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IF8 > Chapter 7 > Flashcards

Chapter 7 Flashcards

1
Q

Is a policy contract of insurance in itself

A

No it is evidence of the contract

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2
Q

What 5 things do policy contain starting with the details of cover

A
  1. The period of cover
  2. The premium
  3. Policy exceptions and conditions
  4. Any special terms which apply
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3
Q

What is the standard policy wording contained in

A) the policy wording
B) in a pre printed booklet, and a schedule is incorporated at the end of the policy

A

B) in a pre printed booklet, and a schedule is incorporated at the end of the policy

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4
Q

When does the contract of insurance comes into effect

A) one the insurer has accepted the insurance proposal, terms have been agreed and the policyholder has agreed to pay the premium
B) once the premium has been paid

A

A) one the insurer has accepted the insurance proposal, terms have been agreed and the policyholder has agreed to pay the premium

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4
Q

Who has issued a code of good practice which includes device standards for issuing insurance documents within good time

A) FCA
B) ABI

A

B) ABI

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5
Q

What do the ABI define promptly as

A) within 30 working days
B) within 30 calendar days

A

B) within 30 calendar days

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6
Q

What does narrative type mean:

A) when there was a policyholder who was the narrative

B) each individual policy was prepared by hand and was specific to the insured concerned

A

B) each individual policy was prepared by hand and was specific to the insured concerned

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8
Q

Under FCA rules for commercial customers when must policy document be issued

A) 21 days
B) promptly

A

B) promptly

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9
Q

What are most policies issued in

A) scheduled forms
B) narrative type

A

A) scheduled form

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10
Q

What does the policy schedule contain

A) warranties and exclusions
B) variable info and usually signifies which sections of the policy are operative

A

B) variable info and usually signifies which sections of the policy are operative

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11
Q

What is the below:

Includes the name and address of the insurer, the type of policy and in some cases the company logo

Heading,
Recital clause,
Signature
Operative clauses

A

Heading

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12
Q

Is the below a condition or a warranty

Subrogation
Gives the insurer the right of subrogation before payment of any claim is made

A

Condition

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13
Q

What is the below:

Coming together to form the contract in which the insured has paid or agreed to pay the premium and the insurer undertakes to indemnify the insured in accordance with the cover detailed in the policy

Heading,
Recital clause,
Signature
Operative clauses

A

Recital clause

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14
Q

What is the below:

Under the recital clause is pre printed on the document

Heading,
Recital clause,
Signature
Operative clauses

A

Signature

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16
Q

What is the below:

Insurers are increasingly committed to simplifying policy wording and many have restyled their language

Heading,
Recital clause,
Signature
Operative clauses

A

Operative clauses

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17
Q

What is the below:

In addition to those exclusions specifically stated in the operative clauses which apply to specific sections of cover they also contain exclusions which apply to the entire contract

A) exceptions
B) conditions
C) policy schedule
D) info and facilities

A

A) exceptions

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18
Q

What is the below:

First are implied and the second express

A) exceptions
B) conditions
C) policy schedule
D) info and facilities

A

B) conditions

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19
Q

Is the below an implied or express conditions

Insured must act as it uninsured
Insured may be required to advise the appropriate authorities
Insured must take reasonable action
Insured must not hinder the insurers in the investigation of a claim

A

Implied

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20
Q

Of which of these are included on booklet policies m

Insured define a single word or phrase to embrace the wider wording

A) definitions
B) customer service standards statement
C) complaints procedures

A

A) definitions

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21
Q

Of which of these are included on booklet policies

The details what the insured may expect in respect of the Service provided. And will include details of any helplines and contact telephone numbers

A) definitions
B) customer service standards statement
C) complaints procedures

A

B) customer service standards statement

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22
Q

Of which of these are included on booklet policies

This will detail the procedures to be followed and the circumstances to be referred to the Financial Ombudsman.

A) definitions
B) customer service standards statement
C) complaints procedures

A

C) complaints procedures

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23
Q

What makes the policy personal and specific to the insured

A) schedule
B) preamble

A

A) schedule

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24
Q

What is the below:

Or preamble sets the scene for what follows In the policy. It refers to the two parties coming together to form the contract

Heading,
Recital clause,
Signature
Operative clauses

A

Recital clause

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25
Q

What 10 things are included on a schedule starting with

Insureds name

A

Insured address

Policy period

Premium

Details of the subject matter

Sums insured

Territorial limits

Policy number

Reference to special exclusions

Operative sections of the policy

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26
Q

What do most general insurance policies contain which apply to sections of the policy

A) specific exclusions
B) general exclusions

A

A) specific exclusions

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27
Q

Is the below a condition or a warranty

Contribution
The insured is obliged to claim proportionately from each insurer

A

Condition

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28
Q

Policies contain exclusions which apply to the entire contract known as

A) specific exclusions
B) general exclusions

A

B) general exclusions

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29
Q

What is known when an exclusion is known to all general insurance policies

A) general exclusions
B) market exclusions

A

B) market exclusions

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30
Q

Is the below an exclusion

Radioactive contamination and explosive nuclear assemblies

A

Yes but cover can be provided by a system or market pools which insurers and reinsured accept a share of the risk

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31
Q

Is the below an exclusion

Electronic risk

A

Yes but newly excluded

32
Q

Loss of data and loss, destruction of damage unauthorised access to or use of computer equipment are excluded under what

A) sonic bangs
B) electronic risk

A

B) electronic risk

33
Q

Is the below a condition or a warranty

Action by the insured in the event of a claim
Sets out procedures including timescales

A

Conditions

34
Q

Is the below an exclusion

Pollution and or contamination

A

Yes but can be included on property damage but not liability

35
Q

Is the below an exclusion

Sonic bangs

A

Yes

36
Q

What must or just not be done for cover to be valid

A) warranties
B) conditions

A

B) conditions

37
Q

Is the below a condition or a warranty

Duties of the policyholder
The insurer must observe and fulfil all the terms of the policy for cover to be valid

A

Conditions

38
Q

Is the below an implied or express conditions

Those stated in the policy. In practice they include many of the otherwise implied conditions which are stated in order to clarify matters for the insured

A

Express conditions

39
Q

Is the below a condition or a warranty

Fair presentation of the risk
Highlights insureds responsibility under the IA 2915 to make a fair presentation of the risk

A

Condition

40
Q

Is the below an exclusion

War and related perils

A

Yes as it’s regarded to be the responsibility of the state

41
Q

Is the below a condition or a warranty

Fraud
This is concerned only with claims. Entitled the insurer to avoid the policy as a whole

A

Condition

42
Q

If the type of loss is irrelevant to the claim due to something other than a breach of warranty can insurers decline the claim

A

No

43
Q

Under the fraud condition if the insurer finds that a claim is fraudulent what happens

A) they can reject the claim and any payments made in relation to the fraudulent claim are recoverable from the insured

B) they can’t reject the claim and any payments made in relation to the fraudulent claim are recoverable from the insured

A

A) they can reject the claim and any payments made in relation to the fraudulent claim are recoverable from the insured

44
Q

Under the fraud condition if the insurer finds that a claim is fraudulent what happens

A) the insurer has the option to terminate the contract but only from the date at which it became fraudulent. The option of avoidance has been removed.
B) if the insurer chose to terminate the contract they can refuse liability for all matters occurring after the date and don’t have to return any premiums paid

A

Both

44
Q

Under the fraud condition if the insurer finds that a claim is fraudulent what happens to legitimate losses prior to the fraudulent act
A

A

They are protected

44
Q

Is the below a condition or a warranty

Reasonable precautions
Formalised the implied condition

A

Condition

47
Q

Is the below an implied or express conditions

Exist whether or not they appear in the policy

A

Implied

48
Q

What is the below:

Describe the scope of the cover in detail. It is the heart of the policy.
Often contain exceptions that are specific to each individual clause

Heading,
Recital clause,
Signature
Operative clauses

A

Operative clauses

49
Q

Is the below a condition or a warranty

Average

A

Condition

50
Q

Is the below a condition or a warranty

A promise made by the insured relating to facts or performance concerning the risk

A

Warranty

51
Q

What is a certificate of insurance

A) evidence that a context of insurance exists
B) proof of documentation

A

A) evidence that a context of insurance exists

52
Q

Is the below a condition or a warranty

Arbitration

A

Condition

53
Q

Is the below a condition or a warranty

Cancellation

A

Condition

54
Q

Is the below a condition or a warranty

Continuing conditions precedent

A

Conditions

55
Q

Is the below a condition or a warranty

Alteration
Insured must notify the insurer of any changes that increase the risk

A

Condition

57
Q

Is the below a condition or a warranty

Something will or will not be done and
A certain fact exists or does not exist

A

Warranty

58
Q

What is a continuing warranty

A

warranty that may relate to past or present facts in which the insured promises that a state of affairs will continue or exist or the insured will continue to do something.

59
Q

What constitutes a breach of warranty

A) non payment of premium
B) non compliance

A

B) non compliance

59
Q

What does it mean by warranties being suspensive conditions

A)payments aren’t made for claims until conditions are met

B) a breach of warranty merely suspends the insured liability under the policy. Insurer won’t be liable for losses occurring while the insured is in the breach of warranty

A

B) a breach of warranty merely suspends the insured liability under the policy. Insurer won’t be liable for losses occurring while the insured is in the breach of warranty

59
Q

What is the below

These are conditions that must be fulfilled prior to the formation of the context itself. Implied conditions such as insurable and interest are these

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions prevent to liability

A

A) conditions precedent to the contract

60
Q

Which three matters will render a policy void immediately starting with an illegal contract

A

2 no insurable interest

3 a fundamental mistake

61
Q

What is the below

A deliberate misstatement the insurer can choose to avoid the policy

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions prevent to liability

A

A) conditions precedent to the contract

62
Q

What is the below

Conditions that are ongoing and require complaisance through the policy period

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions prevent to liability

A

B) continuing conditions precedent

64
Q

Is the below a condition or a warranty

Must be strictly and literally complied with for cover to be valid

A

Warranty

65
Q

Which is the below

Would include the alteration condition and the conditions which insurers incorporate into the policy wordings

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions prevent to liability

A

Continuing conditions precedent

66
Q

What 5 things must be on an EL cert starting with name of policyholder

A

2- date of commencement of cover
3- expiry date
4- a statement that cover complied with UK statutory requirements
5- statement that the minimum amount of cover provided by the policy is no less than £5m

67
Q

What is the below:

A breach of such a condition entitled the insurer to avoid the whole contract from the date of the breach

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions prevent to liability

A

Continuing conditions precedent

68
Q

What is the below:

Conditions that just be complied with it there is to be a valid claim. They include conditions which are often listed as the claims conditions

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions precedent to liability

A

Conditions precedent to liability

70
Q

Under FCA rules unless fraud is involved insurer should not repudiate liability to indemnify on the grounds of a breach of a condition

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions precedent to liability

A

C) conditions precedent to liability

71
Q

What is the below:

Must be strictly and literally complied with
Suspend cover if breached and relevant to a loss incurred
are written into the policy

A) warranties
B) conditions
C) exclusions
D) representations

A

Warranits

72
Q

What is the below:

If this is not observed, insurers may avoid liability for a particular loss but they may not repudiate the contract as a whole

A) conditions precedent to the contract
B) continuing conditions precedent
C) conditions precedent to liability

A

C) conditions precedent tocliability

72
Q

What is the below

Some implied conditions are so fundamental they affect the whole validity of the policy and render it void if breached

Other conditions prevents to the contract such as mid statement entirely the insurer to avoid the policy st its option

A) warranties
B) conditions
C) exclusions
D) representations

A

B) conditions

73
Q

what is the below

A breach of a continuing precedent entities the insurer to avoid the whole contract from the date of the breach

Breach of a condition precedent to liability entitled the insurer to avoid the particular claim

A) warranties
B) conditions
C) exclusions
D) representations

A

B) conditions

74
Q

What is the below

Used to defund the boundaries of policy cover
Allow repudiation if claims circumstance indicate that the exclusion applies
Require the insurer to prove that the exclusion applies
Will always appear in the policy

A) warranties
B) conditions
C) exclusions
D) representations

A

Exclusions

74
Q

What is the below

Not part of the policy
Must relate to a martial circumstance
If incorrect allow the insurer to repudiate ab initito
Doesn’t appear in the policy itself

A) warranties
B) conditions
C) exclusions
D) representations

A

D) representations

IF8 (9 decks)

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