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NEW QUESTION 46
When a member of the Chartered Insurance Institute (CM) is dealing with a client, what specific guidance does the Code of Ethics give in relation to the member's knowledge and expertise?

A. The member must notify the Cll of any shortcomings in his knowledge.B. The member's knowledge and expertise must be kept up to date and relevant.C. The member must provide the client with a copy of appropriate qualifications.D. The member must be qualified to a minimum of the CD's diploma qualification.

Answer: B

 

NEW QUESTION 47
A Terms of Business Agreement between an insurer and an intermediary sets out the

A. agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).B. disaster recovery procedures to apply if there is a major disaster affecting the insurer.C. framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.D. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.

Answer: C

 

NEW QUESTION 48
What are the other key components of risk apart from uncertainty?

A. The level of risk, peril and hazard.B. Financial losses.C. Financial losses and speculation.D. Low severity losses and low frequency losses.

Answer: A

 

NEW QUESTION 49
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?

A. Write to the liquidator to register the debt.B. Cancel the policies from inception for non-payment.C. Apply for a second payment from the policyholders.D. Offer a discounted premium payment to the policyholders.

Answer: A

 

NEW QUESTION 50
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