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NEW QUESTION 33
The purpose of Insurance Premium Tax is to
- A. fund the Association of British Insurers.
- B. raise revenue for the Government.
- C. reimburse for claims of insolvent insurers
- D. pay for flood defences.
Answer: B
NEW QUESTION 34
Lloyd's is known as a subscription market because
- A. if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
- B. the underwriter assigns his signature individually to each risk.
- C. a number of syndicates accept a share of the same risk.
- D. a fee must be paid.
Answer: C
NEW QUESTION 35
A survey of a car repairers reveals a spray booth exists by an unguarded paraffin space beater. Also, a day's supply of paint is kept within the building and waste is removed daily from a metal bin. What will the underwriter perceive as the main physical hazard?
- A. The waste bin.
- B. The unguarded paraffin space heater.
- C. The paint.
- D. The spray booth.
Answer: B
NEW QUESTION 36
When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
- A. Within 7 days of a complaint being made.
- B. Within 30 days of cover being incepted.
- C. At the lime of a claim.
- D. At the time of the sale or immediately afterwards.
Answer: D
NEW QUESTION 37
How does insurable interest arise, if at all. when an insurer arranges reinsurance?
- A. The policyholder is considered to have assigned the insurable interest to the insurer.
- B. Insurable interest is created by statute.
- C. The insurer is considered to have insurable interest by virtue of its liability to pay claims.
- D. Insurable interest does not arise.
Answer: C
NEW QUESTION 38
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