This set of questions, courtesy of online CII training package Insurance Assess, will test your knowledge of topics. The answers are at the bottom-¦
Under the Insurance Distribution Directive (IDD), what is the new category of firm called where insurance distribution is not their principle activity?
A. Secondary insurance intermediary
B. Ancillary insurance intermediary
C. Approved intermediaries
D. Out of scope intermediaries
Under the General Data Protection Regulation (GDPR), an insurer is regarded as which of these?
A. Data controller
B. Data processor
C. Data regulator
D. Data subject
Which of these purchases of insurance does the Civil Aviation Authority require commercial operators of drones to make?
A. Purchase accidental damage insurance
B. Purchase contingency insurance
C. Purchase employers' liability insurance
D. Purchase liability insurance
Which of these risks are likely to be covered by a cyber policy?
A. First party costs
B. Accidental damage
C. Third party costs
D. Loss of share value?
A. A and B
B. A and C
C. B and D
D. C and D
Which of these definitions describes a suitability statement?
A. A document required for all insurance distribution activities
B. A recommendation in writing by a broker for a generic type of client
C. A standard pro forma document issued toall clients
D. A summary of why the broker recommends a specific product for an individual client
Clive Barwell has a home contents insurance policy and has just bought himself a drone. He would like to know if this will be covered under the liability section of this home contents policy. Which of these statements should be your response?
A. Yes, drones are considered to be a standard personal possession and will be covered
B. Yes, drones are covered provided the insurers have been notified
C. No, drones require a special aviation policy
D. Insurers vary in their approach to drones and the wording will need to be checked
Which of these risks are generally excluded under a terrorism policy?
A. Cyber terrorism
B. Nuclear terrorism
C. Biological terrorism
D. War risks?
A. A and B
B. A and D
C. B and D
D. C and D
Under which claims track would a claim for injury compensation of £27,000 be likely to be dealt?
A. Fast track
B. Small claims track
C. Single track
D. Multi track
If a third party decides not to hire a car while their own is being repaired, they can submit a claim for which of these?
A. Punitive damages
B. Special damages
C. Diminution in value
D. Loss of use and inconvenience
Which of these savings should be deducted from a loss of profit claim submitted by a third party?
A. National Insurance
B. Income tax
C. Running costs
D. Corporation tax
1B. The IDD introduces a new category of firm called an ancillary insurance intermediary (AII).
2A. Under GDPR, insurers are classified as data controllers.
3D. Commercial operators of drones are regulated by the Civil Aviation Authority (CAA) which requires that they buy liability insurance.
4B. Cyber liability cover will usually be on an optional modular basis, and will typically include both first (A) and third (C) party costs.
5D. The suitability statement should record an explanation of why the broker is making the recommendation.
6D. Insurers currently vary as to their approach to the insurance of drones, some are excluding them from the liability section.
7B. Terrorism cover is ordinarily provided on an all risks basis, excluding cyber and war risks.
8D. Under the Civil Procedure Rules, proceedings for cases in excess of £25,000 are dealt with under the multi track.
9D. In some cases, the claimant doesn't claim for the cost of hiring a replacement vehicle, but instead submits a claim for the inconvenience of being deprived of their vehicle -- this is known as loss of use.
10C. Any claim for loss of profit should be net of savings such as running costs.