WorksheetsIF 1 Chapter 10
Total questions: 24
Worksheet time: 24mins
If an insurer is unable to pay an employers' liability claim for £4m due to insolvency, what is the maximum protection that the individual would receive under the Financial Services Compensation Scheme?
£4m
£5m
£3.2m
£3.6m
Within an insurance broker, which role is subject to the FCA training and competence rules?
Administration staff.
Managing director.
Head of back office functions.
Adviser.
Who, in the first instance, should a policyholder complain to if they believe that they were mis-sold a regulated product?
The Financial Services Compensation Scheme.
The Office of Fair Trading.
The authorised firm that provided the advice.
The Financial Ombudsman Service.
When the Financial Ombudsman Service finds in favour of the insured, the:
settlement is not binding on either party.
insured must accept the settlement.
insurer can either accept or reject the settlement.
insured can either accept or reject the settlement.
An insurance broker has been offered a trip to the races if he recommends an insurer's product to customers. What action should he take to comply with the CII Code of Ethics?
Accept the offer but only if the product is clearly appropriate to the client's needs.
Reject the offer.
Reject the offer but ask if a colleague could go instead
Accept the offer as this is accepted practice
For an insurer's online marketing to comply with the UK GDPR:
there is no need to retain records relating to how consent was given.
people have to positively give their consent to opt in to marketing.
all types of personal data are treated equally.
the insurer may assume a person's consent to receive marketing.
Under the Data Protection Act 2018, what is the maximum fine the Information Commissioner's Office can levy on serious data breaches?
A fine up to £12m or 4% annual global turnover.
A fine up to £7.5m or 1% annual global turnover.
A fine up to £17.5m or 4% annual global turnover.
A fine up to £12m or 6% annual global turnover.
Who would be regarded as an 'eligible complainant' by the Financial Ombudsman Service?
A charity with annual income of £6.8m.
A multi-international business.
A trust with net assets of £5.1m.
A micro-enterprise.
What is the maximum compensation the Financial Ombudsman Service can now require a firm to award to a complainant?
£355,000.
£325,000.
£375,000.
£425,000.
Under the Financial Services Compensation Scheme, what amount would be paid if an insurer offering professional indemnity were to fail, resulting in an unpaid claim?
90% but only up to a maximum amount
100% but only up to a maximum amount.
90%
100%
Under the Financial Services Compensation Scheme, what is the maximum amount payable on a non-compulsory general insurance policy claim?
90%.
100%
75%.
45%.
Under the Insurance Distribution Directive, what is the minimum amount of training and development that an individual is required to undertake annually?
25 hours per year.
15 hours per year
20 hours per year
35 hours per year.
Under the UK GDPR, information about a person such as their racial or ethnic origin, health or religion is referred to as:
subject data.
private data.
protected personal data.
sensitive personal data.
Under the FCA's training and competence rules when, if at all, should someone who advises consumers on general insurance products be supervised?
Whilst they are sitting their exams only.
Whilst they are in training only.
For the whole period that they are an adviser.
Advisers are not subject to the supervision requirements.
The primary purpose of the Consumer Rights Act 2015 is to protect consumers against:
money laundering.
anti-competitive competition.
unfair contract terms.
unfair charges.
An insurance broker receives a complaint from a policyholder on 1 February 2023. It is settled on 15 April 2023. As a minimum, the complaint files must be retained until:
1 February 2026.
1 February 2028.
15 April 2028.
15 April 2026.
The Consumer Rights Act 2015 generally applies to which type of insurance policies?
Consumer insurances
All indemnity insurances.
All benefit policies.
Commercial insurances.
For its members, the CII Code of Ethics:
is legally binding.
is voluntary.
goes beyond legal and regulatory rules.
will not lead to disciplinary action in the case of a breach.
Under FCA rules, an individual's 'competence' is assessed by considering their:
appropriate experience.
appropriate exam qualifications.
skills, knowledge and expertise.
knowledge and demonstration of ethical behaviours.
Michael supervises Kim, who is a trainee adviser, and Megan, an experienced adviser. How is the supervision most likely to be different?
the checks of the advice provided by Kim will be more frequent
Megan does not need to be supervised.
Only Kim is likely to have an annual performance review.
.
Only Megan is likely to have an annual performance review.
What is the minimum time that a general insurer needs to hold an employee's training and competence records, once they have left the company?
5 years
3 years
4 years
6 years
Ethical standards are about:
following FCA rules.
doing the right thing.
c.following the civil and criminal laws
being nice to people.
An insured made a verbal complaint to her insurance broker on 2 December. She then put the complaint in writing on 9 December. The latest she should receive a final response from the broker [or a letter explaining when she would get one] is:
6 January.
3 February.
30 December.
27 January.
Under FCA rules, the definition of an eligible complainant includes a:
consumer.
large employer.
charity with an annual income in excess of £6.5m.
trust with a net asset value in excess of £5m.
