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1. A house slatls to have subsidence problems due to the negligence of a cable-laying company. The owner of the house claims under his household buildings insurance policy. Which principle allows the insurer to recover from the cable-laying company?
A) Salvage.
B) Subrogation.
C) Contribution.
D) Assignment.
2. The purpose of the EU solvency requirements for insurers and intermediaries is to
A) create a standard format for the presentation of accounting data.
B) provide authorisation to transact insurance business.
C) strengthen the financial security of the insurer or intermediary.
D) introduce monitoring procedures by the Prudential Regulation Authority.
3. Who can place business directly with a Lloyd's underwriter?
A) Members of the public.
B) Lloyd's agents.
C) Lloyd's brokers only.
D) Lloyd's brokers and other intermediaries.
4. When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
A) At the lime of a claim.
B) Within 30 days of cover being incepted.
C) Within 7 days of a complaint being made.
D) At the time of the sale or immediately afterwards.
5. If a proposer has failed to fully answer a question on a proposal form, the insurer is deemed to have waived its rights to this information because it
A) does not have the right to ask the proposer for more information.
B) did not request further information.
C) has statistics on similar risks.
D) should be able to underwrite the risk based on the information already provided.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |
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