IF2 Examination Guide Flashcards
(100 cards)
1
Q
A legal expenses insurance policy normally covers the insured for
A. the cost of attending jury service.
B. fines and penalties incurred.
C. negligent advice provided by the insured.
D. solicitors’ costs incurred in pursuing a claim against a third party.
A
D. solicitors’ costs incurred in pursuing a claim against a third party.
2
Q
Under which insurance policy does an employer normally insure his liability in respect of injury to his employees being driven as passengers in the employer’s cars?
A. An employers’ liability insurance policy.
B. A motor insurance policy.
C. A personal accident insurance policy.
D. A public liability insurance policy.
A
B. A motor insurance policy.
3
Q
An employee is assaulted and robbed of his employer’s takings whilst en route to bank them. Which insurance policy is most likely to provide personal accident benefits to the employee for the injuries sustained during the robbery?
A. An employers’ liability insurance policy.
B. A money insurance policy.
C. A public liability insurance policy.
D. A theft insurance policy.
A
B. A money insurance policy.
4
Q
Under a personal accident insurance policy, standard cover normally provides for payment of A. benefits while incapacitated. B. damages for pain and suffering. C. private medical expenses. D. private nursing.
A
A. benefits while incapacitated.
5
Q
Under a third party only private motor insurance policy, cover in respect of third party property damage is usually subject to what maximum limit? A. £250,000 B. £1,200,000 C. £10,000,000 D. £20,000,000
A
D. £20,000,000
6
Q
What element of cover under a buildings insurance policy normally attracts a substantial compulsory excess?
A. Earthquake.
B. Impact.
C. Storm and flood.
D. Subsidence, ground heave and landslip.
A
D. Subsidence, ground heave and landslip.
7
Q
When criminal prosecution defence cover is included under a commercial legal expenses insurance policy, what type of fines, if any, are typically covered?
A. Fines are not covered.
B. Fines above the policy excess.
C. Fines which equal or exceed the franchise.
D. All fines are covered.
A
A. Fines are not covered.
8
Q
In what way are legal costs for landlord/tenant disputes normally covered, if at all, under the legal expenses extension of a household insurance policy?
A. All costs are covered rather than just court fees.
B. A significantly lower excess applies.
C. The standard sum insured limit is doubled.
D. They are not covered.
A
D. They are not covered.
9
Q
Under what type of insurance policy is a material damage warranty automatically imposed?
A. A business interruption insurance policy.
B. An extended warranty insurance policy.
C. A products liability insurance policy.
D. A professional indemnity insurance policy.
A
A. A business interruption insurance policy.
10
Q
What limit of indemnity is normally provided under an employers’ liability insurance policy? A. £2,000,000 B. £5,000,000 C. £10,000,000 D. £25,000,000
A
C. £10,000,000
11
Q
One of the common exclusions under an extended warranty insurance policy relates to any risks normally covered by which other type of insurance policy?
A. A buildings insurance policy.
B. A household contents insurance policy.
C. A motor insurance policy.
D. A theft insurance policy.
A
B. A household contents insurance policy.
12
Q
Under a typical extended warranty insurance policy, what proportion of the cost of labour and parts is normally covered?
A. 80% of the cost of both labour and parts.
B. 80% of the cost of labour and 100% of the cost of parts.
C. 100% of the cost of both labour and parts.
D. 100% of the cost of labour and 80% of the cost of parts.
A
C. 100% of the cost of both labour and parts.
13
Q
A commercial property insurance policy will usually exclude damage arising from impact by A. aircraft. B. animals. C. own vehicles. D. third party vehicles.
A
C. own vehicles.
14
Q
For theft of shop stock to be covered under a theft insurance policy, there would usually need to be evidence of
A. forcible and violent entry to and exit from the premises.
B. forcible or violent entry to and exit from the premises.
C. forcible and violent entry to or exit from the premises.
D. forcible or violent entry to or exit from the premises.
A
C. forcible and violent entry to or exit from the premises.
15
Q
Following an insured loss at a solicitor’s premises, which insurance policy specifically covers the solicitor for loss of profits?
A. A business interruption insurance policy.
B. A legal expenses insurance policy.
C. A money insurance policy.
D. A professional indemnity insurance policy.
A
A. A business interruption insurance policy.
16
Q
What cover, if any, is provided under a comprehensive private motor insurance policy for a caravan whilst it is attached to the insured vehicle? A. No cover is provided. B. Third party only. C. Third party, fire and theft. D. Comprehensive.
A
B. Third party only.
17
Q
What standard cover is provided under a third party only motorcycle insurance policy in respect of injury to the insured in the event of an accident? A. Emergency treatment fees. B. Loss of earnings. C. Medical expenses. D. Personal accident benefits
A
A. Emergency treatment fees.
18
Q
In what circumstances will a public liability insurance policy pay a claim for pollution of air, water or soil?
A. When a court finds that the cause of pollution was an act of God.
B. When pollution is caused by immediate discharge consequent upon an accident.
C. When the insured has paid the appropriate additional premium for pollution.
D. When the insured is legally liable for pollution clean-up costs.
A
B. When pollution is caused by immediate discharge consequent upon an accident.
19
Q
A shoe manufacturer’s products liability insurance policy is issued with a limit of indemnity of £1,000,000. There are three different products liability claims in the first period of insurance, one for £500,000, one for £750,000 and a final one for £1,100,000. What will the policy pay out in total for the three claims? A. £1,000,000 B. £1,250,000 C. £2,250,000 D. £2,350,000
A
A. £1,000,000
20
Q
What type of insurance policy would provide cover for an accountant’s liability to compensate her clients for losses due to errors or omissions by her staff?
A. An employers’ liability insurance policy.
B. A money insurance policy.
C. A professional indemnity insurance policy.
D. A public liability insurance policy.
A
C. A professional indemnity insurance policy.
21
Q
Under a personal accident insurance policy, what is the maximum number of weeks for which temporary total disablement benefit is usually paid? A. 26 weeks. B. 52 weeks. C. 104 weeks. D. 156 weeks.
A
C. 104 weeks.
22
Q
What amount should the sum insured under the buildings section of a household insurance policy represent?
A. The cost of rebuilding the property.
B. The market value of the property.
C. The maximum likely cost of fire damage to the property.
D. The outstanding mortgage loan on the property.
A
A. The cost of rebuilding the property.
23
Q
The cancellation section of a travel insurance policy normally excludes claims in relation to A. death of a close relative. B. jury service. C. permanent disablement. D. pregnancy.
A
D. pregnancy.
24
Q
An insurance policy for a small business includes cover for fire, special perils, theft, business interruption, money and other types of insurance under a single contract. This policy is known as A. an all risks insurance policy. B. a collective insurance policy. C. an open cover insurance policy. D. a packaged insurance policy.
A
D. a packaged insurance policy.
25
```
From where may an insured obtain free advice regarding the cover provided under his motor insurance policy?
A. The Chartered Insurance Institute.
B. The Financial Ombudsman Service.
C. The insurer’s telephone helpline.
D. The Motor Insurers’ Bureau.
```
C. The insurer’s telephone helpline.
26
Authorised motor repairers are approved by the
A. Department for Business, Energy and Industrial Strategy.
B. Financial Conduct Authority.
C. insurer.
D. Motor Insurers’ Bureau.
C. insurer.
27
```
Which type of personal insurance policy most commonly provides an uninsured loss recovery service?
A. A household insurance policy.
B. A private motor insurance policy.
C. A sickness insurance policy.
D. A travel insurance policy.
```
B. A private motor insurance policy.
28
Under a typical legal expenses insurance policy, what limit of cover, if any, usually applies during the period of insurance?
A. Cover is unlimited.
B. Overall cover is limited, but there is no limit per claim.
C. Overall cover is limited and there is also a limit per claim.
D. Overall cover is unlimited, but there is a limit per claim.
D. Overall cover is unlimited, but there is a limit per claim.
29
```
Under a travel insurance policy, cover for baggage will NOT generally include damage to
A. binoculars.
B. clothing.
C. contact lenses.
D. jewellery.
```
C. contact lenses.
30
```
Under a household insurance policy, subsidence cover responds to damage caused by
A. faulty workmanship.
B. riverbank erosion.
C. settlement.
D. tree roots.
```
D. tree roots.
31
```
What is the minimum limit of indemnity legally required under an employers’ liability insurance policy?
A. £1,000,000
B. £2,000,000
C. £5,000,000
D. £10,000,000
```
C. £5,000,000
32
```
A basic feature of glass insurance is that it will exclude glass breakages caused by
A. fire, lightning or explosion.
B. impact by vehicles.
C. storm, tempest or flood.
D. theft or malicious damage.
```
A. fire, lightning or explosion.
33
```
Who would take out an extended warranty insurance policy in respect of electrical goods?
A. The manufacturer.
B. The purchaser.
C. The repairer.
D. The retailer.
```
B. The purchaser.
34
What cover must be included under a motor insurance policy to comply with the Road Traffic Act?
A. Death or injury to the insured driver only.
B. Death or injury to the insured driver, any passengers and any third parties.
C. Legal liability for death or injury to third parties.
D. Personal accident for any passengers.
C. Legal liability for death or injury to third parties.
35
Owing to an accident resulting in injury to an arm, a hairdresser is unable to carry out any work for three months. What benefit will be provided under his personal accident insurance policy?
A. A capital sum for the partial loss of the use of a limb.
B. A capital sum for the total loss of the use of a limb.
C. A regular payment for temporary partial disablement.
D. A regular payment for temporary total disablement.
D. A regular payment for temporary total disablement.
36
```
A woodwork company has a fire insurance policy containing a clause which requires the removal of any sawdust shavings from the premises at the end of each working day. Failure to do so may make any associated claim invalid. This is known as
A. an exclusion.
B. a franchise.
C. a representation.
D. a warranty.
```
D. a warranty.
37
```
An insurance policy’s legal significance is as the
A. basis of the contract.
B. confirmation of cover.
C. contract itself.
D. evidence of the contract
```
D. evidence of the contract
38
```
What is normally the main rating factor used when considering an application for personal accident insurance?
A. Geographical location.
B. Health.
C. Income.
D. Occupation.
```
D. Occupation.
39
Why does an underwriter need to be aware of material circumstances when processing an application for insurance?
A. They can affect the terms on which the risk is accepted.
B. They can reduce the likelihood of subrogation.
C. They will dictate whether or not the contract is regulated by the Financial Conduct Authority.
D. They will indicate the legal status of the contract.
A. They can affect the terms on which the risk is accepted.
40
An underwriter has identified a good physical hazard in relation to an insurance application. What impact will this tend to have on the likelihood and severity of loss?
A. An increase in both the likelihood and severity.
B. A decrease in both the likelihood and severity.
C. An increase in the likelihood, but a decrease in the severity.
D. A decrease in the likelihood, but an increase in the severity.
B. A decrease in both the likelihood and severity.
41
```
The proposal form being completed by an applicant specifically asks for the details of anyone under the age of 25 who is to be covered by the insurance policy. What type of policy is this most likely to be?
A. A medical expenses insurance policy.
B. A motor insurance policy.
C. A personal accident insurance policy.
D. A travel insurance policy.
```
B. A motor insurance policy.
42
```
Under which part of a property insurance policy will the insured perils be listed?
A. The conditions.
B. The exceptions.
C. The operative clause.
D. The recital clause.
```
C. The operative clause.
43
```
By what means would an insurer normally collect the premium from an insured who is permitted to pay by instalments?
A. By banker’s draft.
B. By cash.
C. By direct debit.
D. By post-dated cheques.
```
C. By direct debit.
44
Martin buys a car and asks an intermediary to arrange insurance. From what point does the insurance become effective?
A. When the intermediary submits the quotation.
B. From the time and date shown on the cover note issued by the intermediary.
C. When Martin receives the insurance policy document.
D. When the intermediary receives the full premium.
B. From the time and date shown on the cover note issued by the intermediary.
45
A fire occurs at a factory one month after the insurance policy renewal date, but the renewal premium has NOT been paid. What is the legal position of the insurer in the event of a claim?
A. The insurer can reject the claim in its entirety.
B. The insurer must pay the claim, but with a deduction for the unpaid premium.
C. The insurer must pay the claim in full, unless a cancellation notice has been issued.
D. The insurer must delay settlement until the premium has been paid.
A. The insurer can reject the claim in its entirety.
46
```
Which part of an insurance policy personalises the cover to the insured?
A. The heading.
B. The operative clause.
C. The recital clause.
D. The schedule.
```
D. The schedule.
47
```
Under the standard fire insurance policy, the pro rata condition of average requires the sum insured, at the date of loss, to be what minimum percentage of the value at risk to obtain full settlement?
A. 70%
B. 80%
C. 90%
D. 100%
```
D. 100%
48
When two insurance policies cover the same risk and they both contain a contribution condition, how would a claim usually be settled?
A. Only one policy would contribute the full amount.
B. Both policies would contribute a proportionate amount.
C. Both policies would contribute an equal amount.
D. Both policies would contribute the full amount.
B. Both policies would contribute a proportionate amount.
49
```
An insured has a household insurance policy with an excess of £100 in respect of each claim. If a valid claim for £450 is submitted, what maximum amount would the insured receive in settlement?
A. £100
B. £350
C. £450
D. £550
```
B. £350
50
A franchise under an insurance policy means that the
A. insured always pays an agreed amount towards a claim.
B. insured never has to contribute towards a claim.
C. insurer pays the full value of any claim which exceeds a specified amount.
D. insurer pays the full value of any claim which falls below a specified amount.
C. insurer pays the full value of any claim which exceeds a specified amount.
51
What is always the consequence of a proposer failing to inform an underwriter of material circumstances relating to a proposed industrial risk?
A. A claim cannot be made against the insurance policy.
B. The insurer’s liability is limited to third parties.
C. The premium is set at a higher level.
D. The risk is not accurately assessed.
D. The risk is not accurately assessed.
52
A proposal form is normally used by an underwriter as a means of obtaining material information because it
A. is a regulatory requirement.
B. is convenient and cost-effective.
C. prevents misrepresentation by the proposer.
D. provides evidence of a contract.
B. is convenient and cost-effective.
53
```
Which peril is always excluded under a commercial fire and special perils insurance policy as a market exclusion?
A. Earthquake.
B. Flood.
C. Riot.
D. War.
```
D. War.
54
```
An insurer usually grants a limited grace period in order to give an insurance policyholder time to
A. cancel the policy without penalty.
B. notify the insurer of a claim.
C. notify the insurer of a complaint.
D. pay the policy renewal premium.
```
D. pay the policy renewal premium.
55
```
What is the rate of Insurance Premium Tax on a private motor insurance policy?
A. 6%
B. 12%
C. 17.5%
D. 20%
```
B. 12%
56
Under the cancellation clause of a personal insurance policy, what postal method does the insurer usually use to advise the insured that the policy is cancelled?
A. A couriered letter to the insured’s intermediary.
B. A couriered letter to the insured’s last known address.
C. A recorded delivery letter to the insured’s intermediary.
D. A recorded delivery letter to the insured’s last known address.
D. A recorded delivery letter to the insured’s last known address.
57
Under a cancellation clause, when may an insurer cancel an insurance policy?
A. At inception of the policy only.
B. At renewal of the policy only.
C. At any time during the period of the policy.
D. Only after a claim has occurred under the policy.
C. At any time during the period of the policy.
58
```
How is the likelihood of a loss occurring usually affected by the existence of a poor physical hazard?
A. It always remains constant.
B. It may remain constant or increase.
C. It may remain constant or decrease.
D. It may increase or decrease.
```
B. It may remain constant or increase.
59
An insurer mistakenly quotes a premium of £500 instead of £5,000. The quotation has NOT yet been accepted. What option, if any, is available to the insurer to rectify its mistake?
A. The insurer is bound by the quotation.
B. Send the proposer a second quotation with the correct premium stated.
C. Vary the level of cover to suit the misquoted premium.
D. Vary the period of cover to suit the misquoted premium.
B. Send the proposer a second quotation with the correct premium stated.
60
```
What personal information about the proposer, other than name and address, is required on a commercial fire insurance proposal form?
A. Age.
B. Marital status.
C. Nationality.
D. Occupation.
```
D. Occupation.
61
```
A theft insurance policy has a £50,000 franchise. If a valid claim of £55,000 is made, how much, if anything, will the insurer pay?
A. Nothing.
B. £5,000
C. £50,000
D. £55,000
```
D. £55,000
62
A direct motor insurer asks a proposer questions over the telephone and prepares a statement of fact based on the proposer’s responses. What is the next stage in processing this proposal?
A. The insurer draws up an insurance policy which is sent to the proposer for consideration.
B. The insurer issues a certificate pending receipt of the premium.
C. The insurer issues a cover note pending receipt of the premium.
D. The statement of fact is sent to the proposer to check.
D. The statement of fact is sent to the proposer to check.
63
John purchases a motor insurance policy and asks the insurer NOT to send him a policy document as he understands the extent of cover. Why would the insurer send him a policy document anyway?
A. John cannot make a claim under the policy without the policy document.
B. The insurer is legally obliged to issue the policy document within 60 days of inception.
C. The policy is evidence of the contract and it must be sent to meet contract certainty regulations.
D. The policy document must be issued before the premium is legally payable.
C. The policy is evidence of the contract and it must be sent to meet contract certainty regulations.
64
A customer requests an insurance quotation and indicates a wish to accept it. At what point is the contract made?
A. When the customer agrees to pay the premium.
B. When the customer pays the premium.
C. When the policy document is issued by the insurer.
D. When the policy document is received by the customer.
A. When the customer agrees to pay the premium.
65
```
What type of fact, if fraudulently omitted by the proposer when completing a public liability form, might allow the insurer to avoid the insurance policy?
A. A fact of common knowledge.
B. A fact of law.
C. A fact which lessens the risk.
D. A material fact.
```
D. A material fact.
66
A public liability insurance policy contains a condition precedent to liability concerning the precautions to be taken when using cutting torches. In the event of a claim for damage arising from the use of cutting torches and the insured has specifically failed to comply with this condition, the insurer will normally
A. cancel the policy.
B. offer part payment of the claim.
C. refuse to settle the claim.
D. settle the claim and sue the insured for recovery.
C. refuse to settle the claim.
67
```
The sum insured under a buildings insurance policy is £70,000. A rate of £0.30% applies and a 10% discount is allowed. What is the premium excluding Insurance Premium Tax?
A. £63
B. £189
C. £210
D. £231
```
B. £189
68
```
What is the premium before Insurance Premium Tax for a products liability insurance policy rated at £1 per mille on a turnover of £5,000,000?
A. £50
B. £500
C. £5,000
D. £50,000
```
C. £5,000
69
When considering a motor claim settlement, salvage is the
A. actual cost of repairing a vehicle beyond economic repair.
B. actual vehicle remnants following a total loss claim.
C. amount paid in settlement of a claim.
D. destruction of a vehicle following a claim.
B. actual vehicle remnants following a total loss claim.
70
A consumer used the services of an intermediary to effect a household insurance policy. In the event of a claim, who is legally responsible for proving the amount of the loss?
A. The consumer in all cases.
B. The insurer in all cases.
C. The intermediary in all cases.
D. The intermediary if independent, otherwise the customer.
A. The consumer in all cases.
71
```
What settlement method would normally be used for a valid claim under a business interruption insurance policy?
A. Payment for repairs.
B. Payment of money.
C. Reinstatement.
D. Replacement.
```
B. Payment of money.
72
```
When a motor insurer takes advantage of contribution rights, from whom can some of its claims settlement costs be recovered?
A. Another insurer.
B. A negligent third party.
C. The Motor Insurers’ Bureau.
D. The policyholder.
```
A. Another insurer.
73
A specialist motor insurer has recently experienced a high level of fraudulent claims. Which of its policyholders could suffer as a result of this fraud?
A. All policyholders.
B. New policyholders only.
C. Policyholders who pay by instalments only.
D. Policyholders with a significant no claims discount only.
A. All policyholders.
74
```
Application of the arbitration clause might occur under a fire insurance policy as a result of a dispute between the insurer and the insured regarding the
A. amount of a claim.
B. amount of the premium.
C. policy cover.
D. policy renewal terms.
```
A. amount of a claim.
75
```
Vanessa insures the contents of her house under a typical household contents insurance policy with a £250 excess, but fails to advise her insurer that she takes in lodgers. She discovers that some jewellery valued at £1,000 is missing and there is no evidence of a forced entry. What maximum payment, if any, is her insurer obliged to make?
A. Nil.
B. £250
C. £750
D. £1,000
```
A. Nil.
76
An insured is subject to implied duties when
A. amending an insurance policy.
B. proposing an insurance policy.
C. renewing an insurance policy.
D. submitting a claim under an insurance policy.
D. submitting a claim under an insurance policy.
77
In the event of a valid claim under a personal accident and sickness insurance policy, what documentary evidence will an insurer always require in addition to a claim form?
A. A doctor’s certificate to confirm the nature and duration of the claimant’s disability.
B. A letter from the claimant’s employer to confirm that he has been absent from work.
C. The policy document or renewal confirmation to confirm that cover exists.
D. A statement of earnings to confirm the amount earned by the claimant during the past year.
A. A doctor’s certificate to confirm the nature and duration of the claimant’s disability.
78
A motorist suffers damage to his comprehensively insured vehicle and takes it to a repairer with whom the insurer has direct billing arrangements. The insurance policy has a £100 excess. Assuming the claim is valid, how is the claim likely to be settled?
A. The insurer pays the repairer in full, reclaiming the excess from the insured.
B. The insured pays the repairer in full, reclaiming the costs less the excess from the insurer.
C. The insured pays the excess to the repairer and the insurer then pays the balance to the repairer.
D. The insured pays the excess to the insurer and the insurer then pays the full amount to the
repairer.
C. The insured pays the excess to the repairer and the insurer then pays the balance to the repairer.
79
Which organisation will settle a claim from a pedestrian injured by an uninsured motorist?
A. The Association of British Insurers.
B. The British Insurance Brokers’ Association.
C. The Financial Conduct Authority.
D. The Motor Insurers’ Bureau.
D. The Motor Insurers’ Bureau.
80
```
Under the standard fire policy, in order for a claim to be accepted it is essential that the damage is caused by
A. the actions of a third party.
B. a fire.
C. an inevitable event.
D. a named peril.
```
D. a named peril.
81
Upon becoming aware that a fraudulent claim has been made, what is the earliest point from which an insurer may terminate the insurance policy?
A. From inception of the policy.
B. From the date of the fraudulent act.
C. From the date of discovery of the fraud.
D. From the next renewal date of the policy.
A. From inception of the policy.
82
```
When is an amount initially reserved in the claims process?
A. At inception of the insurance policy.
B. At the time the claim is notified.
C. At the time the claim is settled.
D. At the time average is applied.
```
B. At the time the claim is notified.
83
Why would an insurer register claim details on MIAFTR2?
A. To allow claim payments to be made by electronic transfer.
B. To check claim information against details provided on the proposal form.
C. To enable intermediaries to access information electronically.
D. To help prevent fraud.
D. To help prevent fraud.
84
```
Which insurance policy condition can an insurer invoke to recover all of its outlay in respect of a claim?
A. Arbitration.
B. Average.
C. Contribution.
D. Subrogation.
```
D. Subrogation.
85
The purpose of the Claims and Underwriting Exchange is to
A. decide which party is liable for a claim.
B. help detect fraudulent claims.
C. pursue recovery of uninsured losses.
D. set premium rates.
B. help detect fraudulent claims.
86
```
Under an employers’ liability insurance policy, delays often occur between a claim being notified and final settlement. To ensure adequate funds are available to ultimately pay the claim, an insurer will rely on correct
A. excesses.
B. rates.
C. reserving.
D. wages declarations.
```
C. reserving.
87
```
An insurer can usually terminate an insurance policy without refunding premiums if the policyholder
A. arranges identical cover elsewhere.
B. becomes insolvent.
C. loses insurable interest.
D. makes a fraudulent claim.
```
D. makes a fraudulent claim.
88
A commercial fire insurance policy contains a condition requiring the insured to provide proof of loss. In the event of a fire giving rise to damage, the insured must supply the insurer with
A. a brief description of the damaged property.
B. full information relating to the damaged property.
C. a statement from the fire brigade about the cause of the fire.
D. a supplier’s estimate of the cost to replace the damaged property.
B. full information relating to the damaged property.
89
```
Mediation and conciliation are methods of
A. alternative dispute resolution.
B. assessing indemnity limits.
C. fraud detection.
D. reserving.
```
A. alternative dispute resolution.
90
```
John’s car is involved in an accident and declared to be beyond economic repair. He has a comprehensive insurance policy with no excess and his insurer assesses the pre-accident value of the car to be £1,000. The insurer estimates the salvage could be sold for £100, but John asks to keep the car. How much will the insurer offer to settle the claim?
A. £100
B. £900
C. £1,000
D. £1,100
```
B. £900
91
Colin has a comprehensive motor insurance policy allowing any driver to use his car. Joan, who has the same level of cover and a driving other cars extension, borrows Colin’s car and injures a third party whilst driving. How will the subsequent claim from the third party be dealt with?
A. Both insurers will share the cost of the claim equally.
B. Colin’s insurer will pay in full.
C. Joan’s insurer will pay for the injury claim and Colin’s insurer will pay for the damage claim.
D. Joan’s insurer will pay in full.
B. Colin’s insurer will pay in full.
92
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A workshop is insured for £40,000 under a fire insurance policy subject to the pro rata condition of average. A fire occurs causing £10,000 of damage and at the time of the fire the full rebuilding cost is assessed at £50,000. What amount, if any, is payable by the insurer?
A. Nil.
B. £2,000
C. £8,000
D. £10,000
```
C. £8,000
93
Gary would like to have a copy of all the records held on computer and paper by his insurer concerning his motor insurance policy and its associated claims. Under the General Data Protection Regulation, what are Gary’s rights, if any?
A. He has no right to have a copy of any records held.
B. He only has the right to have a copy of any computer records held.
C. He only has the right to have a copy of any paper records held.
D. He has the right to have a copy of both computer and paper records held.
D. He has the right to have a copy of both computer and paper records held.
94
A high street intermediary has installed a new router into its computer system. What is the main purpose of this device?
A. To create a daily backup of data.
B. To expand the system’s memory capacity.
C. To manage the flow of electronic traffic.
D. To protect the system from viruses.
C. To manage the flow of electronic traffic.
95
It is prudent for a company to house a backup copy of important computer data to protect the data from being
A. accessed by an unauthorised third party.
B. copied by an industrial spy.
C. lost due to a disastrous event such as a fire.
D. stolen by a competitor.
C. lost due to a disastrous event such as a fire.
96
What is the main reason for which an employee must enter a password before using a company computer?
A. To ensure that any documents printed will include employee details.
B. To prevent open access to confidential information.
C. To register the time that the employee signed in.
D. To run a report showing the amount of work input.
B. To prevent open access to confidential information.
97
```
Which type of computer-held data is regulated under the General Data Protection Regulation?
A. All data.
B. Corporate data only.
C. Personal data only.
D. Public data only.
```
C. Personal data only.
98
```
What major benefit is a customer most likely to derive from an insurer which has instigated a quality customer service policy?
A. Enhanced claim payments.
B. Faster claim settlements.
C. Longer policy terms.
D. Wider cover.
```
B. Faster claim settlements.
99
```
Which body imposes regulations which require claims to be handled promptly and fairly?
A. Association of British Insurers.
B. Chartered Insurance Institute.
C. Consumers’ Association.
D. Financial Conduct Authority.
```
D. Financial Conduct Authority.
100
```
When an insurer implements a service standard, this will usually be aimed at
A. all staff.
B. claims handlers only.
C. customer-facing staff only.
D. underwriters only.
```
A. all staff.
