Question
1
What is meant by "Open Market Placement"?
What is meant by "Open Market Placement"?
Options
a
The procedure by which a broker takes the slip to the underwriter
A procedure in which the broker takes the slip to the underwriter
b
The procedure by which a broker sells insurance directly to the customer
A procedure in which the broker sells insurance directly to the customer
c
The procedure by which an underwriter sells a policy directly to the insurance company
A procedure in which the underwriter sells the policy directly to the insurance company
d
The procedure by which a customer buys insurance directly from Lloyd's
A procedure in which the customer buys insurance directly from Lloyd's
Grade
Ungraded
Last Update
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Question
2
What is given by the insured as consideration in the context of insurance?
What is given by the insured as consideration in the context of insurance?
Options
a
Premium
Premium
b
Down payment
Down payment
c
Policy
Policy
d
Risk
Risk
Grade
Ungraded
Last Update
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Question
3
What does an underwriter who is willing to insure a risk in the London Market do?
What does an underwriter who is willing to insure a risk in the London Market do?
Options
a
Initials the slip and affixes a stamp
Initials the slip and affixes a stamp
b
Pays the premium
Pays the premium
c
Issues the policy
Issues the policy
d
Sends the slip to the broker
Sends the slip to the broker
Grade
Ungraded
Last Update
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By -
Question
4
What is meant by a subscription market in the context of the London Market?
What is meant by a subscription market in the context of the London Market?
Options
a
A market in which insurers participate in insuring the whole risk by taking a certain percentage
A market in which insurers participate in insuring the entire risk by taking a certain percentage
b
A market in which insurers buy all risks
A market in which insurers buy all risks
c
A market in which customers buy insurance directly
A market in which customers buy insurance directly
d
A market in which all policies are issued by one insurer
A market in which all policies are issued by one insurance company
Grade
Ungraded
Last Update
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By -
Question
5
What replaced the one-page slip procedure in the London Market?
What replaced the one-page slip procedure in the London Market?
Options
a
Market Reform Contract (MRC)
Market Reform Contract (MRC)
b
Two-page slip
Two-page slip
c
Verbal contract
Verbal contract
d
Standard policy
Standard policy
Grade
Ungraded
Last Update
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Question
6
What happens if a loss occurs before 100% subscription is achieved?
What happens if a loss occurs before 100% subscription is achieved?
Options
a
The underwriters who have agreed remain bound by the contract
The underwriters who agreed remain bound by the contract
b
The underwriters may cancel the contract
The underwriters may cancel the contract
c
The broker must find new underwriters
The broker must find new underwriters
d
The insurance contract becomes void
The insurance contract becomes void
Grade
Ungraded
Last Update
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By -
Question
7
In the case of General Reinsurance Corp v Forsakringsaktiebolaget Fennia Patria, what was regarded as the offer?
In the case of General Reinsurance Corp v Forsakringsaktiebolaget Fennia Patria, what was regarded as the offer?
Options
a
The submission of the slip by the broker
The submission of the slip by the broker
b
The underwriting by the underwriter
The underwriting by the underwriter
c
The payment of the premium by the insured
The payment of the premium by the insured
d
The endorsement of the slip by the court
The endorsement of the slip by the court
Grade
Ungraded
Last Update
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By -
Question
8
What happens when underwriters mark the MRC slip?
What happens when the underwriters scratch the MRC slip?
Options
a
They create a binding agreement
They create a binding agreement
b
They may cancel the contract
They may cancel the contract
c
They must wait for the broker's approval
They must wait for the broker's approval
d
They must wait for the court's approval
They must wait for the court's approval
Grade
Ungraded
Last Update
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By -
Question
9
Who is often followed by other insurers because of their reputation as an expert in the required coverage?
Who is often followed by other insurers because of their reputation as an expert in the required coverage?
Options
a
The lead underwriter
The lead underwriter
b
The broker
The broker
c
The insured
The insured
d
The court
The court
Grade
Ungraded
Last Update
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Question
10
In certain cases, what is sufficient to bind following underwriters to the changes proposed?
In certain cases, what is sufficient to bind the following underwriters to the proposed changes?
Options
a
The approval of the lead underwriter
The approval of the lead underwriter
b
The approval of the insured
The approval of the insured
c
The approval of the broker
The approval of the broker
d
The approval of the court
The approval of the court
Grade
Ungraded
Last Update
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