Who are BIBA and how many regulated firms have a membership?

British Insurance Brokers Association & 1700 regulated firms

Who will the FOS NOT accept complaints from?

Certain businesses with an annual turnover of under £6.5 billion..

Who appoints a Loss Assessor and why?

The policyholder - to assist with the presentation of their claim.

Which of the following is NOT an example of losses not covered by the policy

Loss or damage to property covered by the Policy

The Duty of Fair Presentation section looks at which 2 important UK Statutes

ConsumerInsurance(Disclosure and Representations)Act2012 Insurance Act 2015

Which case relates to Proximate Cause?

Pawsey v Scottish Union & National Insurance Company (1908)

Which Act legislates that representation is less onerous on consumers?

The Consumer Insurance (Disclosure and Representations) Act 2012

Which Case relates to Legal Liability- "Negligence is the omission to do something which a reasonable man...."

Blyth v Birmingham Water WorksCompany (1856)

Association of British Insurers

Why is it important to identify the Proximate Cause?

In order to establish that an insured peril has caused the loss or damage.

What is the most important point to note when determining Proximate Cause?

That the Proximate Cause is the nearest cause and not a remote cause

Which of these statements does not appear in the definition of Proximate Cause

with the intervention of any force started..

Contribution "assured will not be entitled to recover more than the full amount of the loss he has suffered” Which Case?

Scottish Amicable Heritable Securities Ass Ltd v NorthernAssurance Co 1883

Which recent case highlighted the importance of the specific policy wordings where contribution is concerned?

National Farmers Union Mutual Insurance Society Ltd v HSBC Insuranc (UK)Ltd

What is contribution?

Occurs when two or more insurers contribute to settling the same claim

What is a Strict Liability?

Means liability does not depend on proof of fault against the Defendant.

What do the CII provide?

Examinations and qualifications

What does FUEDI stand for?

European Federation of Loss Adjusting Experts

What does The 2015 Insurance Act NOT define Fair Presentation as…

Disclosure which gives the insurer insufficient information

Subrogation Terminology- Third Party

The person from whom a recovery is sought.

What does the Insurance Act 2015 require the proposer to provide?

Requires the proposer to provide a fair presentation of the risk.

Which is NOT one of the three operational objectives for the Financial Conduct Authority (FCA

Disclosure of every material circumstance which the insured knows

Subrogation Terminology- Statute Barred

Legal action that can't be pursued as time limit laid down by law expired

What does the Water Industry Act 1991 provide? The water provider is ...

responsible for damage caused by escape of water however it arises

What is the basic principle of nuisance?

You should “so use your land as not to harm your neighbour”

Which other principle, in addition to the Neighbour Test must be applied to cases of negligence?

The event must be ‘Reasonably foreseeable’

Who appoints a Loss Adjusters and why?

The insurer - to investigate the cause of a loss etc.

Contribution- ".. several insurers shall all of them contribute pro rata to satisfy that loss ..” Which Case?

Godin v London Assurance Co (1758)

What is the role of the Underwriter?

They accept the risk on behalf of Insurance Companies/Lloyd's Syndicate

What information is the insured NOT required to present to the insurer?

Information which is known to the insurer

Which case relates to The Rule in Rylands v Fletcher (1868)?

Cambridge Water Co v Eastern Counties Leather plc (1994)

Which case or act is not related to Insurable interest?

Scottish Amicable Heritable Securities Assoc Ltd v Northern Assur Co (1883)

What is Proximate Cause?

How the damage or loss actually occurred.

Subrogation Terminology- Pre Action Protocol

Rules which recovery actions should follow

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CILA CH1-Introduction to the Insurance Industry

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Questions 64

Answers

1
Who are BIBA and how many regulated firms have a membership?
British Damage Management Association & 1700 regulated firms
British Insurance Brokers Association & 1700 regulated firms
British Insurance Brokers Association & 700 regulated firms
British Damage Management Association & 700 regulated firms
2
Who will the FOS NOT accept complaints from?
An employee covered by a Policy in the name of their employer
Trusts up to prescribed limit.
Certain businesses with an annual turnover of under £6.5 billion..
Private individuals
3
Who appoints a Loss Assessor and why?
The insurer - to investigate the cause of a loss etc.
The Underwriter - to impose certain terms and conditions according to
The FCA - to secure an appropriate degree of protection for consumers
The policyholder - to assist with the presentation of their claim.
4
The case of Guthing v Lynn was regarding Legal Liability, Torts
False
True
5
Which of the following is NOT an example of losses not covered by the policy
Penalties due to underinsurance
The amount of any excess or deductible
Loss or damage to property covered by the Policy
General inconvenience
6
What are the 2 types of nuisance?
Public & Private
Public & Open
Confidential & Private
Private & Secret
7
The Duty of Fair Presentation section looks at which 2 important UK Statutes
ConsumerInsurance(Disclosure and Representations)Act2013 Insurance Act 2016
ConsumerInsurance(Disclosure and Representations)Act2012 Insurance Act 2015
ConsumerInsurance(Disclosure and Representations)Act2012 Insurance Act 2016
ConsumerInsurance(Disclosure and Representations)Act2021 Insurance Act 2015
8
Lloyd’s of London is a society that was incorporated under an Act of Parliament in 1971
False
True
9
Which case is referred to as the Neighbour test?
Pawsey v Scottish Union & National InsuranceCompany (1908)
Donoghue v Stevenson (1932
Cambridge Water Co v Eastern Counties Leather plc (1994)
Jones v Daniel (1894)
10
Which case relates to Proximate Cause?
Godin v London Assurance Co (1758)
Cambridge Water Co v Eastern Counties Leather plc (1994)
Pawsey v Scottish Union & National Insurance Company (1908)
Castellain v Preston (1883)
11
Which Act legislates that representation is less onerous on consumers?
The Consumer Insurance (Disclosure and Representations) Act 2002
The Consumer Insurance (Disclosure and Representations) Act 2000
The Consumer Insurance (Disclosure and Representations) Act 2012
The Consumer Insurance (Disclosure and Representations) Act 2010
12
It is illegal to have two or more policies covering the same event
False
True
13
Which Case relates to Legal Liability- "Negligence is the omission to do something which a reasonable man...."
Blyth v Birmingham Water WorksCompany (1856)
Jones v Daniel (1894)
Pawsey v Scottish Union & National Insurance Company (1908)
Lucena v Craufurd (1806)
14
Who are the ABI ?
Association of Insurance Brokers
Association of Lloyds Brokers
Agency of British Underwriters
Association of British Insurers
15
Who needs to be approved by the Council of Lloyds?
Chartered Loss Adjusters
Lloyd’s of London
Lloyd’s Broker
The branch manager
16
Why is it important to identify the Proximate Cause?
In order to establish that an insured peril has caused the subrogation
In order to establish that an uninsured peril has caused the loss or damage
In order to establish that an insured peril has caused the loss or damage.
In order to establish that an insured peril has caused the gain
17
Which Case was provided the definition of Subrogation?
Carter v Boehm (1766)
Donoghue v Stevenson (1932)
Castellain v Preston (1883)
Lucena v Craufurd (1806)
18
What is the most important point to note when determining Proximate Cause?
That the Proximate Cause is the remote cause and not a nearest cause
That the Proximate Cause is the nearest cause and also a remote cause
That the Proximate Cause is the nearest cause and not a remote cause
That the Proximate Cause is the nearest cause and not a santa clause
19
Which of these statements does not appear in the definition of Proximate Cause
the active and efficient cause that sets in motion..
with the intervention of any force started..
a train of events which brings about a result
working actively from a new and independent source
20
Contribution "assured will not be entitled to recover more than the full amount of the loss he has suffered” Which Case?
National Farmers Union MutualInsurance Society v HSBC Insurance Ltd (2010)
Lucena v Craufurd (1806)
Scottish Amicable Heritable Securities Ass Ltd v NorthernAssurance Co 1883
Castellain v Preston (1883).
21
When was Chartered Institute of Loss Adjusters (CILA) founded and when was it granted a Royal Charter?
1914 & 1916
1941 & 1961
1931 & 1971
1944 & 1964
22
Which recent case highlighted the importance of the specific policy wordings where contribution is concerned?
Scottish AmicableHeritable Securities AssociationLtd v Northern AssuranceCo
National Farmers Union Mutual Insurance Society Ltd v HSBC Insuranc (UK)Ltd
Castellain v Preston
Godin v London Assurance Co
23
What is contribution?
Occurs when two or more insurers contribute to settling the same claim
Occurs when only one insurer contribute to settling a claim
Occurs when two or more insurers contribute to settling the same argument
Occurs when two or more insurers subgrogate to settling the same claim
24
What is a Strict Liability?
Means liability does depend on proof of fault against the Defendant.
Means liability does not depend on proof of fault against the Defendant.
Means liability doesn't depend on proof of strictness against the Defendant
Means liability does not depend on proof of fault against the Prosecutor
25
Which case created a "strict liability"?
Rylands v Fletcher (1868)
Lucena v Craufurd (1806)
Blyth v Birmingham Water WorksCompany (1856)
National Farmers Union Mutual Insurance Society Ltd v HSBC Insurance (2010)
26
What do the CII provide?
Facilities and services such as administration support.
An appropriate degree of protection for consumers
Examinations and qualifications
Damage mitigation services
27
What does FUEDI stand for?
Worldwide Federation of Loss Adjusting Experts
International Federation of Adjusting Associations
Federation of Underwriters in European Districts Institute
European Federation of Loss Adjusting Experts
28
Who defines a Policyholder as “Any natural person acting for purposes outside his trade, business or profession”
FCA
Loss Assessors
FOS
Underwriters
29
What does The 2015 Insurance Act NOT define Fair Presentation as…
Every material representation is made in good faith/substanially correct
Makes the disclosure required by subsection (4)
Makes the disclosure in a manner reasonably clear to a prudent insurer
Disclosure which gives the insurer insufficient information
30
Subrogation Terminology- Third Party
The person from whom a recovery is sought.
The person from whom a recovery is given.
The broker from whom a recovery is sought.
The person from whom a contribution is sought.
31
What does the Insurance Act 2015 require the proposer to provide?
Requires the proposer to provide a fair presentation of the risk.
Requires the proposer to provide a fair presentation of the claim
Requires the proposer to provide a fair approval of the risk.
Requires the insurer to provide a fair presentation of the risk.
32
Which is NOT one of the three operational objectives for the Financial Conduct Authority (FCA
To promote effective competition in the interests of consumers.
To protect and enhance the integrity of the UK financial system
Disclosure of every material circumstance which the insured knows
To secure an appropriate degree of protection for consumers.
33
Contract Law-"a contract with additional terms amounted to a counteroffer.." Which case?
Guthing v Lynn
Jones v Daniel (1894)
Donoghue v Stevenson (1932)
Carter v Boehm (1766)
34
What type of contracts do ‘Fair Presentation’ apply to?
Consumer contracts and Non-Consumer contracts
Consumer contracts only
Non-Consumer contracts only
Trade contracts only
35
Which is NOT a possible remedy for a breach
Action for damages
Injunction
Ignore the breach
Refusal of further performance
36
Subrogation Terminology- Statute Barred
Legal action that can't be pursued as time limit laid down by law expired
Legal action that can be pursued as time limit laid down by law expired
Legal action that can't be pursued as time laid down by insurer expired
Legal action that can't be pursued as time limit laid down by law active
37
What does the Water Industry Act 1991 provide? The water provider is ...
responsible for damage caused by escape of water however it arises
not responsible for damage caused by escape of water however it arises
responsible for damage caused by escape of elephants however it arises
responsible for damage caused by escape of tea however it arises
38
Which department (of an insurer) might usually be responsible for what the insurer knows and doesn’t know?
Underwriters
Loss Adjusters
Brokers
Overwriters
39
What is the basic principle of nuisance?
You should “so use your land as not to harm your neighbour”
You should “so use your house as not to harm your neighbour”.
You should “so use your land as to harm your neighbour”.
You should “so use your land as not to harm your cousin”.
40
Which other principle, in addition to the Neighbour Test must be applied to cases of negligence?
The event must be ‘definitely foreseeable’
The event must be ‘not be foreseeable’
The event must be ‘Reasonably foreseeable’
The event must NOT be ‘Reasonably foreseeable’
41
Who appoints a Loss Adjusters and why?
The policyholder - to assist with the presentation of their claim.
The insurer - to investigate the cause of a loss etc.
The FCA - to secure an appropriate degree of protection for consumers
The Underwriter - to impose certain terms and conditions according to
42
Contribution- ".. several insurers shall all of them contribute pro rata to satisfy that loss ..” Which Case?
Castellain v Preston (1883)
National Farmers Union Mutual Insurance Society Ltd v HSBC Insurance (2010)
Jones v Daniel (1894)
Godin v London Assurance Co (1758)
43
What is the role of the Underwriter?
They arrange policies and and provide advise on insurance matters
They assist in the presentation of a claim
They provide facilities and services such as administation support
They accept the risk on behalf of Insurance Companies/Lloyd's Syndicate
44
What information is the insured NOT required to present to the insurer?
Information which is unknown to the insurer
Information which is known to the insurer
Information which is known to the bank
Information which is known to the broker
45
Which case relates to The Rule in Rylands v Fletcher (1868)?
Cambridge Water Co v Eastern Counties Leather plc (1994)
Blyth v Birmingham Water WorksCompany (1856)
Pawsey v Scottish Union & National InsuranceCompany (1908)
Scottish Amicable Heritable Securities Assoc Ltd v Northern Assuranc (1883)
46
Which case or act is not related to Insurable interest?
The Marine Insurance Act 1906
Castellain v Preston (1883)
Scottish Amicable Heritable Securities Assoc Ltd v Northern Assur Co (1883)
Lucena v Craufurd (1806)
47
In a case of negligence, what point must the claimant NOT prove?
Defamation of character
A duty of care was owed to the person suffering the loss
That there was a breach of duty of care
That damage resulted from the breach of the duty of care.
48
What is Proximate Cause?
Where the damage or loss actually occurred.
How the damage or loss actually occurred.
When the damage or loss actually occurred.
Why the damage or loss actually occurred.
49
Which is NOT a possible defence to strict liability?
Statutory authority
Act of God
Ejectment to recover the land
Act of stranger
50
Subrogation Terminology- Pre Action Protocol
Rules which negligent actions should follow
Rules which recovery actions should follow
Rules which proximate cause actions should follow
Rules which contribution actions should follow
51
To be interested in the preservation of a thing..as to have benefit from its existence or prejudice from its destruction
Lucena v Craufurd (1806)
Castellain v Preston (1883)
Donoghue v Stevenson (1932)
Godin v London Assurance Co (1758)
52
Contribution- National Farmers Union Mutual Insurance Society Ltd v HSBC Insurance (UK) (2010)What did the court decide?
That contribution did not apply because of the specific banking regulations
That contribution did not apply because of the specific Policy wordings.
That contribution did not apply because of the specific liabilities.
That contribution did not apply because of the specific statutes
53
What is the method of sharing the loss known as?
Allocation
Division
Distribution
Apportionment
54
Quantum meruit-is a remedy for a breach but what does it mean?
The amount that is paid is the value of the work not completed
The amount that is paid is the value of the quantum
the amount that is paid is the value of the subragation
The amount that is paid is the value of the work completed
55
The GDPR became law in the UK on...?
25th November 2018
25th June 2018
25th May 2018
25th March 2018
56
Who represents the collective interests of the UK’s insurance industry, and has around 400 companies in membership
British Insurance Brokers Association (BIBA)
Chartered Institute of Loss Adjusters (CILA)
International Federation of Adjusting Associations (IFAA)
Association of British Insurers (ABI)
57
The only reason Insurers have a remedy for breach is if they wouldnt have entered into the contract of insurance at all
True
False
58
Insurance contracts are subject to .......
the principle of fair presentation and not caveat emptor
the principle of fair presentation and caveat emptor
the principle of fair presentation and not indemnity
the principle of fair presentation and not Quantum meruit
59
Contracts of Upmost Good Faith "all material facts needed to be disclosed to an Underwriter" Which case?
Castellain v Preston (1883
Cambridge Water Co v Eastern Counties Leather plc (1994)
Scottish Amicable Heritable Securities Asso Ltd v Northern Assurance Co
Carter v Boehm (1766)
60
If two policies cover the same property, they are called concurrent
True
False
61
Under what 3 headings can legal liability arise?
Tart, contract & Statutory
Tort, contract & Statutory
Tort, contract & Stationary
Tort, confinement & Statutory
62
Which of these does not relate to the case of Castellain v Preston (1883)?
INSURABLE INTEREST
INDEMNITY
LEGAL LIABILITY
SUBROGATION
63
What section of the Insurance Act 2015 must the insurer satisfy to make "contracting out" possible?
Section 7
Section 13
Section 3
Section 17
64
Consumer Insurance Contract” means a contract of insurance : an individual..
enters into contract wholly/mainly for purposes related to their business
enters into contract mainly for purposes unrelated to their car
enters into contract wholly/mainly for purposes unrelated to their home
enters into contract wholly/mainly for purposes unrelated to their business

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