Study session 3 Flashcards
(28 cards)
How is contract certainty achieved
By the complete and final agreement of all terms between the insured and insurer by the time that they enter into contract, with contract documentation provided promptly thereafter
Contract certainty Principle A
When entering into a contract, the insurer and broker must ensure that all terms are clear and unambiguous by the time the offer is made or accepted. all terms must be clearly expressed, including any conditions or subjectivities
market reform contracts structure
Risk details, information, security details, subscription agreement. fiscal and regulatory. broker remuneration
Security details in MRC/slip
Subscription agreement in MRC/slip
Terms and conditions (condition)
going to the heart of the contract- across the whole policy
Terms and conditions (Warranty)
only specific to an area or certain part of the contract
if breach of warranties
(insurance act 2015) policy is suspended until remedied
if breach of condition
insurance stopped from beginning (abinitio)
delegated authority
allow insurers to delegate their underwriting authority to cover holders who may issue policies on the insurer’s behalf
consortium
group of insurers who formed an agreement to accept a risk
Lineslip
group of insurers brought together by a broker to agree to accept a risk
binder
FNOL
First notification of loss
SCAT
Singla claims agreement party
XCS
Xchanging claims service
ICOB
Insurance conduct of business
ICOB section 8.1.1
lays out basics on how to handle a claim
Enterprise Act 2016
ICOB section 8.1.2
Sets out when it is reasonable to decline a claim
consumer means
only applies to personal lines customers
ICOB section 8.1.3
which regulatory body is responsible for the implementation and management of sanctions
Office of Financial Sanctions Implementation (OFSI)
