1. Underinsurance can occur under which of these lines of insurance business?
2. Should customers include VAT in their building sums insured?
3. To keep sums insured in line with changes in the cost of reinstating properties, according to the Royal Institute of Chartered Surveyors (RICS) how often should a full professional valuation be conducted?
4. A building’s declared reinstatement value is £750,000. The policyholder suffers a loss, which will cost £500,000 to repair the building.
The building’s true reinstatement value is in fact £1,000,000, so it is underinsured. What level of claims settlement should the customer expect to receive after the condition of average is applied?
5. Which of these is a broker under a duty to do when sourcing insurance for a customer?
6. A policy insures contents on a reinstatement basis. How should a customer approach setting an adequate sum insured?
7. A customer is insuring a large item of machinery on a reinstatement basis. The item is old and now out of production. What value should they use as a starting point when setting an appropriate sum insured?
8. Which is the correct formula for calculating a gross profit sum insured under a business interruption policy?
9. What are ‘uninsured working expenses’ for the purposes of calculating a gross profit sum insured?
10. Which of the following should a customer use to choose their Public Liability limit of indemnity?