LM1 - CII EXAM
What is the main purpose of the International Underwriting
Association of London? - ANSWERS-To secure an optimal trading
environment for its members
The broker for a utilities company is most likely to place a power
station risk within the London Market because the - ANSWERS-
Subscription market provides sufficient capacity to underwrite the
risk
Under a contract of insurance, an insurer - ANSWERS-Agreed to pay
an amount to the insured upon the occurrence of an insured event,
in return for consideration by the insured
How much of a non-compulsory insurance claim will the Financial
Services Compensation Scheme pay if an insurer becomes insolvent
prior to the claim being settled? - ANSWERS-90% of the claim
What is the role of the Financial Ombudsman Service? - ANSWERS-To
help resolve individual disputes between consumers and financial
institutions
Who is responsible for setting the level of contribution to the Lloyd's
Central Fund? - ANSWERS-Council of Lloyd's
,The two main objectives of the International Association of Insurance
Supervisors is to contribute to global financial stability and to -
ANSWERS-Promote effective and globally consistent supervision of
the insurance industry
The principal role of the Financial Conduct Authority and the
Prudential Regulation Authority is to - ANSWERS-Regulate and
supervise the UK financial services industry
What ultimate action can the Financial Conduct Authority (FCA) take
against a company that fails to meet FCA requirements? - ANSWERS-
The company can be wound up
What essential component of a valid contract of property insurance
constitutes ownership of the subject matter? - ANSWERS-Insurable
interest
An appointed representative usually acts on behalf of the -
ANSWERS-Intermediary
The main purpose of which organisation is to provide expertise, data
and analysis to individual US state insurance regulators to effectively
regulate the insurance industry and protect consumers? - ANSWERS-
The National Association of Insurance Commissioners
, What is usually considered to be the most effective way for a London
Market insurer to prevent an underwriter from writing a risk in
contravention of EU legislation? - ANSWERS-Training and education
of all underwriting staff
What is the main purpose of sanctions imposed by Governments or
the United Nations? - ANSWERS-To assert pressure on individuals,
companies, or political regimes
Under the Data Protection Act 2018, what is the maximum fine that
the Information Commissioner can levy on data controllers and
processors for the most serious data breaches? - ANSWERS-17.5m
GBP (20m EUR) or 4% of annual global turnover
Establishing proof of a client's identity is an essential part of an
insurer's responsibilities when writing business to comply with the -
ANSWERS-Money Laundering Regulations 2017
A London Market broker places an insurance policy on a subscription
basis with a number of Lloyd's underwriters. On receipt of the
premium from the insured, to whom does the broker pay the
premium? - ANSWERS-Xchanging Ins-sure Services (XIS)
A commercial combined insurance policyholder of a Lloyd's syndicate
suffers a fire at its factory. Who would the insurer usually require
notification from in order to process the claim? - ANSWERS-The
broker
What is the main purpose of the International Underwriting
Association of London? - ANSWERS-To secure an optimal trading
environment for its members
The broker for a utilities company is most likely to place a power
station risk within the London Market because the - ANSWERS-
Subscription market provides sufficient capacity to underwrite the
risk
Under a contract of insurance, an insurer - ANSWERS-Agreed to pay
an amount to the insured upon the occurrence of an insured event,
in return for consideration by the insured
How much of a non-compulsory insurance claim will the Financial
Services Compensation Scheme pay if an insurer becomes insolvent
prior to the claim being settled? - ANSWERS-90% of the claim
What is the role of the Financial Ombudsman Service? - ANSWERS-To
help resolve individual disputes between consumers and financial
institutions
Who is responsible for setting the level of contribution to the Lloyd's
Central Fund? - ANSWERS-Council of Lloyd's
,The two main objectives of the International Association of Insurance
Supervisors is to contribute to global financial stability and to -
ANSWERS-Promote effective and globally consistent supervision of
the insurance industry
The principal role of the Financial Conduct Authority and the
Prudential Regulation Authority is to - ANSWERS-Regulate and
supervise the UK financial services industry
What ultimate action can the Financial Conduct Authority (FCA) take
against a company that fails to meet FCA requirements? - ANSWERS-
The company can be wound up
What essential component of a valid contract of property insurance
constitutes ownership of the subject matter? - ANSWERS-Insurable
interest
An appointed representative usually acts on behalf of the -
ANSWERS-Intermediary
The main purpose of which organisation is to provide expertise, data
and analysis to individual US state insurance regulators to effectively
regulate the insurance industry and protect consumers? - ANSWERS-
The National Association of Insurance Commissioners
, What is usually considered to be the most effective way for a London
Market insurer to prevent an underwriter from writing a risk in
contravention of EU legislation? - ANSWERS-Training and education
of all underwriting staff
What is the main purpose of sanctions imposed by Governments or
the United Nations? - ANSWERS-To assert pressure on individuals,
companies, or political regimes
Under the Data Protection Act 2018, what is the maximum fine that
the Information Commissioner can levy on data controllers and
processors for the most serious data breaches? - ANSWERS-17.5m
GBP (20m EUR) or 4% of annual global turnover
Establishing proof of a client's identity is an essential part of an
insurer's responsibilities when writing business to comply with the -
ANSWERS-Money Laundering Regulations 2017
A London Market broker places an insurance policy on a subscription
basis with a number of Lloyd's underwriters. On receipt of the
premium from the insured, to whom does the broker pay the
premium? - ANSWERS-Xchanging Ins-sure Services (XIS)
A commercial combined insurance policyholder of a Lloyd's syndicate
suffers a fire at its factory. Who would the insurer usually require
notification from in order to process the claim? - ANSWERS-The
broker
