7 - Regulatory Processes, Systems and Controls

Question 1

Who regulates the UK insurance market?

Answer 1

1. Financial Conduct Authority
2. Prudential Regulation Authority

Question 2

What information about a risk would an overseas regulator be interested in?

Answer 2

1. Location of broker
2. Location of risk
3. Any premium tax payable
4. whether direct or reinsurance

Question 3

What is solvency?

Answer 3

The balance between assets and liabilities

Question 4

What is the term given for when a government bans parties from doing business with certain individuals/nations?

Answer 4

Sanctions

Question 5

What forms can Financial sanctions take?

Answer 5

1. Prohibiting transfer of funds
2. Freezing assets of individuals
3. Freezing assets of governments

Question 6

What online system has information on sanctions?

Answer 6

Crystal

Question 7

Who can have sanctions imposed?

Answer 7

Governments, individuals and companies

Question 8

What legislation replaced previous versions of data protection?

Answer 8

GDPR

Question 9

What is the process by which criminals attempt to disguise the origin of cash known as?

Answer 9

Money Laundering

Question 10

What are the three stages of money laundering?

Answer 10

1. Placement
2. Layering
3. Integration

Question 11

If you notice something suspicious regarding potential money laundering and you ignore your suspicions, what may you be guilty of?

Answer 11

Failing to report

Question 12

What two sanctions affect insurers most?

Answer 12

Financial and Trade

Question 13

What is OFAC?

Answer 13

The part of the US Government that issues sanctions guidance.

Question 14

What is the key requirement in order to hold personal data under GDPR?

Answer 14

Permission from person concerned.