Hannah O'Donnell 2016 compliance test

2016 Annual Competency Test

Name:
Hannah O'Donnell

Date:
23rd March 2016

Instructions
If operating Windows7 ensure you enable all content by clicking ‘Options’ on the bar
at the top of this page, followed by ‘Enable this content’
The test is split into modules. Please only complete the modules for the schemes you
are trained on. Everyone must complete the ‘General’ module
Select the most appropriate answer for each question. If more than one answer is
selected then the question will be marked as incorrect
You may use all the tools that are at your disposal when speaking with a customer
You must not confer with a colleague
Once you have completed the test please save to your H: Drive and email it as an
attachment to [email protected]

Scores (for admin use only): HC & PH
GT 100%

100% 80% HH
N/A
MH G&L + HE

70% 100%

Overall:

90%

S&S

20/25 = 80%

General

1. A customer wants to complain about the mis-selling of their policy. Which is the correct
complaints procedure they should follow? Complain to:

RSA – then – CG – then – FOS
FCA – then – RSA – then – FOS
CG – then – RSA
CG – then – FOS
2. What time period do we have to acknowledge a formal long complaint?

Within 5 Working Days
The same day by close of Business
By close of business the next working day
Within a reasonable time
3. A customer advises they have lost their documents and wants them resending. How much
should we charge?

£10
Nothing if they can be sent by email only
£15
Nothing if this is the first time this has happened
4. When processing an MTA, the total premium adjustment shows as +£11, do you..........

Ask a Manager to edit this amount to zero
Charge the client £11
Charge the client £15 - admin fee only
Charge the client £26 (£11+£15 admin fee)
5. A Tourer customer tells you that his premium is £347.60; this is inclusive of the 10% DD interest
charge. What was the client’s premium prior to the 10% charge?

£312.84
£316
£312
£313

6. Which principle of insurance obliges the insurer to place the customer in the same financial
position after a claim as they enjoyed immediately before it?

Contribution
Indemnity
Insurable Interest
Subrogation
7. Having paid stolen money into a bank account a money launderer buys and sells stocks and
shares and then transfers the money between various offshore bank accounts. This is an example
of which stage of the money laundering process?

Placement
Layering
Smuggling
Integration
8. A customer paying by direct debit calls to make a change to their policy, incurring a £30 charge.
Today is the 15th May and the policy expiry date is the 9th June. How should the payment be
taken?

In full
Monthly
In full or monthly
By cheque only
9. A customer calls to cancel their policy after two months following the theft of their caravan.
They originally paid by debit card. How will any premium refund be returned?

To the same debit card
By cheque
They wouldn’t get a refund
To the card of their choosing
10. Which of the below is NOT personal data covered by the Data Protection Act?

A customer’s bank account details
The storage location of a customer’s caravan
The amount of public liability cover provided on the Caravan Guard Tourer policy
A customer’s date of birth

Tourer

1. At what value is a tracking device required for a Twin Axle caravan?

£14,000
£20,000
£10,000
£25,000
2. For which of the below are we able to offer personal possessions cover?

Trailer Tent
Folding Camper
Folding Caravan
All of the above
3. What is the Single Item Limit for caravanning equipment?

£250
£300
£1,000
No limit
4. Mr Bieber calls on behalf of his father. He wants to get a quote for his father’s caravan. Is he
able to do this?

No
Yes, as long as the policy will be in his father’s name
Yes, but the policy must be in the son’s name
Only if we get consent from his father first
5. A customer calls to insure his first caravan. He drives a large transit van for work and has done
so for the last 3 years. He does not have a HGV licence. How many years introductory NCD would
you apply?

0 years
1 year
2 years
3 years

6. What discount do we offer for the ‘IDC’ device?

2.5%
5%
10%
No discount
7. Which of the following manufacturers are we able to cover?

Fendt
Turtle Trailer
Roma
GoPod
8. A customer moves their caravan from a holiday site with no barrier to a storage site with a 24hr
barrier and CCTV. CAS generates an additional premium of £23 (including the £15 admin fee). How
much should you charge the customer?

£23
£15
£0
£8
9. When setting up a one month free policy, for which payment method would you select ‘One
month free’ as the payment type?

In full and direct debit
In full
Direct debit
Neither
10. Mr Lloyd's caravan is a twin axle worth £21000. Can we allow 10 days free insurance for this
with just a hitch lock and wheel clamp fitted?

Yes
No
On referral to RSA
Only if a tracker is fitted within 48 hours

Holiday Caravan & Park Home

1. What is the single item limit for personal possessions on a holiday caravan policy?

£250
£300
Unlimited
£1500
2. Which of the following would not need to be included in the structure sums insured for a
holiday caravan policy?

Steps
Decking
Fencing
Garden Furniture
3. Mr Greyjoy went through a quote for his holiday caravan yesterday and named his wife on the
policy. She calls today to set up the policy. Is she allowed to do this?

Yes
Only if Mr Greyjoy gives permission over the phone today
No
Only if she is using his credit card
4. What is the excess for claims for damage caused whilst the holiday caravan is hired out?

£75
£250
Whatever the excess is on CAS
£50
5. On a holiday caravan main residence policy, where are the customer’s personal possessions
covered (if this cover is taken)?

At the holiday park
Anywhere in the UK
Inside the caravan only
Worldwide

6. Can you give commission away on a Block Scheme park?

Yes
No
Only if we are making at least £45
On referral to RSA
7. Which of the following do not affect the premium on a Park Home policy?

Number of residents
Park home postcode
Age of policyholder
Number of bedrooms
8. What is the minimum premium chargeable to a customer for an individual park home policy?

£185
£201
£93
£141
9. A Park customer on an individual site with 3 years NCD suffers a fault claim, what will their NCD
be at renewal?

0 Years
1 Year
2 Years
3 Years
10. A Park Home customer is planning on travelling round Europe for 6 months. They ask if they
can rent out their park home. What is your response?

Yes
As long as for no more than 8 months
No
Only if the site says it’s okay

Motorhome

1. Which of the following is definitely not an acceptable tracking device?

Thatcham 4
Thatcham 5
Thatcham 6
Thatcham TQA
2. Which of the below is not part of our NFO criteria?

Purchased from new
No non standard accessories or modifications
Insured at the cost of a brand new model
Less than 24,000 miles
3. A customer calls part way through the year to advise he’s suffered a fault claim on his private
car. Do we charge the AP generated?

Yes
Yes – We also charge the admin fee
No
No – We just charge the admin fee
4. Which of the following scenarios is not covered by our UK Breakdown cover?

Running out of fuel on the motorway
Becoming stranded in snow on a holiday site
A flat battery whilst away on holiday
A flat tyre whilst travelling back from the supermarket
5. If a customer buying from a dealer is picking up his motorhome on the 2nd of August, what date
would you start the 10 day free driveaway cover from?

29th August
29th July
16th August
2nd August

6. Mr Mister calls to query if he is covered to tow with an A-Frame. What is the correct response?

No
Yes, we cover the trailer up to £1000
The A-Frame is covered for damage but we do not provide any liability cover
The A-Frame is not covered for loss or damage. You must ensure you are complying with the law
in regards to breaking systems for liability cover to be operative
7. Which body-type best describes the below motorhome?

Coachbuilt – Low Profile
American A-Class
A-Class
Derived Van
8. A customer calls to add European Breakdown cover for his 19 year old motorhome. He already
has EU travel cover. What is the total amount we should charge the customer?

£44
£94
£79
£59
9. Mr Bojangles has a motorhome policy with Caravan Guard. His wife calls to renew the policy.
There is no header and no notes confirming it is okay to speak with her but she says he would give
consent if he was there. Is she able to renew the policy?

Yes and she is able to update all the details
No, unless Mr Bojangles can give consent over the phone
No, we must speak to the policyholder
Yes, she can renew the policy but can’t make any amendments
10. A customer travelling to France for 2 weeks insists on being issued with a Green Card. What is
the total amount we should charge the customer? He already has EU travel and breakdown cover.

£26
£0
£15
£41

Gadget & Leisure and Home Emergency

1. When would a customer’s children’s gadgets be covered?

When the children are under 16 and normally reside with them
If the child purchased the gadget themselves
If the gadgets were a present
If the gadget is less than 8 years old, regardless of the age of the child
2. A customer has a camera valued at £1000 and a bike valued at £2000. Are we able to insure
these?

We can insure the bike but not the camera as it is worth more than £700
We can’t insure either as they are both worth more than £700
We can insure the camera up to £700 and the bike up to £2000
We can insure the camera up to £1000 and the bike up to £2000
3. A client has a 5 year old laptop. Will it be replaced brand new if it is stolen?

Yes
Yes – but only if a new one costs less than £700
No, we can’t cover laptops over 3 years old
No, depreciation applies once the gadget is over 3 years old
4. Do we cover tablets for accidental loss?

Yes, as long as it is reported to the police
No
Only if the customer can provide an actual receipt
Yes but only in the UK
5. What is the age limit for leisure items for us to be able to insure?

8 years
No limit
3 years
20 years

6. A customer with Gold cover on their main residence has a blocked toilet. Will this be classed as
an emergency?

Yes in all instances
No
Yes, unless there is another toilet in the house
Only at night time
7. A customer with Platinum cover on their Holiday Caravan wakes to find their boiler isn’t
working. Will this be classed as an emergency?

Yes in all instances
No, they must have Platinum Plus cover for boiler breakdowns
Yes but the boiler must be under 12 years old and have been serviced in the last 12 months
Yes, as long as the boiler isn’t still under warranty
8. A customer with Platinum Plus cover on his main residence calls to cancel his policy after 4
months. He has never made a claim. Will he be entitled to a refund?

Yes, he will receive a full refund
No, Platinum Plus cover is non refundable after 14 days
He will receive a prorata refund minus a £25 cancellation charge
He will receive a refund but only if the caravan/motorhome policy is still in force
9. A customer wants to insure their main residence and Tourer for emergencies. What is the
maximum level of cover they can have on each?

Platinum on both
Platinum Plus on both
Platinum on Tourer and Platinum Plus on Main residence
Platinum Plus on Tourer and Platinum on Main residence
10. Mrs Longbottom doesn’t own her home; she rents it through a lettings agency. Can she have
Home Emergency cover on her main residence?

Yes in all instances
No in all instances
Only if her landlord hasn’t taken Home Emergency cover on the property
If the lettings agency say it’s okay

Holiday Home

1. Which of the following are we concerned with when establishing the sums insured for a Holiday
Home?

The market value
The rebuilt cost
The purchase price
The desired sale price

2. What is the maximum number of bedrooms a holiday home can have for us to be able to
insure?

4
6
8
No limit

3. Is the risk acceptable if the owner of the holiday property is not a UK resident?
Yes in all instances
No
Only if they pay in full and provide a UK correspondence address
Only if the property is rented out less than six months of the year

4. What excess is payable for escape of water claims where there is an electronic water switch
fitted to the property?

£100
£250
£0
£300

5. Mr Womble wants to insure his first holiday property. He has no NCD to transfer but has been
claim free on his home insurance for three years. How much NCD would you offer him, if any?

0
1 year
2 years
3 years

6. A customer queries if he is covered if a paying guest breaks his TV. What is the correct
response?

Yes in all instances
Only if full accidental damage cover for contents has been selected
If contents cover and hiring cover have been taken
It is never covered

7. What is the excess payable if a paying guest causes damage?
Whatever excess the customer has selected
£250
Either the excess the customer has selected or the deposit they have paid, whichever is higher
£100

8. A customer has six holiday properties that they rent out. Are we able to offer cover?
Yes, we can provide cover for all six but on separate policies
Yes, we can cover all six on the same policy
No, we can only cover a maximum of four properties as any more would be a commercial

insurance risk
No, it is illegal to own more than four holiday properties

9. A customer is unsure of the rebuild cost of their holiday property. Should you continue to
quote?

No, we cannot proceed until the customer can confirm the exact value
Yes, as long as the customer can confirm £500,000 would be sufficient to rebuild the property
Yes, continue to quote as the value is irrelevant
Yes, as long as the customer can confirm the purchase price was less than £500,000

10. Are pedal cycles covered away from the holiday property?
Only if the customer has taken contents cover
No, we cannot cover pedal cycles on this policy
Yes but they are not covered for theft
No, contents are only covered at the holiday property

Skilled and Specialist

Please read all the questions in full and take note of how many marks are available for each
question. Some questions are multiple-choice whilst others have space for a free-type answer.

1. An adviser asks you to check why a holiday caravan quote is referring. When you check the
postcode on site checker you see the below message.

The site the customer is on is called Tidal Wave Caravan Park. How should you proceed? (1)

Override the referral and advise it is fine to provide cover
Advise the site is a decline and we cannot provide cover
Refer to RSA

2. We are uncompetitive on a customer’s renewal. Number the below in order of how you would
try and win the business. (4)

Remove Emergency Accommodation cover 2 4
Apply 10% RSA discount 3 3
Increase the excess 1
Panel Quote 4 2

3. The below customer calls for a quote on his Touring caravan. How should you proceed? (1)

Clone the ‘lapsed’ record
Amend the ‘prospect’
Start a brand new record
Do an add-quote from the ‘lapsed’ record

4. The below customer has a cheaper target premium. List three things you could discuss to try
and reduce the premium before using the RSA discount and commission. (3)

Class of Use - Is this still needed
Mileage - Can we reduce this year?
European Cover - Do they still need?

5. In which of the below scenarios should you not ‘clone’ a record. (1)

To set up a new policy following a panel quote
To set up a new policy after a motorhome renewal lapsed 10 days ago
To set up a new policy after a policy was cancelled 2 months ago
To set up a 10 day driveaway policy
6. An adviser processing a MTA to add EU travel cover asks you to check the additional premium.
Explain the process you would go through before editing the premium. (2)
Check the notes to ensure they haven't already had a price at NB or Rnwl.
Check DA for the exact cost to add on

7. An adviser refers after a customer queries whether we can quote him. He received a BA30
conviction 4 years ago. What would you say? (1)
BA30 - Attempting to drive while disqualified
Demerit table confirms 63 points - unable to cover until after 5 years from date of conviction


8. The below customer has a cheaper quote of £280. How much commission would you apply to
win the business? (1)

£26 Axle loading indicates a Twin Axle so commission can’t be applied
9. What would the minimum excess and security for an £88,000 motorhome? (2)

Excess would need to be at least £350 Security - Must be behind a barrier, Tracker must be
Proactive, Thatcham Cat 1 Alarm or Van Bitz, General Secuirty where are keys kept etc

10. You are asked to edit the premium for a temporary additional driver. He is 26 and has never

driven a motorhome before. The cover is for 9 days. What would the charge be? (1)
£86 
11. An adviser dealing with a Park Home renewal advises we are still uncompetitive after applying

the RSA discount and commission. Is there anything else we can do? (1)
Nothing more we can do other than explain our benefits & try to sell the policy
We should clone the record and quote on the new rates

12. What is the total commission we can give away on the below quotation? (1)

£49 

13. What is the minimum premium for each of the below schemes? (4)

Tourer £89 
Holiday Caravan (Individual) £93 
Motorhome £252 
Folding Camper £62 

14. We have quoted the below customer £192. They have a cheaper quote of £170. What is the
minimum price you can offer to win the business? (1)

£170 Price Ma 
15. Dave from Saga calls to confirm a customer’s NCD and date of birth. How do you proceed? (1)

Provide all the information as long as Dave can pass data protection
Confirm NCD only, as long as Dave can pass data protection
Confirm NCD only, data protection isn’t necessary for this type of information