Random Mix Flashcards
(93 cards)
What type of insurance provides cover for businesses against the risk of their debtors being unable to meet their obligations?
Credit insurance
Risks where there is historical data relating to the exposure to a large number of similar risks are known as:
Objective Risks
Marine freight insurance covers…
Liability for damage to goods carried.
A collective policy is issued when a risk is:
co-insured
A money policy provides cover for:
all risks
A large haulage company decides to buy third party only motor cover for their fleet of vehicles and makes provision for any damage to their own vehicles to be repaired through their own vehicle maintenance workshops. This is an example of:
self-insurance
Imran has arranged a travel policy for his summer holiday in Spain, which includes cover for baggage and personal effects. He also has a household policy which includes ‘all risks’ cover for personal possessions whilst anywhere in Europe. This is an example of:
dual insurance
Which of the following is a type of pecuniary insurance?
Political Risk
For companies quoted on the stock market it is a legal requirement:
to identify all significant risks to which the business is exposed
From a regulatory perspective, a protective cell company is required to have an approved business plan for:
each cell
Arranging reinsurance on a single known risk is known as:
facultative re-insurance
What is the role of a members’ agent at Lloyd’s?
Advising their clients on the advantages and disadvantages of investing in the Lloyd’s market
Who must be capable of offering advice on the basis of a fair analysis of the market?
An independent intermediary
A Societas Europaeas is subject to taxes and charges:
in all EU states where their administrative centres are situated.
Jim runs a internet mail order company selling electrical goods. With each order he despatches he inserts a brochure for extended warranty cover on behalf of the Swift Repair Insurance Company, giving details of how to contact them for a quotation. Under regulatory rules Jim is acting as an:
introducer appointed representative
Companies that manage one or more Lloyd’s syndicates on behalf of the members are known as
managing agents
The Legislative Reform (Lloyd’s) Order 2008 introduced which of the following changes?
It removed the restriction that only allowed a Lloyd’s broker to place business at Lloyd’s.
When a reinsurer seeks to transfer some of a risk to another reinsurer, the risk placed in this way is called a:
retrocession
Protection and indemnity clubs are associated with what type of insurance?
Marine liability
In which main area do mutual indemnity associations operate today?
Marine insurance
Which of the following developments in the insurance market is an example of consolidation in the insurance sector?
The growth of broker networks.
Which of the following developments in the insurance market is an example of consolidation in the insurance sector?
The growth of broker networks.
Under the law of agency, what is an ‘undisclosed principal’?
Someone for whom an agent acts whilst seeming to act on their own behalf.
When a policy is due for renewal, which of the following is an insurer required to do to comply with Financial Conduct Authority (FCA) rules?
Provide information in good time so that customers can make an informed decision.