< Study Room | 11.07.2019

THE BIG TEN- July 2019

THE BIG TEN- July 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

Which of these, if any, can buy terrorism cover that includes damage arising from nuclear, chemical and biological attack?

A. A corporate entity
B. A private individual
C. A householder
D. No one

Question 2

When should the screening of commercial property insurance claims for fraud take place?

A. When the claim is initially notified
B. When the claim settlement offer is made
C. At all stages throughout the life of the claim
D. When the claim is actually settled

Question 3

Where terrorism cover is bought back, on what basis is cover generally provided?

A. According to the individual insurer’s definition of terrorism
B. According to the UK government’s definition of terrorism
C. According to ABI’s definition of terrorism
D. According to Pool Re’s definition of terrorism

Question 4

On what basis is terrorism cover now offered by property insurers?

A. On a fire and explosion only basis
B. On an ‘all risks’ basis
C. On a specified perils basis
D. Either on an ‘all risks’ basis or on a specified perils basis

Question 5

To what extent does a D&O policy typically provide cover for claims alleging fraudulent acts?

A. It depends on the circumstances of the fraudulent act
B. It will cover all defence costs and court awards
C. It will cover defence costs incurred in successfully defending such allegations
D. It will provide no cover as fraudulent acts are excluded

Question 6

Why are money claims among the most common areas of fraud in travel insurance?

A. Because they are typically high frequency losses
B. Due to the difficulty in providing or disproving a loss
C. International travel has led to an increase in traveller muggings
D. Travellers always take insufficient measures to protect their money

Question 7

Which of these will provide independent scrutiny and advice on environmental policy when the Environment Bill 2019 becomes law?

A. The Environmental Agency
B. The Environmental Conduct Authority
C. The Office for Environment Protection
D. The Treasury

Question 8

Which of these is the typical basis of an environmental insurance policy?

A. Causation basis
B. Claims made and reported
C. Claims made/discovery basis
D. Claims occurring

Question 9

Under a home contents insurance policy, what happens to your client’s sum insured after a claim has been paid?

A. It is reduced by the amount of the claim paid
B. It is maintained only if additional premium is paid
C. It is maintained without charge by the Insurer until next renewal
D. It is increased by 20% to take into account the increased value of the replacement goods

Question 10

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
C. One that would never be considered in handling a claim
D. One that is an optional extra cover when affecting a policy


ANSWER

1A. Terrorism cover is only available to corporate entities.

2C. At all stages throughout the life of the claim.

3D. When buying back terrorism cover, cover is generally provided in line with the Pool Re definition.

4B. Terrorism cover is generally offered on ‘all risks’ basis, including chemical and biological acts of terrorism.

5C. D&O Policies will not cover fraudulent directors but will cover the costs of successfully defending such allegations.

6B. Money claims under travel insurance policies can be subject to fraud due to the difficulty in proving or disproving a loss.

7C. The Environment Bill 2019 intends to create a new framework for environmental governance establishing the Office for Environmental Protection

8C. Environmental insurance is arranged on a claims made/discovery basis.

9C. Typically, the sum insured will not be reduced after a claim is paid.

10B. An uninsured peril is one that is not mentioned in the policy as being covered or excluded.

 

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