Policy Wordings And Renewals

Question 1

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

Answer 1

Warranty

Question 2

Under which part of a property insurance policy will the insured perils be listed?

Answer 2

Operative clause

Question 3

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?

Answer 3

The insurer can reject the claim in it’s entirety.

Question 4

Which part of an insurance policy personalises the cover to the insured?

Answer 4

The schedule

Question 5

A household insurer usually grants a limited grace period in order to give an insurance policyholder time to

Answer 5

Pay the renewal premium, this will never apply to motor because Renewal notice, receipt and certificate or prepared in advance of the renewal date

Question 6

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?

Answer 6

A recorded delivery letter to the insured’s last known address

Question 7

Under a cancellation clause, when may an insurer cancel an insurance policy?

Answer 7

At any time during the period of the policy

Question 8

A franchise is a policy term whereby…

Answer 8

The insurer pays the full value of any claim which exceeds an agreed amount

Question 9

A time franchise

Answer 9

Is what you see in sickness cover

Question 10

A public liability policy contains a condition press send on to liability concerning precautions to be taken when using cutting torches. In the event of a claim for damages arising out of the use of cutting torches if the insured has specifically failed to comply with this condition than the insurer will normally

Answer 10

Refuse to settle the claim

Question 11

Under CIDRA what rights does an insurer have when a consumer makes a careless miss representation?

Answer 11

The insurer can act as it would have done if the question had been answered correctly. For example if it would have charged a higher premium it can pay the claim in proportion to the reduction in premium gained by misrepresentation

Question 12

Under CIDRA what rights does an insurer have when a consumer makes a reckless miss representation?

Answer 12

The insurer can treat the policy as void and decline all claims

Question 13

What are the main components of an insurance policy?

Answer 13

Heading. Recital clause or preamble. Signature. Operative clause. Exclusions. Conditions. Policy schedule

Question 14

What is the purpose of the operative close

Answer 14

Describe the scope of the cover in detail

Question 15

What are the general exclusion is common to all property insurances

Answer 15

War and related pebbles. Riot and civil commotion. Radioactive contamination and explosive nuclear assemblies. Terrorism. Pollution and or contamination. Marine policies and sonic bangs

Question 16

Which policy conditions are common to most general insurances

Answer 16

Duties of the policyholder. Alteration. Action by the insured in the event of a claim. Fraud. Reasonable precautions. Average for property insurances. Contribution. Subrogation. Arbitration and cancellation

Question 17

What is an excess

Answer 17

An excess is the first amount of each and every claim that is born by the insured

Question 18

What is a deductible

Answer 18

A deductible is a very large access and applies to commercial rather than personal insurances

Question 19

What is a franchise

Answer 19

A franchise is a threshold used to determine whether claims are payable at all if the threshold is exceeded the claim is payable in full

Question 20

What are the two main categories of policy conditions?

Answer 20

Conditions precedent to the contract. Conditions precedent to liability.

Question 21

What is the purpose of a renewal notice

Answer 21

A renewal notice brings to the insured attention to the fact that the insurance contract is about to expire. The premium to renew the policy is shown on the renewal notice

Question 22

Policy wording

Answer 22

policies are issued in a schedule form. The policy wording is pre-printed and a schedule, containing the variable information concerning the actual risk insured is incorporated at the end of the policy.

Question 23

Policy wordings

Answer 23

For personal policies basic policy wording so often available in view online

Question 24

Policy wordings

Answer 24

General insurance policies usually contain a heading, a recital clause and a signature

Question 25

The operative clause is described as

Answer 25

The scope of the cover and sections detailing the exclusions and conditions are also included

Question 26

What is a recital clause

Answer 26

Set the scene for what follows in the policy by referring to the two parties insured and the insurer but not by name, coming together to form the contract by which the insurer in return for the premium, undertakes to indemnify the policyholder in accordance with the cover detailed in the policy

Question 27

What are the elements in a recital close

Answer 27

Policy conditions. Schedule application to the insured. Proposal confirmation. The insured is also a reminder to check the accuracy of the contents of the proposal confirmation as failure to provide the correct information they may result in a policy pain invalidated a client being rejected or claim not being paid in full

Question 28

The proposal form

Answer 28

The proposal form is part of the contract even though it is not printed within the policy

Question 29

Specific and general exclusions

Answer 29

Specific exclusions relate to that particular part of the policy. General exclusions apply to the policy as a whole like market exclusions

Question 30

Oh policies contain a list of conditions and some are coming to the policy types for example

Answer 30

Conditions relating to the duties of the insured, conditions are average, contribution and subrogtion

Question 31

What is a compulsory excess

Answer 31

It is imposed on the insured by the insurer

Question 32

What is a voluntary excess

Answer 32

Accepted by the insured in return for a premium discount

Question 33

Information and facilities many policies also provide information on a number of topics such as

Answer 33

Definition of word terms used, a statement of customer service standards and the complaints procedure

Question 34

What is a franchise not to be confused with a time franchise

Answer 34

A franchise is a fixed amount or period that acts as a freestyle to determine whether claims are payable. Once the amount or period is exceeded the claim is paid in full

Question 35

What is a time franchise

Answer 35

A time franchise relates to personal accident and sickness. Four sickness it can be paid up to 104 weeks. A claim cannot be made within the first 21 days of taking out the policy. In a sickness policy you must be ill for more than seven days to receive benefits

Question 36

What is a warranty

Answer 36

Are you warranty is a stipulation made in a policy that certain things are so and remain so or that a certain thing will or will not be done. I warranty must be strictly complied with

Question 37

In the event of breach of warranty what are the FCA rules

Answer 37

An insurer will not repudiator claim made by consumer on the grounds of breach of warranty if it is unrelated to the loss

Question 38

Warranties under the insurance act 2015 are regarded as

Answer 38

Suspensive and only relieve insurers of liability while the warranty is not complied with and where the lost relates to the risk the warranty was designed to mitigate

Question 39

Conditions can be precedent to the contract or precedent to liability

Answer 39

precedent to the contract I’m not complied with the validity of the insurance contract is put in doubt. For example insurable interest

Question 40

Conditions precedent to liability must be complied with…

Answer 40

If I claim is to be valid

Question 41

How is exclusions defined

Answer 41

It is defined as the boundaries of the policy cover

Question 42

What are representations

Answer 42

Representations are the information provided during the negotiations which form the basis of the insurance but which do not appear within the policy. Given a force information is called misrepresentation

Question 43

Renewals

Answer 43

Most policies one for period of 12 months and in most cases insurers will look to secure the business for another year although they have no obligation to do so

Question 44

What do the FCA rules state about renewal notice

Answer 44

That this must be done insufficient time and contain sufficient information to enable the customer to make an informed decision

Question 45

What must they renewal notice include for consumers

Answer 45

Renewal premium, the previous years premium and a statement that the consumer should ensure that the level of cover is appropriate and compare prices and cover with other providers. Renewal premium can be paid at once or in instalments

Question 46

Under the cancellation clause of a personal insurance policy what minimum period of time as an issue a give the policyholder when sending the required registered letter to the policyholders last known address

Answer 46

Seven days

Question 47

Where in an insurance policy does it usually state that the insurer will not be liable to pay a fraudulent claim

Answer 47

The general conditions

Question 48

In general insurance policy details of the insured on the subject matter of insurance or given in the

Answer 48

Policy schedule

Question 49

What key financial information we’re an underwriter ask a proposal in order to write a professional indemnity risk

Answer 49

Gross revenue

Question 50

During the course of negotiating a business insurance contract a proposal may make statements concerning the nature of risk this type of statement is known as

Answer 50

Representation

Question 51

A fifth insurance policy contains a stipulation that they insured premises are protected by a burglar alarm what does the stipulation constitute

Answer 51

An express warranty

Question 52

A Market exclusions apply

Answer 52

To all areas of general insurance policies

Question 53

Arbitration relates to

Answer 53

Only to disputes regarding the amount of the claim

Question 54

What is the purpose of the policy schedule

Answer 54

The purpose is to make the policy personal and specific to the insured a policy which is in a schedule form is issued using a pre-printed wording

Question 55

What is an operative clause

Answer 55

Sets out the cover provided

Question 56

Although radioactive contamination and explosive nuclear assemblies are part of a market explosion it can be insured through

Answer 56

Specialist market pools

Question 57

Terrorism is a market explosion by insurance can be available through

Answer 57

Reinsurance Pool RE any resulting amount that can't be paid the government will chip in

Question 58

Specific exceptions apply to

Answer 58

An individual section of a policy

Question 59

General exceptions Apply to

Answer 59

The whole policy like market exclusions

Question 60

Under contract certainty Policy documentation connected with renewal for a consumer must be provided no later than

Answer 60

Seven working days after renewal

Question 61

The counterterrorism and border security act extended to terrorism cover offered by POOL RE To include

Answer 61

None damage business interruption losses

Question 62

What does the preamble state

Answer 62

That it is a contract between the insured and insurer

Question 63

The FCA rules covering renewals for consumer customers applies to

Answer 63

All policies with a duration of 10 months or more

Question 64

The information and facility facility section of a policy contains information on what to do in the event of an accident this is most commonly found in what type of policy

Answer 64

Private motor

Question 65

A condition subsequent to the contract must be

Answer 65

Complied with once the contract is in force