Podcast
Questions and Answers
Which professional is commissioned to negotiate the settlement of a large and complex claim?
Which professional is commissioned to negotiate the settlement of a large and complex claim?
What is a key benefit of insurance as a risk transfer mechanism?
What is a key benefit of insurance as a risk transfer mechanism?
What essential feature must an insurable risk possess?
What essential feature must an insurable risk possess?
Which body is responsible for managing and supervising Lloyd's market?
Which body is responsible for managing and supervising Lloyd's market?
Signup and view all the answers
If a policyholder cancels a trip due to injury, which policy can compensate for cancellation charges?
If a policyholder cancels a trip due to injury, which policy can compensate for cancellation charges?
Signup and view all the answers
How can a surveyor assist an insurer in reducing fire impact?
How can a surveyor assist an insurer in reducing fire impact?
Signup and view all the answers
What type of insurance policy typically covers cargo on an airplane?
What type of insurance policy typically covers cargo on an airplane?
Signup and view all the answers
What is a primary advantage of using diagnostic tools in the general insurance industry?
What is a primary advantage of using diagnostic tools in the general insurance industry?
Signup and view all the answers
How is significant misrepresentation by an insurance intermediary categorized?
How is significant misrepresentation by an insurance intermediary categorized?
Signup and view all the answers
Which area has become more important due to the regulatory shift towards a disclosure-based regime?
Which area has become more important due to the regulatory shift towards a disclosure-based regime?
Signup and view all the answers
Good Faith in insurance can be best defined as which of the following?
Good Faith in insurance can be best defined as which of the following?
Signup and view all the answers
What type of insurance specifically covers accountants facing allegations of negligent business advice?
What type of insurance specifically covers accountants facing allegations of negligent business advice?
Signup and view all the answers
Which of the following is NOT a characteristic of diagnostic tools in insurance supervision?
Which of the following is NOT a characteristic of diagnostic tools in insurance supervision?
Signup and view all the answers
In a disclosure-based regulatory regime, which aspect is crucial for maintaining oversight?
In a disclosure-based regulatory regime, which aspect is crucial for maintaining oversight?
Signup and view all the answers
Which statement best describes the concept of Good Faith in the insurance context?
Which statement best describes the concept of Good Faith in the insurance context?
Signup and view all the answers
What information is indicated by the Memorandum of association obtained during customer due diligence?
What information is indicated by the Memorandum of association obtained during customer due diligence?
Signup and view all the answers
What does the integration stage of money laundering refer to?
What does the integration stage of money laundering refer to?
Signup and view all the answers
Which organization published the 40+90 recommendations to combat money laundering?
Which organization published the 40+90 recommendations to combat money laundering?
Signup and view all the answers
What does prudential regulation issued by the regulator generally cover?
What does prudential regulation issued by the regulator generally cover?
Signup and view all the answers
What is the primary reason an insurer must maintain adequate capital?
What is the primary reason an insurer must maintain adequate capital?
Signup and view all the answers
What does the term 'discharged bankrupt' imply in the context of customer due diligence?
What does the term 'discharged bankrupt' imply in the context of customer due diligence?
Signup and view all the answers
How does money laundering usually begin?
How does money laundering usually begin?
Signup and view all the answers
What is a characteristic of an incorporated company in relation to customer due diligence?
What is a characteristic of an incorporated company in relation to customer due diligence?
Signup and view all the answers
What is one of the main reasons an insurer uses a reinsurer?
What is one of the main reasons an insurer uses a reinsurer?
Signup and view all the answers
Why is the risk of being fined for a criminal offense considered uninsurable?
Why is the risk of being fined for a criminal offense considered uninsurable?
Signup and view all the answers
What distinguishes a peril from a hazard?
What distinguishes a peril from a hazard?
Signup and view all the answers
Which benefit is typically realized when a company takes out insurance?
Which benefit is typically realized when a company takes out insurance?
Signup and view all the answers
How is risk defined in the context of insurance?
How is risk defined in the context of insurance?
Signup and view all the answers
What is it called when a Lloyd’s broker deducts an element of the premium as commission?
What is it called when a Lloyd’s broker deducts an element of the premium as commission?
Signup and view all the answers
What primarily differentiates the role of loss adjusters from loss assessors?
What primarily differentiates the role of loss adjusters from loss assessors?
Signup and view all the answers
Which type of insurer is most likely to offer both life and general insurance products?
Which type of insurer is most likely to offer both life and general insurance products?
Signup and view all the answers
Who is responsible for setting up reinsurance arrangements?
Who is responsible for setting up reinsurance arrangements?
Signup and view all the answers
When arranging cover through an aggregator, who does a person usually deal with first?
When arranging cover through an aggregator, who does a person usually deal with first?
Signup and view all the answers
What encompasses the role of a risk manager?
What encompasses the role of a risk manager?
Signup and view all the answers
Which type of insurer is owned solely by its policyholders?
Which type of insurer is owned solely by its policyholders?
Signup and view all the answers
Who can a private individual approach for independent advice on insurance?
Who can a private individual approach for independent advice on insurance?
Signup and view all the answers
Who provides the financial backing and bears the risks at Lloyd's?
Who provides the financial backing and bears the risks at Lloyd's?
Signup and view all the answers
What is the primary function of an insurance broker?
What is the primary function of an insurance broker?
Signup and view all the answers
What is a key financial advantage for a motor insurer operating directly?
What is a key financial advantage for a motor insurer operating directly?
Signup and view all the answers
Study Notes
Claim Negotiation
- An external professional negotiating complex claims may be a loss adjuster, who represents the insurer.
- Other roles include actuaries, loss assessors, and risk managers.
Insurance Purpose
- Insurance serves as a financial protection mechanism for the insured, offering peace of mind against potential losses.
Insurable Risk Features
- An insurable risk must be fortuitous, meaning unexpected or accidental, rather than intentional.
Lloyd's Structure
- The overall management and supervision of Lloyd's market is the responsibility of the Council of Lloyd's.
Cancellation Charges
- Travel insurance policies specifically compensate for cancellation charges due to unforeseen events.
Fire Risk Management
- Surveyors can help reduce potential fire impacts by recommending improvements to policyholders' work practices.
Cargo Insurance
- Aeroplane cargo is typically covered by aviation insurance policies.
Customer Due Diligence
- A customer's Memorandum of Association indicates they are an incorporated company.
Money Laundering Integration
- Integration in money laundering refers to criminals accessing laundered money, obscuring the origins of funds.
Anti-Money Laundering Recommendations
- The Financial Action Task Force published the 40+90 recommendations to combat money laundering.
Prudential Regulation
- Prudential regulation covers the financial integrity and soundness of a company's assets and liabilities.
Insurer Capital Maintenance
- Adequate capital helps minimize the risk of financial failure for an insurer.
Regulatory Oversight Tools
- Diagnostic tools are preferred for identifying potential issues before they arise in the general insurance industry.
Misrepresentation Consequences
- Significant misrepresentation of insurance by an intermediary is classified as fraud.
Disclosure-Based Regime Impact
- Increased importance of data reporting as part of a disclosure-based regulatory regime.
Good Faith in Insurance
- Good Faith requires the voluntary, complete disclosure of all relevant risk information when proposing insurance.
Professional Indemnity Insurance
- Coverage for accountants facing lawsuits due to alleged negligent business advice is provided by professional indemnity insurance.
Reinsurance Use
- Insurers engage reinsurers to spread risks more widely.
Uninsurable Risks
- Risks related to criminal offenses are uninsurable because they contradict public policy.
Perils vs Hazards
- A peril causes a loss, while a hazard influences the likelihood of that loss occurring.
Insurance Benefits for Companies
- Insurance provides a means for companies to free up capital by mitigating potential loss impacts.
Nature of Risk in Insurance
- In insurance, risks are inherently unpredictable and must be managed effectively.
Broker Commission
- When a Lloyd’s broker deducts commission from a premium, it is referred to as brokerage.
Loss Adjusters vs Assessors
- Loss adjusters differ from loss assessors primarily in the interests they represent during claims negotiations.
Composite Insurer
- Composite insurers offer both life and general insurance products.
Reinsurance Arrangements
- Insurers set up reinsurance arrangements to manage risk exposure.
Aggregator Role
- Consumers using aggregators first interact with a quote engine website for insurance options.
Risk Manager's Role
- A risk manager is responsible for the identification, analysis, and control of risk within organizations.
Mutual Insurance Company
- A mutual insurer is wholly and directly owned by its policyholders.
Independent Insurance Advice
- A private individual seeking independent insurance advice should consult an insurance intermediary.
Financial Backing at Lloyd's
- Underwriters provide the financial backing and assume risks within the Lloyd's market.
Function of Insurance Brokers
- Insurance brokers primarily provide independent advice and assist clients in selecting appropriate coverage.
Advantages of Direct Motor Insurance
- Direct motor insurers benefit financially as they avoid intermediary commissions and reduce marketing expenses.
Proprietary Insurer Ownership
- A proprietary insurer is wholly owned by its shareholders.
Appointed Representative Services
- An appointed representative of a large insurer likely offers tailored services to customers seeking to place insurance risk.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on the roles within an insurer's claim department with this Insurance Chapter 2 quiz. Discover how different professionals contribute to negotiating settlements and the mechanics of risk transfer in insurance. Enhance your understanding of these concepts!
