EMT Practice Test

1. Question Content...

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Question1: How would an insurer's portfolio of motor claims be shown in terms of frequency and severity?

Question2: Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?

Question3: A retail customer CANNOT buy insurance directly from which type of insurer?

Question4: What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?

Question5: An owner of a building reduces its sum insured from £1,000.000 lo £500.000 to save premiums. A Tire causes
£300,000 damage to the building. If the building has a reinstatement value of £750,000 and average is applied, how much will the insured receive in settlement?

Question6: What are the other key components of risk apart from uncertainty?

Question7: A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?

Question8: An investor is unable to obtain insurance to protect his potential losses while trading on the stock market because the category of risk is deemed to be

Question9: A claim has arisen which is fully covered under insurer A's policy and insurer B's policy. Insurer A's policy has a sum insured of £30,000 and insurer B's policy has a sum insured of £50,000. What proportion of the claim is insurer B liable for if the principle of contribution applies on a rateable proportion by sum insured basis?

Question10: The accident record for a printworks show that for every one major injury, there have been 30 minor incidents and 900 non-injury events reported. How would major work injuries be classified in relation to frequency and severity?

Question11: John wishes to insure his friend's house. Why would an insurer refuse to provide a quotation?

Question12: Who is represented by a loss assessor?

Question13: It is important to ensure the fair treatment of customers in order to comply with rules set by the

Question14: When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?

Question15: The capital requirements of insurers and intermediaries are set out by

Question16: How does insurable interest arise, if at all. when an insurer arranges reinsurance?

Question17: A loss adjuster normally acts on behalf of the

Question18: How is Insurance Premium Tax collected within the UK?

Question19: When motor insurance is purchased directly with an insurer, what is usually the main disadvantage to the policyholder in the event of a claim compared to purchasing indirectly through a different marketing channel?

Question20: Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?

Question21: If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of

Question22: What type of risk is a widespread natural disaster?

Question23: A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?

Question24: Who cedes business to a reinsurer?

Question25: Which key test for money laundering is defined under the Proceeds of Crime Act 2002?

Question26: In the event of an insurer including an unclear clause in its household insurance policy, which statute could the policyholder rely upon if there was a contractual dispute?

Question27: A house slatls to have subsidence problems due to the negligence of a cable-laying company. The owner of the house claims under his household buildings insurance policy. Which principle allows the insurer to recover from the cable-laying company?

Question28: The main purpose of the fair treatment of customers initiative is to

Question29: To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?

Question30: What is the basis of settlement under a new for old insurance policy if a television is stolen?

Question31: The purpose of Insurance Premium Tax is to

Question32: A Terms of Business Agreement between an insurer and an intermediary will normally state that the insurer will deal with the policyholder

Question33: An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?

Question34: A policyholder achieves peace of mind when insuring his car by

Question35: An insured is temporarily disabled due to illness and unable to work. During this period, what type of insurance policy will typically pay a weekly benefit for up to two years?