On what basis do insurers set premium rates?
A – For each individual, based on the proportion of the loan amount to the overall cost of the vehicle
B – For groups of customers, regardless of personal details or even dangerous hobbies
C – For individual customers, based on the values of the vehicles being purchased
D – For specific groups of customers, but excluding those with high risk personal details or dangerous hobbies
B: Insurers apply premium rates to groups of customers, taking no account of their personal details or generally the extent to which they engage in dangerous activities.
A: A promise by the insurer that cover will continue as long as the premium is paid by the insured B: A promise by the insured that the items of value will be stored in a locked safe overnight
4B: Future loss of earnings is an award made to compensate claimants for the loss of earnings they are likely to sustain going forward after the date of settlement, as a result of their injury. Therefore, the date they start to accrue is the date of settlement or trial date.
A five-year endowment policy matured on 1 August 2017 with a maturity value of £40,000. The policy had been taken out with a single premium of £30,000. What is the amount of the top-sliced gain?
D: The chargeable gain is £10,000 being the maturity value of £40,000 less the single premium of £30,000. The top sliced gain is £10,000/5 years = £2,000.