This set of questions, courtesy of online CII training package insurance Assess
Which of these statements describes the term dual pricing?
A. Charging customers, following a claim, an increased premium for the remainder of the policy period
B. Charging different customers different premiums for the same risk
C. Charging different premiums for those that pay annually and those that pay monthly
D. Charging different rates for different sections of a policy
On which basis are the majority of home buildings claims settled?
A. Reinstatement basis
B. Reinstatement basis if the item is less than three years old
C. Reinstatement basis less 10%
D. Reinstatement basis less wear and tear
Which of these is typically excluded under the impact section of a home buildings policy?
A. Damage caused by the insured's pet dog
B. Damage caused by a falling aeroplane
C. Damage caused by collision by a car
D. Damage caused by collision from a neighbour's cows escaping from their field
Which of these does the DVLA require every driver to do when they reach age 70?
A. Complete DVLA form D100 relating to their fitness to drive
B. A full medical to confirm fitness to drive
C. Take (or resit) the driving theory test
D. Take (or resit) the driving practical test
Which of these statements is true of political violence insurance?
A. It can be bought for selected locations or properties
B. It carries no country exclusions
C. It covers only office premises
D. It must cover all locations under a general property cover
A political violence insurance (PVI) policy usually lasts for how long?
A. Five years or 10 years
B. One year up to three years
C. Up to one month
D. Up to six months
Which of these statements defines an uninsured peril?
A. One that is excluded by the policy
B. One that is not mentioned as being covered nor excluded in the policy wording
C. One that would never be considered in handling a claim
D. Optional extra cover when affecting a policy
Which of these criminal acts is believed to be the fastest growing crime globally?
A. Cyber crime
B. Malicious damage
C. Theft of data
D. Theft of tangible items
Factoring is used by companies to achieve which of these?
A. Obtain protection on debtors that have been declined by trade credit insurance underwriters
B. Raise additional capacity on existing trade credit insured goods debtors to sell more to them
C. Raise capital through the discounting/sale of their invoices to a factoring company to generate cash flow
D. Raise capital through the discounting/sale of their invoices to a factoring company to immediately increase profits
A reserve is allocated to every claim. Why do insurers need to understand the total sum of the reserves for outstanding claims?
A. They allow insurers to calculate the total estimates
B. They allow insurers to calculate the total number of new claims
C. They allow insurers to calculate their total liabilities
D. They allow insurers to calculate their total assets
1B. Dual or differential pricing involves the use of cross-subsidies or price discrimination between customers.
2A. The majority of buildings policies are on a reinstatement basis.
3A. Damage caused by pets is normally excluded under the cover provided by collision by animals.
4A. Complete DVLA form D100 relating to their fitness to drive.
5D. PVI must cover all locations under a general property cover.
6B. Political violence policies usually last for one year or up to three years.
7B. An uninsured peril is one that is not mentioned in the policy as being covered or excluded.
8A. Criminals are generally able to pursue their trade online from remote locations with only limited risk of being apprehended.
9C. Factoring is a method a company can use to raise capital.
10C. Reserves are essential for the financial security of the insurer. They allow the insurer to calculate the total amount of its liabilities.
7–8 Very good