Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

IF4 > Chapter 2 > Flashcards

Chapter 2 Flashcards

(71 cards)

Start Studying
1
Q

Why is personal motor the most significant cover in the UK?

A

It’s compulsory. It’s illegal to drive without it. You need cover for legal liability to others and their property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 4 main levels of motor insurance?

A
  1. Comprehensive
  2. Third party, fire and theft
  3. Third party only
  4. Road traffic act only
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the minimum level of motor insurance required in the UK?

A

Road traffic act only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the road traffic act only limit for third party death?

A

There is none / it is unlimited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the Road Traffic Act only covers limit for third party property damage?

A

£1.2 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the third party only covers limit for third party property damage and what 3 additional covers does it include over road traffic only?

A

£20 million

  1. Passenger indemnity
  2. Cover for the costs of defending legal claims
  3. Third party cover for the vehicle being used abroad
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Can UK policyholders still drive freely in the EU under third party only?

A

Yes no green card is needed but there are exclusions to cover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What main 2 covers does Third Party, Fire & Theft have over Third Party Only?

A
  1. Damage by fire, lightening or explosion
  2. Theft or attempted theft damage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the highest level of motor cover in the UK and what type of cover is it?

A

Comprehensive

All risks basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are some common exclusions in comprehensive motor insurance

A

Wear and tear, depreciation, loss or use etc…

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are some general market exclusions?

A

War, terrorism, riot, sonic bangs etc…

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the main covers lacking /difference between motor cycle and motor cover?

A

There is usually no personal accident cover for motor cyclists or automatic cover for theft or accessories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the 4 main types of commercial vehicles?

A
  1. Goods carrying vehicles
  2. Passenger carrying vehicles
  3. Agricultural and forestry vehicles
  4. Special types e.g., ambulance, cranes, fork-lifts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What 2 main things does household insurance cover?

A
  1. The building
  2. Contents
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How are buildings defined in insurance?

A

Anything you would normally leave behind when moving e.g. sheds, swimming pools

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a common exclusion for escape of water in buildings insurance?

A

Unoccupied exclusion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Are motor cycles subject to the road traffic act and do they have the same level of cover as cars available?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How are contents defined in insurance?

A

Household goods or personal effects that belong to the insured or a member of their family living in the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What unusual item is usually excluded from contents insurance?

A

Stamps

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is gadget insurance and how can it be arranged?

A

It’s for loss, damage and theft of smart phones, tablets, laptops and e-readers

Month by month basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are some common exclusions of gadget insurance?

A

Theft from a car, cosmetic damage, gradual deterioration, chargers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does PAFL mean in drone insurance?

A

Pay as you fly (cover for specific weeks rather than traditional annual policies)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are some key covers usually provided under travel insurance?

A

Personal accident or sickness whilst away, cancellation, medical expenses, loss of deposits, loss of baggage, delayed bagage, travel delays

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are some common optional extensions to travel insurance?

A

Loss of passport, hazardous activities such as skiing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What are the main 4 types of pet insurance?
1. Accident only policies 2. Time limited policies 3. Maximum benefit policies 4. Lifetime policies
26
What are some rating factors for pet insurance?
Age of pet, cost of pet, pre-existing conditions, type of pet
27
What is a warranty?
A guarentee that if an item breaks down in the certain time period they will cover the cost of repairs/replace it
28
What is an extended warranty?
You an opt for increasing your warranty - usually by a couple of months or years
29
What are some exclusions on warranties?
Deliberate damage, war, negligence or failure to comply with manufacturing instructions
30
What are some examples of special perils? (That can be added onto commercial property cover)
Riot, earthquake, underground fire, storm, flood, sprinkler leakage.
31
What does an « all risks «  basis mean?
Everything is covered unless specifically excluded
32
What are some absolute exclusions in all risks cover?
War, pollution, contamination and consequential loss
33
What addition do insurers add into the definition of theft act of 1968?
There must be force or violence
34
What are some extensions to theft cover?
Breakage if glass, index linking, replacement of locks
35
What are some exclusions to theft cover?
Collusion, fire, cash, livestock
36
What does glass cover insure?
Damage to glass including windows, doors and mirrored glass.
37
What basis is money cover usually on?
An all risks basis
38
What are some extensions to money cover?
Personal accident due to assault, credit cards
39
What are some exclusions in money cover?
Errors in book keeping, dishonesty of an employee, damage outside UK, a safe being opened by a key
40
What type of insurance is legal expenses cover?
Pecuniary
41
What is legal expenses cover?
It covers costs arising out of the need to take action to court or defend actions brought against them.
42
What is business interruption cover?
It cover the business for a loss of earnings due to a material loss at the property e.g., a fire destroys a warehouse full of stock
43
How is gross profit calculated?
Turnover (adjusted for opening and closing stock) less specified working expenses
44
What other policy needs to be in place before you can take out buisness interruption cover and what is it called?
Property policy - material damage warranty
45
What is creditor insurance?
It covers credit payments in the event of redundancy or unemployment
46
What is cyber insurance?
It covers the financial risks associated with cyber incidents like data breaches
47
What is employers liability cover and why is it so important?
It covers injury or disease which may happen to an employee whilst at work. It is compulsory for businesses to have.
48
What is the minimum employers liability limit?
£5 million
49
Do employers have to display their Employers liability certificates?
Yes but this can be done electronically
50
Can insurers refuse to cover Employers Liability claims?
Not per se. They cannot refuse to pay the employee but they can seek recovery from their insured for the payment.
51
What does public liability insurance cover?
Injury or damage to third parties and their property
52
What are some main exclusions for public liability insurance?
Injury to employees, defective work, injury caused by motor vehicles (covered elsewhere)
53
What is products liability?
It covers against third party injury or property damage as a result of goods produced, sold, repaired or manufactured by the insured
54
Can you get a stand-alone products liability insurance?
Yes but it’s rare. Normally it’s part of a package with public liability cover. Stand-alone policies are often on a claims made basis and have a yearly aggregate limit
55
What is professional indemnity insurance?
It covers injury, loss or damage as a result of a breach of professional duty or negligence e.g, poor solicitors advice
56
On what basis is a professional indemnity policy?
Claims made basis
57
What does a claims made basis mean?
The policy applies to claims made during the period of insurance rather than occurring during the policy period
58
What is excluded in professional indemnity insurance?
Dishonesty of the insured
59
What are the 3 types of health insurance?
Personal accident, sickness and medical expenses
60
What is a benefits policy and give an example.
A benefits policy is a contract to pay out should a defined event occur. A personal accident policy. It’s not a policy of indemnity as often the insured will never be in the same position they were before the loss e.g., if they lose a limb
61
Can 2 insurers pay out for the same risk in benefits policies?
Yes - contribution is not an issue
62
What is the maximum number of weeks sickness or accident policies usually pay out for?
104 weeks
63
When is an annuity paid?
In the event of permanent total disablement (a lump sum to keep the insured going as the condition will not improve)
64
How many days is the franchise at the beginning of a sickness policy?
21 days
65
What is a franchise?
A set period of time until which is the policy comes into force
66
After the initial 21 days, what is the usual franchise in a sickness policy?
7 days
67
What are some usual exclusions in sickness policies?
Being under the influence of drugs, pre-existing conditions, childbirth, AIDS, pregnancy
68
What does medical expenses insurance cover?
The cost of treatments and healthcare
69
Is medical expenses a benefits policy?
No as there is money involved - it is a policy of indemnity
70
Does group medical cover have higher limits and exclusions than individuals medical cover
Yes usually
71
What are some benefits to the insured of medical expenses cover
They may get quicker access to treatment and flexibility not provided by the NHS.

IF4 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions