Question 1

The website of an insurer must include the company's registered name, trading address, contact details and regulator. This is in accordance with rules enforced by the

Options :

A : Advertising Standards Authority.

B : Competition and Markets Authority.

C : Prudential Regulation Authority.

D : Financial Ombudsman Service.

Answer: D

Question 2

If an insurer invokes the cancellation clause to cancel a policy mid-year due to a change in the risk, how much of the premium, if anything, is normally returned to the policyholder?

Options :

A : The full year-s premium less a fixed nominal charge.

B : The full year-s premium.

C : None of the premium.

D : A pro rata amount.

Answer: A

Question 3

If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from

Options :

A : disclosing details to a third party.

B : reinsuring the risk.

C : pursuing subrogation rights.

D : increasing the premium.

Answer: C

Question 4

Reinsurance is usually purchased by the

Options :

A : intermediary.

B : insurer.

C : regulator.

D : insured.

Answer: B

Question 5

Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?

Options :

A : Uncertainty.

B : Statutory requirements.

C : Frequency.

D : Certainty.

Answer: A

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