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NEW QUESTION 31
The purpose of Insurance Premium Tax is to

• A. raise revenue for the Government.
• B. reimburse for claims of insolvent insurers
• C. pay for flood defences.
• D. fund the Association of British Insurers.

Answer: A

NEW QUESTION 32
The Financial Services Compensation Scheme was established to help policyholders in the event of

• A. unreasonable policy terms and conditions.
• B. the financial failure of an insurance company.
• C. the repudiation of liability by an insurer.
• D. fraud perpetrated by an insurance broker.

Answer: B

NEW QUESTION 33
When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as

• A. an indemnity policy.
• B. a new for old policy.
• C. a first loss policy.
• D. a real statement.

Answer: C

NEW QUESTION 34
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