In a chain of events, the proximate cause of a loss is always the

• A.only event which is not excluded by the terms of the policy.
• B.dominant event leading to the loss.
• C.only event contributing towards the loss.
• D.last event before the loss occurs.

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

• A.Low frequency, high seventy.
• B.High frequency, low severity.
• C.High frequency, high seventy.
• D.Low frequency, low seventy.

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What is the current rate of Insurance Premium Tax for a motor insurance policy?

• A.10%
• B.20%
• C.12%
• D.9.5%

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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.Apply for a second payment from the policyholders.
• C.Cancel the policies from inception for non-payment.
• D.Offer a discounted premium payment to the policyholders.

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The purpose of the EU solvency requirements for insurers and intermediaries is to

• A.provide authorisation to transact insurance business.
• B.create a standard format for the presentation of accounting data.
• C.introduce monitoring procedures by the Prudential Regulation Authority.
• D.strengthen the financial security of the insurer or intermediary.

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