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| Section | Objectives |
|---|---|
| Topic 1: Insurance Regulation and Compliance | - Conduct of business rules and consumer protection - Ethics and professional standards - Regulatory framework in the UK (FCA and PRA) |
| Topic 2: Agency and Insurance Practice | - Principles of agency law - Authority and responsibilities of agents and brokers |
| Topic 3: Legal Principles Relevant to Insurance | - Law of contract
|
| Topic 4: Insurance Market and Environment | - Key participants and their roles (insurers, brokers, intermediaries) - Types of insurance products and services - Structure of the UK insurance market |
| Topic 5: Insurance Principles and Practice | - Claims handling and underwriting basics - Principles of insurance (insurable interest, utmost good faith, indemnity) |
1. Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the
A) Association of British Insurers.
B) Financial Services Compensation Scheme.
C) Financial Ombudsman Service.
D) European Union.
2. 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 number of days the settlement should take.
B) The policy number only.
C) The contact details of the loss adjuster used by the insurer.
D) The contact details of the insurer.
3. 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) An income protection insurance policy.
B) A travel insurance policy.
C) A money insurance policy.
D) A personal accident and sickness insurance policy.
4. Self-insurance arises when a
A) policyholder finds that he has inadvertently taken out more than one policy covering the same risk.
B) number of insurers agree to collectively insure a particular risk in agreed proportions.
C) company decides to set aside a fund to pay losses that may occur.
D) policyholder decides to insure proportions of his property with different insurers.
5. 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 dealt with by the Money Laundering Joint Steering Committee.
B) It is a criminal offence.
C) It is a civil offence.
D) It is a disciplinary offence under the Banking Code.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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