This set of questions, courtesy of online CII training package insurance Assess
Question 1
Which of these explains the purpose of the subrogation condition in motor fleet policies?
A. It enables the insurers to commence proceedings against the third party before they have indemnified their policyholder
B. It warns the policyholder not to admit liability for an accident
C. It requires the policyholder to report an accident as soon as possible
D. It requires the policyholder to claim under any other policy covering the loss
Question 2
Which of these is not a term used to describe an errors and omissions policy?
A. Malpractice
B. Products liability
C. Professional indemnity
D. Professional liability
Question 3
All firms that sell home contents insurance are authorised by which of these bodies?
A. Association of British Travel Agents (ABTA)
B. British Association of Insurance Brokers (BIBA)
C. Financial Conduct Authority (FCA)
D. Prudential Regulatory Authority (PRA)
Question 4
Which of these methods of indemnifying a policyholder is most associated with a buildings claim?
A. Cash
B. Reinstatement
C. Repairs
D. Replacement
Question 5
Can a travel agent make it compulsory for a customer to purchase the insurance sold with a package holiday?
A. No, legislation prevents holiday operators making it compulsory for customers to purchase their own insurance
B. No, the FCA insists on freedom of choice for customers
C. Yes, holiday operators can make it compulsory for a customer to purchase insurance
D. Yes, providing the policy meets the needs of the custome
Question 6
Which of these is covered under the business interruption section of a block of flats insurance policy?
A. Loss of rental income without restriction
B. Loss of rental income during the indemnity period
C. Loss of rental income only until the building is repaired
D. Loss of rental income only until the renewal date
Question 7
Driving without insurance can be most accurately described as which of these?
A. A tort
B. A nuisance
C. A negligent act
D. A criminal offence
Question 8
Which of these legal entities create a 'statutory liability' in the UK?
A. Past judicial decisions
B. Agreements between one party and another
C. Contract
D. Acts of UK Parliament
Question 9
In terms of fidelity guarantee insurance, what is the purpose of a system of check?
A. To increase the likelihood of detecting problems and reduce the frequency or size of a potential loss
B. To demonstrate to the insurers at proposal stage that an employer's processes are professional and fail-safe
C. To enable an insurer to assess a proposal for fidelity guarantee cover
D. To allow an insurer to determine quickly whether a fidelity guarantee claim is valid
Question 10
To whom does a broker have a primary duty?
A. Employees
B. Insurer
C. Loss adjusters
D. Policyholder
Answers
1A. Enables insurers to commence proceedings against third party before they have indemnified their policyholder.
2B. While there used to be a clear distinction between professional indemnity and errors and omissions insurance, the two terms have since converged to mean insurance covering mistakes made by professionals, and are often used interchangeably.
3C. The FCA.
4B. Reinstatement.
5A. No, legislation prevents holiday operators making it compulsory for customers to purchase their own insurance.
6B. The loss of rental income is insurable up to the sum insured and indemnity period selected.
7D. It is a criminal offence to use a vehicle on a road without third party insurance cover as described in the Road Traffic Act.
8D. Legislation can directly impose duties and liabilities on individuals or organisations.
9A. A system of check is an important internal auditing and risk control mechanism, which increases the likelihood of detecting problems at an early stage and thus reduces the frequency or size of a potential loss.
10D. The policyholder.
Your score
1–3 Poor
4–6 Good
7–8 Very good
9-10 Excellent
