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Last Updated: Jun 17, 2026
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1. Under the provisions of the Financial Services Act 2012. what action, if any, can the regulator take against a firm that has committed money laundering offences?
A) Civil proceedings.
B) Criminal prosecution.
C) Arbitration.
D) No action can be taken.
2. The purpose of the EU solvency requirements for insurers and intermediaries is to
A) provide authorisation to transact insurance business.
B) introduce monitoring procedures by the Prudential Regulation Authority.
C) create a standard format for the presentation of accounting data.
D) strengthen the financial security of the insurer or intermediary.
3. A risk that is always insurable is a
A) capital risk.
B) speculative risk.
C) pure risk.
D) fundamental risk.
4. A claim has arisen which is fully covered under insurer A's policy and insurer B's policy. Insurer A's policy has a sum insured of £30,000 and insurer B's policy has a sum insured of £50,000. What proportion of the claim is insurer B liable for if the principle of contribution applies on a rateable proportion by sum insured basis?
A) Two fifths.
B) Five eighths.
C) Three fifths.
D) Three eighths.
5. The website of an insurer must include the company's registered name, trading address, contact details and regulator. This is in accordance with rules enforced by the
A) Advertising Standards Authority.
B) Competition and Markets Authority.
C) Financial Ombudsman Service.
D) Prudential Regulation Authority.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: C |
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