- Created by: ania.m128
- Created on: 05-09-18 21:21
1. Some insurers allow intermediaries to act on their behalf by allowing them to take on risk within defined limits and criteria. What is this known as?
- Substituted binders.
- Delegated authority.
- Third party authority.
- Substituted authority.
1 of 20
Other questions in this quiz
2. Who provides the financial backing and investment required by Lloyd's?
- Members' agents.
- Approved persons.
3. Peter is applying for motor insurance and has disclosed that he has three unexpired speeding offences. He is aged 58 years and drives a small 1100cc car. In underwriting his insurance, what is the KEY concern likely to be?
- Moral hazard.
- Physical hazard.
4. What is the overall process of looking to reduce the impact of risk called?
- Risk management.
- Risk perception.
- Risk reduction.
- Risk transfer.
5. When would average be applied to an insurance claim?
- When the risk is insured with more than one insurer.
- When there is underinsurance.
- When the insurer settles a claim but reserves the rigt to reclaim some of the loss from a third party.
- Where the policy is subject to a franchise.