Topic 18 - Types of Financial Protection 2 Flashcards
Which of the following standard perils are specific to contents insurance?
A) Damage by storm and flood.
B) Damage or losses caused by theft and attempted theft.
C) Damage to computers and TVs.
D) Damage caused due to frozen or burst pipes.
E) Damage caused by impact from falling trees.
F) Replacement of locks and keys.
G) Theft of the insured’s money from another building.
H) Subsidence, landslip and heave.
B,C&G
Damage caused by escape of water oil is excluded from buildings insurance when the property is:
furnished.
unfurnished.
self-build.
unfurnished
If a mortgage borrower fails to maintain their buildings insurance premiums, the lender may:
repossess the mortgaged property.
choose to pay the outstanding premiums and add the payments to the mortgage loan.
choose to pay the outstanding premiums and charge the borrower a specified interest rate.
choose to pay the outstanding premiums and add the payments to the mortgage loan.
Landlord’s contents insurance will cover:
the landlord’s contents only.
both the landlord’s and the tenant’s contents.
the tenant’s contents only.
the landlord’s contents only.
ASU can work in conjunction with IPI. True or false?
True
An ASU redundancy claim is likely to be excluded if the applicant had:
no reason to expect the redundancy when they took out the policy.
previously been made redundant from a job unrelated to the claim.
reason to believe the redundancy was imminent when they took out the policy.
reason to believe the redundancy was imminent when they took out the policy.
If PPI is arranged on a joint basis to protect both mortgage borrowers, the premium will be:
the same as that quoted to protect one borrower.
double the amount quoted to protect one borrower.
variable depending on the second borrower’s health.
double the amount quoted to protect one borrower.
When using WoP, if the underlying plan is on a joint-life basis the WoP is always available to both of the lives assured. True or false?
False
Which rider benefit splits a joint life or CIC policy into two single policies if the need is evidenced?
Separation benefit.
Replacement benefit.
Life changes benefit.
Separation benefit.
MPPI usually allows:
one claim to be made.
more than one claim to be made.
more than one claim to be made.
Which rider benefit can allow an accelerated payment of death benefit on a life or IPI policy where the life assured has a short life expectancy?
Accidental death benefit.
Guaranteed insurability.
Terminal illness cover.
Terminal illness cover. - Terminal illness cover can allow an accelerated payment where the life assured has a short life expectancy, typically of under 12 months.
With a life changes benefit, which of the following may not be an eligible life change?
Divorce, dissolution or separation.
Buying a new car.
Moving house.
Buying a new car - Under a life changes benefit, if the customer experiences a significant life event for which they have evidence, they can increase a life policy’s sum assured without providing further underwriting information.
Which of the following employee protection schemes has tax efficiencies for the employer?
Relevant life policy.
Death-in-service benefit.
Relevant life policy - A relevant life policy offers a variant on a death-in-service benefit but with tax efficiencies for the employer.
Which form of self-build insurance covers liability exposure on a project during development?
Ten-year structural warranty.
Site insurance.
Contents insurance.
Site insurance - Site insurance covers liability exposure on a project during development, from the time when the insured assumes responsibility on a plot or property that is to be redeveloped or demolished.
An insurer cannot increase ASU premiums in light of poor claims experience. True or false?
False - ASU policies are annually renewable at the discretion of the insurer. This means the insurer can increase premiums in light of poor claims experience, or even withdraw cover that was previously available.
