the benefits of group PMI?

Answer 23

Underwriting is not usually necessary, and some policies cover preexisting conditions from day one.

Premiums are likely to be cheaper.

Question 24

Discribe health cash plans?

Answer 24

Offer reduced benefit compared to PMI due to maximum level for medical treatment.

Is more affordable

Pre-existing conditions will be excluded, and a deffered period of 6 months will apply between taking the policy out and making a claim.

Question 25

How do dental plans generally work?

Answer 25

Overall maximum claim amount each year.
Usually require a checkup on outset for preexisting conditions.

Offered as standalone plans (often through dentists), add-ons to private medical insurance, part of employee package.