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| Section | Objectives |
|---|---|
| Agency and Insurance Practice | - Authority and responsibilities of agents and brokers - Principles of agency law |
| Legal Principles Relevant to Insurance | - Law of tort
|
| Insurance Principles and Practice | - Claims handling and underwriting basics - Principles of insurance (insurable interest, utmost good faith, indemnity) |
| Insurance Market and Environment | - Structure of the UK insurance market - Types of insurance products and services - Key participants and their roles (insurers, brokers, intermediaries) |
| Insurance Regulation and Compliance | - Conduct of business rules and consumer protection - Regulatory framework in the UK (FCA and PRA) - Ethics and professional standards |
1. Julie has cancelled her trip to tlaly as she has broken her leg. Which type of insurance policy is specifically designed to compensate Julie for any cancellation charges she has incurred?
A) A personal accident and sickness insurance policy.
B) An income protection insurance policy.
C) A travel insurance policy.
D) A money insurance policy.
2. What is the basis of settlement under a new for old insurance policy if a television is stolen?
A) The replacement cost in full.
B) The original cost, less wear and tear.
C) The replacement cost, less wear and tear.
D) The original cost in full.
3. A loss adjuster normally acts on behalf of the
A) insurer.
B) insured.
C) Financial Ombudsman Service.
D) Financial Services Compensation Scheme.
4. In order for a contract to be legally enforceable, what further action is required after offer and acceptance?
A) Delivery of goods or services concerned.
B) Exchange of consideration between the two parties.
C) Witnessing by a third party.
D) Provision of written terms and conditions.
5. How is Insurance Premium Tax collected within the UK?
A) By the insurer on individual insurance contracts.
B) By the insurer on the whole general and life accounts.
C) By HM Revenue & Customs on the whole general account.
D) By HM Revenue & Customs on individual insurance contracts.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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