Does a conditional acceptance form a valid contract
No it is not an acceptance it is a counter offer
3 of 23
If I post an acceptance when is it deemed that I have accepted an offer
When acceptance is posted
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How soon must insurers warn insureds about renewal under ICOBS?
In good time
5 of 23
What were the three new renewal rules introduced by the FCA in April 2017
Previous year’s premium to be disclosed, Text to encourage consumers to shop around, Additional prescribed notice for insurers who have renewed four consecutive times
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What is usually the cooling off period for consumer contracts
14 days
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What is usually the cooling off period for PPI contracts
30 days
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What is a cooling off period
Period in which consumers can cancel a policy
9 of 23
Do cooling off periods apply to all consumer insurance contracts
No, they do not apply to short term travel policies
10 of 23
Identify three other ways an insurance contract can be terminated.
Fulfilment, Voidable, Fraudulent acts
11 of 23
Following the Insurance Act 2015 what is insurers' remedy if the policyholder breaches a warranty
Coverage is suspended whilst it is being breached,
12 of 23
If a policyholder submits a fraudulent claim what are insurers' remedies?
Insurer not liable to pay claim, Can recover amounts already paid on claim , Can choose to terminate contract from date of fraudulent act
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If an insurer decides to terminate coverage following a fraudulent claim what can they do?
Can refuse liability for all matters after fraudulent act, Do not have to return premiums
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In a Group contract if an individual insured submits a fraudulent claim can the insurer terminate cover for the other individuals insured
No
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Who is a broker usually an agent of?
The policyholder/insured
16 of 23
What are the general TOBA requirements
To be clear and succinct, Reflect the business relationship, Define and allocate responsibilities and rights, Ensure compliance with regulatory or statutory rules
17 of 23
What a contract may be defined as
An agreement, enforceable by law, between two or more persons to do, or abstain from doing, some act or acts, their intention being to create legal relations and not merely to exchange mutual promises
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What is consideration
Some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other
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What is a warranty
A term in an insurance contract which according to the Marine Insurance Act 1906 must be exactly and literally complied with by the insured whether material to the risk or not
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Legal definition of an agent
One who is authorised by one party (the principal) to bring that party into a contractual relationship with another (the third party)
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When may an agency be terminated
Mutual agreement by the principal and the agent, the agency being withdrawn by the principal or given up by the agent, the death/bankruptcy/insanity of either party
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Methods of creating an agent/principal relationship
Agency by consent, Agency by necessity, Agency by ratification
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Other cards in this set
Card 2
Front
What is usually the consideration in insurance
Back
The premium
Card 3
Front
Does a conditional acceptance form a valid contract
Back
Card 4
Front
If I post an acceptance when is it deemed that I have accepted an offer
Back
Card 5
Front
How soon must insurers warn insureds about renewal under ICOBS?
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