Page 55 - W01TB8_2017-18_[low-res]_F2F_Neat

Chapter 2 The insurance market 2/17

Question answers

2.1 Insurers might wish to cover the catastrophe perils of flood, storm, fire and earthquake.
2.2 The most obvious ways are: Chapter
• ensuring appliances such as sprinklers, hydrants, fire alarm and fire dampers are installed and checked 2
regularly;
• good housekeeping, e.g. ensuring waste paper is removed from the premises each day;
• regular checking and servicing of all machinery and electrical installations; and
• no smoking, except in agreed areas.

Sample examination question answers

1. The correct answer is A.
2. The correct answer is B.
The underwriter is the person who accepts the risk on the members’ behalf. The risks accepted are carried by
the Names. Reference copy for CII Face to Face Training