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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

In the context of political risks, which body is known by the initials ICC?

A. International Chamber of Commerce
B. Institute of Commercial Cover
C. Investment for Climate Change
D. International Commercial Cooperative

Question 2

Which of these has been the major driver behind growth in demand for crime insurance in recent years?

A. Shareholder pressure to protect their assets
B. Increasing crime rates for theft and malicious damage
C. The demand to consolidate cover
D. The growth in cyber-related crime

Question 3

According to the Allianz Risk Barometer survey 2019, approximately how many UK SME businesses lack adequate business interruption cover?
A. 20%
B. 25%
C. 30%
D. 40%

Question 4

What is meant by the term ‘domiciliary care’?
A. Care at home
B. Care in a nursing care home
C. Care in a residential care home
D. Care in a residential or nursing care home

Question 5

Which of these insurance policies will cover the costs of restoring or reinstating data after a deliberate attack by a hacker?

A. Combined general liability
B. Cyber risk policy
C. Property damage
D. Business interruption policy

Question 6

Under a business interruption insurance policy, why do insurers pay for ‘increased cost of working’?

A. Because banks, which finance the insured during the recovery period, insist on it
B. Because they see it as a valuable extra cover for the insured
C. As a goodwill gesture to the insured
D. To speed up the recovery of the business and reduce the total cost of the claim

Question 7

Which of these statements best describes legal expenses insurance?

A. Financial protection for legal costs and compensation that arise as a result of a dispute flowing from certain events
B. Financial protection for legal costs that arise as a result of a disputes flowing from certain events
C. A scheme partially funded by the government to compensate for the demise of the legal
aid system
D. A scheme partially funded by the law society to compensate for the demise of the legal aid system

Question 8

Which of these organisations regulates the motor-fleet insurance industry?

A. The Association of British Insurers (ABI)
B. The Financial Conduct Authority (FCA)
C. The Financial Ombudsman Bureau (FOS)
D. The Financial Services Authority (FSA)

Question 9

In a business travel policy, which of these does the operative time define?

A. When the cover is in place
B. When the policy expires
C. When the policy period will begin
D. When the policy will renew

Question 10

Which types of conditions does private medical insurance mainly cover?

A. Chronic conditions
B. Any acute or chronic conditions
C. Acute conditions
D. Life-threatening acute conditions only


ANSWERS

1A. The letters ICC stand for International Chamber of Commerce.

2D. Cyber crime is generally recognised as the fastest-growing crime internationally.

3D. It’s estimated that 40% of UK SME businesses lack adequate business interruption cover.

4A. Domiciliary care is care at home – this can be personal, domestic or nursing care.

5B. Cyber insurance covers the cost of restoring or reinstating the data.

6D. If profits reduce as a result of a fall in turnover or sales following damage insured under a material damage policy, business interruption insurers will pay for the shortfall.

7B. Legal expenses insurance provides financial protection for legal costs that arise as a result
of a dispute flowing from certain events.

8B. Commercial vehicle insurers are authorised and regulated by the Financial Conduct Authority (FCA), which was created by the Financial Services Act 2012.

9A. The operative time defines when the cover is in place. 10C. Private medical insurance is designed to pay the bills of private treatment for acute conditions (short-term and curable).

 

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