< Study Room | 26.06.2020

THE BIG TEN

THE BIG TEN

This set of questions, courtesy of online CII training package Insurance Assess, will test your knowledge of topics.

Answers are at the bottom

Question 1

Which of these is the trigger found in the liability sections of cyber policies?

A. Claims made
B. Occurrence
C. Causation
D. Manifestation

Question 2

In respect of cyber risks, which of these is a form of computer infection?

A. Worm
B. Slug
C. Snail
D. Germ

Question 3

In respect of cyber risks, which of these statements explains what cloud computing is?

A. A brand name for an internet services provider
B. A type of computing in which IT-related capabilities are provided as a service by a third party using internet technologies
C. A type of backup hot-start system
D. A form of social networking site

Question 4

Which of these is not a common claims condition in a cyber policy?

A. Fraud/non-disclosure
B. Repairs must be carried out within 12 months of the loss
C. No duty to defend
D. Claims series

Question 5

When considering political risk insurance, which of these actions will all underwriters take?

A. Refer to their country risk rating model
B. Deal with country risk after the premium has been fixed
C. Look only at the possibility of invasion
D. Check the credit rating of the insured

Question 6

Lloyd’s syndicates are regulated by:

A. Government statute
B. Lloyd’s and the Financial Conduct Authority
C. Lloyd’s only
D. The Financial Conduct Authority only

Question 7

Assuming a travel insurance policy is in force, when does cover for cancellation commence?

A. Once the final payment has been made
B. Once the holiday is booked
C. Three months before departure date
D. When the holiday journey starts

Question 8

Under a business interruption policy, the percentage limit under a supplier’s extension should be based on what? The percentage of:

A. The insured’s annual turnover
B. The insured’s turnover during the indemnity period
C. The total gross profit over the period of insurance that could be lost following damage at the supplier’s premises
D. The total gross profit over the maximum indemnity period that could be lost following damage at the supplier’s premises

Question 9

What is the purpose of the departmental clause in a business interruption policy?

A. It requires the policyholder to calculate losses on a department-by-department basis
B. It allows insurers to calculate losses on a department-by-department basis if they wish
C. It allows the policyholder to calculate losses on a department-by-department basis if they wish
D. It allows insurers to exclude payments to any departments not making a net profit

Question 10

Why do business interruption policies include a material damage proviso?

A. To ensure finance is available to reinstate the damaged property
B. To ensure that the insurer will not have to pay large claims
C. To ensure the insurer gets the premium for property cover as well
D. To ensure that the insured buys business interruption cover


ANSWERS

1A. Liability sections are all on a claims-made basis.

2A. The following are common infections: viruses; worms; trojans; malware and spyware.

3B. Cloud computing relies on the cloud provider creating a network of hosting computers that are connected.

4B. Insurers will expect prompt mitigation of the loss but there is usually no clause requiring reinstatement within a set period.

5A. Underwriters will always refer to their country risk rating model.

6B. All Lloyd’s syndicates are regulated by Lloyd’s and the Financial Conduct Authority.

7B. The cancellation cover commences from when the holiday is booked and continues until departure date.

8D. Suppliers’ extensions must be assessed independently and the figure chosen should represent the percentage of the gross profit over the whole indemnity period that could be lost as a result of damage at that premises.

9C. It allows the policyholder to opt for the rate of gross profit and economic limit calculations to be made at departmental level rather than for the business as a whole.

10A. It means the business interruption insurers can be confident that the damaged property will be repaired or reinstated.

 

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9-10 Excellent

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This set of questions, courtesy of online CII training package Insurance Assess, will test your knowledge of topics. The answers are at the bottom...