Indemnity Insurance

What should the limit of Indemnity Insurance be equal to?

• The purchase price

• The deposit price

• 10% above the purchase price

• 10% below the purchase price

How long is an Indemnity Policy quotation valid for?

• 3 months

• 6 month

• 12 months

• 1 year

What letter must be sent to the client in respect of the Indemnity Insurance, in order to comply with CLC or SRA requirements?

• Covering letter

• Financial Statement

• Demands and Needs letter

When does an Indemnity Policy need to be placed on risk?

• As soon as you are aware of the defect

• On Exchange of Contracts

• On Completion

• Upon Registration of the property

What is the golden rule of Indemnity Insurance?

• A plaster over a problem

• Quick

• Cost effective

• Don't discuss the issue or policy with anyone who could enforce the defect

What are the benefits of proceeding with Indemnity Insurance as opposed to getting Retrospective Consent? Select all that apply

• Quicker

• Cheaper

• Risk Reduction

• Retrospective Consent could be refused

• You can charge an arrangement fee to your bill

Once you have obtained an Indemnity Policy for the seller to resolve an issue with the property, what are the next steps? Select all that apply

• Add the costs of the Policy and any arrangement fee to your financial statement

• Send the Draft Policy to the buyers solicitors for approval

• Speak to the seller to make sure they agree to cover the costs of the policy

• Speak to the seller and ask them to confirm the terms and conditions of the policy can be complied with

• Send the Policy, Demands and Needs letter and covering letter to the client

What are the disadvantages of indemnity insurance? Select all that apply

• Does not fix the issue, merely pays out if the worst happens

• Can be invalidated if contact is made with the company or individual the defect is insuring against

• Loss has to be incurred before the insurance provider will pay out

• Quick to obtain

Before Exchange what factors do you need to check regarding any indemnity insurance quote on file? Select all that apply

• Has the policy expired?

• Will the seller still pay for the policy and your arrangement fee

• Can the seller still comply with the policy conditions?

• Has the premium of the policy increased?

Who is covered by the Indemnity Insurance Policy? Select all that apply

• The Agents

• The Buyer

• The Buyers Mortgage Lender

• Successors in Title