London Market 1 (LM1) -
Insurance Questions with
Verified Correct Answers/2026.
For the principle of contribution to apply, a number of factors need to be
present. What would NOT typically be one of these?
The peril that causes the loss must be common to both policies.
b. There must be a common subject-matter.
c. Both policies must share a common insurable interest.
,d. Both insurers' policies have to be identical. - 🧠 ANSWER ✔✔d. Both
insurers' policies have to be identical.
Is this definition of supply and demand, correct?
"Supply is the provision of something and demand is the need for
something but only at a certain price." - 🧠 ANSWER ✔✔Yes
How might a change in the law making more classes of insurance
compulsory impact on supply and demand?
1) Greater demand will be created.
2) Greater demand will be created at the start but reduce later. - 🧠
ANSWER ✔✔Greater demand will be created (1)
Who do Lloyd's Names use as their professional advisers when deciding to
invest in the market?
1) Member agents
2) Brokers
,3) Managing agents - 🧠 ANSWER ✔✔Member agents (1)
What is meant by the term 'premium income limit'?
1) A measure of the size of the insurer based on how much business it can
accept in a year.
2) How much premium any individual client can be asked to pay.
3) How little premium any individual client can be asked to pay
4) The target set by the regulators for insurers each year. - 🧠 ANSWER
✔✔1) A measure of the size of the insurer based on how much business it
can accept in a year.
Which type of insurer typically specialises in risks such as shipowners'
liability? - 🧠 ANSWER ✔✔Mutual indemnity association.
For whom is the broker usually working in the London Market?
1) Insurer
2) Which ever party contacts the broker first
3) Insured
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 4) both insured and insurer - 🧠 ANSWER ✔✔3) Insured
Which section of the market does the LMA represent?
A) Mutual Indemnity associations
B) Insurance companies
C) The regulators
D) Managing Agents - 🧠 ANSWER ✔✔D) Managing Agents
Money Laundering - What is placement? - 🧠 ANSWER ✔✔Putting cash into
other financial assets, such as cheques or property.
Money Laundering - What is layering? - 🧠 ANSWER ✔✔Criminal creates a
series of complex transactions, to avoid cash being traced to illegal origins.
Money Laundering - What is integration? - 🧠 ANSWER ✔✔Criminal gets
access to clean money.
Which of these different types of information about a risk would an
overseas
regulator not be interested in?
Insurance Questions with
Verified Correct Answers/2026.
For the principle of contribution to apply, a number of factors need to be
present. What would NOT typically be one of these?
The peril that causes the loss must be common to both policies.
b. There must be a common subject-matter.
c. Both policies must share a common insurable interest.
,d. Both insurers' policies have to be identical. - 🧠 ANSWER ✔✔d. Both
insurers' policies have to be identical.
Is this definition of supply and demand, correct?
"Supply is the provision of something and demand is the need for
something but only at a certain price." - 🧠 ANSWER ✔✔Yes
How might a change in the law making more classes of insurance
compulsory impact on supply and demand?
1) Greater demand will be created.
2) Greater demand will be created at the start but reduce later. - 🧠
ANSWER ✔✔Greater demand will be created (1)
Who do Lloyd's Names use as their professional advisers when deciding to
invest in the market?
1) Member agents
2) Brokers
,3) Managing agents - 🧠 ANSWER ✔✔Member agents (1)
What is meant by the term 'premium income limit'?
1) A measure of the size of the insurer based on how much business it can
accept in a year.
2) How much premium any individual client can be asked to pay.
3) How little premium any individual client can be asked to pay
4) The target set by the regulators for insurers each year. - 🧠 ANSWER
✔✔1) A measure of the size of the insurer based on how much business it
can accept in a year.
Which type of insurer typically specialises in risks such as shipowners'
liability? - 🧠 ANSWER ✔✔Mutual indemnity association.
For whom is the broker usually working in the London Market?
1) Insurer
2) Which ever party contacts the broker first
3) Insured
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 4) both insured and insurer - 🧠 ANSWER ✔✔3) Insured
Which section of the market does the LMA represent?
A) Mutual Indemnity associations
B) Insurance companies
C) The regulators
D) Managing Agents - 🧠 ANSWER ✔✔D) Managing Agents
Money Laundering - What is placement? - 🧠 ANSWER ✔✔Putting cash into
other financial assets, such as cheques or property.
Money Laundering - What is layering? - 🧠 ANSWER ✔✔Criminal creates a
series of complex transactions, to avoid cash being traced to illegal origins.
Money Laundering - What is integration? - 🧠 ANSWER ✔✔Criminal gets
access to clean money.
Which of these different types of information about a risk would an
overseas
regulator not be interested in?
