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A risk that is always insurable is a
A risk that is always insurable is aA . fundamental risk. B. pure risk. C. speculative risk. D. capital risk.View AnswerAnswer: B
What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?
What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?A . Wear and tear. B. An excess. C. Brokerage. D. Loss of interest.View AnswerAnswer: A
Why would an insurer refuse to provide a quotation?
John wishes to insure his friend's house. Why would an insurer refuse to provide a quotation?A . His name is not on the mortgage. B. He does not have any subrogation rights. C. He does not live in the house. D. He does not have any insurable interest.View AnswerAnswer: D
Why does Peter NOT need to disclose this to his motor insurer?
Peter currently has no penalty points on his driving licence, although he was convicted of a minor motoring offence eight years ago. Why does Peter NOT need to disclose this to his motor insurer?A . It represents a physical hazard. B. It represents a moral hazard. C. It is a...
How does insurable interest arise, if at all. when an insurer arranges reinsurance?
How does insurable interest arise, if at all. when an insurer arranges reinsurance?A . Insurable interest does not arise. B. Insurable interest is created by statute. C. The insurer is considered to have insurable interest by virtue of its liability to pay claims. D. The policyholder is considered to have...
Under the Insurance: Conduct of Business sourcebook (ICOBS) on product disclosure, what information about the claims-handling process must an intermediary provide to a consumer?
Under the Insurance: Conduct of Business sourcebook (ICOBS) on product disclosure, what information about the claims-handling process must an intermediary provide to a consumer?A . The policy number only. B. The number of days the settlement should take. C. The contact details of the insurer. D. The contact details of...
How is this treated under the current Money Laundering Regulations?
Michael, an insurance company employee, strongly suspects that a recent transaction involved money laundering but decides NOT to report his suspicions to anyone. How is this treated under the current Money Laundering Regulations?A . It is a disciplinary offence under the Banking Code. B. It is a civil offence. C....
To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?
To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?A . The agent cannot delegate her responsibility. B. To suitably experienced individuals only. C. To suitably qualified individuals only. D. To anyone able to fulfil the duties.View AnswerAnswer: A
If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from
If an insured signs an agreement with a hold harmless clause, this may prevent the insurer fromA . disclosing details to a third party. B. reinsuring the risk. C. pursuing subrogation rights. D. increasing the premium.View AnswerAnswer: C
A loss adjuster normally acts on behalf of the
A loss adjuster normally acts on behalf of theA . insured. B. insurer. C. Financial Ombudsman Service. D. Financial Services Compensation Scheme.View AnswerAnswer: B
