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1. For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must
A) not unreasonably reject an insured's claim.
B) settle a claim promptly once settlement has been agreed.
C) handle a claims notification within 14 days.
D) provide reasonable guidance to an insured to help him make a claim.
2. What does the Consumer Insurance (Disclosure and Representations) Act 2012 require from consumers applying for insurance?
A) Consumers must choose an insurer based on premium prices alone.
B) Consumers are required to pay for claims made during the policy term.
C) Consumers must disclose all material facts honestly and accurately.
D) Consumers must answer questions about their past claims history.
3. In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
A) as a result of stress or harassment at work.
B) through fear for the safety of another person involved in an accident which he witnessed.
C) through fear for his own safety in an accident.
D) as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
4. John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?
A) Immediately, irrespective of prognosis.
B) He does not need to disclose this.
C) At the date of the next premium payment.
D) Immediately, but only if the diagnosis is terminal.
5. What does the principle of "indemnity" generally prevent in an insurance contract?
A) Insuring property for more than its actual value
B) Allowing the insured to profit from the loss
C) Limiting the insurer's liability
D) Setting premiums based on market conditions
Solutions:
| Question # 1 Answer: A,B,D | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: B |
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