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THE BIG TEN- December 2019

THE BIG TEN- December 2019

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

Within the marine class of business, which of these types of vessels would you not expect to see?

A. Cruise vessels, cargo vessels, oil tankers/gas carriers
B. Luxury motor vessels
C. Nuclear submarines
D. Specialist craft (tugs, dredgers, light ships, salvage vessels, etc)

Question 2

In respect of cyber risk insurance, how do insurers avoid paying claims for short business interruptions?

A. Limiting the cyber perils covered so those likely to cause short interruptions are excluded
B.Insisting on backup systems and software being kept by the insured
C. Adding a time excess to the policy
D. Sub-limiting the cover

Question 3

A high net worth policyholder sustains subsidence damage to their swimming pool. Which of these outlines the cover provided by their policy?

A.Subsidence damage to the swimming pool is covered only if the main building also incurs subsidence damage at the same time
B. Cover is provided, as high net worth policies are written on an ‘all risks’ basis of coverisk
C. Subsidence damage to swimming pools is specifically excluded, as they are particularly susceptible to subsidence
D. There is no cover as swimming pools are not included in the definition of ‘buildings’

Question 4 

Which of these usually completes a business interruption report?

A. An independent ratings agency
B. The insurer’s surveyor
C. The client’s financial management team
D. The broker’s account executive

Question 5

Which of these describes the first stage in risk management?

A. Control
B. Identification
C. Analysis
D. Transfer

Question 6

Which of these can usually be insured under a theft policy?

A. Motor vehicles
B. Goods being delivered
C. Stock contained within the business premises
D. Property stored in vacant premises

Question 7

What savings should be deducted from a loss of profit claim?

A. Income tax
B. National Insurance
C. Running costs
D. Corporation tax

Question 8

What is the level of proof required in civil cases in a court of law?

A. Beyond all reasonable doubt
B. On the balance of possibilities
C. On the balance of probabilities
D. Absolute proof

Question 9

Which of these recall costs will be covered by a products recall policy?

A. Costs incurred within 12 months of the injury or damage occurring
B. Costs incurred within the policy period
C. Costs incurred within 12 months of the insured becoming aware of the insured event
D. Costs incurred within 12 months of the product recall

Question 10

Which of these overseas clauses are often used in the UK marine hull insurance market?

A. American and Norwegian clauses
B. American and Japanese clauses
C. Mr and Mrs Santa Claus
D. Japanese and Chinese clauses


ANSWER

1C. You would not expect to see nuclear submarines, as these are naval (military) vessels.

2C. Insurers will usually insist on a time excess applying to the BI section of the cyber policy so that short interruptions are not covered.

3B. A high net worth policy is usually underwritten on an ‘all risks’ basis rather than a peril specific basis.

4B. Business interruption reports are usually completed by the insurers’ own surveyor.

5B. Risk management is the identification of those risks that can threaten the operations, assets, etc.

6C. Enhanced security is likely to be required for all items, apart from stock contained within the business premises.

7C. Any claim for loss of profit should be net of savings such as running costs.

8C. The degree of proof required in civil cases is ‘on the balance of probabilities’.

9C. The policy will pay the recall costs incurred directly and solely in connection with an insured event. 10A. In the UK market, the American and Norwegian clauses are often used.

 

Picture Credit | iStock

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