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IF3 practice paper 1 > Pre Exam > Flashcards

Pre Exam Flashcards

(59 cards)

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1
Q

Consumer contracts should be

A

Full and accurate

Only obliged to answer questions on the proposal form

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2
Q

Non consumer contracts should be

A

A fair presentation of risk

A reasonable search for info has been done

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3
Q

If a circumstance or representation would influence an insurers decision to take a risk, it is…

A

Material

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4
Q

Contracting out is

A

Both parties can agree to revert to previous law ( marine 1906) but insurers must explain fully or it is void

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5
Q

Fair representation starts

A

When negotiations begin and lasts throughout a policy life

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6
Q

Duty if disclosure lasts

A

From start of negotiations to start of policy

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7
Q

Adjustable premium is relevant when

A

An estimate is provided

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8
Q

A flat premium is

A

Revealed in a proposal form and rating tools

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9
Q

A policy is evidence of

A

The contract not the contract itself

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10
Q

Rate per cent =

A

Price in ponds for each £100 of expenses

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11
Q

Rate per mile =

A

Price for each £1,000

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12
Q

A deposit premium is

A

Estimated and charged on an estimated figure, can be adjusted up and down

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13
Q

Cover note is…

A

Evidence the policy is in force

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14
Q

Fundamental risk

A

Too serious to be insured by a company I.e war

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15
Q

Warranties are

A

A promise made by the insured to control risk aspects

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16
Q

Comprehensive motor exclusions

A 
Wear and tear
Tyre damage
Mechanical/electrical failure
Depreciation 
Loss of use
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17
Q

Extended warranty limit is

A

2.5k

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18
Q

Travel policy extensions avail are

A

Failure of the tour organiser
Lack of services or amenities
Loss of passport
Legal expenses

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19
Q

Four groups of exclusions apply to all risks policy

A
  • absolute exclusions
  • Gradually operating exclusions
  • aspects of the cover can be written in
  • property or risks more suitable to another type of policy
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20
Q

Money policy may be extended to include

A

Personal accident/assault

Credit cards

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21
Q

Cyber losses may be 1sr or

A

3rd person, dependant on cover chosen

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22
Q

Helpline travel insurance is there for

A

Emergency medical services

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23
Q

Two main components of risk control are:

A

Physical

Financial

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24
Q

Maine rating factor for health insurance is

25
Main rating factor for buildings insurance is
Location and occupation.
26
Main purpose of insurance fraud bureau
Coordinate industry wide action in fighting crime and fraud
27
Sensitive personal data is classed as
Race , genetics, biometrics, sex life, orientation
28
Personal injury discount rate
March 2017 0.75% | August 2029 0.25%
29
Claims loss ratio
Claims / premium x 100
30
Gross profit calculation
(Turnover + closing stock) - (opening stock + uninsured working expenses)
31
Absolute exclusions are…
War,pollution,contamination consequential loss
32
Gradually operating exclusions are
Corrosion/rust, wind and rain damage to property in the open
33
Aspects of cover which can be written into a policy are
Money, glass and subsidence
34
Property or risks more appropriate to another class of business …
Motor vehicles, aircraft
35
Alteration is
Extends the duty of disclosure to a continuing duty
36
Contribution. Is
Deals with the idea of two policies being in place for one loss and how the insured share the costs
37
Average calculation
Value insured under the policy / value at risk x the loss I.e 200,000 ( bdv) / 250,000 (actual value) x 50,000 (loss) = 40,000
38
Deductible
Essentially a large excess
39
Franchises are
A fixed amount or period that acts to determine whether claims are payable. Once the amount of period is exceeded a claim is payable in full, if it is not exceeded nothing is payable
40
Conditions precedent to the contract
Must be fulfilled before formation of the contract
41
Conditions subsequent to the contract
Must be complied with once the contract is in place
42
Conditions precedent to liability is
Must be complied with for there to be as valid claim
43
Icons rule 6.5 r is
A firm must take reasonable steps to ensure a customer is given appropriate info about a policy in good time so they can make an informed decision about arrangements proposed
44
Road traffic only cover is
1.2m limit Bodily injury or death of third parties Claimants costs and expenses Emergency medical treatment arising out of vehicle use
45
Third party only motor cover is
20 mil limit 3rd party damage Indemnity to insureds employer of policy covers business use Indemnity Liability of passengers Legal costs to defend a claim
46
Third party fire and theft motor cover is
In addition to third party cover it includes: Compensation if vehicle is stolen or damaged during theft Damaged by FLEA
47
Main types of commercial vehicle are
Goods carrying vehicles Agricultural vehicles Passenger carrying vehicles Special construction vehicles
48
Third party liability indemnity for commercial vehicles is
between 1.2 -5 mil
49
Two main purposes of fleet insurance
Enable rating to be carried out taking in to account the individual experience of the particular policy holder and requires a minimum number of vehicles (10) Reduce admin for the policyholder
50
Employers liability certificates must be kept for
40 years
51
Three steps In with Managing a risk are
Identification Analysis Control
52
Risk identification is
Analysis of the up and downside of a risk - survey
53
Risk analysis is
Examining past data to evaluate the risk
54
Risk control is
Putting in to action plans to reduce and even eliminate a risk
55
MIAFTR is
Contains details of all loss and theft claims - check if claim has been submitted more than once
56
MID ( motor insurance database) is
Details of all registered vehicles in the uk
57
DSAR means
Data subject access request - individuals right to access personal database
58
How long do organisations have to respond to a DSAR
1 month
59
Equality act 2010
Unlawful to discriminate against disabled people in insurance unless based upon relevant info

IF3 practice paper 1 (3 decks)

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